Draegerwerk AG & Co. KGaA (DE:DRW8)
XETRA:DRW8
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Draegerwerk AG & Co. KGaA
(XETRA:DRW8)
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Rating:65Neutral
Price Target:
€75.00
▲(34.89% Upside)
Action:Downgraded
Date:05/02/26
The score is driven primarily by improved financial resilience and recovery (strong growth and conservative leverage) and a generally positive earnings narrative, tempered by weak near-term technical momentum and a high P/E that limits valuation attractiveness.
Positive Factors
Conservative leverage
Very low debt-to-equity and a sizable equity base provide durable financial flexibility: supports funding of higher capex/lease investments, dividend policy, and shields operations from cyclical shocks. This balance-sheet strength reduces refinancing risk and preserves strategic optionality over months to years.
Negative Factors
Thin profitability margins
Relatively modest EBIT and net margins leave limited buffer against cost, tariff or currency shocks and reduce capital available for reinvestment. For a medical/safety technology business, subpar margin resilience constrains ability to fund R&D and price competition while maintaining targeted returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
Very low debt-to-equity and a sizable equity base provide durable financial flexibility: supports funding of higher capex/lease investments, dividend policy, and shields operations from cyclical shocks. This balance-sheet strength reduces refinancing risk and preserves strategic optionality over months to years.
Read all positive factors
Draegerwerk AG & Co. KGaA (DRW8) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.36B
Dividend Yield3.46%
Average Volume (3M)3.38K
Price to Earnings (P/E)37.3
Beta (1Y)0.61
Revenue Growth4.23%
EPS Growth32.89%
CountryDE
Employees15,444
SectorGeneral
Sector StrengthN/A
IndustryMedical - Devices
Share Statistics
EPS (TTM)8.17
Shares Outstanding10,160,000
10 Day Avg. Volume2,278
30 Day Avg. Volume3,385
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)0.80
Price to Sales (P/S)0.37
P/FCF Ratio7.81
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)7.75
Revenue Forecast (FY)€3.61B
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, inclu...
How the Company Makes Money
Dräger makes money primarily by selling medical and safety technology products and by providing recurring services and consumables tied to its installed base. Key revenue streams typically include: (1) Equipment and system sales in the Medical seg...
Draegerwerk AG & Co. KGaA Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial performance for 2025: record net sales, double-digit EBIT growth, margin improvement, stronger cash flow, lower net debt and improving EPS, supported by wins in connectivity, North America approvals and defense progress. However, the year also featured meaningful headwinds — tariffs (~EUR 26m), currency (~EUR 45m), missing prior-year one-offs, some regional softness (APAC, Safety Americas) and lingering tariff/legal and FX uncertainties. Management has compensated most headwinds through price, mix and cost measures but flags continued risks and planned higher investments/lease liabilities for 2026.Positive Updates
Record Net Sales
Net sales reached a company record of around EUR 3.5 billion (+5.3% currency-adjusted year-over-year; Q4 +8.7%), slightly above guidance and ~EUR 25 million above 2020 levels.
Negative Updates
Tariff Headwind on EBIT
U.S. import tariffs reduced EBIT by roughly EUR 26 million in 2025 (about EUR 21 million impact in Medical and EUR 5 million in Safety); tariff landscape remains uncertain and new duties could persist.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Net Sales
Net sales reached a company record of around EUR 3.5 billion (+5.3% currency-adjusted year-over-year; Q4 +8.7%), slightly above guidance and ~EUR 25 million above 2020 levels.
