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TRATON SE (DE:8TRA)
XETRA:8TRA
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TRATON SE
(XETRA:8TRA)
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Rating:68Neutral
Price Target:
€32.00
▲(1.85% Upside)
TRATON SE's overall stock score is driven by its strong valuation metrics and positive technical indicators. While the financial performance is solid, challenges in revenue growth and cash flow generation present risks. The absence of earnings call data and corporate events limits further insights.
Positive Factors
Strong Balance Sheet
A strong balance sheet with no reliance on debt financing provides TRATON SE with financial stability and flexibility to invest in growth opportunities.
Profitability Margins
Stable profitability margins indicate efficient operational management and the ability to sustain profits despite revenue growth challenges.
Diverse Revenue Streams
Diverse revenue streams from vehicle sales and aftersales services provide a recurring income base, enhancing financial resilience and growth potential.
Negative Factors
Revenue Decline
A decline in revenue growth suggests potential challenges in market demand or competitive pressures, which could impact long-term growth prospects.
Cash Flow Challenges
Negative free cash flow indicates potential liquidity risks and challenges in converting earnings into cash, which may affect the company's ability to fund operations and growth.
Earnings Decline
A significant decline in earnings per share growth reflects potential operational challenges and could impact investor confidence and future investment capacity.
TRATON SE (8TRA) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€15.76B
Dividend Yield5.67%
Average Volume (3M)178.11K
Price to Earnings (P/E)8.9
Beta (1Y)1.27
Revenue Growth-7.11%
EPS Growth-30.83%
CountryDE
Employees106,140
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.65
Shares Outstanding500,000,000
10 Day Avg. Volume185,345
30 Day Avg. Volume178,111
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
€32.52Price Target Upside3.51% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 heavy-duty and medium-duty trucks and buses. The company earns significant income from its manufacturing operations, where it designs, produces, and sells vehicles to fleet operators and businesses across the globe. Additionally, TRATON SE benefits from aftersales services, including spare parts, maintenance, and financing solutions, which provide a recurring revenue stream. The company may also engage in collaborations and strategic partnerships with other firms in the automotive and technology sectors to enhance its product offerings and market reach. Overall, the combination of vehicle sales and ongoing service contracts contributes to TRATON SE's financial success.
TRATON SE Earnings Call Summary
Earnings Call Date:Jul 25, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 17, 2026
Earnings Call Sentiment Neutral
The call presents a mixed sentiment. While there are significant strides in electrification and financial services expansion, the ongoing market challenges, particularly in North America and Brazil, have led to a lowered full year outlook and declining sales revenue. The positive aspects are somewhat overshadowed by the prevailing market uncertainties and the need to adjust production capacities.Q2-2025 Updates
Positive Updates
Increased Deliveries
Deliveries increased by 9% over Q1, though year-over-year unit sales grew by only 1%.
Strong Order Intake in Europe
Incoming orders are up 11%, with a significant 27% increase in Europe.
Electrification Strategy Progress
Scania launched a high-capacity charging solution for heavy-duty e-trucks and MAN started series production of heavy-duty electric trucks.
TRATON Financial Services Expansion
Completed rollout of integrated financial services backbone in 14 strategic markets.
Positive Net Cash Flow
TRATON operations in Q2 resulted in a net inflow, slightly better than 2024.
Negative Updates
Decline in Sales Revenue
Sales revenues dropped by 2% year-over-year due to market challenges and unfavorable mix effects.
Reduced Full Year Outlook
Full year outlook lowered due to uncertainties in the market, particularly in North America and Brazil.
Adjusted Return on Sales Decline
Return on sales declined to 6.4% in Q2, primarily due to volume effects.
Challenges in North America
High customer hesitancy and tariff uncertainties affecting performance, with a significant 15% decline in order intake.
High Dealer Inventories in South America
Facing high dealer stocks, extreme interest rates, inflation, and increasing diesel prices, particularly in Brazil.
