Our systems have detected that you are using a computer with an IP address located in the USA.
If you are currently not located in the USA, please click “Continue” in order to access our Website.
Local restrictions - provision of cross-border services
Swissquote Bank Ltd (“Swissquote”) is a bank licensed in Switzerland under the supervision of the Swiss Financial Market Supervisory Authority (FINMA). Swissquote is not authorized as a bank or broker by any US authority (such as the CFTC or SEC) neither is it authorized to disseminate offering and solicitation materials for offshore sales of securities and investment services, to make financial promotion or conduct investment or banking activity in the USA whatsoever.
This website may however contain information about services and products that may be considered by US authorities as an invitation or inducement to engage in investment activity having an effect in the USA.
By clicking “Continue”, you confirm that you have read and understood this legal information and that you access the website on your own initiative and without any solicitation from Swissquote.
This EPFZ spin-off isn’t very wellknown, despite its market capitalisation that now exceeds 1.3 billion Swiss francs. Based in Thalwil in the canton of Zurich, U-Blox develops chips and modules designed for geolocalisation and other wireless technologies. The products are used both in mass consumer products and industrial tools.
“As smart objects gradually enter the market in the coming years, particularly self-driving cars, U-Blox is a unique long-term opportunity,” said Torsten Sauter, analyst at Kepler Cheuvreux. “It is the leading company in the geolocalisation market (ed. note: with a market share of around 45%, excluding smartphones and tablets) and a rival when it comes to other wireless solutions.”
The high added value of U-Blox’s products allows for a very significant gross margin of over 40%. But to maintain its rank at the top, U-Blox invests a substantial portion of its profits into research and development – currently 18%, according to CEO Thomas Seiler.
Despite promising outlooks, analysts are careful in the short term, particularly because the company is highly sensitive to exchange rates. A full 85% of its revenue is in dollars, but it produces products primarily in Switzerland. “This isn’t a risk-free investment,” said Sauter. “But we believe that the current share price reflects this.”