Knorr-Bremse AG (DE:KBX)
XETRA:KBX
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Knorr-Bremse AG
(XETRA:KBX)
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Rating:70Outperform
Price Target:
€113.00
▲(7.01% Upside)
Action:Upgraded
Date:05/11/26
The score is driven by solid financial quality (strong free cash flow and stable profitability) and a constructive technical setup, reinforced by a positive earnings call with confirmed guidance and improving margins. The main constraints are the sharp TTM revenue decline, meaningful leverage, and a relatively high P/E with only a modest dividend yield.
Positive Factors
Strong free cash flow generation
Sustained TTM free cash flow (~€797M) that covers a large portion of earnings provides durable financial flexibility: funds capex, working capital, debt servicing and targeted M&A or shareholder returns without relying on equity markets, cushioning the business through cyclical OEM downcycles.
Negative Factors
Sharp TTM revenue decline
A pronounced TTM revenue decline (~-26.9%) is a material structural risk: lower top-line reduces potential operating leverage, pressures margins and free cash flow if prolonged, and forces management to rely more on cost measures or asset disposals to protect profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained TTM free cash flow (~€797M) that covers a large portion of earnings provides durable financial flexibility: funds capex, working capital, debt servicing and targeted M&A or shareholder returns without relying on equity markets, cushioning the business through cyclical OEM downcycles.
Read all positive factors
Knorr-Bremse AG (KBX) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€16.41B
Dividend Yield1.85%
Average Volume (3M)156.00K
Price to Earnings (P/E)29.7
Beta (1Y)1.04
Revenue Growth-0.90%
EPS Growth29.49%
CountryDE
Employees29,051
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)3.43
Shares Outstanding161,200,000
10 Day Avg. Volume150,031
30 Day Avg. Volume155,999
Financial Highlights & Ratios
PEG Ratio1.58
Price to Book (P/B)5.29
Price to Sales (P/S)2.10
P/FCF Ratio19.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€113.20Price Target Upside7.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)4.55
Revenue Forecast (FY)€8.24B
Knorr-Bremse AG Business Overview & Revenue Model
Company Description
Knorr-Bremse Aktiengesellschaft is a global enterprise specializing in the development, manufacture, sale, and maintenance of crucial braking and other operational systems for both rail and commercial vehicles worldwide. The company structures its...
How the Company Makes Money
Knorr-Bremse makes money mainly by selling OEM (original equipment) systems and components to vehicle manufacturers and by generating recurring revenue from aftermarket parts and services over the life of vehicles and rail fleets.
Key revenue str...
Knorr-Bremse AG Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive tone: the company reported a strong start to 2026 with record Q1 outcomes in several metrics (backlog, margins, ROCE), clear evidence of margin recovery in both divisions (especially CVS), solid cash and capital discipline, and confirmed full‑year guidance. Challenges were acknowledged — China normalization, North America truck market weakness, FX headwinds, a delayed HVAC disposal and geopolitical risks — but management emphasized resilience, continued efficiency measures (BOOST), and targeted growth/M&A actions to drive further improvement. On balance, highlights outweigh the lowlights.Positive Updates
Strong Q1 performance — best in 5 years
Group revenues of almost EUR 2.0 billion with organic growth of +2% year‑on‑year; order intake remained solid at >EUR 2.2 billion (only slightly down year‑on‑year). Management described this as the best first quarter in the past 5 years.
Negative Updates
China normalization and APAC softness in parts
China experienced a decline in both OE and aftermarket driven by FX headwinds and normalization after pent‑up demand; APAC showed some year‑on‑year declines in parts of the business and management expects China to be down year‑on‑year on a full‑year basis.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 performance — best in 5 years
Group revenues of almost EUR 2.0 billion with organic growth of +2% year‑on‑year; order intake remained solid at >EUR 2.2 billion (only slightly down year‑on‑year). Management described this as the best first quarter in the past 5 years.
