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TRATON SE (DE:8TRA)
:8TRA
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TRATON SE
(XETRA:8TRA)
Rating:73Outperform
Price Target:
€33.00
▲(11.19% Upside)
TRATON SE (8TRA) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€14.84B
Dividend Yield5.78%
Average Volume (3M)223.61K
Price to Earnings (P/E)6.8
Beta (1Y)1.20
Revenue Growth-2.98%
EPS Growth-14.55%
CountryDE
Employees106,140
SectorIndustrials
Sector Strength84
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.49
Shares Outstanding500,000,000
10 Day Avg. Volume271,763
30 Day Avg. Volume223,612
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)0.78
Price to Sales (P/S)0.29
P/FCF Ratio-34.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€34.79Price Target Upside17.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
TRATON SE Business Overview & Revenue Model
Company DescriptionTRATON SE (8TRA) is a leading European commercial vehicle manufacturer based in Germany. The company is a subsidiary of Volkswagen AG and operates in the automotive sector, focusing primarily on the production of trucks and buses. TRATON's core brands include MAN, Scania, and Volkswagen Caminhões e Ônibus, which provide a wide range of transportation solutions tailored for various industries. The company is committed to innovation in sustainable transport, including electric and autonomous vehicle technologies.
How the Company Makes MoneyTRATON SE generates revenue primarily through the sale of commercial vehicles, including trucks and buses, which are sold to fleet operators, logistics companies, and individual customers. Key revenue streams include the sale of new vehicles, after-sales services such as maintenance and repairs, and the sales of spare parts. Additionally, TRATON benefits from its strong brand presence and established market positions in various regions, particularly in Europe and South America. Significant partnerships with suppliers and collaborations focused on research and development, particularly in alternative fuel technologies, also contribute to its earnings by enhancing its product offerings and operational efficiencies.
TRATON SE Earnings Call Summary
Earnings Call Date:Jul 25, 2025
(Q2-2025)
| % Change Since: -10.01%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable advancements in electrification and financial services, alongside increased deliveries and order intake in Europe. However, these positives were offset by significant challenges in North America and Brazil, a decline in sales revenue, and lowered full-year outlook due to ongoing market uncertainties and unfavorable mix and currency effects.Q2-2025 Updates
Positive Updates
Increased Deliveries and Order Intake in Europe
Deliveries picked up by 9% over Q1, with a 3% increase in unit sales in Europe. European order intake was up by 27% year-over-year, with a 44% increase in truck orders.
Strong Performance of MAN
MAN's adjusted return on sales reached 7.9%, supported by a successful realignment program and ongoing cost management.
Transformation and Electrification Progress
Scania launched a high-capacity charging solution, MAN started series production of heavy-duty electric trucks, and International launched an all-electric Class 8 tractor, supporting the group's electrification strategy.
TRATON Financial Services Expansion
TRATON Financial Services completed its integrated financial services backbone rollout in 14 strategic markets, with a 14% increase in revenue due to expansion.
Positive Cash Flow Development
Traton operations saw a net cash inflow for the first half of the year, slightly better than in 2024, despite challenging market conditions.
Negative Updates
Decline in Sales Revenue and Adjusted Return on Sales
Sales revenues dropped by 2% year-over-year, and adjusted return on sales declined to 6.4% in Q2 due to volume effects and an unfavorable market environment.
Challenges in North America
Ongoing customer hesitancy affected performance, with order intake in North America down by 15% and a decision to discontinue the second shift at the Mexican production plant.
Difficult Market Conditions in Brazil
High dealer stocks, extreme interest rates, inflation, and increasing diesel prices led to challenges, with total unit sales in South America down 8%.
Lowered Full-Year Outlook
Due to ongoing market challenges, the full-year outlook for Traton was lowered, including a decline in revenue and adjusted return on sales forecasts.
Currency and Mix Effects Impacting Scania
Scania's 9% margin was affected by negative volume, currency effects, and increasing expenses for the China project.
