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TRATON SE (DE:8TRA)
XETRA:8TRA
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TRATON SE
(XETRA:8TRA)
Rating:74Outperform
Price Target:―
TRATON SE (8TRA) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€14.79B
Dividend Yield5.75%
Average Volume (3M)215.20K
Price to Earnings (P/E)5.9
Beta (1Y)1.19
Revenue Growth-2.53%
EPS Growth-4.91%
CountryDE
Employees106,140
SectorIndustrials
Sector Strength90
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.93
Shares Outstanding500,000,000
10 Day Avg. Volume180,745
30 Day Avg. Volume215,199
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)0.81
Price to Sales (P/S)0.00
P/FCF Ratio-37.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€34.76Price Target Upside17.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
TRATON SE Business Overview & Revenue Model
Company DescriptionTraton SE manufactures commercial vehicles worldwide. It operates in Industrial Business and Financial Services segments. The company offers light and heavy-duty commercial vehicles, such as trucks and bus chassis; vans; construction vehicles; city buses; and intercity and travel coaches, as well as spare parts and services. It also provides a cloud-based platform for freight transportation under the RIO brand name. The company offers its products and services under the MAN, Scania, Navistar, and Volkswagen Caminhões e Ônibus brands. In addition, it provides a range of financial solutions, including dealer and customer finance, leasing, and insurance products. The company was founded in 2015 and is based in Munich, Germany. Traton SE is a subsidiary of Volkswagen Finance Luxemburg S.A.
How the Company Makes MoneyTRATON SE generates revenue primarily through the sale of commercial vehicles such as trucks and buses. The company’s key revenue streams include vehicle sales, aftersales services, and financial services. TRATON SE enhances its earnings by offering maintenance and repair services, spare parts, and other aftermarket products. Additionally, the company benefits from strategic partnerships and collaborations that help expand its market reach and enhance its product offerings. Financial services, including vehicle financing and leasing options, also contribute significantly to its revenue model, providing customers with flexible purchasing solutions.
TRATON SE Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 11.52%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong order intake in Europe and expansion in financial services as positive developments. However, these were counterbalanced by significant declines in deliveries and sales revenues, reduced operating results, and challenges in the North American market. The overall sentiment reflects these mixed outcomes.Q1-2025 Updates
Positive Updates
Strong Order Intake in Europe
Order intake in Europe increased by 56%, effectively overcompensating the decline in orders in North and South America. Total incoming orders grew by 12% to 74,300 units.
Expansion of TRATON Financial Services
TRATON Financial Services expanded into three new markets: Mexico, France, and Italy. This positions Mexico to become the first market to offer financial services for all four TRATON brands.
Growth in Electric Vehicle Orders
Orders for battery electric vehicles increased by 18% in Q1, driven by demand for e-trucks. Unit sales of electric trucks and buses almost doubled year-over-year.
Strategic Partnership with Applied Intuition
A strategic partnership was announced with Applied Intuition on software-defined vehicles to remain at the forefront of development in the truck industry.
Negative Updates
Decline in Deliveries and Sales Revenues
Deliveries declined by 10% due to challenging market conditions in Europe and North America. Sales revenues also declined by 10%, in line with unit sales.
Decreased Operating Result and Return on Sales
Adjusted return on sales decreased to 6.1%, mainly due to volume effects, foreign currency headwinds, and higher R&D expenses.
Negative Cash Flow and Increased Net Debt
Net cash flow of TRATON Operations declined to minus EUR111 million, primarily due to lower operating results and higher future investments, increasing net debt to EUR5.2 billion.
Challenges in North American Market
North American order intake dropped by 35% to 12,400 vehicles, and unit sales decreased by 12%. The second shift in the Escobedo plant in Mexico was removed due to reduced manufacturing capacity requirements.
