Deutz AG (DEZ) AI Stock Analysis

• Market Cap: €1.22B
• Dividend Yield: 2.15%
• Average Volume (3M): 889.45K
• Price to Earnings (P/E): 46.7
• Beta (1Y): 1.49
• Revenue Growth: 1.57%
• EPS Growth: -70.53%
• Country: DE
• Employees: 5,511
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.08
• Shares Outstanding: 152,638,100
• 10 Day Avg. Volume: 728,016
• 30 Day Avg. Volume: 889,447
• PEG Ratio: -0.25
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 14.27
• 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: €11.45
• Price Target Upside: 44.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €8.00 ▲(1.14% Upside)

Deutz AG's overall stock score is primarily influenced by its solid financial performance, characterized by revenue growth and strong cash flow management. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests the stock may be overvalued. These factors collectively result in a moderate overall stock score.

Deutz AG Business Overview & Revenue Model

Company Description

DEUTZ Aktiengesellschaft manufactures diesel and gas engines in Europe, the Middle East, Africa, the Asia Pacific, and the Americas. It operates through three segments: DEUTZ Compact Engines, DEUTZ Customized Solutions, and Other. The DEUTZ Compact Engines segment provides servicing of liquid-cooled engines with capacities of up to 8 liters. The DEUTZ Customized Solutions segment offers air-cooled drives and liquid-cooled engines with a capacity exceeding 8 liters; and reconditioned exchange engines and parts. The Other segment is involved in manufacturing electric and hybrid drive systems for marine applications under the Torqeedo brand; and development of battery management hardware and software products under the Futavis name, as well as focuses on the electrification of drive systems and electric-powered watercraft. The company also offers installation, maintenance, and repair services for engines. Its products are used in various applications, such as construction equipment, agricultural machinery, material handling equipment, ground support equipment, stationary equipment, commercial vehicles, rail vehicles, boats, and other applications. The company was founded in 1864 and is headquartered in Cologne, Germany.

How the Company Makes Money

Deutz AG generates revenue primarily through the sale of its engines, which are used in a wide range of vehicles and machinery across agricultural, construction, and industrial sectors. The company has established strong relationships with original equipment manufacturers (OEMs) who integrate Deutz engines into their products, creating a significant revenue stream. Additionally, Deutz earns income from aftermarket services, including parts sales, maintenance, and repair services, which provide ongoing support to customers. The company is also investing in new technologies, such as electric and hybrid power systems, which are expected to drive future growth. Strategic partnerships with OEMs and a focus on innovation in sustainable engine solutions further contribute to Deutz AG's revenue generation.

Deutz AG Financial Statement Overview

Summary

Deutz AG demonstrates a promising financial outlook with revenue growth and strong cash flow management. The balance sheet is solid with low leverage, although profitability margins are modest, indicating room for improvement.

Income Statement

Deutz AG's income statement shows a positive trajectory with a revenue growth rate of 5.27% in the TTM period. The gross profit margin is stable at 21.95%, indicating efficient cost management. However, the net profit margin is relatively low at 1.79%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are modest, reflecting operational challenges. Overall, the company demonstrates growth potential but needs to enhance profitability.

Balance Sheet

The balance sheet of Deutz AG is solid, with a low debt-to-equity ratio of 0.39, indicating prudent financial leverage. The return on equity is 4.04%, which is moderate but shows potential for improvement. The equity ratio stands at 45.84%, reflecting a strong capital structure. The company maintains a stable financial position with manageable debt levels.

Cash Flow

Deutz AG's cash flow statement highlights a significant improvement in free cash flow growth at 52.46% in the TTM period. The operating cash flow to net income ratio is 0.19, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is 0.46, suggesting strong cash flow management. Overall, the company exhibits robust cash flow performance, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.95B	1.81B	2.06B	1.95B	1.62B	1.30B
Gross Profit	414.90M	400.80M	446.80M	360.80M	272.50M	185.00M
EBITDA	120.60M	138.10M	220.20M	194.90M	127.70M	-18.40M
Net Income	23.80M	51.80M	81.90M	80.20M	38.20M	-107.60M
Balance Sheet
Total Assets	1.76B	1.68B	1.59B	1.48B	1.29B	1.18B
Cash, Cash Equivalents and Short-Term Investments	59.40M	62.00M	90.10M	54.90M	36.10M	64.70M
Total Debt	318.50M	287.60M	253.50M	219.10M	115.80M	148.50M
Total Liabilities	951.80M	835.40M	847.00M	806.60M	701.70M	645.10M
Stockholders Equity	806.80M	847.90M	743.20M	668.80M	588.40M	535.20M
Cash Flow
Free Cash Flow	93.00M	37.50M	60.10M	-500.00K	31.60M	-31.00M
Operating Cash Flow	167.50M	101.70M	125.10M	57.70M	93.30M	44.90M
Investing Cash Flow	-264.90M	-171.90M	-97.90M	-67.20M	-67.20M	-76.20M
Financing Cash Flow	89.00M	41.30M	-4.60M	27.60M	-56.10M	41.50M

Deutz AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DEZ, the sentiment is Negative. The current price of 7.91 is below the 20-day moving average (MA) of 8.70, below the 50-day MA of 9.10, and above the 200-day MA of 7.39, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 26.19 is Positive, neither overbought nor oversold. The STOCH value of 26.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:DEZ.

Deutz AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSB3	74 Outperform	€1.63B	13.63	11.18%	2.93%	4.20%	-20.71%
KSB	73 Outperform	€1.63B	13.99	11.18%	2.82%	4.20%	-20.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JST	61 Neutral	€727.86M	19.28	10.23%	3.07%	5.34%	-9.83%
DUE	60 Neutral	€1.36B	-72.89	-6.59%	3.62%	-15.83%	-120.52%
STM	60 Neutral	€513.76M	9.93	8.01%	5.57%	3.07%	-31.90%
DEZ	58 Neutral	€1.22B	46.73	3.09%	2.15%	1.57%	-70.53%