Knorr-Bremse AG (KBX) AI Stock Analysis

• Market Cap: €12.92B
• Dividend Yield: 1.91%
• Average Volume (3M): 156.00K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.15
• Revenue Growth: -1.77%
• EPS Growth: -28.68%
• Country: DE
• Employees: 29,051
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.89
• Shares Outstanding: 161,200,000
• 10 Day Avg. Volume: 150,031
• 30 Day Avg. Volume: 155,999
• PEG Ratio: -1.32
• Price to Book (P/B): 3.72
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 16.26
• 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: €91.10
• Price Target Upside: -0.33% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €96.00 ▲(5.03% Upside)

Knorr-Bremse AG's overall stock score reflects a stable financial performance with some risks, strong technical momentum, and positive earnings call insights. However, the high valuation and challenges in certain markets temper the outlook.

Positive Factors

Strategic Acquisitions

The acquisition of Duagon strengthens Knorr-Bremse's electronics and software capabilities, providing synergies and expanding its digital market presence, which is crucial for long-term competitiveness and innovation in the industry.

Order Intake Growth

A robust order intake indicates strong demand for Knorr-Bremse's products, supporting future revenue growth and market position, especially in the rail sector, which is a key area for the company's strategic focus.

Improved Cash Flow and ROCE

Improved cash flow and ROCE reflect efficient capital utilization and operational effectiveness, enhancing financial stability and the ability to invest in growth opportunities.

Negative Factors

Revenue Decline

A significant decline in revenue poses a risk to Knorr-Bremse's market position and profitability, potentially impacting its ability to invest in future growth and innovation.

Challenging North American Truck Market

The downturn in the North American truck market affects Knorr-Bremse's commercial vehicle segment, potentially leading to reduced revenues and necessitating workforce adjustments.

Cash Flow Constraints

Declining free cash flow indicates potential liquidity issues, which could limit Knorr-Bremse's ability to fund operations and strategic initiatives, impacting long-term growth prospects.

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 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 Financial Statement Overview

Summary

Knorr-Bremse AG exhibits 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.85B	7.88B	7.93B	7.15B	6.71B	6.16B
Gross Profit	3.65B	4.24B	4.02B	3.52B	3.45B	3.26B
EBITDA	1.16B	1.11B	1.21B	1.05B	1.21B	1.06B
Net Income	421.93M	445.00M	552.53M	489.28M	621.31M	495.50M
Balance Sheet
Total Assets	8.59B	9.63B	8.25B	8.01B	7.20B	7.39B
Cash, Cash Equivalents and Short-Term Investments	1.43B	2.26B	1.29B	1.45B	1.44B	2.32B
Total Debt	3.10B	4.03B	2.76B	2.68B	2.15B	2.98B
Total Liabilities	5.63B	6.50B	5.35B	5.32B	4.77B	5.47B
Stockholders Equity	2.88B	3.04B	2.84B	2.56B	2.33B	1.83B
Cash Flow
Free Cash Flow	872.11M	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	-764.22M	-750.30M	-410.64M	-505.00M	-534.37M	-576.39M
Financing Cash Flow	-96.54M	629.10M	-397.67M	-160.81M	-1.42B	-10.37M

Knorr-Bremse AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 91.4 is above the 20-day moving average (MA) of 83.91, above the 50-day MA of 81.76, and above the 200-day MA of 84.55, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 73.26 is Negative, neither overbought nor oversold. The STOCH value of 94.82 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBX	69 Neutral	€12.92B	29.70	14.52%	1.91%	-1.77%	-28.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HLE	59 Neutral	€8.91B	46.31	5.24%	1.16%	<0.01%	-50.97%
SFQ	58 Neutral	€622.81M	12.18	11.63%	5.86%	-12.01%	-28.10%
CON	58 Neutral	$12.55B	50.60	-1.10%	2.94%	-38.10%	-75.32%
SHA0	55 Neutral	€6.45B	-5.65	-34.39%	3.75%	45.16%	-790.24%
ZIL2	43 Neutral	€255.34M	-1.53	-16.55%	3.73%	-6.21%	-995.53%