Carl Zeiss Meditec (AFX) AI Stock Analysis

• Market Cap: €3.83B
• Dividend Yield: 1.41%
• Average Volume (3M): 154.89K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.40
• 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: €47.07
• Price Target Upside: 10.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €49.00 ▲(15.35% Upside)

Carl Zeiss Meditec's overall stock score is driven by strong financial performance, particularly in profitability and operational efficiency, despite moderated growth rates and potential liability risks. Technical analysis indicates mixed signals, with short-term strength but longer-term caution. Valuation suggests the stock is fairly valued, with a modest 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 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 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. However, growth rates have moderated, and liabilities pose a potential risk to future financial flexibility.

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	612.73M	297.72M	127.90M	217.16M	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: Negative
• Last Price: 42.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 42.48 is below the 20-day moving average (MA) of 44.60, below the 50-day MA of 44.02, and below the 200-day MA of 52.60, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 41.21 is Neutral, neither overbought nor oversold. The STOCH value of 41.13 is Neutral, 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
SRT	69 Neutral	€14.33B	94.60	5.01%	0.40%	5.82%	59.90%
AFX	66 Neutral	€3.83B	24.17	7.48%	1.41%	5.21%	-39.36%
DRW3	64 Neutral	€1.18B	10.53	8.22%	2.96%	2.14%	6.69%
EUZ	63 Neutral	€1.03B	28.01	17.61%	1.08%	9.42%	9.54%
FME	60 Neutral	€11.96B	18.40	5.41%	3.47%	2.10%	9.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	51 Neutral	€1.35B	-61.38	―	0.11%	-18.82%	-113.85%