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

• Market Cap: €1.25B
• Dividend Yield: 2.78%
• Average Volume (3M): 12.80K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.46
• Revenue Growth: 2.14%
• EPS Growth: 6.69%
• Country: DE
• Employees: 15,444
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.92
• Shares Outstanding: 8,600,000
• 10 Day Avg. Volume: 14,742
• 30 Day Avg. Volume: 12,799
• 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: €81.00
• Price Target Upside: 4.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: €82.00 ▲(6.22% Upside)

The overall stock score of 63.5 reflects a stable financial position with challenges in revenue growth and cash generation. Technical analysis indicates strong bullish momentum but warns of potential overvaluation. Valuation metrics are favorable, with a reasonable P/E ratio and a decent dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Balance Sheet

A conservative leverage position with a low debt-to-equity ratio indicates financial stability and provides flexibility for future investments.

Product Innovation

Continuous investment in R&D ensures competitive advantage and supports long-term growth by keeping the product line relevant and advanced.

Global Market Presence

A strong global distribution network enhances market reach and resilience against regional economic fluctuations, supporting stable revenue streams.

Negative Factors

Declining Revenue

Negative revenue growth indicates challenges in maintaining sales momentum, which could impact long-term profitability and market position.

Profit Margin Pressure

Decreasing profit margins suggest increased cost pressures or pricing challenges, potentially affecting the company's ability to sustain profitability.

Cash Flow Weakness

Negative free cash flow growth can limit the company's ability to invest in growth opportunities and meet financial obligations, impacting long-term financial health.

Draegerwerk AG & Co. KGaA Business Overview & Revenue Model

Company Description

Draegerwerk AG & Co. KGaA is a global leader in the fields of medical and safety technology, headquartered in Lübeck, Germany. The company operates primarily in two sectors: medical technology and safety technology. Its core products include medical devices such as ventilators, anesthesia machines, and monitoring systems, as well as safety equipment including gas detection systems and personal protective equipment. Draegerwerk is committed to enhancing patient care and ensuring workplace safety through innovative solutions and technologies.

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 shows a stable financial position with challenges. The income statement indicates declining revenue and profitability margins. The balance sheet is strong with low leverage, but cash flow metrics reveal potential issues in cash generation, impacting future financial flexibility.

Income Statement

The income statement shows a mixed performance. The gross profit margin remains stable at around 45%, indicating efficient cost management. However, the net profit margin has decreased slightly to 3.42% in the TTM, reflecting pressure on profitability. Revenue growth is negative at -13.9% TTM, suggesting challenges in maintaining sales momentum. EBIT and EBITDA margins have also declined, indicating reduced operational efficiency.

Balance Sheet

The balance sheet is relatively strong with a debt-to-equity ratio of 0.26, indicating a conservative leverage position. Return on equity is modest at 7.89%, showing decent profitability relative to shareholder equity. The equity ratio is stable, suggesting a solid capital structure. However, the slight decline in stockholders' equity over time could be a concern if it continues.

Cash Flow

Cash flow analysis reveals some weaknesses. Free cash flow growth is negative, indicating potential issues in generating cash from operations. The operating cash flow to net income ratio is low at 0.17, suggesting limited cash conversion efficiency. However, the free cash flow to net income ratio is relatively healthy at 0.62, indicating some ability to generate cash relative to net income.

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: Positive
• Last Price: 77.20
• 50DMA: Positive
• 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 Positive. The current price of 77.2 is above the 20-day moving average (MA) of 71.68, above the 50-day MA of 68.37, and above the 200-day MA of 63.66, indicating a bullish trend. The MACD of 2.14 indicates Positive momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 31.94 is Neutral, 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	―	€54.19B	25.08	11.75%	1.96%	5.85%	16.20%
FME	―	€13.53B	20.81	4.83%	3.09%	0.53%	23.79%
AFX	―	€3.93B	24.79	7.48%	1.37%	5.21%	-39.36%
DRW3	―	€1.25B	11.32	8.22%	2.78%	2.14%	6.69%
COP	―	€1.29B	69.44	2.87%	0.20%	1.16%	-43.53%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVT	―	€1.25B	―	-16.75%	―	-1.41%	9.05%