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Draegerwerk AG & Co. KGaA (DE:DRW8)
XETRA:DRW8
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Draegerwerk AG & Co. KGaA (DRW8) AI Stock Analysis

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DE:DRW8

Draegerwerk AG & Co. KGaA

(XETRA:DRW8)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
€94.00
▲(19.90% Upside)
Action:Reiterated
Date:08/04/26
Overall score is driven primarily by improving financial performance (profitability/cash flow recovery with moderate leverage) and a constructive earnings outlook (upgraded margin guidance). Technicals remain trend-positive but are overextended (RSI/Stoch), and valuation is supportive with a reasonable P/E and a moderate dividend yield.
Positive Factors
Upgraded margin guidance
An upgraded EBIT margin range and an explicit medium‑term margin ambition signal durable operational improvement priorities. If sustained, disciplined expense control and mix shifts can raise structural profitability, improving free cash flow generation and reinvestment capacity over the next several years.
Negative Factors
Medical division profitability lag
The Medical segment remains a core revenue driver but showed negative EBIT in H1, indicating incomplete recovery. Persistent underperformance in this capital‑goods business can constrain group margin expansion, require continued investment or restructuring, and heighten earnings cyclicality.
Read all positive and negative factors
Positive Factors
Negative Factors
Upgraded margin guidance
An upgraded EBIT margin range and an explicit medium‑term margin ambition signal durable operational improvement priorities. If sustained, disciplined expense control and mix shifts can raise structural profitability, improving free cash flow generation and reinvestment capacity over the next several years.
Read all positive factors

Draegerwerk AG & Co. KGaA (DRW8) vs. iShares MSCI Germany ETF (EWG)

Draegerwerk AG & Co. KGaA Business Overview & Revenue Model

Company Description
Headquartered in Lübeck, Germany, and established in 1889, Drägerwerk AG & Co. KGaA is a global provider of advanced medical and safety technology solutions. The company serves a diverse international clientele across Europe, the Americas, Africa,...
How the Company Makes Money
Dräger primarily makes money by selling products and services across two main segments: (1) Medical and (2) Safety. In the Medical segment, revenue is generated from the sale of capital equipment (e.g., anesthesia workstations, ventilators, and pa...

Draegerwerk AG & Co. KGaA Earnings Call Summary

Earnings Call Date:Jul 30, 2026
(Q2-2026)
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% Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a clearly improved operational and financial performance: strong net sales growth, materially higher EBIT and margins, improved cash flows and a stronger balance sheet. Safety division delivered robust top-line and margin expansion, and Medical shows improving trends with Q2 returning to positive EBIT despite order intake being affected by a prior-year large Mexico order. Key headwinds are rising personnel and freight costs, APAC softness in places, and some remaining working capital increase. One-off customs refunds materially aided margins but carry timing/amount uncertainty. On balance, positive operational momentum and upgraded guidance outweigh the challenges.
Positive Updates
Order Intake and Net Sales Growth
Order intake of around EUR 1.75 billion was slightly above prior year levels; net sales increased by more than EUR 90 million to ~EUR 1.6 billion, +7.7% in H1 and +8.5% in Q2 (currency-adjusted).
Negative Updates
Medical Order Intake Decline vs Exceptional Prior-Year Base
Medical order intake was ~EUR 956 million, down 3.7% in H1 and down 11.5% in Q2 versus prior year due to a large hospital infrastructure order in Mexico in Q2 2025 (a substantial base effect).
Read all updates
Q2-2026 Updates
Negative
Order Intake and Net Sales Growth
Order intake of around EUR 1.75 billion was slightly above prior year levels; net sales increased by more than EUR 90 million to ~EUR 1.6 billion, +7.7% in H1 and +8.5% in Q2 (currency-adjusted).
Read all positive updates
Company Guidance
Management guidance for 2026: net sales growth of 2–6% (currency‑adjusted), an upgraded EBIT margin range of 6–8% (the lower bound was raised to 5.5% two weeks earlier and lifted again after additional refunds), and an ongoing commitment to keep full‑year functional expense growth below net sales growth; management also expects stronger second‑half dynamics and that free cash flow will continue to develop positively. The margin upgrade reflects strong operating performance plus one‑offs: a EUR 7.8m customs refund recognized in Q2, an additional EUR 14.2m (including interest) received after the half‑year to be recognized in Q3, and possible further refunds of EUR 7–9m (timing/amount uncertain). Management is monitoring headcount closely, flags up to ~EUR 10m of freight cost headwind for 2026, and reiterated the medium‑term ambition to improve EBIT margin by ~1 percentage point p.a. toward a 10% margin by 2030.

