Carl Zeiss Meditec (AFX) AI Stock Analysis

• Market Cap: €3.60B
• Dividend Yield: 1.5%
• Average Volume (3M): 154.89K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.38
• Revenue Growth: 7.82%
• EPS Growth: -19.80%
• Country: DE
• Employees: 2,066
• Sector: Healthcare
• Sector Strength: 45
• 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: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €47.46
• Price Target Upside: 17.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €42.00 ▲(4.22% Upside)

Carl Zeiss Meditec's stock score reflects strong financial health and stability, but is tempered by bearish technical indicators and moderate valuation metrics. The company's consistent revenue growth and solid balance sheet are significant strengths, while the current market momentum presents a challenge. Investors should monitor operational efficiency improvements and cash flow management for future growth potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, which are crucial for long-term business expansion and competitiveness.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and enhances the company's ability to invest in growth opportunities and withstand economic downturns.

Cash Flow Generation

Positive operating cash flow ensures the company can fund operations, invest in new projects, and provide returns to shareholders, supporting sustainable growth.

Negative Factors

Profit Margin Pressure

Decreasing profit margins can limit profitability and reduce the company's ability to reinvest in business development, potentially impacting long-term competitiveness.

Free Cash Flow Decline

A decline in free cash flow growth may restrict the company's ability to fund new projects and innovations, potentially hindering future expansion and market positioning.

Return on Equity Decrease

A decrease in return on equity indicates reduced efficiency in using shareholder capital to generate profits, which could impact investor confidence and future capital raising.

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

Carl Zeiss Meditec demonstrates strong financial health with consistent revenue growth and a solid balance sheet. While profitability margins have faced some pressure, the company's low leverage and stable cash flow generation provide a cushion against potential risks. Continued focus on improving operational efficiency and cash flow management will be crucial for sustaining growth and profitability.

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: 40.30
• 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 40.3 is below the 20-day moving average (MA) of 42.05, below the 50-day MA of 43.32, and below the 200-day MA of 50.37, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 20.03 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
EUZ	64 Neutral	€914.73M	23.56	16.93%	1.14%	9.64%	35.18%
FME	64 Neutral	€11.86B	16.60	5.41%	3.53%	2.10%	9.19%
SRT	64 Neutral	€14.95B	97.80	5.01%	0.39%	5.82%	59.90%
DRW3	63 Neutral	€1.17B	10.65	8.22%	2.95%	2.14%	6.69%
AFX	60 Neutral	€3.60B	24.98	6.79%	1.50%	7.82%	-19.80%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	51 Neutral	€1.34B	-58.47	―	―	-18.82%	-113.85%