German technology company PVA Tepla recently presented very strong numbers for the first nine months and the third quarter of the current year. The company recorded a double-digit growth in sales and profits and has full order books. Nevertheless, the PVA share is currently only slightly above the level of the beginning of the year.

On the one hand, this development of the share price this year can be described as unsatisfactory, on the other hand, however, an attractive price potential arises for the next year. Because the company is operating in top form and continues to benefit from some of the most important and largest megatrends of our time.

PVA Tepla in profile PVA Tepla AG was founded in November 2002 through the merger of PVA Vacuum Engineering GmbH and Tepla AG. As a vacuum specialist for high-temperature and plasma processes, PVA Tepla AG is one of the leading companies in the world market for tungsten sintering plants, crystal growing plants, surface activation and fine cleaning plants in plasma.

With their systems and services, PVA Tepla supports essential manufacturing processes and technological developments of industrial companies, in particular in the semiconductor, tungsten, electro / electronics and optics industries as well as in the future-oriented areas of energy, photovoltaics and environmental technology.

The company offers its customers individual solutions from one source. These range from technology development to custom-made design and construction of production plants to customer service.

Double-digit growth in sales and earnings Let’s take a closer look at the latest figures: PVA Tepla increased sales in the first nine months of this year by 46% to 191.2 million euros. The result before interest, taxes and depreciation (EBITDA) increased by 76% from 16.5 to 29.1 million euros. The EBITDA margin has increased significantly to 15.2% from 12.6% in the previous year period.

After taking into account depreciation, an operating result (EBIT) of 23.9 million euros remains compared to 13.1 million euros in the first nine months of 2022 (+82%). This corresponds to an operating profit margin (EBIT margin) of 12.5%. In the previous year period, the margin was still a smooth 10%. Net profit rose from 8 to 16.7 million euros, more than doubling!

In addition, PVA Tepla still has full order books. The order backlog was just under 300 million euros at the end of September. The order intake in the reporting period was 177.6 million euros. On the basis of the strong nine-month figures, management expects sales and earnings at the upper end of the forecast range for the full year.

Given the latest figures and the further prospects, the PVA Tepla share is currently undervalued according to my analysis. Despite the sharp rise in the share price after the recent figures were presented, there should therefore be further profit potential next year.