Kloeckner & Co. SE (KCO) AI Stock Analysis

• Market Cap: €548.63M
• Dividend Yield: 3.7%
• Average Volume (3M): 183.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 0.38%
• EPS Growth: 40.94%
• Country: DE
• Employees: 6,451
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Steel
• EPS (TTM): 0.02
• Shares Outstanding: 99,750,000
• 10 Day Avg. Volume: 141,765
• 30 Day Avg. Volume: 183,735
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €7.93
• Price Target Upside: 46.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: €6.00 ▲(10.91% Upside)

Kloeckner & Co. SE's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant financial challenges, including declining revenues and negative profitability, which are reflected in its financial performance score. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold signals. Valuation provides a slight offset with a reasonable dividend yield, but the negative P/E ratio highlights earnings challenges.

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. generates revenue primarily through the sale of steel and non-ferrous metal products to various industries. Its revenue model is based on direct sales to customers, as well as through its extensive network of branches and online platforms that facilitate metal trading. Key revenue streams include the distribution of flat and long products, as well as value-added services such as processing, cutting, and logistics solutions. The company also benefits from strategic partnerships with manufacturers and suppliers, which help secure competitive pricing and ensure a reliable supply of materials. Additionally, Kloeckner & Co. has been investing in digital solutions to enhance its e-commerce capabilities, further driving sales by reaching a broader customer base and improving operational efficiency.

Kloeckner & Co. SE Financial Statement Overview

Summary

Kloeckner & Co. SE is facing significant financial challenges, with declining revenues, negative profitability, and cash flow inefficiencies. The income statement shows a negative net profit margin and declining revenue growth. The balance sheet indicates moderate leverage but poor profitability with a negative ROE. Cash flow metrics highlight liquidity concerns and inefficiencies in converting income into cash.

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	6.44B	6.63B	6.96B	8.34B	7.44B	5.13B
Gross Profit	1.16B	1.11B	1.16B	1.56B	1.07B	1.05B
EBITDA	112.38M	105.88M	189.71M	413.41M	895.80M	36.38M
Net Income	-147.55M	-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	137.24M	136.09M	154.90M	179.07M	57.63M	172.57M
Total Debt	925.00M	896.02M	927.59M	759.35M	817.10M	520.65M
Total Liabilities	1.95B	1.82B	2.11B	1.89B	2.05B	1.57B
Stockholders Equity	1.51B	1.71B	1.75B	1.96B	1.81B	1.04B
Cash Flow
Free Cash Flow	-18.24M	4.45M	233.36M	324.38M	-390.71M	84.91M
Operating Cash Flow	99.81M	114.70M	321.57M	405.17M	-305.77M	160.98M
Investing Cash Flow	-145.20M	-11.51M	-434.08M	-33.96M	-59.93M	-62.06M
Financing Cash Flow	45.54M	-142.39M	111.10M	-248.74M	248.55M	-104.47M

Kloeckner & Co. SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KCO, the sentiment is Negative. The current price of 5.41 is below the 20-day moving average (MA) of 5.85, below the 50-day MA of 6.28, and below the 200-day MA of 5.92, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 29.14 is Positive, neither overbought nor oversold. The STOCH value of 12.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	61 Neutral	$10.41B	7.18	-0.06%	2.87%	2.87%	-36.73%
KCO	47 Neutral	€548.63M	―	-9.12%	3.70%	0.38%	40.94%
0BQE	―	€1.54B	12.77	11.18%	―	―	―
0G77	―	€1.34B	―	-9.21%	―	―	―
EIS	―	€256.96M	31.42	8.69%	―	―	―
HG1	―	€429.85M	129.86	2.50%	3.77%	―	―
FDD	―	€666.76M	―		―	―	―