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Draegerwerk AG & Co. KGaA (DE:DRW8)
XETRA:DRW8
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Draegerwerk AG & Co. KGaA
(XETRA:DRW8)
Rating:74Outperform
Price Target:
€63.00
▲(14.13%Upside)
Draegerwerk AG & Co. KGaA (DRW8) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.14B
Dividend Yield3.08%
Average Volume (3M)1.63K
Price to Earnings (P/E)8.3
Beta (1Y)0.33
Revenue Growth0.51%
EPS Growth14.92%
CountryDE
Employees15,444
SectorHealthcare
Sector Strength42
IndustryMedical - Devices
Share Statistics
EPS (TTM)N/A
Shares Outstanding10,160,000
10 Day Avg. Volume1,082
30 Day Avg. Volume1,626
Financial Highlights & Ratios
PEG Ratio-0.77
Price to Book (P/B)0.65
Price to Sales (P/S)0.00
P/FCF Ratio7.03
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
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 MoneyDräger generates revenue primarily through the sale of its medical and safety products, which are marketed to a global clientele across various industries. In the Medical division, the company earns money by selling equipment such as ventilators, anesthesia machines, and patient monitoring systems to healthcare providers and institutions. These products are often part of long-term contracts and service agreements, which provide recurring revenue streams through maintenance, training, and software updates. In the Safety division, Dräger's revenue comes from the sale of safety equipment, including gas detection devices and personal protective gear, to industries like firefighting, mining, and oil & gas. The company also engages in partnerships and collaborations to enhance its technology offerings and expand its market presence. Additionally, Dräger invests in research and development to innovate and maintain its competitive edge, which supports sustained revenue growth.
Draegerwerk AG & Co. KGaA Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 17.38%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook. While the company reported strong demand and performance in the Safety division, other areas, such as the Medical division, faced significant challenges. Currency fluctuations and unresolved regulatory issues add to the company's difficulties. Improvements in cash flow and reduced financial debt are positive signs, but are offset by declines in EBIT and unresolved external challenges.Q1-2025 Updates
Positive Updates
Best Q1 Demand Since Record Year 2020
Order intake for Q1 2025 was around EUR 861 million, surpassing the high level of the prior year period, marking the best Q1 demand since the record-breaking year 2020.
Safety Division Performance
The Safety division showed strong performance with order intake increasing by more than 8%, driven by high demand for engineered solutions and gas detection devices.
Gross Margin Improvement
Group's gross margin increased by 0.5 percentage points to 45.8% at the end of the first 3 months.
Improvement in Operating Cash Flow
Operating cash flow improved significantly to roughly EUR 56 million, up from EUR 34 million in the prior year quarter.
Net Financial Debt Reduction
Net financial debt was further improved during the quarter, leading to a healthy leverage level.
Negative Updates
Decline in EBIT
EBIT for Q1 2025 was EUR 0.4 million, a significant drop from the prior year figure of EUR 15.1 million, due to lower net sales volume and higher expenses.
Challenges in Medical Division
Medical division saw a decrease in EBIT to minus EUR 28 million from minus EUR 11 million the previous year, with the EBIT margin decreasing from minus 2.7% to minus 6.7%.
Currency Impact Challenges
The euro's broad-based depreciation impacted sales revenue outside the EU, with potential negative effects on the EBIT margin if current currency trends continue.
FDA Warning Letter Unresolved
The FDA warning letter issue remains unresolved, with delays due to restructuring within the FDA, affecting operational predictability.
