Kloeckner & Co. SE (KCO) AI Stock Analysis

• Market Cap: €667.33M
• Dividend Yield: 2.57%
• Average Volume (3M): 158.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -0.34%
• EPS Growth: 19.96%
• Country: DE
• Employees: 6,451
• Sector: Industrials
• Sector Strength: 89
• Industry: Steel
• EPS (TTM): -0.28
• Shares Outstanding: 99,750,000
• 10 Day Avg. Volume: 234,145
• 30 Day Avg. Volume: 158,883
• PEG Ratio: -0.06
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.84
• 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: €7.60
• Price Target Upside: 9.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 51 Neutral
• Price Target: €6.50 ▼(-5.93%Downside)

Kloeckner & Co. SE's overall stock score reflects significant profitability challenges and liquidity concerns, as highlighted in its financial performance. Technical analysis provides a neutral short-term outlook, while valuation is held back by a negative P/E ratio. The company's moderate leverage offers some financial stability, but focus on improving profitability and cash flow is crucial.

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. SE generates revenue primarily through the sale and distribution of steel and metal products. The company purchases raw materials from producers and manufacturers and then processes these materials into various products tailored to the needs of its customers. By adding value through services such as cutting, surface treatments, and logistics, Kloeckner & Co. differentiates itself in the marketplace. Additionally, the company has invested in digital platforms to streamline procurement and sales processes, which helps in increasing efficiency and expanding market reach. Strategic partnerships and a broad distribution network also play a crucial role in sourcing and delivering products globally, contributing significantly to the company's earnings.

Kloeckner & Co. SE Financial Statement Overview

Summary

Kloeckner & Co. SE faces profitability challenges with declining revenues and negative net income. The balance sheet shows moderate leverage, offering some stability, while cash flow is concerning due to declining free cash flow. Improvement in profitability and cash flow management is needed.

Income Statement

Kloeckner & Co. SE has experienced fluctuating revenue trends, with a recent decline in total revenue from €6.95 billion to €6.63 billion. Gross profit margin remains relatively steady, but net profit margins are negative, indicating profitability challenges. The decline in EBIT and EBITDA margins suggests operational inefficiencies.

Balance Sheet

The balance sheet shows a stable equity position, with a debt-to-equity ratio of approximately 0.52, indicating moderate leverage. However, the declining stockholders' equity and total assets raise concerns about long-term financial stability. The equity ratio is reasonable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow to net income ratio indicates strong cash generation despite negative net income. However, free cash flow has decreased significantly, and free cash flow growth is weak, reflecting high capital expenditures and potential liquidity challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.63B	6.96B	8.34B	7.44B	5.13B
Gross Profit	1.11B	1.16B	1.56B	1.07B	1.05B
EBITDA	109.79M	189.71M	413.41M	895.80M	36.38M
Net Income	-176.70M	-190.59M	253.24M	618.97M	-115.93M
Balance Sheet
Total Assets	3.54B	3.87B	3.86B	3.88B	2.61B
Cash, Cash Equivalents and Short-Term Investments	136.09M	154.90M	179.07M	57.63M	172.57M
Total Debt	896.02M	927.59M	759.35M	817.10M	520.65M
Total Liabilities	1.82B	2.11B	1.89B	2.05B	1.57B
Stockholders Equity	1.71B	1.75B	1.96B	1.81B	1.04B
Cash Flow
Free Cash Flow	4.45M	233.36M	324.38M	-390.71M	84.91M
Operating Cash Flow	114.70M	321.57M	405.17M	-305.77M	160.98M
Investing Cash Flow	-11.51M	-434.08M	-33.96M	-59.93M	-62.06M
Financing Cash Flow	-142.39M	111.10M	-248.74M	248.55M	-104.47M

Kloeckner & Co. SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.91
• 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:KCO, the sentiment is Positive. The current price of 6.91 is above the 20-day moving average (MA) of 6.15, above the 50-day MA of 6.31, and above the 200-day MA of 5.59, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 72.36 is Negative, neither overbought nor oversold. The STOCH value of 86.78 is Negative, 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
Sector *	59 Neutral	AU$1.63B	9.65	11.24%	3.67%	6.75%	3.18%
KCO	51 Neutral	€667.33M	―	-10.39%	2.57%	-0.34%	19.96%
0BQE		€1.54B	12.83	11.29%	2.65%	―	―
0G77		€1.35B	―	-8.65%	0.89%	―	―
EIS		€308.00M	37.01	8.03%	2.86%	―	―
HG1		€448.68M	36.01	11.73%	3.53%	―	―
FDD		€655.92M	―		7.98%	―	―