Krones AG (KRN) AI Stock Analysis

• Market Cap: €4.02B
• Dividend Yield: 2.03%
• Average Volume (3M): 30.35K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.26
• 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: 26,035
• 30 Day Avg. Volume: 30,348
• 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: €161.50
• Price Target Upside: 26.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: €141.00 ▲(10.16% Upside)

Krones AG's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and efficient cost management. The technical analysis indicates a neutral trend, while the valuation suggests the stock is fairly valued with a reasonable dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Negative Factors

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 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: Positive
• Last Price: 128.00
• 50DMA: Negative
• 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 128 is above the 20-day moving average (MA) of 126.56, below the 50-day MA of 128.60, and below the 200-day MA of 129.95, indicating a neutral trend. The MACD of -0.88 indicates Negative momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 75.01 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
KRN	72 Outperform	€4.02B	13.99	15.37%	2.03%	10.25%	20.72%
KSB	71 Outperform	€1.58B	13.69	11.18%	2.85%	4.20%	-20.71%
KSB3	71 Outperform	€1.58B	13.27	11.18%	3.00%	4.20%	-20.71%
G1A	67 Neutral	€10.25B	26.31	17.92%	1.81%	1.93%	2.27%
DEZ	66 Neutral	€1.44B	54.99	3.09%	1.84%	1.57%	-70.53%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DUE	60 Neutral	€1.43B	14.60	-6.59%	3.41%	-15.83%	-120.52%