Krones AG (KRN) AI Stock Analysis

• Market Cap: €3.82B
• Dividend Yield: 2.06%
• Average Volume (3M): 29.29K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.30
• Revenue Growth: 8.15%
• EPS Growth: 16.17%
• Country: DE
• Employees: 20,583
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.15
• 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: €158.71
• Price Target Upside: 24.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €140.00 ▲(10.06% Upside)

Krones AG's strong financial performance is the most significant factor, supported by robust revenue growth and efficient cost management. The technical analysis indicates a neutral market sentiment, while the valuation suggests the stock is reasonably priced. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Krones AG's products, suggesting a solid market position and potential for continued expansion.

Financial Health

Minimal leverage and a strong equity ratio reflect financial stability, reducing risk and providing flexibility for future investments or downturns.

Operational Efficiency

High gross profit margins indicate effective cost management, enhancing profitability and supporting sustainable long-term growth.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow may limit Krones AG's ability to invest in growth opportunities or return capital to shareholders, potentially impacting future financial flexibility.

Cash Generation Concerns

A relatively low operating cash flow to net income ratio suggests potential challenges in converting earnings into cash, which could affect liquidity and operational funding.

Market Sentiment

While not directly impacting fundamentals, a lack of strong market momentum could reflect investor uncertainty, potentially affecting future capital raising or stock performance.

Krones AG Business Overview & Revenue Model

Company Description

Krones AG, together with its subsidiaries, plans, develops, and manufactures machines and lines for the production, filling, and packaging technology in Germany and internationally. It operates in two segments, Machines and Lines for Product Filling and Decoration, and Machines and Lines for Beverage Production/Process Technology. The company provides process technology systems for use in beer, craft beer, juice, milk, soft drink, water, and spirit; Steinecker phoebus membrane filters; systems for ozonisation of water; bottle design; stretch blow molders; bottle washing machines; filling technology systems; inspection technology systems; labelers; conveyors; product treatment systems; packaging technology systems; palletizing technology systems; block technology systems; and recycling systems. It also offers solutions for intralogistics, material flow technology, or warehousing for the beverage and food sector; and IT solutions. It serves breweries; beverage producers; and companies from the food, chemical, pharmaceutical, and cosmetic industries. Krones AG was founded in 1951 and is headquartered in Neutraubling, Germany.

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 demonstrates strong financial health with robust revenue growth and efficient cost management. The company has minimal leverage and effectively utilizes its equity to generate returns. However, there is a need to address the decline in free cash flow.

Income Statement

Krones AG has demonstrated strong revenue growth with a TTM growth rate of 13.7%, indicating robust demand for its products. The gross profit margin is healthy at 52.1%, reflecting efficient cost management. Net profit margin is stable at 5.3%, and both EBIT and EBITDA margins have shown improvement, indicating enhanced operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The balance sheet is solid with a very low debt-to-equity ratio of 0.00097, indicating minimal leverage and financial risk. Return on equity is strong at 14.9%, showcasing effective utilization of shareholder funds. The equity ratio stands at 41.4%, suggesting a stable financial structure. The balance sheet reflects financial stability and prudent management of resources.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 26.7% in the TTM, which could be a concern. However, the operating cash flow to net income ratio is reasonable at 0.16, and the free cash flow to net income ratio is 0.52, indicating that the company is generating sufficient cash relative to its earnings. While there are some concerns about declining free cash flow, overall cash generation remains adequate.

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: Positive
• Last Price: 127.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KRN, the sentiment is Positive. The current price of 127.2 is above the 20-day moving average (MA) of 125.50, above the 50-day MA of 125.56, and below the 200-day MA of 130.40, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 41.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:KRN.

Krones AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSB3	74 Outperform	€1.63B	13.63	11.18%	2.76%	4.20%	-20.71%
KSB	73 Outperform	€1.63B	13.99	11.18%	2.65%	4.20%	-20.71%
KRN	72 Outperform	€3.82B	13.28	14.99%	2.06%	8.15%	16.17%
G1A	65 Neutral	€9.91B	25.44	17.71%	2.01%	2.26%	6.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DUE	60 Neutral	€1.36B	-72.89	-7.86%	3.76%	-18.21%	-137.62%
DEZ	58 Neutral	€1.17B	28.31	4.34%	2.24%	9.79%	-31.93%