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

• Market Cap: €1.13B
• Dividend Yield: 3.07%
• Average Volume (3M): 10.50K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.47
• Revenue Growth: -0.03%
• EPS Growth: -14.15%
• Country: DE
• Employees: 15,444
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): 0.61
• Shares Outstanding: 8,600,000
• 10 Day Avg. Volume: 6,477
• 30 Day Avg. Volume: 10,498
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 25.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: €74.00 ▲(11.78% Upside)

Draegerwerk AG & Co. KGaA's overall stock score is driven by a stable financial position with some challenges in revenue and cash flow. The technical analysis suggests cautious sentiment, while the valuation indicates potential undervaluation with a decent dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Financial Performance

Despite strong order intake and a favorable product mix supporting performance, the EBIT estimates are raised by 5-7%.

Order Intake

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

Negative Factors

Profitability

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

Revenue

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

Drägerwerk AG & Co. KGaA operates as a medical and safety technology company in Europe, the Americas, Africa, Asia, and Australia. The company develops, produces, and markets system solutions, equipment, and services for acute point of care, including emergency care, perioperative care, critical care, and perinatal care. It also develops, produces, and markets products, system solutions, and services for personal protection, gas detection technology, and integrated hazard management to customers in industry and mining sectors, as well as public sectors, such as fire departments, police, and disaster protection. The company's products portfolio includes anesthesia devices and ventilators, thermoregulation equipment, consumables and accessories, supply units, lights, gas management systems, patient monitoring, software applications, system products, and other services. Its product portfolio also comprises stationary and mobile gas detection systems, personal protective equipment, and alcohol and drug testing devices. In addition, the company offers various training and services, as well as fire training facilities for firefighters. Drägerwerk AG & Co. KGaA was founded in 1889 and is headquartered in Lübeck, Germany.

How the Company Makes Money

Draegerwerk generates revenue through the sale of its medical and safety products, which are distributed globally to hospitals, healthcare institutions, and industrial companies. Key revenue streams include direct sales of medical devices and safety equipment, service contracts for maintenance and support, and consumables associated with their products. The company also benefits from partnerships with healthcare providers and governmental agencies that bolster its market presence and facilitate access to new clients. Additionally, Draegerwerk invests in research and development to innovate and expand its product offerings, which helps maintain a competitive edge and drives future earnings.

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. The company manages its leverage well, maintaining a healthy balance between debt and equity. However, it faces challenges in revenue growth and free cash flow expansion. Strategic improvements in revenue streams and operational efficiency could enhance financial performance further.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.36B	3.37B	3.37B	3.05B	3.33B	3.41B
Gross Profit	1.51B	1.51B	1.46B	1.24B	1.54B	1.61B
EBITDA	315.73M	351.68M	318.33M	62.63M	374.43M	399.92M
Net Income	99.86M	124.41M	110.43M	-64.56M	154.23M	188.59M
Balance Sheet
Total Assets	2.99B	3.09B	3.09B	3.11B	3.18B	3.31B
Cash, Cash Equivalents and Short-Term Investments	218.91M	248.18M	279.36M	319.50M	577.38M	650.56M
Total Debt	446.92M	395.58M	471.38M	361.95M	348.01M	370.75M
Total Liabilities	1.52B	1.56B	1.69B	1.79B	1.92B	2.27B
Stockholders Equity	1.46B	1.54B	1.41B	1.32B	1.26B	1.03B
Cash Flow
Free Cash Flow	122.22M	103.52M	121.47M	-231.09M	274.54M	345.04M
Operating Cash Flow	190.64M	167.31M	189.68M	-144.23M	384.89M	459.98M
Investing Cash Flow	-92.53M	-43.39M	-67.34M	36.83M	-109.92M	-263.08M
Financing Cash Flow	-103.70M	-161.38M	-154.56M	-29.38M	-334.64M	114.25M

Draegerwerk AG & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 66.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DRW3, the sentiment is Neutral. The current price of 66.2 is below the 20-day moving average (MA) of 67.92, below the 50-day MA of 68.02, and above the 200-day MA of 58.35, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 34.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
DRW3	66 Neutral	€1.13B	12.43	6.87%	3.07%	-0.03%	-14.15%
Sector *	51 Neutral	$7.85B	-0.21	-41.41%	2.22%	22.81%	-2.01%
0DHC	―	€3.85B	24.34	7.48%	―	―	―
0MSD	―	€1.26B	67.69	2.87%	―	―	―
0IRF	―	€1.07B	―	-16.75%	―	―	―
0H9X	―	€12.85B	19.57	4.83%	―	―	―
SEMHF	―	$61.73B	26.23	11.75%	1.73%	―	―