Read all positive updates
Company Guidance
Knorr‑Bremse confirmed its 2026 guidance: revenues EUR 8.0–8.3bn, operating margin at least 14% and free cash flow EUR 750–850m (assumes Feb‑2026 FX and no escalation of the Middle East crisis; Middle East revenue <1%). Q1 underpinned the outlook with group order intake >EUR2.2bn, Q1 revenues ~EUR2.0bn (+2% organic), operating EBIT margin up 140bps y/y (highest Q1 in 5 years), free cash flow EUR32m (vs EUR15m LY), capex EUR62m, net working capital EUR1.46bn and ROCE 21%. Division metrics: RVS Q1 order intake EUR1.26bn (book‑to‑bill ~1.2), backlog >EUR5.9bn (+7%), Q1 revenues EUR1.06bn (+1% organic), Q1 margin 16.5% with FY target ~17.5% (aftermarket ~53%); CVS Q1 order intake EUR964m (book‑to‑bill 1.1), order book ≈EUR1.9bn, Q1 revenues EUR878m (+3.6% organic), Q1 EBIT EUR101m (margin 11.5%) with FY margin toward 12% (aftermarket ~35%), and expected truck production rates broadly flat to slightly up year‑over‑year.Knorr-Bremse AG Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
66
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.80B | 7.82B | 7.88B | 7.93B | 7.15B | 6.71B |
| Gross Profit | 1.07B | 1.69B | 4.24B | 4.02B | 3.52B | 3.45B |
| EBITDA | 1.30B | 1.26B | 1.11B | 1.21B | 1.05B | 1.21B |
| Net Income | 552.00M | 534.00M | 445.00M | 552.53M | 489.28M | 621.31M |
Balance Sheet | ||||||
| Total Assets | 9.42B | 9.21B | 9.63B | 8.25B | 8.01B | 7.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.26B | 1.74B | 2.26B | 1.29B | 1.45B | 1.44B |
| Total Debt | 3.20B | 3.08B | 4.03B | 2.76B | 2.68B | 2.15B |
| Total Liabilities | 6.05B | 6.03B | 6.50B | 5.35B | 5.32B | 4.77B |
| Stockholders Equity | 3.29B | 3.10B | 3.04B | 2.84B | 2.56B | 2.33B |
Cash Flow | ||||||
| Free Cash Flow | 797.00M | 831.00M | 696.00M | 539.43M | 189.41M | 579.96M |
| Operating Cash Flow | 1.06B | 1.07B | 1.04B | 914.59M | 541.55M | 975.49M |
| Investing Cash Flow | -831.00M | -380.00M | -750.30M | -410.64M | -505.00M | -534.37M |
| Financing Cash Flow | -1.14B | -1.13B | 629.10M | -397.67M | -160.81M | -1.42B |
Knorr-Bremse AG Technical Analysis
Positive
105.60
Price Trends
100.40
Positive
100.82
Positive
92.99
Positive
Market Momentum
-0.47
Positive
54.33
Neutral
36.42
Neutral
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 105.6 is above the 20-day moving average (MA) of 100.61, above the 50-day MA of 100.40, and above the 200-day MA of 92.99, indicating a bullish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 36.42 is Neutral, 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 Outperform | €16.41B | 29.73 | 17.95% | 1.85% | -0.90% | 29.49% | |
70 Outperform | €935.12M | 15.95 | 11.98% | 5.70% | -4.59% | -8.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | €366.22M | 72.06 | 0.83% | 3.51% | -6.42% | ― | |
58 Neutral | €14.46B | -438.19 | -0.76% | 2.88% | -44.98% | -102.56% | |
54 Neutral | €7.93B | 83.68 | 3.07% | 1.17% | -2.77% | -69.52% | |
54 Neutral | €9.07B | 9.83 | 7.96% | 3.15% | 16.50% | 57.62% |
* Consumer Cyclical Sector Average
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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.