KSB AG (KSB3) AI Stock Analysis

• Market Cap: €1.63B
• Dividend Yield: 2.74%
• Average Volume (3M): 1.53K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.77
• Revenue Growth: 4.20%
• EPS Growth: -20.71%
• Country: DE
• Employees: 16,407
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 864,712
• 10 Day Avg. Volume: 723
• 30 Day Avg. Volume: 1,535
• PEG Ratio: -0.40
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 7.86
• 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: €1,200.00
• Price Target Upside: 25.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €1,096.00 ▲(14.64% Upside)

KSB AG's overall stock score is driven by its strong financial performance, characterized by revenue growth and a robust balance sheet. Technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The valuation is balanced, offering a reasonable P/E ratio and dividend yield. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for KSB AG's products and services, supporting long-term business expansion and market presence.

Balance Sheet Health

Strong equity growth and low debt-to-equity ratio highlight financial stability, providing a solid foundation for future investments and resilience against economic fluctuations.

Cash Generation Ability

Robust cash generation ensures KSB AG can fund operations, invest in growth opportunities, and maintain financial flexibility, crucial for sustaining competitive advantage.

Negative Factors

Profit Margin Variability

Fluctuating profit margins indicate potential operational inefficiencies, which could affect profitability and require strategic adjustments to maintain competitiveness.

Operational Efficiency

Low EBIT margin suggests challenges in operational efficiency, which may hinder profitability unless addressed through cost management and process improvements.

Free Cash Flow Volatility

Volatility in free cash flow can limit KSB AG's ability to invest in growth initiatives and manage financial obligations, potentially impacting long-term strategic goals.

KSB AG Business Overview & Revenue Model

Company Description

KSB AG is a global leader in pump and valve manufacturing, headquartered in Frankenthal, Germany. The company operates primarily in the sectors of water management, energy, industrial applications, and building services. KSB's core product offerings include a wide range of pumps, valves, and related services, designed to optimize fluid handling in various industries, including municipal, energy, and manufacturing sectors.

How the Company Makes Money

KSB AG generates revenue through the sale of its pumps and valves, alongside associated services such as maintenance and installation. The company has a diversified revenue model that includes both direct sales to end-users and partnerships with distributors and contractors. Key revenue streams come from large-scale projects in the energy and water management sectors, where KSB supplies critical components for power generation and water supply systems. Additionally, KSB benefits from ongoing service contracts that provide steady income through maintenance and support for its products. Strategic partnerships with engineering firms and participation in public tenders further enhance its market presence and revenue potential.

KSB AG Financial Statement Overview

Summary

KSB AG displays a strong financial position characterized by steady revenue growth, effective cost management, and a robust balance sheet with low leverage. However, profitability margins show some variability, and there are opportunities for improvement in operational efficiency to boost profitability margins further.

Income Statement

KSB AG has demonstrated steady revenue growth over the years, with total revenue increasing from €2.38 billion in 2019 to €2.97 billion in 2024. The gross profit margin has improved significantly, indicating effective cost management. However, the net profit margin has seen fluctuations, with a dip in 2024 compared to previous years, reflecting potential operational challenges. While the EBITDA margin remains healthy, the EBIT margin was notably low in 2024 due to a lack of operating profit, suggesting a need for operational efficiency improvements.

Balance Sheet

The balance sheet of KSB AG shows strong equity growth, with stockholders' equity increasing from €680 million in 2019 to €1.09 billion in 2024. The company maintains a low debt-to-equity ratio, highlighting financial stability and low leverage risk. The equity ratio has improved, suggesting a stronger capital structure. However, there could be potential liquidity considerations given the fluctuations in cash and short-term investments.

Cash Flow

KSB AG has shown positive operating cash flow trends, with consistent free cash flow generation over most years, except for a negative free cash flow in 2022. The operating cash flow to net income ratio indicates robust cash generation relative to earnings, although the free cash flow to net income ratio reflects some volatility, suggesting varying capital expenditure impacts.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.99B	2.97B	2.82B	2.57B	2.34B	2.21B
Gross Profit	1.21B	655.70M	611.09M	498.98M	1.38B	363.38M
EBITDA	501.60M	349.10M	319.70M	264.07M	227.61M	168.78M
Net Income	117.70M	118.10M	152.29M	103.65M	93.65M	-9.63M
Balance Sheet
Total Assets	2.76B	2.87B	2.67B	2.48B	2.31B	2.14B
Cash, Cash Equivalents and Short-Term Investments	290.10M	369.30M	340.42M	228.57M	386.68M	331.51M
Total Debt	55.70M	58.30M	54.60M	50.46M	78.67M	82.34M
Total Liabilities	1.48B	1.53B	1.45B	1.35B	1.45B	1.44B
Stockholders Equity	1.07B	1.09B	1.00B	915.92M	674.75M	527.87M
Cash Flow
Free Cash Flow	89.10M	133.60M	173.80M	-100.28M	89.94M	100.78M
Operating Cash Flow	226.60M	268.60M	280.30M	2.11M	163.92M	183.85M
Investing Cash Flow	-134.20M	-153.70M	-103.54M	-89.04M	-76.39M	-72.24M
Financing Cash Flow	-80.00M	-88.80M	-63.49M	-75.84M	-43.42M	-48.48M

KSB AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 956.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KSB3, the sentiment is Positive. The current price of 956 is above the 20-day moving average (MA) of 953.60, above the 50-day MA of 907.00, and above the 200-day MA of 836.16, indicating a bullish trend. The MACD of 21.00 indicates Negative momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:KSB3.

KSB AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSB3	74 Outperform	€1.63B	13.63	11.18%	2.74%	4.20%	-20.71%
JST	67 Neutral	€727.86M	19.28	8.47%	2.89%	21.74%	-20.68%
PFV	64 Neutral	€1.53B	48.77	5.47%	4.72%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DUE	60 Neutral	€1.36B	-72.89	-7.86%	3.59%	-18.21%	-137.62%
STM	60 Neutral	€513.76M	9.93	―	5.48%	-0.75%	-67.00%
DEZ	58 Neutral	€1.18B	28.68	4.34%	2.14%	9.79%	-31.93%