Carl Zeiss Meditec (AFX) AI Stock Analysis

• Market Cap: €4.08B
• Dividend Yield: 1.27%
• Average Volume (3M): 154.89K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.43
• Revenue Growth: 5.21%
• EPS Growth: -39.36%
• Country: DE
• Employees: 2,066
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.38
• Shares Outstanding: 89,440,570
• 10 Day Avg. Volume: 120,593
• 30 Day Avg. Volume: 154,893
• PEG Ratio: -0.93
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 3.06
• P/FCF Ratio: 66.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €50.86
• Price Target Upside: 7.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: €48.00 ▲(1.35% Upside)

Carl Zeiss Meditec's overall stock score is driven by strong financial performance and moderate technical indicators. The company's profitability and low debt enhance its financial stability, but growth moderation and liability risks are concerns. The technical analysis indicates short-term bullishness, but longer-term trends are less favorable. Valuation metrics suggest the stock is fairly valued, with a moderate dividend yield.

Positive Factors

Strong Profitability

The company's robust profitability and operational efficiency indicate a well-managed business with effective cost control, supporting long-term financial health.

Low Debt Levels

Low debt levels enhance financial stability, reducing risk and providing flexibility for future investments and growth opportunities.

Innovative Product Portfolio

A focus on innovation in medical technology ensures competitive advantage and sustained demand for its products, supporting long-term growth.

Negative Factors

Moderating Revenue Growth

Slowing revenue growth could indicate market saturation or increased competition, potentially impacting future expansion and profitability.

Substantial Liabilities

High liabilities can limit financial flexibility and increase risk, necessitating careful management to maintain stability and growth potential.

Fluctuating Free Cash Flow

Variability in free cash flow can affect the company's ability to reinvest in growth initiatives and manage financial obligations, impacting long-term strategy.

Carl Zeiss Meditec Business Overview & Revenue Model

Company Description

Carl Zeiss Meditec AG is a leading global medical technology company that specializes in developing and manufacturing innovative solutions in the fields of ophthalmology and microsurgery. The company operates primarily in two segments: Ophthalmology and Microsurgery. Its core products include surgical microscopes, intraocular lenses, diagnostic devices, and software solutions that enhance the precision and effectiveness of medical procedures.

How the Company Makes Money

Carl Zeiss Meditec generates revenue through multiple streams, primarily by selling medical devices and systems to hospitals, clinics, and healthcare professionals. The company earns significant income from the sale of surgical equipment and diagnostic devices, particularly in the ophthalmology sector, where it provides advanced technologies for cataract and refractive surgeries. Additionally, recurring revenue is generated through the sale of consumables, maintenance services, and software updates. Strategic partnerships with healthcare providers and technology firms enhance its market reach and product offerings, further contributing to its revenue generation. The company's strong focus on research and development allows it to innovate continuously, maintaining a competitive edge in the medical technology market.

Carl Zeiss Meditec Financial Statement Overview

Summary

Carl Zeiss Meditec demonstrates strong profitability and operational efficiency with a solid Gross Profit Margin and consistent Net Income growth. The company maintains a low debt profile, enhancing financial stability, but growth rates have moderated, and liabilities pose a potential risk.

Income Statement

Carl Zeiss Meditec shows a strong Gross Profit Margin and consistent Net Income growth, indicating solid profitability and operational efficiency. The Revenue Growth Rate is positive but has slowed down in recent years, suggesting a potential plateau in growth. Both EBIT and EBITDA margins are healthy, indicating good control over costs.

Balance Sheet

The company's Debt-to-Equity Ratio is low, showing strong solvency and low reliance on debt financing. ROE is robust, emphasizing effective use of equity to generate profits. However, the Equity Ratio is relatively low due to substantial liabilities, which could pose a risk if not managed carefully.

Cash Flow

The company has a stable Free Cash Flow, although growth has been modest. Operating Cash Flow to Net Income Ratio is strong, reflecting efficient cash generation from operations. However, Free Cash Flow to Net Income has fluctuated, indicating variability in cash availability for reinvestment and financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.18B	2.07B	2.09B	1.90B	1.65B	1.34B
Gross Profit	1.13B	1.09B	1.21B	1.13B	967.21M	745.52M
EBITDA	389.80M	403.06M	502.77M	482.36M	409.21M	266.41M
Net Income	150.13M	178.73M	290.40M	293.91M	236.28M	122.39M
Balance Sheet
Total Assets	0.00	3.39B	3.03B	2.82B	2.40B	2.01B
Cash, Cash Equivalents and Short-Term Investments	26.55M	20.29M	10.60M	7.73M	7.44M	5.20M
Total Debt	0.00	151.35M	155.70M	127.90M	121.27M	68.61M
Total Liabilities	-2.09B	1.34B	860.02M	792.73M	718.59M	562.73M
Stockholders Equity	2.09B	2.04B	2.16B	2.02B	1.66B	1.43B
Cash Flow
Free Cash Flow	109.01M	95.11M	137.00M	106.23M	296.56M	133.54M
Operating Cash Flow	169.31M	247.32M	250.86M	188.20M	362.66M	178.53M
Investing Cash Flow	-460.40M	-412.31M	-110.98M	-148.89M	-75.20M	-71.95M
Financing Cash Flow	309.56M	176.25M	-135.09M	-38.24M	-285.89M	-122.96M

Carl Zeiss Meditec Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 47.36
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:AFX, the sentiment is Neutral. The current price of 47.36 is above the 20-day moving average (MA) of 44.78, above the 50-day MA of 43.90, and below the 200-day MA of 53.09, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 59.08 is Neutral, neither overbought nor oversold. The STOCH value of 87.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:AFX.

Carl Zeiss Meditec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FME	70 Outperform	€13.54B	20.74	4.83%	3.05%	0.53%	23.79%
SRT	69 Neutral	€14.28B	98.10	5.01%	0.38%	5.82%	59.90%
AFX	67 Neutral	€4.08B	25.78	7.48%	1.27%	5.21%	-39.36%
EUZ	66 Neutral	€1.06B	28.87	17.61%	0.96%	9.42%	9.54%
DRW3	64 Neutral	€1.27B	14.49	6.87%	2.64%	-0.03%	-14.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	51 Neutral	€1.31B	64.15	―	0.10%	-18.82%	-113.85%

Carl Zeiss Meditec Corporate Events

Carl Zeiss Meditec’s New Study on Cataract Surgery Outcomes: What Investors Need to Know

Study Overview: Carl Zeiss Meditec is conducting a clinical study titled ‘EPIC: Evaluation of the Postoperative Cataract Surgery Outcomes in Patients With Prior Corneal Laser Vision Correction Implanted With the CT LUCIA Intraocular Lens.’ The study aims to assess the visual and refractive outcomes in patients who have undergone myopic corneal laser vision correction and are now receiving the CT LUCIA 621P intraocular lens during cataract surgery. This research is significant as it seeks to improve understanding of postoperative results in this specific patient group.