KSB AG (KSB3) AI Stock Analysis

• Market Cap: €1.44B
• Dividend Yield: 3.45%
• Average Volume (3M): 734.00
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.58
• Revenue Growth: 5.19%
• EPS Growth: -22.45%
• Country: DE
• Employees: 16,407
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 67.43
• Shares Outstanding: 864,712
• 10 Day Avg. Volume: 1,087
• 30 Day Avg. Volume: 734
• PEG Ratio: 0.53
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.85
• 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: 29.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ―

KSB AG scores well due to its strong financial performance, particularly in revenue growth and balance sheet strength, coupled with attractive valuation metrics. While technical analysis shows a stable to positive trend, the lack of detailed momentum indicators suggests a cautious approach. Overall, the stock shows potential for long-term growth, supported by its robust financial health and attractive valuation.

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 pumps, valves, and related services. Its revenue model is anchored in providing high-quality, durable products to a wide range of industries, which require reliable fluid handling solutions. Key revenue streams include direct sales of equipment, aftermarket services such as maintenance and repairs, and engineering solutions tailored to specific client needs. The company also benefits from strategic partnerships and collaborations that enhance its market reach and technological capabilities. Factors such as global infrastructure development, the need for energy-efficient solutions, and regulatory requirements in environmental management contribute to the company'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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.97B	2.82B	2.57B	2.34B	2.21B
	Gross Profit
1.80B	611.09M	1.52B	1.38B	1.30B
	EBIT
229.30M	211.38M	173.38M	156.30M	78.06M
	EBITDA
349.10M	319.70M	259.93M	227.61M	168.78M
	Net Income Common Stockholders
118.10M	152.29M	103.65M	93.65M	4.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
369.30M	340.42M	228.57M	386.68M	331.51M
	Total Assets
2.87B	2.67B	2.48B	2.31B	2.14B
	Total Debt
58.30M	54.60M	50.46M	78.67M	82.34M
	Net Debt
-311.00M	-285.80M	-178.11M	-308.01M	-249.18M
	Total Liabilities
1.53B	1.45B	1.35B	1.45B	1.44B
	Stockholders Equity
1.09B	1.00B	915.92M	674.75M	527.87M
Cash Flow		Free Cash Flow
133.60M	173.80M	-100.28M	89.94M	100.78M
	Operating Cash Flow
268.60M	280.30M	2.11M	163.92M	183.85M
	Investing Cash Flow
-153.70M	-103.54M	-89.04M	-76.39M	-72.24M
	Financing Cash Flow
-88.80M	-63.49M	-75.84M	-43.42M	-48.48M

KSB AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 778.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 778 is below the 20-day moving average (MA) of 786.10, above the 50-day MA of 769.68, and above the 200-day MA of 647.82, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 45.46 is Neutral, 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	76 Outperform	€1.44B	11.73	11.29%	3.45%	5.19%	-22.45%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
0E4K		€1.00B	28.14	1.96%	2.35%	―	―
0J9C		€1.65B	15.62	4.78%	2.94%	―	―
0FQR		€1.57B	41.71		4.59%	―	―
0QUL		€684.19M	10.26	9.96%	4.34%	―	―
0RTR		€771.82M	16.90	11.34%	2.91%	―	―