Lowered Market Outlook for North America
Outlook for North American truck market adjusted to a decline of 17.5% to 7.5%.
Company Guidance
In the Traton Q2 2025 Results Conference Call, the company provided several key metrics and updates. Deliveries increased by 9% over Q1 but only grew by 1% year-over-year, while sales revenues dropped by 2%. The adjusted return on sales declined to 6.4% in Q2, primarily due to volume effects, although a better group margin sequentially from Q1 to Q2 was observed. Incoming orders rose by 11%, with a notable 27% year-over-year increase in Europe, although this was down from a 56% growth in Q1. The book-to-bill ratio dropped below 1, at 0.91. The company revised its full-year outlook, citing ongoing market challenges in Europe, North America, and Brazil, with an expected decline in unit sales and revenue between -10% and 0%, and an adjusted return on sales anticipated at 6% to 7%. Net cash flow for Traton Operations is now projected to be between EUR 1 billion and EUR 1.5 billion. The call highlighted strategic investments in electrification and sustainable transportation, such as Scania's high-capacity charging solution and MAN's production of electric trucks.TRATON SE Financial Statement Overview
Summary
TRATON SE shows strong financial performance with robust revenue and profit growth, improved margins, and a healthier balance sheet with zero debt. However, challenges in cash flow management due to capital investments impacting free cash flow are noted.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.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.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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.54B | 47.47B | 46.87B | 40.34B | 30.62B | 22.58B |
| Gross Profit | 8.79B | 10.10B | 9.24B | 6.85B | 5.54B | 3.46B |
| EBITDA | 6.06B | 7.42B | 6.68B | 4.81B | 3.14B | 2.63B |
| Net Income | 1.78B | 2.80B | 2.45B | 1.14B | 457.00M | -123.00M |
Balance Sheet | ||||||
| Total Assets | 66.65B | 65.55B | 61.70B | 58.26B | 55.12B | 42.77B |
| Cash, Cash Equivalents and Short-Term Investments | 2.19B | 3.41B | 1.78B | 2.21B | 2.81B | 4.27B |
| Total Debt | 26.55B | 9.43B | 22.11B | 21.13B | 18.20B | 12.30B |
| Total Liabilities | 48.83B | 47.70B | 45.21B | 43.88B | 41.67B | 29.60B |
| Stockholders Equity | 17.81B | 17.84B | 16.48B | 14.37B | 13.44B | 12.94B |
Cash Flow | ||||||
| Free Cash Flow | -1.24B | -401.00M | 374.00M | -2.57B | -65.00M | 676.00M |
| Operating Cash Flow | 1.65B | 2.34B | 2.58B | -660.00M | 1.53B | 1.99B |
| Investing Cash Flow | -2.22B | -2.81B | -2.37B | -1.81B | -2.45B | -215.00M |
| Financing Cash Flow | 555.00M | 1.39B | -128.00M | 2.22B | 1.17B | -1.87B |
TRATON SE Technical Analysis
Positive
31.42
Price Trends
29.32
Positive
29.11
Positive
29.05
Positive
Market Momentum
0.69
Negative
61.59
Neutral
73.65
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 31.42 is above the 20-day moving average (MA) of 30.62, above the 50-day MA of 29.32, and above the 200-day MA of 29.05, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 73.65 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | €20.64B | 24.23 | 24.74% | 0.62% | 45.24% | ― | |
69 Neutral | €26.66B | 31.26 | 100.05% | 1.58% | 22.16% | 18.23% | |
68 Neutral | €15.76B | 8.86 | 10.20% | 5.67% | -7.11% | -30.83% | |
68 Neutral | €30.56B | 13.91 | 10.04% | 5.13% | -10.34% | -31.23% | |
67 Neutral | €22.02B | 14.28 | 8.49% | 7.14% | 8.66% | 5.41% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | €9.62B | 24.00 | 17.71% | 2.01% | 2.26% | 6.49% |
* Industrials Sector Average
DE:8TRA
TRATON SE
31.42
6.76
27.41%
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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.