Draegerwerk AG & Co. KGaA Financial Statement Overview

Summary
Financial statement scores are solid (Income 72, Balance Sheet 74, Cash Flow 70). Results show a clear profitability and cash-flow rebound in the latest TTM with moderate, improving leverage and rising ROE, but the longer track record is volatile (notably 2022 losses and uneven cash conversion), which caps the score.
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.57B3.48B3.37B3.37B3.05B3.33B
Gross Profit1.64B1.52B1.51B1.46B1.24B1.54B
EBITDA400.65M384.83M351.68M318.33M62.63M374.43M
Net Income171.28M139.50M124.41M110.43M-64.56M154.23M
Balance Sheet
Total Assets3.18B3.28B3.09B3.09B3.11B3.18B
Cash, Cash Equivalents and Short-Term Investments198.46M284.06M248.18M279.36M319.50M577.38M
Total Debt388.38M405.11M395.58M471.38M361.95M348.01M
Total Liabilities1.52B1.65B1.56B1.69B1.79B1.92B
Stockholders Equity1.66B1.63B1.54B1.41B1.32B1.26B
Cash Flow
Free Cash Flow188.38M166.50M103.52M121.47M-231.09M274.54M
Operating Cash Flow280.88M238.33M167.31M189.68M-144.23M384.89M
Investing Cash Flow-83.18M-98.15M-43.39M-67.34M36.83M-109.92M
Financing Cash Flow-180.91M-83.99M-161.38M-154.56M-29.38M-334.64M

Draegerwerk AG & Co. KGaA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price78.40
Price Trends
50DMA
74.25
Positive
100DMA
72.23
Positive
200DMA
67.49
Positive
Market Momentum
MACD
3.52
Negative
RSI
76.60
Negative
STOCH
91.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DRW8, the sentiment is Positive. The current price of 78.4 is below the 20-day moving average (MA) of 79.77, above the 50-day MA of 74.25, and above the 200-day MA of 67.49, indicating a bullish trend. The MACD of 3.52 indicates Negative momentum. The RSI at 76.60 is Negative, neither overbought nor oversold. The STOCH value of 91.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DRW8.

Draegerwerk AG & Co. KGaA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€1.84B12.239.79%2.82%6.37%71.55%
71
Outperform
€869.78M19.8220.26%1.65%6.84%43.33%
70
Outperform
€42.95M19.5012.34%3.93%-6.92%-67.82%
70
Outperform
€43.71B19.9912.00%2.85%-0.92%2.06%
66
Neutral
€2.68B22.064.27%1.98%-0.06%-38.81%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
49
Neutral
€246.77M-76.48-1.37%3.05%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:DRW8
Draegerwerk AG & Co. KGaA
86.20
32.30
59.92%
DE:AFX
Carl Zeiss Meditec
31.08
-11.07
-26.27%
DE:EUZ
Eckert & Ziegler Strahlen und Medizintechnik
13.94
-5.31
-27.60%
DE:M3V
MeVis Medical Solutions
23.60
-0.30
-1.26%
DE:SBS
STRATEC Biomedical
20.65
-4.67
-18.46%
DE:SHL
Siemens Healthineers AG
39.59
-5.80
-12.77%
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: Aug 04, 2026