Kloeckner & Co. SE (KCO) AI Stock Analysis

• Market Cap: €790.02M
• Dividend Yield: 2.52%
• Average Volume (3M): 170.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 4.41%
• EPS Growth: 50.71%
• Country: DE
• Employees: 6,451
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.13
• Shares Outstanding: 99,750,000
• 10 Day Avg. Volume: 234,960
• 30 Day Avg. Volume: 170,966
• PEG Ratio: 0.34
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 99.46
• 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: €7.68
• Price Target Upside: -3.40% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €8.00 ▲(0.63% Upside)

Kloeckner & Co. SE's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and negative profitability. While technical analysis shows strong bullish momentum, the overbought conditions suggest caution. The valuation is hindered by a negative P/E ratio, but the dividend yield offers some compensation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strategic Partnerships

Strategic partnerships help Kloeckner & Co. secure competitive pricing and a reliable supply chain, enhancing its market position and operational efficiency.

Digitalization Initiatives

Digitalization and e-commerce initiatives improve customer access and streamline processes, supporting long-term revenue growth and competitive advantage.

Diverse Industry Exposure

Serving diverse industries reduces dependency on any single sector, providing stability and growth opportunities across various economic cycles.

Negative Factors

Declining Revenues

Declining revenues indicate market challenges and operational inefficiencies, which can impact long-term financial stability and growth prospects.

Negative Cash Flow

Negative cash flow highlights cash management issues, limiting the company's ability to invest in growth and weather economic downturns.

Profitability Challenges

Profitability challenges suggest operational inefficiencies, requiring strategic improvements to enhance margins and ensure sustainable growth.

Kloeckner & Co. SE Business Overview & Revenue Model

Company Description

Kloeckner & Co. SE (KCO) is a leading global metal distributor and services company, specializing in the supply of steel and metal products. Operating primarily in Europe and North America, KCO serves a diverse range of industries, including construction, automotive, and machinery. The company offers a wide array of products, including flat and long steel products, stainless steel, aluminum, and non-ferrous metals, alongside value-added services such as processing, logistics, and technical support.

How the Company Makes Money

Kloeckner & Co. generates revenue through the sale of metal products and related services. The company operates on a wholesale distribution model, purchasing metals from manufacturers and selling them to various customers at a markup. Key revenue streams include the sale of flat and long products, as well as value-added services that enhance customer offerings, such as cutting, processing, and delivery services. Additionally, KCO benefits from strategic partnerships with leading manufacturers and suppliers in the metal industry, which helps secure competitive pricing and a reliable supply chain. The company's focus on digitalization and e-commerce initiatives also contributes to its revenue growth by improving customer access and streamlining the purchasing process.

Kloeckner & Co. SE Financial Statement Overview

Summary

Kloeckner & Co. SE faces significant financial challenges, with declining revenues, negative profitability, and cash flow inefficiencies. While the balance sheet shows moderate leverage, the negative return on equity and poor cash flow metrics indicate underlying operational and profitability issues.

Income Statement

Kloeckner & Co. SE's income statement reveals challenges in profitability and growth. The TTM data shows a negative net profit margin of -2.63%, indicating losses, and a declining revenue growth rate of -1.86%. Gross profit margin stands at 14.73%, which is relatively stable but lower than previous years. The EBIT and EBITDA margins are also weak at -0.53% and 1.41% respectively, reflecting operational inefficiencies. Overall, the company is struggling with declining revenues and profitability.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.52, indicating a balanced leverage. However, the return on equity is negative at -10.06%, reflecting poor profitability. The equity ratio is not explicitly calculated, but the stockholders' equity is a significant portion of total assets, suggesting a stable capital structure. Despite manageable debt levels, the negative ROE highlights profitability concerns.

Cash Flow

Cash flow analysis indicates challenges in cash generation. The free cash flow growth rate is negative at -17.89%, and the free cash flow to net income ratio is low at 3.88%, suggesting limited cash flow relative to losses. The operating cash flow to net income ratio is 11.67%, showing some cash generation capability, but overall, cash flow metrics highlight liquidity concerns and inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.40B	6.63B	6.96B	8.34B	7.44B	5.13B
Gross Profit	1.02B	1.11B	1.16B	1.56B	1.07B	1.05B
EBITDA	136.94M	105.88M	189.71M	413.41M	895.80M	36.38M
Net Income	-131.49M	-176.70M	-190.59M	253.24M	618.97M	-115.93M
Balance Sheet
Total Assets	3.46B	3.54B	3.87B	3.86B	3.88B	2.61B
Cash, Cash Equivalents and Short-Term Investments	56.40M	136.09M	154.90M	179.07M	57.63M	172.57M
Total Debt	1.06B	896.02M	927.59M	759.35M	817.10M	520.65M
Total Liabilities	1.93B	1.82B	2.11B	1.89B	2.05B	1.57B
Stockholders Equity	1.52B	1.71B	1.75B	1.96B	1.81B	1.04B
Cash Flow
Free Cash Flow	-75.27M	4.45M	233.36M	324.38M	-390.71M	84.91M
Operating Cash Flow	44.11M	114.70M	321.57M	405.17M	-305.77M	160.98M
Investing Cash Flow	-136.47M	-11.51M	-434.08M	-33.96M	-59.93M	-62.06M
Financing Cash Flow	76.58M	-142.39M	111.10M	-248.74M	248.55M	-104.47M

Kloeckner & Co. SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KCO, the sentiment is Positive. The current price of 7.95 is above the 20-day moving average (MA) of 7.21, above the 50-day MA of 6.12, and above the 200-day MA of 6.25, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 68.04 is Neutral, neither overbought nor oversold. The STOCH value of 34.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:KCO.

Kloeckner & Co. SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSB3	74 Outperform	€1.68B	14.02	11.18%	2.84%	4.20%	-20.71%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SZG	57 Neutral	€2.39B	-10.69	-4.47%	0.51%	-9.52%	-4.21%
KCO	55 Neutral	€790.02M	-6.03	-8.11%	2.52%	4.41%	50.71%