Kloeckner & Co. SE (KCO) AI Stock Analysis

• Market Cap: €1.18B
• Dividend Yield: 2.52%
• Average Volume (3M): 170.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 4.41%
• EPS Growth: 50.71%
• Country: DE
• Employees: 6,451
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.14
• Shares Outstanding: 99,750,000
• 10 Day Avg. Volume: 234,960
• 30 Day Avg. Volume: 170,966
• PEG Ratio: 0.22
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -536.76
• 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: €11.00
• Price Target Upside: -6.78% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.41
• Revenue Forecast (FY): €6.62B

• Rating: 53 Neutral
• Price Target: €12.00 ▲(1.69% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held down primarily by weak financial performance (multi-year losses, margin compression, and softer free cash flow), partially offset by strong technical momentum (price above key moving averages and positive MACD). Valuation is difficult to justify on earnings given the negative P/E, while the modest dividend provides only limited support.

Positive Factors

Value‑added processing services

Kloeckner's processing and logistics services (cutting, slitting, bending, customer prep) create durable, higher‑margin revenue streams versus pure commodity trading. These embedded services deepen customer ties, reduce price sensitivity and support steadier revenue through industry cycles.

Geographic and end‑market diversification

A presence across Europe and North America spreads demand risk across different industrial cycles and customer sectors (manufacturing, construction, machinery). That geographic mix supports steadier order flows and lessens exposure to a single regional downturn over the medium term.

Manageable leverage and equity cushion

Relatively modest debt ratios and sizable equity provide capital buffer in a cyclical steel distribution sector. This balance‑sheet headroom supports working capital needs, reduces default risk during downturns and preserves optionality for reinvestment or restructuring.

Negative Factors

Multi‑year losses and earnings deterioration

Sustained losses over multiple years erode retained earnings and limit the company's ability to fund capex, service growth or resume dividends without external financing. Persistent negative earnings undermine investor confidence and constrain long‑term strategic initiatives.

Significant revenue contraction

A shrinking top line reduces scale benefits and makes fixed costs harder to absorb in a distribution model. Continued revenue decline pressures unit economics, weakens supplier leverage, and makes margin recovery more difficult even if market volumes later improve.

Eroding free cash flow and cash generation

Falling free cash flow limits reinvestment, debt reduction and the ability to fund working‑capital swings typical in metals distribution. Reduced cash generation narrows financial flexibility, increasing reliance on credit or equity to support operations and strategic moves.

Kloeckner & Co. SE Business Overview & Revenue Model

Company Description

Klöckner & Co SE, through its subsidiaries, distributes steel and metal products. It operates through three segments: Kloeckner Metals US, Kloeckner Metals EU, and Kloeckner Metals Non-EU. The company's product portfolio includes flat steel products; long steel products; tubes and hollow sections; stainless steel and high-grade steel; aluminum products; and special products for building installations, roof and wall construction, and water supply. It also provides various services, including cutting and splitting of steel strips; forming and manufacturing of pressed parts; CNC turning/milling; 2D/3D tube laser cutting; laser and water jet cutting; structural steel processing; plasma and oxy-fuel cutting; shot blasting and primer painting; and sawing/drilling/rounding off. In addition, the company offers warehousing, logistics, and materials management services. It serves small to medium-sized steel and metal consumers, primarily from the construction industry, as well as machinery and mechanical engineering industries; and supplies intermediate products for the automotive, shipbuilding, and consumer goods industries. The company was founded in 1906 and is headquartered in Duisburg, Germany.

How the Company Makes Money

Kloeckner & Co. makes money primarily by distributing steel and metal products and by providing value-added processing and supply-chain services to business customers. Its core revenue stream is the sale of metal products (e.g., carbon steel and non-ferrous metals) sourced from producers and sold through its distribution network to industrial end users; earnings are driven by shipment volumes and the margin between procurement costs and selling prices, which can fluctuate with metal price cycles and inventory timing. In addition to trading/distribution margins, the company generates revenue from processing and service offerings—such as cutting, sawing, slitting, bending, or other customer-specific preparation and logistics services—typically sold as service fees or embedded value-add in delivered product pricing. The company also sells through digital/online channels as part of its broader sales platform, which supports order capture and customer relationship management and can influence cost-to-serve and mix, but specific revenue attribution to digital channels is null.

Kloeckner & Co. SE Financial Statement Overview

Summary

Financials are pressured by a downcycle: revenues have contracted sharply and profitability has deteriorated into losses (2023–2025), with margins compressing materially. The balance sheet is relatively manageable for the industry (moderate leverage and sizable equity), but returns have been negative. Operating cash flow is generally positive, yet free cash flow has faded to near breakeven/slightly negative, reducing flexibility.

Income Statement

Revenue has contracted meaningfully over the last several years (including a sharp decline in 2025), and profitability has deteriorated from strong 2021–2022 levels to losses in 2023–2025. Margins compressed heavily: gross margin fell from mid-to-high teens in 2022–2024 to ~5% in 2025, while net margins remained negative in the last three years. A modest improvement is visible in 2025 versus 2024 (smaller net loss and positive EBIT), but overall earnings power looks cyclical and currently pressured.

Balance Sheet

Leverage appears manageable for a cyclical steel distributor, with debt-to-equity staying around ~0.39–0.53 across the period and trending slightly better in 2025 versus 2023–2024. Equity remains sizable, providing some balance-sheet cushion. However, returns on equity have been negative since 2023, signaling that capital is not currently being deployed profitably and leaving less room for error if the downturn persists.

Cash Flow

Operating cash flow has generally stayed positive in 2020 and 2022–2025, but it is volatile (notably negative in 2021) and has weakened materially versus 2022–2023 levels. Free cash flow has swung from strong positive in 2022–2023 to near breakeven/slightly negative in 2025, indicating reduced cash generation after investments and working-capital effects. The cash profile is a stabilizer versus earnings losses, but the recent step-down in free cash flow reduces financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.38B	6.63B	6.96B	8.34B	7.44B
Gross Profit	345.45M	1.11B	1.16B	1.56B	1.07B
EBITDA	144.87M	105.88M	189.71M	413.41M	895.80M
Net Income	-53.64M	-176.70M	-190.59M	253.24M	618.97M
Balance Sheet
Total Assets	3.31B	3.54B	3.87B	3.86B	3.88B
Cash, Cash Equivalents and Short-Term Investments	60.20M	136.09M	154.90M	179.07M	57.63M
Total Debt	763.92M	896.02M	927.59M	759.35M	817.10M
Total Liabilities	1.72B	1.82B	2.11B	1.89B	2.05B
Stockholders Equity	1.58B	1.71B	1.75B	1.96B	1.81B
Cash Flow
Free Cash Flow	-1.51M	4.45M	233.36M	324.38M	-390.71M
Operating Cash Flow	110.43M	114.70M	321.57M	405.17M	-305.77M
Investing Cash Flow	-5.65M	-11.51M	-434.08M	-33.96M	-59.93M
Financing Cash Flow	-154.64M	-142.39M	111.10M	-248.74M	248.55M

Kloeckner & Co. SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 11.8 is above the 20-day moving average (MA) of 11.38, above the 50-day MA of 10.97, and above the 200-day MA of 7.41, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 72.81 is Negative, neither overbought nor oversold. The STOCH value of 78.39 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	77 Outperform	€2.08B	6.65	10.90%	2.84%	4.20%	-20.71%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SZG	57 Neutral	€2.15B	8.58	-4.54%	0.51%	-9.52%	-4.21%
KCO	53 Neutral	€1.18B	-15.10	-8.11%	2.52%	4.41%	50.71%