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Draegerwerk AG & Co. KGaA (DE:DRW3)
XETRA:DRW3

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

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DE

Draegerwerk AG & Co. KGaA

(XETRA:DRW3)

Rating:77Outperform
Price Target:
€78.00
▲(16.24%Upside)
Draegerwerk AG & Co. KGaA achieves a strong overall stock score due to robust technical analysis and attractive valuation. The financial performance is solid, but challenges in revenue growth and free cash flow limit the score.
Positive Factors
Earnings
The EBIT exceeded consensus by 17% and surpassed estimates by 20%.
Order Intake
The preliminary order intake increased by 6.1% to approximately €861m, exceeding the previous year's Q1 figure.
Negative Factors
Competition
There is an expectation of strong competition from larger competitors.
Sales Performance
Dräger saw a decrease in net sales of 1.2%, mainly attributed to a weaker performance in the medical division.

Draegerwerk AG & Co. KGaA (DRW3) vs. iShares MSCI Germany ETF (EWG)

Draegerwerk AG & Co. KGaA Business Overview & Revenue Model

Company DescriptionDraegerwerk AG & Co. KGaA is a German-based company specializing in the fields of medical and safety technology. It operates primarily through two segments: the medical division and the safety division. The medical division provides solutions such as anesthesia workstations, ventilators for intensive care, emergency, and mobile ventilation units, as well as warming therapy equipment for infants. The safety division offers products and services related to personal protection, gas detection technology, and professional diving equipment. Draegerwerk serves a global customer base across various industries, including healthcare, industrial, mining, and emergency services.
How the Company Makes MoneyDraegerwerk AG & Co. KGaA generates revenue through the sale of its medical and safety products, as well as through the provision of related services. The medical division earns income by supplying hospitals and healthcare facilities with critical care equipment such as ventilators and anesthesia machines, which are essential for patient care. The safety division contributes to the company's revenue by offering safety solutions like portable gas detection devices, respiratory protection equipment, and occupational safety training services. Draegerwerk's earnings are supported by long-term contracts and partnerships with healthcare institutions and industrial corporations, ensuring steady demand for its products and services. The company also invests in research and development to innovate and improve its offerings, thereby maintaining its competitiveness and market presence.

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
72
Positive
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
68
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.37B3.37B3.05B3.33B3.41B
Gross Profit1.51B1.46B1.24B1.54B1.61B
EBITDA202.45M318.33M62.63M422.66M399.92M
Net Income124.41M110.43M-64.56M154.23M188.59M
Balance Sheet
Total Assets3.09B3.09B3.11B3.18B3.31B
Cash, Cash Equivalents and Short-Term Investments248.18M279.36M306.67M572.16M639.08M
Total Debt395.58M471.38M361.95M348.01M370.75M
Total Liabilities1.56B1.69B1.79B1.92B2.27B
Stockholders Equity1.54B1.41B1.32B1.26B1.03B
Cash Flow
Free Cash Flow103.52M121.47M-231.09M274.54M345.04M
Operating Cash Flow167.31M189.68M-144.23M384.89M459.98M
Investing Cash Flow-43.39M-67.34M36.83M-109.92M-263.08M
Financing Cash Flow-161.38M-154.56M-29.38M-334.64M114.25M

Draegerwerk AG & Co. KGaA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price67.10
Price Trends
50DMA
64.53
Positive
100DMA
60.50
Positive
200DMA
53.07
Positive
Market Momentum
MACD
0.61
Positive
RSI
48.17
Neutral
STOCH
19.91
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 67.1 is below the 20-day moving average (MA) of 69.13, above the 50-day MA of 64.53, and above the 200-day MA of 53.07, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 19.91 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
€1.13B10.168.06%2.63%0.51%
DESHL
76
Outperform
$52.33B25.1411.14%2.03%5.83%13.44%
DEFME
68
Neutral
€14.17B22.924.37%3.00%0.10%27.83%
DECOP
64
Neutral
€1.19B33.825.26%4.29%-2.84%-24.28%
DEAFX
62
Neutral
€5.10B32.197.48%1.06%5.21%-39.36%
51
Neutral
$7.41B0.36-61.88%2.34%16.99%1.69%
DEEVT
48
Neutral
€1.27B-20.51%1.50%-127.76%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:DRW3
Draegerwerk AG & Co. KGaA
67.10
18.79
38.88%
DE:FME
Fresenius Medical Care AG & Co. KGaA
48.30
13.40
38.42%
DE:COP
CompuGroup Medical
23.30
-0.46
-1.94%
DE:AFX
Carl Zeiss Meditec
57.00
-8.64
-13.17%
DE:EVT
Evotec
7.14
-1.88
-20.86%
DE:SHL
Siemens Healthineers AG
46.90
-6.04
-11.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025