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Knorr-Bremse AG (DE:KBX)
XETRA:KBX
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Knorr-Bremse AG
(XETRA:KBX)
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Rating:70Neutral
Price Target:
€102.00
▲(7.82% Upside)
Knorr-Bremse AG's overall stock score is driven by strong earnings call results and positive technical indicators. However, financial performance concerns and high valuation metrics slightly offset these strengths.
Positive Factors
Strategic Acquisitions
The acquisition of Duagon strengthens Knorr-Bremse's position in electronics and software, unlocking synergies and expanding its digital market presence, which is crucial for long-term growth in the evolving transportation industry.
Order Intake Growth
Strong order intake indicates robust demand for Knorr-Bremse's products, supporting future revenue growth and enhancing its competitive position in the rail and commercial vehicle systems markets.
Improved EBIT Margins
The improvement in EBIT margins reflects operational efficiency and effective cost management, which are critical for sustaining profitability and competitive advantage in the long term.
Negative Factors
Declining Revenue Growth
A significant decline in revenue growth can impact Knorr-Bremse's ability to invest in new technologies and maintain its market position, posing a risk to its long-term growth prospects.
Challenges in North American Market
The downturn in the North American truck market affects Knorr-Bremse's revenue and workforce, highlighting vulnerabilities in market diversification and the need for strategic adjustments.
Declining Free Cash Flow
Declining free cash flow growth limits Knorr-Bremse's ability to fund operations and strategic initiatives, potentially constraining future growth and financial flexibility.
Knorr-Bremse AG (KBX) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€15.25B
Dividend Yield1.85%
Average Volume (3M)156.00K
Price to Earnings (P/E)35.1
Beta (1Y)1.20
Revenue Growth-1.77%
EPS Growth-28.68%
CountryDE
Employees29,051
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.89
Shares Outstanding161,200,000
10 Day Avg. Volume150,031
30 Day Avg. Volume155,999
Financial Highlights & Ratios
PEG Ratio-1.32
Price to Book (P/B)3.72
Price to Sales (P/S)1.44
P/FCF Ratio16.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€97.48Price Target Upside3.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Knorr-Bremse AG Business Overview & Revenue Model
Company DescriptionKnorr-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 MoneyKnorr-Bremse generates revenue through the sale of its products and services in the rail and commercial vehicle systems markets. Key revenue streams include the sale of braking systems, electronic control systems, and other safety-related components. The company also earns income from providing maintenance, repair, and retrofit services for existing systems. Significant partnerships with major vehicle manufacturers and operators enhance its market presence and revenue potential. Furthermore, investments in research and development enable KBX to introduce new products and technologies, meeting evolving industry demands and expanding its customer base.
Knorr-Bremse AG Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
Knorr-Bremse reported strong results in RVS and made strategic acquisitions, but faced significant challenges in the North American truck market and freight segment. Despite these challenges, strong order intake and improved financial metrics in other areas contributed to a balanced outlook.Q3-2025 Updates
Positive Updates
Strong RVS Performance
RVS posted strong organic growth, continuously increased its profitability quarter-over-quarter, and improved its operating EBIT margin by 100 basis points to 17.0%, beyond midterm guidance.
Duagon Acquisition
Acquisition of Swiss-based Duagon enhances Knorr-Bremse's portfolio in electronics and software solutions, unlocking synergies and increasing digital market presence.
Order Intake Growth
Knorr-Bremse achieved a strong order intake at almost EUR 2 billion, driven by strong rail order intake, leading to a more than 5% organic growth.
Improved Cash Flow and ROCE
Free cash flow in Q3 amounted to EUR 159 million. ROCE increased from 18.6% to 21%, marking a 240 basis point increase.
Negative Updates
Challenging North American Truck Market
Truck production rates in North America declined significantly in Q3 with a near-term recovery appearing unlikely. This led to a reduction in North American workforce by over 15%.
Freight Market Challenges
The freight market continues to face challenges, with a low concentration on the North American market, impacting overall demand.
Revenue Impacted by FX and Divestments
CVS revenues declined to EUR 833 million, down 9% year-over-year, driven by divestments and negative translationary FX impact.