Read all positive updates
Company Guidance
Management guided 2026 net sales to increase 2–6% (currency‑neutral) with an EBIT margin target of 5.0–7.5%, assuming U.S. import duties remain at about 2025 levels; they noted the 2025 tariff hit was roughly EUR 26m to EBIT and expect a currency headwind of about 1 percentage point to sales and ~30–60 bps to the EBIT margin. Capital expenditure is budgeted higher at roughly EUR 110–130m, free‑cash‑flow conversion is expected to remain strong (~100%), and net financial debt is forecast to rise in 2026 due mainly to a long‑term lease for a new distribution center and higher investments. Management reiterated its medium‑term aim to raise EBIT margin by ~1 percentage point p.a., a dividend payout target of ~30% of net profit (proposed 2025 dividends: EUR 2.21 common / EUR 2.27 preferred), and the ambition to grow defense sales to >EUR 300m by 2028.Draegerwerk AG & Co. KGaA Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
81
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.51B | 3.48B | 3.37B | 3.37B | 3.05B | 3.33B |
| Gross Profit | 1.59B | 1.52B | 1.51B | 1.46B | 1.24B | 1.54B |
| EBITDA | 385.77M | 384.83M | 351.68M | 318.33M | 62.63M | 374.43M |
| Net Income | 153.02M | 139.50M | 124.41M | 110.43M | -64.56M | 154.23M |
Balance Sheet | ||||||
| Total Assets | 3.17B | 3.28B | 3.09B | 3.09B | 3.11B | 3.18B |
| Cash, Cash Equivalents and Short-Term Investments | 269.09M | 284.06M | 248.18M | 279.36M | 319.50M | 577.38M |
| Total Debt | 225.68M | 405.11M | 395.58M | 471.38M | 361.95M | 348.01M |
| Total Liabilities | 1.51B | 1.65B | 1.56B | 1.69B | 1.79B | 1.92B |
| Stockholders Equity | 1.65B | 1.63B | 1.54B | 1.41B | 1.32B | 1.26B |
Cash Flow | ||||||
| Free Cash Flow | 160.29M | 166.50M | 103.52M | 121.47M | -231.09M | 274.54M |
| Operating Cash Flow | 244.41M | 238.33M | 167.31M | 189.68M | -144.23M | 384.89M |
| Investing Cash Flow | -92.15M | -98.15M | -43.39M | -67.34M | 36.83M | -109.92M |
| Financing Cash Flow | -130.85M | -83.99M | -161.38M | -154.56M | -29.38M | -334.64M |
Draegerwerk AG & Co. KGaA Technical Analysis
Positive
55.60
Price Trends
71.48
Positive
67.02
Positive
61.73
Positive
Market Momentum
1.55
Negative
67.42
Neutral
84.97
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 55.6 is below the 20-day moving average (MA) of 72.14, below the 50-day MA of 71.48, and below the 200-day MA of 61.73, indicating a bullish trend. The MACD of 1.55 indicates Negative momentum. The RSI at 67.42 is Neutral, neither overbought nor oversold. The STOCH value of 84.97 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €42.95M | ― | 13.44% | 3.86% | -5.36% | -30.58% | |
71 Outperform | €901.06M | 22.05 | 20.78% | 1.11% | 6.84% | 43.33% | |
66 Neutral | €2.23B | 36.10 | 6.77% | 1.50% | -0.06% | -38.81% | |
65 Neutral | €1.36B | 37.27 | 9.79% | 3.46% | 4.23% | 32.89% | |
61 Neutral | €37.27B | 20.17 | 11.59% | 2.13% | -0.33% | 0.15% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | €203.73M | -30.34 | -0.10% | 2.71% | ― | ― |
* General Sector Average
DE:DRW8
Draegerwerk AG & Co. KGaA
65.20
14.21
27.86%
DE:AFX
Carl Zeiss Meditec
24.88
-34.78
-58.30%
DE:EUZ
Eckert & Ziegler Strahlen und Medizintechnik
14.40
-6.87
-32.29%
DE:M3V
MeVis Medical Solutions
23.60
-1.26
-5.08%
DE:SBS
STRATEC Biomedical
16.76
-8.51
-33.68%
DE:SHL
Siemens Healthineers AG
33.40
-14.66
-30.51%
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.