Krones AG (KRN) AI Stock Analysis

• Market Cap: €4.44B
• Dividend Yield: 1.95%
• Average Volume (3M): 29.29K
• Price to Earnings (P/E): 15.3
• 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: €159.60
• Price Target Upside: 13.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €150.00 ▲(6.99% 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 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	5.53B	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: 140.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 140.2 is above the 20-day moving average (MA) of 134.67, above the 50-day MA of 130.07, and above the 200-day MA of 130.80, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 74.36 is Negative, neither overbought nor oversold. The STOCH value of 97.53 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	€1.79B	15.55	11.18%	2.84%	4.20%	-20.71%
KSB	76 Outperform	€1.79B	15.03	11.18%	2.76%	4.20%	-20.71%
KRN	75 Outperform	€4.44B	15.29	14.99%	1.95%	8.15%	16.17%
DEZ	69 Neutral	€1.46B	35.65	4.34%	2.03%	9.79%	-31.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
G1A	61 Neutral	€9.45B	23.92	17.71%	2.01%	2.26%	6.49%
DUE	54 Neutral	€1.63B	-50.43	-7.86%	3.12%	-18.21%	-137.62%