Knorr-Bremse AG (KBX) AI Stock Analysis

• Market Cap: €13.68B
• Dividend Yield: 2.06%
• Average Volume (3M): 130.68K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 1.09
• Revenue Growth: -1.57%
• EPS Growth: -26.71%
• Country: DE
• Employees: 29,051
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Auto - Parts
• EPS (TTM): 0.84
• Shares Outstanding: 161,200,000
• 10 Day Avg. Volume: 147,063
• 30 Day Avg. Volume: 130,676
• PEG Ratio: -0.80
• Price to Book (P/B): 3.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.44
• 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: €89.67
• Price Target Upside: 5.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 67 Neutral
• Price Target: €92.00 ▲(8.43%Upside)

Knorr-Bremse AG has a solid financial foundation with strong cash flow and operational efficiency, which contributes significantly to its score. However, the technical analysis indicates weak market momentum, and the valuation suggests the stock may be overvalued. These factors collectively result in an overall modest stock score.

Positive Factors

Earnings

Knorr-Bremse delivers a very solid 2Q24 performance.

Order Intake

Order intake was €1,141m, surpassing expectations by 11%.

Revenue

RVS revenue came in at €1,017m, which is a 6% increase year-over-year and a 4% beat against expectations.

Negative Factors

Costs

The company’s implied overhead costs exceeded analysts' estimates, coming in at -€18m against an expected -€14m.

Knorr-Bremse AG Business Overview & Revenue Model

Company Description

Knorr-Bremse Aktiengesellschaft develops, produces, markets, and services braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. It offers braking, entrance and HVAC systems; power electrics and control technology; digital solutions for optimization of rail traffic, couplers; signal systems; stationary and mobile testing equipment; wiper and wash systems; and sanitary systems for mass transit and long distance rail vehicles. The company also provides braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves and pedal units; steering systems and vehicle dynamics solutions; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse Aktiengesellschaft is a subsidiary of KB Holding GmbH.

How the Company Makes Money

Knorr-Bremse AG generates revenue through the sale of its products and solutions in the rail and commercial vehicle sectors. The company earns money primarily by providing braking systems, entrance systems, HVAC systems, and driver assistance technologies to rail and commercial vehicle manufacturers and operators. It has a robust aftermarket service offering, ensuring continuous revenue from maintenance, repair, and spare parts. Knorr-Bremse also benefits from strategic partnerships and long-term contracts with key industry players, contributing to stable and recurring income streams. The company's focus on innovation and quality helps maintain its competitive edge and strong market position, supporting sustained revenue growth.

Knorr-Bremse AG Financial Statement Overview

Summary

Knorr-Bremse AG presents a stable financial profile with strong cash generation and effective cost management. While profitability margins show some pressure, operational efficiency remains high. The balance sheet indicates a sound financial position with moderate leverage. Continuous monitoring of profit margins and leverage will be essential to sustain financial health.

Income Statement

Knorr-Bremse AG has demonstrated stable revenue with a slight increase in TTM compared to the previous year. The gross profit margin is strong at approximately 46.1% for TTM, indicating effective cost management. However, the net profit margin has slightly decreased to 5.4% in TTM from the previous year, which suggests some pressure on profitability. Despite this, EBIT and EBITDA margins have remained stable, reflecting operational efficiency.

Balance Sheet

The company's balance sheet shows a solid equity ratio of 32.2% in TTM, reflecting financial stability. The debt-to-equity ratio stands at 1.27, indicating moderate leverage. Return on equity is relatively low at 13.6%, suggesting room for improvement in generating returns for shareholders. Overall, the balance sheet reflects a stable financial position with manageable leverage levels.

Cash Flow

Knorr-Bremse AG has shown a healthy cash flow position with a significant increase in free cash flow to €874 million in TTM, translating to a strong free cash flow growth rate. The operating cash flow to net income ratio stands at 2.66, highlighting robust cash generation compared to net income. This solid cash flow performance underscores the company's ability to fund operations and investments efficiently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.90B	7.88B	7.93B	7.15B	6.71B	6.16B
Gross Profit	3.64B	4.24B	4.02B	3.52B	3.45B	3.26B
EBITDA	1.28B	1.30B	1.21B	1.05B	1.21B	1.06B
Net Income	426.27M	445.00M	552.53M	489.28M	621.31M	495.50M
Balance Sheet
Total Assets	9.74B	9.63B	8.25B	8.01B	7.20B	7.39B
Cash, Cash Equivalents and Short-Term Investments	2.35B	2.26B	1.29B	1.45B	1.44B	2.32B
Total Debt	3.96B	554.80M	2.76B	2.68B	2.15B	2.98B
Total Liabilities	6.52B	6.50B	5.35B	5.32B	4.77B	5.47B
Stockholders Equity	3.13B	3.04B	2.84B	2.56B	2.33B	1.83B
Cash Flow
Free Cash Flow	874.34M	696.00M	539.43M	189.41M	579.96M	674.34M
Operating Cash Flow	1.13B	1.04B	914.59M	541.55M	975.49M	1.04B
Investing Cash Flow	-784.71M	-750.30M	-410.64M	-505.00M	-534.37M	-576.39M
Financing Cash Flow	667.08M	629.10M	-397.67M	-160.81M	-1.42B	-10.37M

Knorr-Bremse AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.85
• 50DMA: Negative
• 100DMA: Negative
• 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:KBX, the sentiment is Negative. The current price of 84.85 is below the 20-day moving average (MA) of 85.64, below the 50-day MA of 86.12, and above the 200-day MA of 78.51, indicating a neutral trend. The MACD of -0.98 indicates Positive momentum. The RSI at 40.90 is Neutral, neither overbought nor oversold. The STOCH value of 67.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:KBX.

Knorr-Bremse AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBX	67 Neutral	€13.68B	32.09	13.95%	2.06%	-1.57%	-26.71%
Sector *	61 Neutral	C$5.15B	10.74	18.94%	4.28%	5.08%	6.52%
0MG5		€273.08M	―	-19.89%	3.00%	―	―
0R3U		€9.21B	29.68	10.12%	1.15%	―	―
0O4N		€719.95M	11.15	12.40%	4.62%	―	―
0RBK		€4.10B	21.23	-19.48%	4.95%	―	―
CTTAF		$16.61B	12.06	10.07%	2.98%	―	―