Krones AG (KRN) AI Stock Analysis

• Market Cap: €4.49B
• Dividend Yield: 1.95%
• Average Volume (3M): 29.29K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.24
• 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: €151.80
• Price Target Upside: 8.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €150.00 ▲(7.30% Upside)

Krones AG's strong financial performance is the most significant factor, highlighting robust growth and financial stability. Technical analysis supports a positive outlook with bullish momentum, though caution is advised due to potential overbought conditions. The valuation is fair, offering moderate income potential. Overall, the company is well-positioned for sustained growth, but investors should monitor technical indicators closely.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and competitiveness.

Balance Sheet Health

A strong balance sheet with minimal leverage risk enhances financial stability, providing flexibility for strategic investments and resilience against economic downturns.

Margin Sustainability

Sustained high margins reflect efficient operations and pricing power, contributing to profitability and allowing reinvestment in growth initiatives.

Negative Factors

Cash Flow Efficiency

While cash generation is positive, low cash flow efficiency may limit the company's ability to fund operations and growth without external financing.

Free Cash Flow Growth

Moderate free cash flow growth suggests potential constraints in cash availability for strategic initiatives, possibly impacting future expansion plans.

Net Profit Margin

A relatively low net profit margin compared to gross margin indicates higher operating costs, which could pressure profitability if not managed effectively.

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 systems used in the beverage and food production processes. The company's revenue model is based on several key streams: the direct sale of equipment, which constitutes a substantial portion of its income; after-sales services, including maintenance and spare parts, which provide ongoing revenue; and project management for large-scale installations that require comprehensive solutions. Notably, Krones has established significant partnerships with major beverage companies, enhancing its market position and allowing for collaboration on innovative technologies. Additionally, the growing emphasis on sustainability and efficiency in production processes drives demand for Krones' advanced technology solutions, contributing positively to its earnings.

Krones AG Financial Statement Overview

Summary

Krones AG exhibits strong financial health across all verticals. The income statement reflects robust growth and profitability, supported by efficient operations. The balance sheet is characterized by low leverage and strong equity, ensuring financial stability. Cash flow generation is positive, though there is potential for enhanced efficiency.

Income Statement

Krones AG demonstrates strong revenue growth with a TTM increase of 13.8%. The company maintains healthy margins, with a gross profit margin of 52.1% and a net profit margin of 5.3% in the TTM. EBIT and EBITDA margins are also robust at 7.7% and 10.9%, respectively, indicating efficient operations. The consistent growth trajectory and solid profitability metrics highlight a well-managed income statement.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.001 in the TTM, indicating minimal leverage risk. Return on equity is healthy at 14.9%, reflecting effective use of shareholder funds. The equity ratio stands at 42.1%, suggesting a stable financial structure. Overall, the balance sheet reflects financial stability and prudent management of resources.

Cash Flow

Krones AG shows positive cash flow trends, with a TTM free cash flow growth of 6.7%. The operating cash flow to net income ratio is 0.16, and the free cash flow to net income ratio is 0.52, indicating adequate cash generation relative to profits. While the cash flow metrics are solid, there is room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.53B	5.29B	4.72B	4.25B	3.69B	3.36B
Gross Profit	2.89B	2.72B	845.77M	2.14B	1.86B	1.67B
EBITDA	604.39M	564.79M	469.53M	384.54M	320.41M	115.74M
Net Income	289.62M	276.92M	224.51M	187.03M	141.37M	-79.70M
Balance Sheet
Total Assets	4.82B	4.75B	4.48B	4.17B	3.49B	3.05B
Cash, Cash Equivalents and Short-Term Investments	362.80M	442.48M	448.36M	674.50M	383.37M	216.99M
Total Debt	182.30M	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	2.03B	1.92B	1.72B	1.60B	1.39B	1.20B
Cash Flow
Free Cash Flow	205.13M	271.03M	-25.04M	360.54M	200.84M	227.98M
Operating Cash Flow	393.77M	452.17M	137.62M	478.70M	305.73M	321.77M
Investing Cash Flow	-209.19M	-338.99M	-238.91M	-107.75M	-102.48M	-100.48M
Financing Cash Flow	-132.09M	-115.00M	-94.10M	-79.79M	-60.89M	-99.04M

Krones AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 139.8 is above the 20-day moving average (MA) of 139.56, above the 50-day MA of 134.43, and above the 200-day MA of 132.54, indicating a bullish trend. The MACD of 1.76 indicates Positive momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 87.78 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
KSB3	77 Outperform	€1.83B	16.00	11.18%	2.84%	4.20%	-20.71%
KSB	76 Outperform	€1.83B	15.03	11.18%	2.76%	4.20%	-20.71%
KRN	75 Outperform	€4.49B	15.49	14.99%	1.95%	8.15%	16.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DEZ	62 Neutral	€1.64B	39.93	4.34%	2.03%	9.79%	-31.93%
G1A	61 Neutral	€9.77B	24.36	17.71%	2.01%	2.26%	6.49%
DUE	54 Neutral	€1.59B	-49.67	-7.86%	3.12%	-18.21%	-137.62%