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Draegerwerk AG & Co. KGaA (0MT8) (DE:DRW8)
:DRW8
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Draegerwerk AG & Co. KGaA
(LSE:DRW8)
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Rating:64Neutral
Price Target:
€59.00
▲(11.32% Upside)
Draegerwerk AG & Co. KGaA's overall stock score reflects a mixed financial performance with strong balance sheet stability but challenges in revenue growth and cash generation. The stock's valuation is attractive, with a low P/E ratio and a healthy dividend yield. The earnings call highlighted significant order intake growth but also noted profitability challenges due to external headwinds. Technical analysis suggests a neutral to slightly bearish outlook.
Draegerwerk AG & Co. KGaA (DRW8) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.10B
Dividend Yield3.72%
Average Volume (3M)823.00
Price to Earnings (P/E)9.9
Beta (1Y)0.28
Revenue Growth-0.03%
EPS Growth-14.15%
CountryDE
Employees15,444
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.61
Shares Outstanding10,160,000
10 Day Avg. Volume994
30 Day Avg. Volume823
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€59.00Price Target Upside11.32% Upside
Rating ConsensusHold
Number of Analyst Covering1
Draegerwerk AG & Co. KGaA Business Overview & Revenue Model
Company DescriptionDrägerwerk 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 MoneyDraegerwerk generates revenue through the sale of its medical and safety technology products and services. Key revenue streams include the sale of medical devices, such as ventilators and monitoring systems, which are critical for healthcare providers, especially during emergencies or surgeries. Additionally, the company earns income from safety technology products, including personal protective equipment and gas detection systems for industrial applications. Draeger also offers maintenance and support services for its products, providing recurring revenue. Significant partnerships with hospitals and healthcare institutions, along with compliance with regulatory standards, further bolster its revenue. The company also invests in research and development to innovate and expand its product offerings, which helps maintain its competitive edge and drive sales.
Draegerwerk AG & Co. KGaA Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance with stable net sales and a significant increase in order intake, especially in the medical division. However, profitability was impacted by the absence of previous one-off effects and negative impacts from currency fluctuations and tariffs. While the company remains optimistic about future growth and maintains its annual guidance, the challenges in profitability and external headwinds cannot be overlooked.Q2-2025 Updates
Positive Updates
Solid Business Performance and Order Intake
Achieved stable net sales around EUR 1.5 billion, with growth driven by the medical division. Order intake increased significantly to EUR 1.7 billion, marking the highest first-half order intake since 2020.
Improvement in Operating Cash Flow
Operating cash flow improved to EUR 18 million from a negative EUR 5 million in the prior year period, driven by effective working capital management.
Share Price Increase and TecDAX Inclusion
Common shares rose by more than 33%, and preferred shares by over 40%. Preferred shares listed in the SDAX were also included in the TecDAX.
Strong Order Growth in Medical Division
Order intake in the medical division grew by almost 15% to over EUR 1 billion, driven by strong demand for ventilators and other medical equipment.
Negative Updates
Decline in Earnings Before Interest and Taxes (EBIT)
EBIT fell short of the prior year figure, reaching just over EUR 20 million due to missing previous one-off effects and negative impacts from currency and tariffs.
Currency and Tariff Headwinds
Currency effects and tariffs negatively impacted earnings by approximately EUR 20 million, with an expected further tariff impact of EUR 25 million for the full year.
Safety Division Performance Challenges
Net sales in the safety division declined by 1.4%, with a significant drop in EBIT margin from 15.1% to 7.6% in Q2.
Medical Division Profitability Concerns
Despite strong order intake, the medical division recorded an EBIT margin decrease from -2.9% to -4% for H1, indicating ongoing profitability challenges.
Company Guidance
In the Q2 2025 earnings call, the company reported stable net sales of approximately EUR 1.5 billion, with a slight nominal decline compared to the previous year, although net sales increased slightly when adjusted for currency effects. The medical division drove growth, contrasting with the prior year's performance led by the safety division. Earnings before interest and taxes (EBIT) were just over EUR 20 million, falling short of the previous year's figures due to the absence of EUR 20 million in one-off effects from divestments in 2024. Order intake saw significant growth, reaching EUR 1.7 billion, marking the highest since the first half of 2020, despite challenges from U.S. customs policies. Operating cash flow returned to positive territory at EUR 18 million, up from a deficit in the prior year. The company maintained a 44.8% gross margin, with a 1.8% net sales increase in Q2, and confirmed its annual guidance for net sales growth between 1% and 5%, and an EBIT margin between 3.5% and 6.5%. The company plans to consolidate operations in its Neonatal care business, anticipating efficiency improvements and cost reductions by 2026.Draegerwerk AG & Co. KGaA Financial Statement Overview
Summary
Draegerwerk AG & Co. KGaA shows a mixed financial performance. The balance sheet is strong with low leverage, but income statement and cash flow metrics indicate challenges in revenue growth and cash generation. The company needs to improve operational efficiency and sales to enhance profitability and cash flow sustainability.Income Statement
Draegerwerk AG & Co. KGaA's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at approximately 44.97%, indicating efficient cost management. However, the net profit margin has decreased to 3.42%, and the revenue growth rate is negative at -13.9%, signaling a decline in sales. EBIT and EBITDA margins have also contracted, reflecting operational challenges. The company needs to address these issues to improve profitability and growth.65
Positive
Balance Sheet
The balance sheet of Draegerwerk AG & Co. KGaA is relatively stable. The debt-to-equity ratio is low at 0.26, indicating conservative leverage. Return on equity (ROE) is modest at 7.89%, suggesting moderate profitability for shareholders. The equity ratio stands at 49.03%, showing a strong equity base relative to total assets. Overall, the company maintains a solid financial position with manageable debt levels.70
Positive
Cash Flow
Cash flow analysis reveals some concerns. The free cash flow growth rate is negative, indicating a decline in cash generated 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, showing some ability to generate cash relative to profits. The company needs to enhance its cash flow generation to support future investments and operations.55
Neutral
| 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
Negative
53.00
Price Trends
56.20
Negative
55.45
Negative
50.08
Positive
Market Momentum
-0.47
Positive
38.55
Neutral
8.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DRW8, the sentiment is Negative. The current price of 53 is below the 20-day moving average (MA) of 55.32, below the 50-day MA of 56.20, and above the 200-day MA of 50.08, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 38.55 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:DRW8.
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 | 52.61B | 24.35 | 12.29% | 2.01% | 5.85% | 16.20% | |
67 Neutral | 1.26B | 67.74 | 5.34% | 0.21% | 1.16% | -43.53% | |
66 Neutral | 12.57B | 19.33 | 4.95% | 3.33% | 0.53% | 23.79% | |
64 Neutral | €1.10B | 9.95 | 6.87% | 3.72% | -0.03% | -14.15% | |
64 Neutral | 354.35M | 22.12 | 6.61% | 2.06% | -1.64% | 22.60% | |
60 Neutral | 3.98B | 25.14 | 8.75% | 1.35% | 5.21% | -39.36% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
DE:DRW8
Draegerwerk AG & Co. KGaA
53.00
11.46
27.58%
GB:0DHC
Carl Zeiss Meditec
44.61
-13.34
-23.02%
GB:0MSD
CompuGroup Medical
23.90
10.53
78.76%
GB:0H9X
Fresenius Medical Care AG & Co. KGaA
43.26
7.82
22.07%
GB:0RAR
STRATEC Biomedical
27.50
-15.39
-35.88%
SEMHF
Siemens Healthineers AG
56.70
3.96
7.51%
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.