Carl Zeiss Meditec (AFX) AI Stock Analysis

• Market Cap: €5.38B
• Dividend Yield: 1.01%
• Average Volume (3M): 125.73K
• Price to Earnings (P/E): 33.9
• Beta (1Y): 1.49
• Revenue Growth: 5.21%
• EPS Growth: -39.36%
• Country: DE
• Employees: 2,066
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.52
• Shares Outstanding: 89,440,570
• 10 Day Avg. Volume: 139,751
• 30 Day Avg. Volume: 125,727
• PEG Ratio: -3.39
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -429.34
• 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: €64.17
• Price Target Upside: 5.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 64 Neutral
• Price Target: €63.00 ▲(3.53%Upside)

Carl Zeiss Meditec's overall stock score is driven by strong financial performance and a stable balance sheet, though moderated by high valuation and bearish technical indicators. The lack of earnings call and corporate events data places more emphasis on these factors.

Positive Factors

Chinese Market Growth

Management mentions a clear upturn in refractive consumables in China, indicating a positive Chinese growth contribution.

Earnings Performance

Carl Zeiss Meditec released preliminary figures that were a substantial beat on topline and EBITA.

New Product Launches

MCS was positively driven by the ongoing Kinevo 900S launch, reflecting stronger performance relative to consensus.

Negative Factors

Macro Environment Challenges

The China Refractive business, which historically had been an important driver of earnings growth and a key element of the equity thesis, slowed as a result of a soft macro environment and downtrading.

Profitability Concerns

There may be questions over DORC's profitability as operating expenses are mounting.

Tariff Impact

Tariffs notably affect manufacturing in Germany and Singapore, which could impact guidance adjustments.

Carl Zeiss Meditec Business Overview & Revenue Model

Company Description

Carl Zeiss Meditec AG operates as a medical technology company in Germany, rest of Europe, the United States, Asia, and internationally. It operates in two segments, Ophthalmic Devices and Microsurgery. The Ophthalmic Devices segment offers products and solutions for the diagnosis and treatment of eye diseases; and systems and consumables for cataract, retinal, and refractive surgeries. It serves practicing ophthalmologists and optometrists, as well as physicians and surgeons in hospitals and outpatient surgery centers. The Microsurgery segment offers visualization solutions for invasive surgical treatments; and solutions in the area of ear, nose and throat, plastic and reconstructive, dental and spinal surgeries. It serves physicians in various fields and hospitals. The company was founded in 1846 and is headquartered in Jena, Germany. Carl Zeiss Meditec AG is a subsidiary of Carl Zeiss AG.

How the Company Makes Money

Carl Zeiss Meditec generates revenue through the sale of its advanced medical devices and systems that cater to the needs of ophthalmologists and surgeons. The company's revenue streams predominantly include direct sales of equipment like optical coherence tomography systems, surgical microscopes, and intraocular lenses. Additionally, the company benefits from service contracts, maintenance agreements, and the sale of consumables related to its products. Strategic partnerships and collaborations with healthcare institutions and research organizations further bolster its market presence and drive sales. These diverse revenue streams enable Carl Zeiss Meditec to maintain a robust financial performance in the competitive medical technology industry.

Carl Zeiss Meditec Financial Statement Overview

Summary

Carl Zeiss Meditec exhibits strong profitability and effective equity utilization, with good operational efficiency. The company maintains a low debt profile, enhancing its financial stability. However, growth rates have moderated, and there is potential risk from liabilities that could impact future financial flexibility. Management should focus on reinvigorating growth and maintaining a healthy balance between liabilities and equity.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.56B	2.07B	2.09B	1.90B	1.65B	1.34B
	Gross Profit
1.56B	1.09B	1.21B	1.13B	967.21M	745.52M
	EBIT
315.24M	176.35M	327.14M	413.08M	348.42M	206.60M
	EBITDA
251.80M	406.08M	502.77M	482.36M	409.21M	266.41M
	Net Income Common Stockholders
157.03M	178.73M	290.40M	293.91M	236.28M	122.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.75M	20.29M	10.60M	7.73M	7.44M	5.20M
	Total Assets
2.92B	3.39B	3.03B	2.82B	2.40B	2.01B
	Total Debt
142.01M	151.35M	155.70M	127.90M	121.27M	68.61M
	Net Debt
126.67M	131.06M	145.09M	120.17M	113.83M	63.40M
	Total Liabilities
812.91M	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
-12.34M	95.11M	137.00M	106.23M	296.56M	133.54M
	Operating Cash Flow
220.02M	247.32M	250.86M	188.20M	362.66M	178.53M
	Investing Cash Flow
-429.50M	-412.31M	-110.98M	-148.89M	-75.20M	-71.95M
	Financing Cash Flow
223.65M	176.25M	-135.09M	-38.24M	-285.89M	-122.96M

Carl Zeiss Meditec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 60.85 is above the 20-day moving average (MA) of 59.48, above the 50-day MA of 58.46, and above the 200-day MA of 57.66, indicating a bullish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 90.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:AFX.

Carl Zeiss Meditec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFX	64 Neutral	€5.38B	33.94	7.48%	1.01%	5.21%	-39.36%
Sector *	54 Neutral	$5.37B	3.35	-45.10%	2.79%	16.77%	-0.01%
0N6Z		€1.40B	61.76	-4.72%	0.10%	―	―
0K5E		€1.19B	10.77	8.06%	2.84%	―	―
0NZY		€1.35B	39.30	17.48%	0.08%	―	―
0H9X		€14.71B	23.78	4.37%	2.87%	―	―
0NIQ		€12.87B	121.01	3.55%	0.44%	―	―