Company Guidance
In TRATON's Q1 2025 results conference call, the company outlined several key metrics and strategic moves. Delivery figures declined by 10% due to challenging market conditions in Europe and North America, leading to a similar 10% drop in sales revenue. Adjusted return on sales fell to 6.1%, influenced by volume effects, foreign currency headwinds, and increased R&D expenses. Net cash flow for TRATON Operations decreased to minus EUR111 million, primarily due to reduced operating results and higher investments. Despite these declines, the company reported a 12% increase in total incoming orders, driven by a 56% rise in European orders, offsetting declines in the Americas. TRATON maintained its full-year outlook, expecting unit sales and revenue to range between minus 5% and plus 5%, and an adjusted operating return on sales between 7.5% and 8.5%. Additionally, TRATON highlighted its strategic focus on software-defined vehicles, autonomous driving, and expanding its financial services footprint, with significant activities in Europe and Mexico, alongside progress in battery electric vehicle offerings.TRATON SE Financial Statement Overview
Summary
TRATON SE shows solid financial performance with strong revenue and profit growth, improved margins, and a healthier balance sheet with zero debt. However, challenges persist in cash flow management, primarily due to capital investments impacting free cash flow. The company's focus on operational efficiency and debt reduction positions it well for future growth, though attention to cash flow sustainability is needed.Income Statement
TRATON SE has demonstrated strong revenue growth with a 13.3% increase from 2022 to 2023, and a further growth to 2024. The gross profit margin improved to 21.3% in 2024, reflecting effective cost management. The net profit margin also increased to 5.9% in 2024, indicating enhanced profitability. Consistently rising EBIT and EBITDA margins, reaching 8.9% and 15.6% respectively, further underline the company's robust operational performance.85
Very Positive
Balance Sheet
The company has significantly reduced its total debt from 2023 to 2024, resulting in a debt-free balance sheet, which enhances financial stability. The equity ratio improved to 27.2% in 2024, showing stronger equity funding. However, the return on equity decreased slightly to 15.7% in 2024, suggesting potential for improving shareholder returns.78
Positive
Cash Flow
TRATON SE's cash flow performance highlights some concerns with negative free cash flow in 2024, despite a positive operating cash flow. The free cash flow growth rate has been negative due to higher capital expenditures, impacting liquidity. However, the operating cash flow remains robust relative to net income, indicating strong operational cash generation.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 47.47B | 46.87B | 40.34B | 30.62B | 22.58B |
| Gross Profit | 10.10B | 9.24B | 6.85B | 5.54B | 3.46B |
| EBITDA | 7.42B | 6.68B | 4.81B | 3.14B | 2.52B |
| Net Income | 2.80B | 2.45B | 1.14B | 457.00M | -123.00M |
Balance Sheet | |||||
| Total Assets | 65.55B | 61.70B | 58.26B | 55.12B | 42.77B |
| Cash, Cash Equivalents and Short-Term Investments | 3.41B | 1.78B | 2.21B | 2.81B | 4.27B |
| Total Debt | 0.00 | 21.70B | 21.13B | 18.20B | 12.30B |
| Total Liabilities | 47.70B | 45.21B | 43.88B | 41.67B | 29.60B |
| Stockholders Equity | 17.84B | 16.48B | 14.37B | 13.44B | 12.94B |
Cash Flow | |||||
| Free Cash Flow | -401.00M | 374.00M | -2.57B | -65.00M | 676.00M |
| Operating Cash Flow | 2.34B | 2.58B | -660.00M | 1.53B | 1.99B |
| Investing Cash Flow | -2.81B | -2.37B | -1.81B | -2.45B | -215.00M |
| Financing Cash Flow | 1.39B | -128.00M | 2.22B | 1.17B | -1.87B |
TRATON SE Technical Analysis
Positive
29.52
Price Trends
29.24
Positive
29.54
Positive
28.80
Positive
Market Momentum
0.34
Negative
54.68
Neutral
61.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:8TRA, the sentiment is Positive. The current price of 29.52 is above the 20-day moving average (MA) of 28.45, above the 50-day MA of 29.24, and above the 200-day MA of 28.80, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 54.68 is Neutral, neither overbought nor oversold. The STOCH value of 61.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:8TRA.
TRATON SE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | €14.79B | 5.86 | 14.10% | 5.75% | -2.53% | -4.91% | |
65 Neutral | $10.86B | 15.57 | 5.28% | 1.92% | 3.13% | -27.76% | |
| ― | €9.45B | 24.99 | 16.56% | 1.97% | ― | ― | |
| ― | €22.66B | 8.90 | 12.73% | 6.36% | ― | ― | |
| ― | €13.14B | 13.82 | 70.91% | 3.00% | ― | ― | |
| ― | €20.33B | 32.26 | 20.33% | 0.58% | ― | ― | |
82 Outperform | €31.82B | 11.04 | 12.77% | 4.73% | -4.81% | -22.95% |
* Industrials Sector Average
Performance Comparison
DE:8TRA
TRATON SE
29.52
0.17
0.58%
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59.40
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GB:0RCG
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128.30
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-7.91%
GB:0EPW
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182.80
78.78
75.74%
GB:0FC9
MTU Aero Engines
386.84
141.34
57.57%
DE:DTG
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40.17
4.60
12.93%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.