KSB AG (KSB3) AI Stock Analysis

• Market Cap: €1.51B
• Dividend Yield: 3.16%
• Average Volume (3M): 1.53K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.79
• Revenue Growth: 4.20%
• EPS Growth: -20.71%
• Country: DE
• Employees: 16,407
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 33.00
• 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: €1,010.00
• Price Target Upside: 19.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: €923.00 ▲(9.10% Upside)

KSB AG's overall stock score is driven primarily by its strong financial performance, characterized by steady revenue growth and a robust balance sheet. The valuation is also favorable, with a reasonable P/E ratio and attractive dividend yield. However, technical analysis indicates a neutral to slightly bearish outlook, which tempers the overall score.

KSB AG Business Overview & Revenue Model

Company Description

KSB SE & Co. KGaA, together with its subsidiaries, manufactures and sells pumps, valves, and related systems worldwide. It operates in three segments: Pumps, Valves, and KSB SupremeServ. The Pumps segment offers single and multistage pumps, submersible pumps, and associated control and drive systems that have applications in energy and mining, water, building services, petrochemicals/ chemicals, and general industry. The Valves segment provides butterfly, globe, gate, control, diaphragm, and ball valves, as well as associated actuators and control systems, which are used in process engineering, building services, energy, and solids transport applications. The KSB SupremeServ segment is involved in the installation, commissioning, start-up, inspection, servicing, maintenance, and repair of pumps, valves, and related systems for various applications; and modular service concepts and system analyses for complete systems. It sells its products through its companies or agencies. The company was formerly known as KSB Aktiengesellschaft and changed its name to KSB SE & Co. KGaA in January 2018. KSB SE & Co. KGaA was founded in 1871 and is headquartered in Frankenthal, Germany.

How the Company Makes Money

KSB AG generates revenue primarily through the sale of its products, including pumps and valves, as well as related services such as installation, maintenance, and repair. The company has established key revenue streams from both its manufacturing operations and after-sales services, which create ongoing relationships with customers. Additionally, KSB AG benefits from strategic partnerships with other industry players and participation in government projects, particularly in infrastructure development related to water supply and energy systems. The combination of high-quality products, a strong service portfolio, and a focus on sustainability contributes significantly to KSB's earnings.

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. While profitability margins show some variability, the company maintains a healthy cash flow position, supporting its operational resilience. Opportunities for improvement exist in enhancing 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	230.39M	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: Negative
• Last Price: 846.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KSB3, the sentiment is Negative. The current price of 846 is below the 20-day moving average (MA) of 872.50, below the 50-day MA of 878.88, and above the 200-day MA of 787.18, indicating a neutral trend. The MACD of -6.98 indicates Positive momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 20.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:KSB3.

KSB AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STM	69 Neutral	€542.17M	10.48	8.01%	5.24%	3.07%	-31.90%
KSB3	68 Neutral	€1.51B	12.59	11.18%	3.16%	4.20%	-20.71%
JST	65 Neutral	€758.41M	20.09	10.23%	2.95%	5.34%	-9.83%
PFV	64 Neutral	€1.53B	48.71	5.47%	4.72%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DEZ	60 Neutral	€1.34B	51.25	3.09%	1.93%	1.57%	-70.53%
DUE	60 Neutral	€1.33B	14.60	-6.59%	3.63%	-15.83%	-120.52%