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

• Market Cap: €1.17B
• Dividend Yield: 3%
• Average Volume (3M): 7.85K
• Price to Earnings (P/E): 10.4
• 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: 7,484
• 30 Day Avg. Volume: 7,854
• PEG Ratio: 0.55
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 8.43
• 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: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €72.00 ▼(-6.74% Downside)

Draegerwerk AG & Co. KGaA's overall stock score is primarily influenced by its stable financial performance and attractive valuation. However, bearish technical indicators suggest potential short-term challenges. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Stable Financial Position

A stable financial position with consistent revenue and a solid balance sheet indicates long-term resilience and the ability to weather economic fluctuations.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without excessive debt burden.

Healthy Gross Profit Margin

A healthy gross profit margin reflects efficient cost management, which supports profitability and competitiveness in the long term.

Negative Factors

Profitability Margin Pressure

Pressure on profitability margins suggests challenges in maintaining cost efficiency, which could impact long-term profitability if not addressed.

Declining Net Profit Margin

A declining net profit margin may indicate rising costs or inefficiencies, which could hinder future earnings growth if not managed effectively.

Operational Efficiency Concerns

Declining EBIT and EBITDA margins highlight the need for operational improvements to sustain profitability and competitive positioning.

Draegerwerk AG & Co. KGaA Business Overview & Revenue Model

Company Description

Draegerwerk AG & Co. KGaA (DRW3) is a global leader in medical and safety technology, operating primarily in the healthcare and industrial sectors. Founded in 1889 and headquartered in Lübeck, Germany, the company focuses on developing innovative products and solutions for emergency medical services, hospitals, and labor safety. Core offerings include ventilators, anesthesia machines, and monitoring systems, as well as personal protective equipment and gas detection systems for industrial applications.

How the Company Makes Money

Draegerwerk generates revenue primarily through the sale of its medical and safety technology products. Key revenue streams include the sale of medical devices such as ventilators, anesthesia devices, and patient monitoring systems, which are essential in hospitals and emergency medical services. Additionally, the company earns revenue from safety technology products, including personal protective equipment and gas detection systems for various industries. Significant partnerships with healthcare institutions, governments, and industrial enterprises bolster their sales, while ongoing service contracts and maintenance agreements for installed equipment provide a steady stream of recurring revenue. The company also invests in research and development to innovate and expand its product offerings, enhancing its market competitiveness and revenue potential.

Draegerwerk AG & Co. KGaA Financial Statement Overview

Summary

Draegerwerk AG & Co. KGaA shows a stable financial position with some challenges. The income statement reflects declining revenue and profitability margins, while the balance sheet remains strong with low leverage. Cash flow metrics indicate potential issues in cash generation, which could impact future financial flexibility. The company needs to focus on improving revenue growth and operational efficiency to enhance its financial performance.

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	3.42B	3.37B	3.37B	3.05B	3.33B	3.41B
Gross Profit	1.55B	1.51B	1.46B	1.24B	1.54B	1.61B
EBITDA	351.13M	351.68M	318.33M	62.63M	374.43M	399.92M
Net Income	120.88M	124.41M	110.43M	-64.56M	154.23M	188.59M
Balance Sheet
Total Assets	3.03B	3.09B	3.09B	3.11B	3.18B	3.31B
Cash, Cash Equivalents and Short-Term Investments	188.28M	248.18M	279.36M	319.50M	577.38M	650.56M
Total Debt	295.57M	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	1.51B	1.54B	1.41B	1.32B	1.26B	1.03B
Cash Flow
Free Cash Flow	131.75M	103.52M	121.47M	-231.09M	274.54M	345.04M
Operating Cash Flow	202.71M	167.31M	189.68M	-144.23M	384.89M	459.98M
Investing Cash Flow	-97.39M	-43.39M	-67.34M	36.83M	-109.92M	-263.08M
Financing Cash Flow	-89.92M	-161.38M	-154.56M	-29.38M	-334.64M	114.25M

Draegerwerk AG & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.20
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 77.2 is above the 20-day moving average (MA) of 68.43, above the 50-day MA of 70.07, and above the 200-day MA of 66.06, indicating a neutral trend. The MACD of -0.64 indicates Positive momentum. The RSI at 39.33 is Neutral, neither overbought nor oversold. The STOCH value of 48.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	67 Neutral	€49.81B	23.32	11.45%	2.12%	4.53%	10.12%
FME	64 Neutral	€11.71B	16.43	5.41%	3.57%	2.10%	9.19%
DRW3	63 Neutral	€1.17B	10.39	8.22%	3.00%	2.14%	6.69%
AFX	60 Neutral	€3.58B	24.80	6.79%	1.50%	7.82%	-19.80%
COP	60 Neutral	€1.30B	70.01	2.87%	0.20%	1.16%	-43.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVT	38 Underperform	€917.82M	-5.75	-17.98%	―	-2.67%	7.40%