Draegerwerk AG & Co. KGaA (DRW3) AI Stock Analysis

• Market Cap: €1.15B
• Dividend Yield: 3%
• Average Volume (3M): 13.28K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.45
• Revenue Growth: -0.03%
• EPS Growth: -14.15%
• Country: DE
• Employees: 15,444
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Devices
• EPS (TTM): 0.61
• Shares Outstanding: 8,600,000
• 10 Day Avg. Volume: 13,218
• 30 Day Avg. Volume: 13,275
• PEG Ratio: N/A
• 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: €83.25
• Price Target Upside: 23.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: €74.00 ▲(9.47% Upside)

Draegerwerk AG & Co. KGaA's overall stock score is driven primarily by its solid financial performance and reasonable valuation. The company maintains a strong equity base and profitability, though it faces challenges in revenue growth and free cash flow expansion. Technical indicators suggest short-term bearish momentum, but the stock's valuation and dividend yield provide a cushion for investors. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Financial Outlook

Dräger confirms its guidance for 2024 and continues to expect net sales growth of 1-5% and an EBIT margin of 3.5%-6.5%.

Medical Division Performance

In the Medical Division, order intake rose significantly by 20.3%, largely due to a major multi-year order from Mexico.

Order Intake

Preliminary calculated order intake was 10.5% above the level of the prior-year period, showing strong demand.

Negative Factors

Market Competition

There is an expectation of strong competition from larger competitors.

Profitability Concerns

EBIT came in significantly lower at €20m compared to the previous year's €40.7m, reflecting reduced profitability.

Revenue Decline

Q2 net sales decreased by 0.6% from the prior-year period, indicating a decline in revenue.

Draegerwerk AG & Co. KGaA Business Overview & Revenue Model

Company Description

Draegerwerk AG & Co. KGaA (DRW3) is a leading international company in the fields of medical and safety technology. It develops, manufactures, and sells innovative products, services, and integrated solutions that protect, support, and save lives. The company's core products include anesthesia workstations, ventilators, patient monitoring devices, and medical lights for hospitals. In the safety sector, Draeger provides respiratory protection, gas detection devices, and personal protection equipment for industrial and mining applications.

How the Company Makes Money

Draegerwerk AG & Co. KGaA generates revenue primarily through the sales of its medical and safety products. In the medical sector, the company makes money by selling equipment to hospitals and healthcare facilities, including ventilators, anesthesia machines, and patient monitoring systems. The safety division contributes to the company's earnings by providing safety solutions to industries such as oil and gas, chemical, and mining, which require respiratory protection and gas detection devices. Additionally, Draeger offers maintenance, training, and consulting services, which provide a steady stream of recurring revenue. Strategic partnerships and collaborations also play a role in expanding the company's market reach and enhancing its product offerings.

Draegerwerk AG & Co. KGaA Financial Statement Overview

Summary

Draegerwerk AG & Co. KGaA presents a robust financial profile with solid profitability and a strong equity base. It manages leverage well but faces challenges in revenue growth and free cash flow expansion.

Income Statement

Draegerwerk AG & Co. KGaA shows a stable revenue base with a slight decline in recent years. The gross profit margin remains strong at approximately 44.9% in 2024, reflecting effective cost management. The net profit margin improved to 3.7% in 2024 from 3.3% in 2023, indicating better profitability despite revenue stagnation. However, the EBIT margin decreased slightly from 5.5% in 2023 to 5.3% in 2024, suggesting some operational challenges. Overall, the company exhibits solid profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet reveals a reasonable debt-to-equity ratio of 0.26 in 2024, indicating conservative leverage. The company has improved its equity ratio to 49.6%, showcasing a solid equity base relative to its assets. Return on equity (ROE) stands at 8.1%, reflecting moderate efficiency in using equity to generate profit. While leverage is manageable, the company should focus on enhancing asset utilization to boost returns.

Cash Flow

In 2024, Draegerwerk AG & Co. KGaA demonstrated a positive free cash flow of €103.5 million, although it decreased from €121.5 million in 2023. The operating cash flow to net income ratio of 1.34 indicates strong cash generation relative to net earnings. However, the free cash flow growth rate was negative, highlighting a need for sustained cash flow improvement. Overall, the company maintains healthy cash generation but faces challenges in improving free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.37B	3.37B	3.05B	3.33B	3.41B
Gross Profit	1.51B	1.46B	1.24B	1.54B	1.61B
EBITDA	202.45M	318.33M	62.63M	422.66M	399.92M
Net Income	124.41M	110.43M	-64.56M	154.23M	188.59M
Balance Sheet
Total Assets	3.09B	3.09B	3.11B	3.18B	3.31B
Cash, Cash Equivalents and Short-Term Investments	248.18M	279.36M	306.67M	572.16M	639.08M
Total Debt	395.58M	471.38M	361.95M	348.01M	370.75M
Total Liabilities	1.56B	1.69B	1.79B	1.92B	2.27B
Stockholders Equity	1.54B	1.41B	1.32B	1.26B	1.03B
Cash Flow
Free Cash Flow	103.52M	121.47M	-231.09M	274.54M	345.04M
Operating Cash Flow	167.31M	189.68M	-144.23M	384.89M	459.98M
Investing Cash Flow	-43.39M	-67.34M	36.83M	-109.92M	-263.08M
Financing Cash Flow	-161.38M	-154.56M	-29.38M	-334.64M	114.25M

Draegerwerk AG & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DRW3, the sentiment is Positive. The current price of 67.6 is below the 20-day moving average (MA) of 68.62, below the 50-day MA of 68.46, and above the 200-day MA of 56.51, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 47.28 is Neutral, neither overbought nor oversold. The STOCH value of 16.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DRW3.

Draegerwerk AG & Co. KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	72 Outperform	$51.81B	23.98	11.75%	2.05%	5.85%	16.20%
DRW3	68 Neutral	€1.15B	12.69	6.87%	3.00%	-0.03%	-14.15%
COP	64 Neutral	€1.26B	67.46	2.87%	4.24%	1.16%	―
FME	63 Neutral	€12.07B	18.39	4.83%	3.50%	0.53%	23.79%
AFX	60 Neutral	€3.85B	24.30	7.48%	1.39%	5.21%	-39.36%
Sector *	51 Neutral	$7.27B	-0.06	-62.84%	2.34%	15.16%	-2.86%
EVT	45 Neutral	€1.20B	―	-20.51%	―	1.50%	-127.76%