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

• Market Cap: €1.20B
• Dividend Yield: 2.9%
• Average Volume (3M): 13.58K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.45
• Revenue Growth: 0.51%
• EPS Growth: N/A
• Country: DE
• Employees: 15,444
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 8,600,000
• 10 Day Avg. Volume: 14,237
• 30 Day Avg. Volume: 13,582
• PEG Ratio: 1.09
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.62
• 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: 18.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: €78.00 ▲(11.27%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

Several one-time effects positively influenced earnings, contributing approximately €22m to EBIT.

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 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

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: 70.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 70.1 is above the 20-day moving average (MA) of 67.43, above the 50-day MA of 66.67, and above the 200-day MA of 54.47, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 64.51 is Neutral, neither overbought nor oversold. The STOCH value of 87.82 is Negative, 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
DRW3	77 Outperform	€1.20B	10.57	8.06%	2.90%	0.51%	―
Sector *	52 Neutral	$7.34B	-0.07	-63.86%	2.34%	16.17%	0.23%
0DHC	―	€4.62B	29.21	7.48%	1.16%	―	―
0MSD	―	€1.27B	36.13	5.26%	4.15%	―	―
0IRF	―	€1.32B	―	-20.51%	―	―	―
0H9X	―	€13.48B	21.80	4.37%	3.09%	―	―
SEMHF	―	$59.80B	27.43	11.14%	1.80%	―	―