Krones AG (KRN) AI Stock Analysis

• Market Cap: €4.42B
• Dividend Yield: 1.6%
• Average Volume (3M): 24.59K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.17
• Revenue Growth: 14.42%
• EPS Growth: 26.41%
• Country: DE
• Employees: 20,583
• Sector: Industrials
• Sector Strength: 93
• Industry: Industrial - Machinery
• EPS (TTM): 2.40
• Shares Outstanding: 31,593,073
• 10 Day Avg. Volume: 27,678
• 30 Day Avg. Volume: 24,587
• PEG Ratio: 4.20
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.78
• 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: €163.67
• Price Target Upside: 17.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: €163.00 ▲(16.93%Upside)

Krones AG's stock score reflects a strong financial performance, highlighted by consistent revenue growth, profitability, and financial stability. The technical analysis indicates a bullish trend, although caution is advised due to overbought conditions. The valuation is reasonable, supporting the company's solid market position. Overall, Krones AG presents a compelling investment opportunity, with its strengths in financial performance and market momentum outweighing the minor risks of overvaluation and potential pullbacks.

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 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 demonstrates robust financial health across all statements. The company's consistent revenue and profit growth highlight its strong market position and operational efficiency. The balance sheet reflects financial stability with minimal debt and a strong equity base. Cash flow management is efficient, ensuring liquidity and operational flexibility. Despite minor declines in free cash flow growth, the overall financial trajectory remains positive, positioning Krones AG well for future growth and resilience.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.29B	4.72B	4.25B	3.69B	3.36B
Gross Profit	2.72B	845.77M	2.14B	1.86B	1.67B
EBITDA	564.79M	469.53M	384.54M	320.41M	115.74M
Net Income	276.92M	224.51M	187.03M	141.37M	-79.70M
Balance Sheet
Total Assets	4.75B	4.48B	4.17B	3.49B	3.05B
Cash, Cash Equivalents and Short-Term Investments	442.48M	448.36M	674.50M	383.37M	216.99M
Total Debt	136.62M	139.74M	110.93M	102.52M	127.28M
Total Liabilities	2.83B	2.76B	2.57B	2.10B	1.85B
Stockholders Equity	1.92B	1.72B	1.60B	1.39B	1.20B
Cash Flow
Free Cash Flow	271.03M	-25.04M	360.54M	200.84M	227.98M
Operating Cash Flow	452.17M	137.62M	478.70M	305.73M	321.77M
Investing Cash Flow	-338.99M	-238.91M	-107.75M	-102.48M	-100.48M
Financing Cash Flow	-115.00M	-94.10M	-79.79M	-60.89M	-99.04M

Krones AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 139.4 is above the 20-day moving average (MA) of 138.88, above the 50-day MA of 139.32, and above the 200-day MA of 126.54, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 69.24 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	77 Outperform	€4.42B	15.43	15.25%	1.60%	14.42%	26.41%
Sector *	71 Outperform	¥255.19B	13.58	8.48%	3.01%	6.34%	13.16%
0E4K	―	€1.10B	30.86	1.96%	2.14%	―	―
0J9C	―	€1.57B	15.00	4.78%	3.08%	―	―
0MPJ	―	€9.53B	25.18	16.56%	1.95%	―	―
0BQD	―	€1.58B	13.74	11.29%	2.93%	―	―
0BQE	―	€1.58B	13.31	11.29%	2.99%	―	―