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Draegerwerk AG & Co. KGaA (DE:DRW8)
XETRA:DRW8
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Draegerwerk AG & Co. KGaA
(XETRA:DRW8)
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Rating:72Outperform
Price Target:
€65.00
▲(11.68% Upside)
Draegerwerk AG & Co. KGaA's strong earnings call performance and attractive valuation are the most significant factors contributing to its score. While financial performance is stable, there are pressures on profitability margins. Technical indicators suggest potential short-term weakness, but the overall outlook remains positive.
Positive Factors
Strong Order Intake
The increase in order intake reflects robust demand, particularly in the Americas, supporting future revenue growth and market position.
Improved Operating Cash Flow
Enhanced cash flow indicates effective working capital management, providing financial flexibility for investments and debt servicing.
Positive Outlook for 2025
The positive sales and EBIT margin outlook suggests sustained business momentum and operational efficiency improvements.
Negative Factors
Currency and Tariff Headwinds
These headwinds can erode profitability and create uncertainty, affecting long-term financial performance and strategic planning.
Weak Business in China
A slowdown in China, a key market, could hinder growth prospects and necessitate strategic adjustments to mitigate regional risks.
Increased Functional Expenses
Rising expenses without corresponding revenue growth can pressure margins, impacting profitability and operational efficiency.
Draegerwerk AG & Co. KGaA (DRW8) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.18B
Dividend Yield3.38%
Average Volume (3M)3.38K
Price to Earnings (P/E)9.1
Beta (1Y)0.33
Revenue Growth2.14%
EPS Growth6.69%
CountryDE
Employees15,444
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.92
Shares Outstanding10,160,000
10 Day Avg. Volume2,278
30 Day Avg. Volume3,385
Financial Highlights & Ratios
PEG Ratio0.55
Price to Book (P/B)0.57
Price to Sales (P/S)0.26
P/FCF Ratio8.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 primarily through the sale of its medical and safety products and solutions. The company operates a diversified revenue model that includes direct sales to hospitals, healthcare institutions, and industrial clients, as well as ongoing maintenance and service contracts. Key revenue streams include the sale of medical devices such as anesthesia machines, ventilators, and patient monitoring systems, alongside safety equipment like gas detectors and protective gear. Additionally, Draegerwerk benefits from strategic partnerships with healthcare providers and organizations, enhancing its market presence and access to new customers. The company's commitment to research and development also enables it to introduce innovative products, thereby maintaining a competitive edge and driving additional revenue growth.
Draegerwerk AG & Co. KGaA Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 24, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong order intake and sales growth, significant improvements in EBIT and share prices, and positive future outlooks. However, these achievements were tempered by challenges such as currency and tariff headwinds, weaker performance in China, and increased functional expenses.Q3-2025 Updates
Positive Updates
Strong Order Intake and Sales Growth
Order intake rose by 9% to around EUR 2.6 billion in the first 9 months of 2025, driven by strong demand in the Americas with a 19% increase. Net sales increased by roughly 4% to around EUR 2.3 billion in the first 9 months.
Significant EBIT and Share Price Increase
EBIT more than doubled in Q3 to around EUR 57 million, with an EBIT margin increase from 3.6% to 6.8%. Preferred shares increased by around 63% year-to-date.
Improved Operating Cash Flow
Operating cash flow increased by more than EUR 35 million to around EUR 93 million in the first 9 months, indicating strong working capital management.
Positive Outlook for 2025
Net sales growth and EBIT margin are expected in the upper half of the forecast range, with net sales growth of 3.0% to 5.0% and an EBIT margin of 4.5% to 6.5%.
Negative Updates
Currency and Tariff Headwinds
Currencies and tariffs had a substantial negative impact on earnings, with FX having a negative impact of roughly EUR 22 million on EBIT.
Weak Business in China
Demand cooled considerably in China in Q3, resulting in a decline in net sales compared to the prior year quarter despite earlier growth in APAC.
Functional Expense Increase
Functional expenses increased around 6% in the first 9 months, mainly driven by the absence of last year's EUR 30 million one-off income.
Company Guidance
In the Q3 2025 Earnings Conference Call, Drägerwerk AG & Co. KGaA reported significant financial metrics, reflecting strong business performance despite economic challenges. Order intake rose by 9% to approximately EUR 2.6 billion, while net sales climbed over 10% in Q3, reaching EUR 2.3 billion for the first nine months. The EBIT for Q3 more than doubled to around EUR 57 million, with a margin increase from 3.6% to 6.8%. Operating cash flow improved substantially by over EUR 35 million, totaling approximately EUR 93 million. The company revised its net sales growth and EBIT margin expectations to the upper half of their forecast range, projecting net sales growth of 3.0% to 5.0% and an EBIT margin of 4.5% to 6.5% for the year. Despite facing currency and tariff headwinds, Dräger's strong order book and sales momentum underpin their optimistic outlook for the remainder of 2025.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.70
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.75
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.65
Positive
| 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
Neutral
58.20
Price Trends
59.49
Negative
57.06
Positive
54.78
Positive
Market Momentum
-0.24
Positive
43.77
Neutral
11.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DRW8, the sentiment is Neutral. The current price of 58.2 is below the 20-day moving average (MA) of 60.90, below the 50-day MA of 59.49, and above the 200-day MA of 54.78, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 11.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:DRW8.
Draegerwerk AG & Co. KGaA Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €1.18B | 9.08 | 8.22% | 3.38% | 2.14% | 6.69% | |
67 Neutral | €49.33B | 23.09 | 11.45% | 2.15% | 4.53% | 10.12% | |
66 Neutral | €3.57B | 24.76 | 6.79% | 1.50% | 7.82% | -19.80% | |
64 Neutral | €11.67B | 16.38 | 5.41% | 3.57% | 2.10% | 9.19% | |
60 Neutral | €1.32B | 70.86 | 2.87% | 0.20% | 1.16% | -43.53% | |
60 Neutral | €269.25M | 16.81 | ― | 2.71% | -1.64% | 22.60% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
DE:DRW8
Draegerwerk AG & Co. KGaA
58.20
18.68
47.25%
DE:AFX
Carl Zeiss Meditec
40.00
-5.38
-11.86%
DE:COP
CompuGroup Medical
25.00
3.37
15.56%
DE:FME
Fresenius Medical Care AG & Co. KGaA
40.28
-2.41
-5.66%
DE:SBS
STRATEC Biomedical
22.00
-6.16
-21.86%
DE:SHL
Siemens Healthineers AG
44.64
-6.97
-13.50%
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.