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

• Market Cap: €1.23B
• Dividend Yield: 3.2%
• Average Volume (3M): 3.62K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.29
• 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: 10,160,000
• 10 Day Avg. Volume: 2,120
• 30 Day Avg. Volume: 3,616
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6.19
• Revenue Forecast (FY): €3.49B

• Rating: 73 Outperform
• Price Target: €67.00 ▲(13.18% Upside)

Draegerwerk AG & Co. KGaA's stock score is driven by strong earnings call results and attractive valuation, indicating potential for future growth. Technical analysis supports a positive trend, although financial performance shows areas needing improvement. The company's ability to navigate economic challenges and enhance operational efficiency will be crucial for sustaining momentum.

Draegerwerk AG & Co. KGaA Business Overview & Revenue Model

Company Description

Drägerwerk 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 Money

Draegerwerk 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 Financial Statement Overview

Summary

Draegerwerk AG & Co. KGaA shows a mixed financial performance. The balance sheet is strong with low leverage and a solid equity base. However, the income statement and cash flow metrics reveal challenges with declining revenue growth and cash generation. The company needs to improve operational efficiency and sales to enhance profitability.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 59.20
• 50DMA: Positive
• 100DMA: Positive
• 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:DRW8, the sentiment is Positive. The current price of 59.2 is below the 20-day moving average (MA) of 60.28, above the 50-day MA of 56.46, and above the 200-day MA of 53.36, indicating a bullish trend. The MACD of 1.27 indicates Positive momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 75.79 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	79 Outperform	€46.61B	21.87	11.46%	2.25%	4.53%	10.32%
DRW8	73 Outperform	€1.23B	9.55	8.22%	3.20%	2.14%	6.69%
AFX	66 Neutral	€3.83B	24.17	7.48%	1.33%	5.21%	-39.36%
COP	60 Neutral	€1.25B	67.35	2.87%	0.21%	1.16%	-43.53%
FME	60 Neutral	€11.96B	18.40	5.41%	3.48%	2.10%	9.19%
SBS	60 Neutral	€270.47M	16.88	―	2.97%	-1.64%	22.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%