Company Guidance
During the conference call on May 2, 2025, Stefan Dräger and Gert-Hartwig Lescow provided a detailed overview of Dräger's financial performance for the first quarter of fiscal year 2025. The company reported robust net sales of EUR 730 million and an order intake of EUR 861 million, the highest for a first quarter since 2020. Despite seasonal weakness, the safety division outperformed the medical division, contributing to a slight positive EBIT of EUR 0.4 million, although this was significantly lower than the previous year's EUR 15.1 million due to increased expenses. The gross margin improved by 0.5 percentage points to 45.8%, while operating cash flow increased significantly to EUR 56 million. Although the euro's depreciation posed challenges, the company maintained its annual guidance, expecting net sales growth between 1% and 5% and an EBIT margin of 3.5% to 6.5%.Draegerwerk AG & Co. KGaA Financial Statement Overview
Summary
Draegerwerk AG & Co. KGaA shows solid financial health with consistent revenue growth and stable profitability. The company maintains a strong equity position, although there is a slight increase in total debt and fluctuations in free cash flow growth require monitoring.Income Statement
Draegerwerk AG & Co. KGaA has shown consistent revenue growth over the years, with a notable recovery after a dip in 2022. Gross and net profit margins have been stable, indicating efficient cost management. The EBIT and EBITDA margins reflect a healthy operational efficiency, although there was a slight decline in recent years compared to 2020. The overall income statement indicates strong profitability and growth potential.75
Positive
Balance Sheet
The company maintains a strong equity position with a debt-to-equity ratio well within industry norms, indicating prudent financial management. Return on Equity (ROE) has improved, signaling effective utilization of equity. The equity ratio is robust, suggesting a well-capitalized balance sheet. However, a marginal increase in total debt requires close monitoring to ensure continued financial stability.70
Positive
Cash Flow
Operating cash flow has shown improvement, with a positive trend in free cash flow, indicating effective cash management. The free cash flow to net income ratio is strong, showing the company's ability to generate cash from its operations. However, fluctuations in free cash flow growth rate suggest potential volatility in cash generation capabilities.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.37B | 3.37B | 3.05B | 3.33B | 3.41B |
| Gross Profit | 1.51B | 1.46B | 1.24B | 1.54B | 1.61B |
| EBITDA | 202.45M | 318.33M | 62.63M | 422.66M | 399.92M |
| Net Income | 124.41M | 110.43M | -64.56M | 154.23M | 188.59M |
Balance Sheet | |||||
| Total Assets | 3.09B | 3.09B | 3.11B | 3.18B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 248.18M | 279.36M | 306.67M | 572.16M | 639.08M |
| Total Debt | 395.58M | 471.38M | 361.95M | 348.01M | 370.75M |
| Total Liabilities | 1.56B | 1.69B | 1.79B | 1.92B | 2.27B |
| Stockholders Equity | 1.54B | 1.41B | 1.32B | 1.26B | 1.03B |
Cash Flow | |||||
| Free Cash Flow | 103.52M | 121.47M | -231.09M | 274.54M | 345.04M |
| Operating Cash Flow | 167.31M | 189.68M | -144.23M | 384.89M | 459.98M |
| Investing Cash Flow | -43.39M | -67.34M | 36.83M | -109.92M | -263.08M |
| Financing Cash Flow | -161.38M | -154.56M | -29.38M | -334.64M | 114.25M |
Draegerwerk AG & Co. KGaA Technical Analysis
Neutral
55.20
Price Trends
52.88
Positive
49.80
Positive
45.46
Positive
Market Momentum
0.72
Positive
48.75
Neutral
23.61
Neutral
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 55.2 is below the 20-day moving average (MA) of 56.86, above the 50-day MA of 52.88, and above the 200-day MA of 45.46, indicating a neutral trend. The MACD of 0.72 indicates Positive momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | €1.14B | 8.32 | 8.06% | 3.08% | 0.51% | 14.92% | |
51 Neutral | $7.41B | 0.36 | -61.88% | 2.33% | 16.99% | 1.69% | |
| €5.10B | 32.16 | 7.48% | 1.05% | ― | ― | ||
| €1.23B | 34.93 | 5.26% | 4.29% | ― | ― | ||
| €14.17B | 22.92 | 4.37% | 2.98% | ― | ― | ||
| €325.78M | 20.56 | 6.73% | 2.03% | ― | ― | ||
| $61.33B | 27.38 | 11.14% | 1.80% | ― | ― |
* Healthcare Sector Average
Performance Comparison
DE:DRW8
Draegerwerk AG & Co. KGaA
55.20
12.79
30.16%
GB:0DHC
Carl Zeiss Meditec
56.95
-8.06
-12.40%
GB:0MSD
CompuGroup Medical
23.30
-0.50
-2.10%
GB:0H9X
Fresenius Medical Care AG & Co. KGaA
48.30
13.07
37.10%
GB:0RAR
STRATEC Biomedical
27.10
-19.23
-41.51%
SEMHF
Siemens Healthineers AG
54.90
-2.38
-4.16%
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.