Carl Zeiss Meditec (AFX) AI Stock Analysis

• Market Cap: €2.49B
• Dividend Yield: 1.5%
• Average Volume (3M): 154.89K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.50
• Revenue Growth: 7.82%
• EPS Growth: -19.80%
• Country: DE
• Employees: 2,066
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.59
• Shares Outstanding: 89,440,570
• 10 Day Avg. Volume: 120,593
• 30 Day Avg. Volume: 154,893
• PEG Ratio: -1.31
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 21.65
• 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: €39.46
• Price Target Upside: 43.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: €32.00 ▲(16.11% Upside)

The score is driven primarily by strong financial stability and generally healthy fundamentals, partially offset by pressure on profitability margins and slowing free cash flow. Technical signals are meaningfully negative (downtrend despite oversold readings), while valuation is neutral-to-slightly supportive due to a moderate P/E and a ~2% dividend yield.

Positive Factors

Market leadership in ophthalmology

Leading specialist status in ophthalmology and microsurgery creates durable competitive advantage: clinical adoption, installed base effects, and strong customer relationships support repeat equipment sales, consumables demand and long-term service revenues across hospitals and clinics.

Low leverage and strong equity base

A low debt-to-equity ratio and robust equity funding provide financial flexibility to fund R&D, capex and strategic initiatives. This durability reduces refinancing risk, supports investment in product development, and allows the company to withstand cyclical pressures in capital equipment markets.

Consistent revenue growth and strong gross margin

Sustained top-line growth combined with a strong gross margin indicates ongoing demand and effective cost control across equipment, consumables and services. This supports pricing power and reinvestment capacity, underpinning multi-year operating cash generation if operational margins stabilize.

Negative Factors

Eroding operating profitability

Declining net/EBIT/EBITDA margins suggest rising costs or pricing pressure that, if persistent, will reduce operating leverage and free cash available for R&D and shareholder returns. Sustained margin pressure can impair reinvestment and competitiveness in the medium term.

Slowing free cash flow growth

A drop in free cash flow growth, despite positive operating cash flow, reduces internal funding for capex, R&D, dividends and M&A. Persistently weaker FCF would force reliance on external financing or cutbacks, limiting strategic flexibility and long-term investment capacity.

Slight decline in return on equity

A decreasing ROE signals reduced efficiency in converting shareholder capital into profit. If the trend continues, it may indicate capital allocation challenges or margin pressures, lowering long-term shareholder returns and necessitating higher reinvestment or productivity improvements.

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 medical devices and technologies, which include surgical instruments, diagnostic equipment, and consumables used in eye surgeries and other medical procedures. Key revenue streams include direct sales of equipment to hospitals and clinics, as well as ongoing service contracts and maintenance agreements for their products. The company also benefits from partnerships with healthcare providers and research institutions, which can enhance product development and expand market reach. Additionally, Zeiss Meditec invests in research and development to innovate new products, keeping it competitive in a rapidly evolving healthcare market.

Carl Zeiss Meditec Financial Statement Overview

Summary

Solid overall fundamentals: consistent revenue growth and a strong, low-leverage balance sheet. The main negatives are declining net/EBIT/EBITDA margins and weaker free cash flow growth, which reduce profitability and reinvestment flexibility.

Income Statement

Carl Zeiss Meditec has shown consistent revenue growth over the years, with a recent growth rate of 2.2% in 2025. The gross profit margin remains strong, indicating effective cost management. However, the net profit margin has decreased compared to previous years, suggesting increased expenses or lower operational efficiency. The EBIT and EBITDA margins have also seen a decline, which could impact profitability if not addressed.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio, indicating strong financial stability and low leverage risk. The equity ratio is robust, reflecting a solid asset base funded by equity. However, the return on equity has slightly decreased, which may suggest challenges in generating returns on shareholder investments.

Cash Flow

Operating cash flow remains positive, but there has been a decline in free cash flow growth, which could affect future investment capabilities. The operating cash flow to net income ratio is stable, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, suggesting potential cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.23B	2.23B	2.07B	2.09B	1.90B	1.65B
Gross Profit	1.46B	1.18B	1.09B	1.21B	1.13B	967.21M
EBITDA	359.76M	346.89M	403.06M	502.77M	482.36M	409.21M
Net Income	141.22M	141.21M	178.73M	290.40M	293.91M	236.28M
Balance Sheet
Total Assets	3.46B	3.46B	3.39B	3.03B	2.82B	2.40B
Cash, Cash Equivalents and Short-Term Investments	27.27M	27.27M	20.29M	10.60M	7.73M	7.44M
Total Debt	607.37M	607.37M	612.73M	297.72M	127.90M	217.16M
Total Liabilities	1.33B	1.33B	1.34B	860.02M	792.73M	718.59M
Stockholders Equity	2.12B	2.12B	2.04B	2.16B	2.02B	1.66B
Cash Flow
Free Cash Flow	144.16M	170.46M	95.11M	137.00M	106.23M	296.56M
Operating Cash Flow	183.56M	209.86M	247.32M	250.86M	188.20M	362.66M
Investing Cash Flow	-108.63M	-91.03M	-412.31M	-110.98M	-148.89M	-75.20M
Financing Cash Flow	-58.73M	-108.83M	176.25M	-135.09M	-38.24M	-285.89M

Carl Zeiss Meditec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:AFX, the sentiment is Negative. The current price of 27.56 is below the 20-day moving average (MA) of 33.74, below the 50-day MA of 38.66, and below the 200-day MA of 47.03, indicating a bearish trend. The MACD of -3.58 indicates Positive momentum. The RSI at 20.10 is Positive, neither overbought nor oversold. The STOCH value of 10.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:AFX.

Carl Zeiss Meditec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRW3	70 Outperform	€1.48B	13.66	8.22%	2.95%	2.14%	6.69%
AFX	65 Neutral	€2.49B	17.26	6.79%	1.50%	7.82%	-19.80%
EUZ	64 Neutral	€942.36M	23.70	16.93%	1.11%	9.64%	35.18%
FME	64 Neutral	€11.07B	15.54	5.41%	3.54%	2.10%	9.19%
SRT	64 Neutral	€14.55B	42.21	5.01%	0.39%	5.82%	59.90%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
BIO	51 Neutral	€1.35B	-59.44	―	―	-18.82%	-113.85%