Krones AG (KRN) AI Stock Analysis

• Market Cap: €4.06B
• Dividend Yield: 2.03%
• Average Volume (3M): 29.29K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.30
• Revenue Growth: 10.25%
• EPS Growth: 20.72%
• Country: DE
• Employees: 20,583
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.21
• Shares Outstanding: 31,593,073
• 10 Day Avg. Volume: 23,974
• 30 Day Avg. Volume: 29,287
• PEG Ratio: 0.59
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 13.99
• 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: €161.83
• Price Target Upside: 26.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: €142.00 ▲(11.11% Upside)

Krones AG's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth and efficient cost management. The valuation is reasonable with a fair P/E ratio and attractive dividend yield. Technical analysis indicates a lack of strong momentum, which slightly moderates the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Krones' products, supporting long-term market position and financial stability.

Balance Sheet Health

Minimal leverage and a strong equity ratio highlight financial stability, reducing risk and enhancing the company's ability to invest in growth.

Operational Efficiency

Improved margins reflect effective cost management and operational efficiency, supporting sustainable profitability and competitive advantage.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow growth can limit the company's ability to reinvest in the business, impacting long-term growth and flexibility.

Free Cash Flow Concerns

Concerns about declining free cash flow may affect the company's ability to fund operations and strategic initiatives, posing a risk to future growth.

Cash Generation Adequacy

While cash generation is adequate, the relatively low ratio suggests potential challenges in converting earnings into cash, impacting liquidity.

Krones AG Business Overview & Revenue Model

Company Description

Krones AG is a leading global provider of systems and equipment for the beverage and liquid food industry. Founded in 1951 and headquartered in Neutraubling, Germany, the company operates in several sectors, including the manufacturing of bottling and packaging machinery, process technology, and factory automation. Krones offers a wide range of core products and services, such as filling, labeling, and packaging machines, as well as digital solutions for process optimization and efficiency enhancement.

How the Company Makes Money

Krones AG generates revenue primarily through the sale of machinery and equipment for the beverage industry, including bottling and packaging solutions. Its revenue model is driven by product sales, service contracts, and spare parts. The company also earns money through the provision of comprehensive service offerings, including maintenance and support for its equipment. Key revenue streams include new machine sales, which contribute significantly to earnings, followed by recurring revenues from service contracts and spare parts sales. Strategic partnerships with major beverage manufacturers and suppliers also enhance Krones' market presence and contribute to its financial performance, allowing the company to tap into new markets and expand its customer base.

Krones AG Financial Statement Overview

Summary

Krones AG shows strong financial health with consistent revenue growth and robust profit margins. The balance sheet is stable with low debt and efficient equity use. Cash flow management is solid despite a slight decline in free cash flow growth.

Income Statement

Krones AG demonstrates strong financial performance with consistent revenue growth and robust net profit margins. The TTM revenue increased to €5.46 billion, a 3.08% growth from the previous year, indicating solid business momentum. The net profit margin stands at 5.25%, reflecting efficient cost management and profitability. The gross profit margin of 43.26% also highlights effective production and sales strategies. EBIT and EBITDA margins are healthy at 7.21% and 10.38% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet of Krones AG is stable with a strong equity base. The debt-to-equity ratio is impressively low at 0.001, indicating minimal reliance on debt financing. Return on Equity (ROE) is solid at 14.45%, suggesting effective use of equity capital to generate profits. The equity ratio stands at 40.36%, which is a strong indicator of financial stability. However, the company could improve its cash reserves to strengthen its liquidity position.

Cash Flow

Krones AG has a strong cash flow position with a positive free cash flow of €262.43 million in the TTM period. The free cash flow to net income ratio is 0.92, indicating efficient conversion of net income into cash. The operating cash flow to net income ratio is 1.55, reflecting strong cash generation capabilities. Free cash flow growth of -3.18% from the previous year suggests a slight decline, but overall cash flow management remains solid.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.46B	5.29B	4.72B	4.25B	3.69B	3.36B
Gross Profit	2.85B	2.72B	845.77M	2.14B	1.86B	1.67B
EBITDA	597.09M	564.79M	469.53M	384.54M	320.41M	115.74M
Net Income	287.32M	276.92M	224.51M	187.03M	141.37M	-79.70M
Balance Sheet
Total Assets	4.76B	4.75B	4.48B	4.17B	3.49B	3.05B
Cash, Cash Equivalents and Short-Term Investments	377.10M	442.48M	448.36M	674.50M	383.37M	216.99M
Total Debt	1.90M	136.62M	139.74M	110.93M	102.52M	127.28M
Total Liabilities	2.79B	2.83B	2.76B	2.57B	2.10B	1.85B
Stockholders Equity	1.97B	1.92B	1.72B	1.60B	1.39B	1.20B
Cash Flow
Free Cash Flow	192.33M	271.03M	-25.04M	360.54M	200.84M	227.98M
Operating Cash Flow	369.57M	452.17M	137.62M	478.70M	305.73M	321.77M
Investing Cash Flow	-160.69M	-338.99M	-238.91M	-107.75M	-102.48M	-100.48M
Financing Cash Flow	-126.19M	-115.00M	-94.10M	-79.79M	-60.89M	-99.04M

Krones AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 127.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KRN, the sentiment is Neutral. The current price of 127.8 is above the 20-day moving average (MA) of 126.47, below the 50-day MA of 127.84, and below the 200-day MA of 130.47, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.00 is Neutral, neither overbought nor oversold. The STOCH value of 88.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:KRN.

Krones AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSB3	―	€1.56B	13.21	11.18%	3.02%	4.20%	-20.71%
KRN	―	€4.06B	14.14	15.37%	2.03%	10.25%	20.72%
KSB	―	€1.56B	13.32	11.18%	2.90%	4.20%	-20.71%
G1A	―	€10.28B	26.37	17.92%	1.81%	1.93%	2.27%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DEZ	―	€1.34B	51.31	3.09%	1.94%	1.57%	-70.53%
DUE	―	€1.44B	-76.85	-6.59%	3.43%	-15.83%	-120.52%