Krones AG (KRN) AI Stock Analysis

• Market Cap: €4.15B
• Dividend Yield: 1.68%
• Average Volume (3M): 40.57K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.20
• Revenue Growth: 12.14%
• EPS Growth: 23.30%
• Country: DE
• Employees: 19,788
• Sector: Industrials
• Sector Strength: 77
• Industry: Industrial - Machinery
• EPS (TTM): 8.76
• Shares Outstanding: 31,593,073
• 10 Day Avg. Volume: 27,316
• 30 Day Avg. Volume: 40,573
• PEG Ratio: 0.65
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €158.40
• Price Target Upside: 19.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Krones AG scores well due to strong financial performance, characterized by robust revenue growth and excellent cash flow management. Technical indicators suggest a mixed outlook with potential consolidation in the near term. Valuation metrics are reasonable for the industry, though the P/E ratio and dividend yield offer moderate appeal. The overall score reflects these strengths and areas for caution, with the absence of recent earnings call data and corporate events not impacting the evaluation.

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 its machinery and systems for the beverage and liquid food industries. The company's key revenue streams include the design, manufacturing, and sale of bottling and packaging machines, process technology systems, and IT solutions that optimize production processes. Krones also derives income from providing after-sales services such as maintenance, repair, and spare parts, ensuring long-term customer relationships. Additionally, the company benefits from strategic partnerships and collaborations with industry leaders to enhance its technological offerings and expand its market reach.

Krones AG Financial Statement Overview

Summary

Overall, Krones AG exhibits robust financial health with strong revenue growth and profitability, supported by efficient cash flow management and a stable balance sheet. While the balance sheet shows minimal leverage and effective equity use, the income statement reflects a need to improve operational margins. The company's strong cash flow generation highlights its ability to support growth and investment opportunities.

Income Statement

Krones AG demonstrates strong revenue growth and profitability over recent years. The revenue growth rate from 2023 to 2024 was approximately 12.13%, indicating a robust upward trajectory. The gross profit margin for 2024 is 51.33%, reflecting efficient cost management. However, the EBIT margin is impacted as EBIT is zero for 2024, raising concerns about operational efficiency. Despite this, the EBITDA margin is solid at 10.67%, suggesting good earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet shows a healthy equity position with a debt-to-equity ratio of 0.071 in 2024, indicating low leverage and financial stability. The return on equity (ROE) is 14.41%, demonstrating effective utilization of shareholders' equity. The equity ratio stands at 40.46%, suggesting a strong capital structure with a significant portion of assets financed through equity. Overall, the balance sheet reflects solid financial health, although there is room for improvement in asset efficiency.

Cash Flow

Krones AG's cash flow is impressive, with a significant increase in operating cash flow to €452.17 million in 2024. Free cash flow also improved substantially, reflecting strong cash generation capabilities. The free cash flow to net income ratio is 0.98, indicating efficient conversion of profits into free cash. The operating cash flow to net income ratio is 1.63, underscoring strong cash flow adequacy relative to net income.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.72B	4.25B	3.69B	3.36B	4.02B
	Gross Profit
845.77M	2.14B	1.86B	1.67B	1.95B
	EBIT
315.67M	255.20M	181.34M	-1.38M	136.32M
	EBITDA
469.53M	384.54M	320.41M	115.74M	240.37M
	Net Income Common Stockholders
224.51M	187.03M	141.37M	-79.70M	9.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
448.36M	674.50M	383.37M	216.99M	110.38M
	Total Assets
4.48B	4.17B	3.49B	3.05B	3.32B
	Total Debt
139.74M	110.93M	102.52M	127.28M	161.29M
	Net Debt
-308.62M	-563.57M	-280.85M	-89.71M	50.91M
	Total Liabilities
2.76B	2.57B	2.10B	1.85B	1.95B
	Stockholders Equity
1.72B	1.60B	1.39B	1.20B	1.37B
Cash Flow		Free Cash Flow
-25.04M	360.54M	200.84M	227.98M	-75.38M
	Operating Cash Flow
137.62M	478.70M	305.73M	321.77M	93.53M
	Investing Cash Flow
-238.91M	-107.75M	-102.48M	-100.48M	-187.92M
	Financing Cash Flow
-94.10M	-79.79M	-60.89M	-99.04M	-19.26M

Krones AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 132.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 132.2 is above the 20-day moving average (MA) of 121.41, above the 50-day MA of 127.24, and above the 200-day MA of 124.00, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 63.49 is Neutral, neither overbought nor oversold. The STOCH value of 91.77 is Negative, 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
KRN	77 Outperform	€4.15B	15.15	15.22%	1.68%	12.14%	23.30%
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%