Company Guidance
In the third quarter of 2025, Knorr-Bremse reported strong financial results, maintaining its operating guidance for the year despite challenging market conditions. The company achieved an order intake of nearly EUR 2 billion, with revenues of EUR 1.9 billion, marking over 5% organic growth. The operating EBIT margin improved by 100 basis points year-over-year to 13.3%, the highest in 16 quarters, supported by cost measures and a robust aftermarket performance. Free cash flow reached EUR 159 million, reinforcing a cash conversion rate above 100%. The RVS division saw organic growth and an operating EBIT margin of 17.0%, while CVS faced headwinds in North America but slightly expanded its margin. Knorr-Bremse's strategic acquisition of Duagon is expected to enhance its RVS segment and drive synergies in electronics, and the company is focused on increasing its after-sales service business through acquisitions like Travis Road Services. The firm remains committed to achieving a 14% EBIT margin in 2026, emphasizing cost control and operational efficiency.Knorr-Bremse AG Financial Statement Overview
Summary
Knorr-Bremse AG shows a stable financial profile with reasonable profitability margins. However, the decline in revenue and free cash flow growth are notable risks. The balance sheet is solid, with manageable leverage and a strong equity base, but cash flow constraints could pose challenges if not addressed.Income Statement
Knorr-Bremse AG's income statement shows mixed results. The TTM Gross Profit Margin is healthy at 46.45%, but has declined from previous years. The Net Profit Margin is modest at 5.37%, indicating moderate profitability. Revenue has decreased by 17.7% in the TTM, showing a concerning trend. EBIT and EBITDA margins are stable, but slightly below historical levels, suggesting some operational challenges.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 1.08 in the TTM, indicating manageable leverage. Return on Equity is reasonable at 14.04%, though it has decreased from previous years. The Equity Ratio stands at 33.49%, showing a solid equity base relative to assets.70
Positive
Cash Flow
Cash flow analysis reveals some weaknesses. Free Cash Flow has declined by 25.5% in the TTM, and the Operating Cash Flow to Net Income Ratio is at 0.43, indicating potential cash flow constraints. The Free Cash Flow to Net Income Ratio is 0.77, suggesting that cash generation is not fully aligned with reported profits.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.83B | 7.88B | 7.93B | 7.15B | 6.71B | 6.16B |
| Gross Profit | 3.05B | 4.24B | 4.02B | 3.52B | 3.45B | 3.26B |
| EBITDA | 1.20B | 1.11B | 1.21B | 1.05B | 1.21B | 1.06B |
| Net Income | 434.99M | 445.00M | 552.53M | 489.28M | 621.31M | 495.50M |
Balance Sheet | ||||||
| Total Assets | 8.78B | 9.63B | 8.25B | 8.01B | 7.20B | 7.39B |
| Cash, Cash Equivalents and Short-Term Investments | 1.40B | 2.26B | 1.29B | 1.45B | 1.44B | 2.32B |
| Total Debt | 3.13B | 4.03B | 2.76B | 2.68B | 2.15B | 2.98B |
| Total Liabilities | 5.67B | 6.50B | 5.35B | 5.32B | 4.77B | 5.47B |
| Stockholders Equity | 3.03B | 3.04B | 2.84B | 2.56B | 2.33B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 811.85M | 696.00M | 539.43M | 189.41M | 579.96M | 674.34M |
| Operating Cash Flow | 1.06B | 1.04B | 914.59M | 541.55M | 975.49M | 1.04B |
| Investing Cash Flow | -269.30M | -750.30M | -410.64M | -505.00M | -534.37M | -576.39M |
| Financing Cash Flow | -1.12B | 629.10M | -397.67M | -160.81M | -1.42B | -10.37M |
Knorr-Bremse AG Technical Analysis
Positive
94.60
Price Trends
85.12
Positive
85.36
Positive
85.12
Positive
Market Momentum
2.56
Negative
66.96
Neutral
83.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KBX, the sentiment is Positive. The current price of 94.6 is above the 20-day moving average (MA) of 90.78, above the 50-day MA of 85.12, and above the 200-day MA of 85.12, indicating a bullish trend. The MACD of 2.56 indicates Negative momentum. The RSI at 66.96 is Neutral, neither overbought nor oversold. The STOCH value of 83.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:KBX.
Knorr-Bremse AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | €15.25B | 35.06 | 14.52% | 1.85% | -1.77% | -28.68% | |
66 Neutral | €675.47M | 12.12 | 11.63% | 5.71% | -12.01% | -28.10% | |
62 Neutral | €9.11B | 56.42 | 5.24% | 1.16% | <0.01% | -50.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | €13.38B | 53.95 | -1.10% | 2.84% | -38.10% | -75.32% | |
52 Neutral | €7.38B | -5.24 | -34.39% | 3.16% | 45.16% | -790.24% | |
46 Neutral | €274.67M | -2.39 | -16.55% | 3.46% | -6.21% | -995.53% |
* Consumer Cyclical Sector Average
DE:KBX
Knorr-Bremse AG
94.60
26.74
39.40%
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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.