Krones AG (KRN) AI Stock Analysis

• Market Cap: €4.18B
• Dividend Yield: 2.07%
• Average Volume (3M): 29.33K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.26
• Revenue Growth: 10.25%
• EPS Growth: 20.72%
• Country: DE
• Employees: 20,583
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 2.21
• Shares Outstanding: 31,593,073
• 10 Day Avg. Volume: 37,356
• 30 Day Avg. Volume: 29,329
• 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: €161.00
• Price Target Upside: 21.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: €143.00 ▲(8.17% Upside)

Krones AG's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth and efficient cost management. However, technical indicators suggest weak momentum, which impacts the score. The valuation is reasonable, offering moderate income potential. The absence of earnings call data and corporate events does not affect the score calculation.

Krones AG Business Overview & Revenue Model

Company Description

Krones AG is a German company that specializes in the manufacturing of machinery and complete production lines for the beverage and liquid food industry. The company operates primarily in two segments: Machines and Lines for Product Filling and Decoration, and Machines and Lines for Beverage Production/Process Technology. Krones provides a range of products and services including filling and packaging technology, brewing, and beverage production technology, as well as IT solutions for the beverage industry. With a global presence, Krones AG serves a diverse clientele, including breweries, beverage producers, and food manufacturers.

How the Company Makes Money

Krones AG generates revenue through the sale of its machinery and equipment used in the beverage and liquid food industries. Its primary revenue streams include the design, manufacture, and installation of machines and complete lines for bottling, labeling, and packaging of beverages and liquid foods. Additionally, Krones offers process technology for beverage production, which includes brewing, filtration, and other processing solutions. The company also provides related services such as maintenance, spare parts, and digitalization solutions that enhance operation efficiency for its clients. Krones benefits from strong relationships with major beverage and food companies worldwide, contributing significantly to its earnings.

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: 132.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 132.2 is below the 20-day moving average (MA) of 136.90, below the 50-day MA of 138.35, and above the 200-day MA of 127.38, indicating a neutral trend. The MACD of -2.43 indicates Positive momentum. The RSI at 43.97 is Neutral, neither overbought nor oversold. The STOCH value of 16.02 is Positive, 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	79 Outperform	€1.62B	13.54	11.18%	2.99%	4.20%	-20.71%
G1A	75 Outperform	€10.31B	27.25	16.56%	1.84%	1.79%	0.06%
KSB	74 Outperform	€1.62B	14.06	11.18%	2.91%	4.20%	-20.71%
DUE	72 Outperform	€1.55B	14.64	4.78%	3.24%	-10.85%	-3.64%
KRN	67 Neutral	€4.18B	14.54	15.37%	2.07%	10.25%	20.72%
Sector *	63 Neutral	$10.64B	16.04	5.48%	2.12%	2.73%	-23.95%
DEZ	62 Neutral	€1.04B	29.17	1.96%	2.30%	-7.63%	-51.48%