Knorr-Bremse AG (KBX) AI Stock Analysis

• Market Cap: €14.33B
• Dividend Yield: 1.97%
• Average Volume (3M): 135.28K
• Price to Earnings (P/E): 33.9
• Beta (1Y): 1.06
• Revenue Growth: -1.57%
• EPS Growth: -26.71%
• Country: DE
• Employees: 29,051
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Auto - Parts
• EPS (TTM): 0.84
• Shares Outstanding: 161,200,000
• 10 Day Avg. Volume: 132,695
• 30 Day Avg. Volume: 135,285
• PEG Ratio: -8.25
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.02
• 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: €90.67
• Price Target Upside: 1.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: €96.00 ▲(7.02%Upside)

Knorr-Bremse AG demonstrates a stable financial performance with strong cash flow and effective cost management, which supports its operational efficiency. Despite some pressure on profitability margins, the balance sheet remains stable with moderate leverage. Technically, the stock shows a positive trend, supported by upward momentum indicators. However, the relatively high P/E ratio suggests that the stock may be overvalued, which could limit upside potential. The lack of earnings call data and corporate events limits further insights into company-specific developments.

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
	EBIT
877.54M	873.00M	888.95M	772.71M	929.90M	831.34M
	EBITDA
1.28B	1.30B	1.21B	1.05B	1.21B	1.06B
	Net Income Common Stockholders
426.27M	445.00M	552.53M	489.28M	621.31M	495.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.35B	2.26B	1.29B	1.45B	1.44B	2.32B
	Total Assets
9.74B	9.63B	8.25B	8.01B	7.20B	7.39B
	Total Debt
3.96B	554.80M	2.76B	2.68B	2.15B	2.98B
	Net Debt
1.70B	-1.71B	1.47B	1.34B	768.30M	699.88M
	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: Positive
• Last Price: 89.70
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 89.7 is above the 20-day moving average (MA) of 88.66, above the 50-day MA of 84.22, and above the 200-day MA of 77.50, indicating a bullish trend. The MACD of 1.26 indicates Positive momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBX	71 Outperform	€14.33B	33.92	13.95%	1.97%	-1.57%	-26.71%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%
0MG5		€277.83M	―	-19.89%	3.33%	―	―
0R3U		€9.73B	31.11	10.12%	1.07%	―	―
0O4N		€730.85M	11.57	12.40%	5.20%	―	―
0RBK		€3.95B	21.23	-19.48%	5.97%	―	―
CTTAF		$17.42B	12.73	10.07%	3.01%	―	―