Company Guidance
During the Traton Q2 2025 results conference call, key metrics were highlighted, reflecting a challenging global market environment. Deliveries picked up by 9% over Q1, but year-over-year unit sales only grew by 1%, with a 2% drop in sales revenues. The adjusted return on sales declined to 6.4% in Q2, driven primarily by volume effects, though there was a sequential improvement from Q1. The group's net cash flow improved, showing a net inflow for the first half of the year. Incoming orders increased by 11%, with European orders up 27% year-over-year. However, the book-to-bill ratio dropped below 1 due to declining momentum in European orders and a poor North American market. The call also discussed strategic initiatives like Scania's launch of a high-capacity charging solution and MAN's series production of heavy-duty electric trucks, which support Traton's electrification strategy. The outlook for 2025 was adjusted downwards, reflecting continued uncertainties, particularly in North America, and economic challenges in Brazil, with TRATON Group's adjusted return on sales now expected to be between 6% and 7%.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.99B | 47.47B | 46.87B | 40.34B | 30.62B | 22.58B |
| Gross Profit | 9.45B | 10.10B | 9.24B | 6.85B | 5.54B | 3.46B |
| EBITDA | 6.47B | 7.42B | 6.68B | 4.81B | 3.14B | 2.52B |
| Net Income | 2.18B | 2.80B | 2.45B | 1.14B | 457.00M | -123.00M |
Balance Sheet | ||||||
| Total Assets | 66.45B | 65.55B | 61.70B | 58.26B | 55.12B | 42.77B |
| Cash, Cash Equivalents and Short-Term Investments | 3.27B | 3.41B | 1.78B | 2.21B | 2.81B | 4.27B |
| Total Debt | 0.00 | 9.43B | 21.70B | 21.13B | 18.20B | 12.30B |
| Total Liabilities | 49.13B | 47.70B | 45.21B | 43.88B | 41.67B | 29.60B |
| Stockholders Equity | 17.32B | 17.84B | 16.48B | 14.37B | 13.44B | 12.94B |
Cash Flow | ||||||
| Free Cash Flow | -430.00M | -401.00M | 374.00M | -2.57B | -65.00M | 676.00M |
| Operating Cash Flow | 2.49B | 2.34B | 2.58B | -660.00M | 1.53B | 1.99B |
| Investing Cash Flow | -3.03B | -2.81B | -2.37B | -1.81B | -2.45B | -215.00M |
| Financing Cash Flow | 1.05B | 1.39B | -128.00M | 2.22B | 1.17B | -1.87B |
TRATON SE Technical Analysis
Positive
29.68
Price Trends
29.33
Positive
29.02
Positive
28.99
Positive
Market Momentum
0.21
Positive
48.93
Neutral
7.12
Positive
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 29.68 is below the 20-day moving average (MA) of 30.30, above the 50-day MA of 29.33, and above the 200-day MA of 28.99, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 7.12 is Positive, 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 (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | €20.21B | 23.72 | 24.74% | 0.60% | 45.24% | ― | |
75 Outperform | €10.31B | 27.25 | 16.56% | 1.84% | 1.79% | 0.06% | |
73 Outperform | €14.58B | 17.76 | 108.18% | 2.81% | 25.95% | 17.64% | |
73 Outperform | €14.84B | 6.81 | 12.80% | 5.78% | -2.98% | -14.55% | |
71 Outperform | ¥258.06B | 14.45 | 8.48% | 2.82% | 6.33% | 12.20% | |
68 Neutral | €22.57B | 8.91 | 12.73% | 6.60% | 20.11% | 89.15% | |
64 Neutral | €31.42B | 12.92 | 11.21% | 4.86% | -6.83% | -32.20% |
* Industrials Sector Average
Performance Comparison
DE:8TRA
TRATON SE
29.68
4.40
17.41%
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GEA Group AG
63.80
24.76
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DE:MTX
MTU Aero Engines
375.80
119.04
46.36%
DE:HLAG
Hapag Lloyd
128.40
-18.03
-12.32%
DE:HOT
Hochtief
193.70
90.67
88.01%
DE:DTG
Daimler Truck Holding AG
39.68
7.85
24.66%
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.