KSB AG (KSB3) AI Stock Analysis

• Market Cap: €1.79B
• Dividend Yield: 2.84%
• Average Volume (3M): 1.53K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.72
• 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: 14.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: €1,192.00 ▲(14.07% Upside)

The score is driven primarily by strong financial performance (steady growth and a robust, low-leverage balance sheet), supported by reasonable valuation. Technicals are positive but tempered by overbought momentum signals (high RSI/Stochastics), which add near-term risk.

Positive Factors

Low leverage and rising equity

A materially stronger equity base and low leverage improve solvency and financing flexibility over the medium term. This enables sustained investment in projects, supports participation in large tenders, and reduces refinancing risk, strengthening the firm's capital resilience.

Consistent revenue growth and margin improvement

Multi-year top-line growth combined with rising gross margins indicates durable demand and improving cost management. These trends support stronger operating cash generation and provide capacity to invest in service capabilities and product development, enhancing long-term competitiveness.

Diversified business model with recurring services

A mix of equipment sales and recurring service contracts diversifies revenue and increases predictability. Service income and maintenance contracts create steady cash flow, improve lifecycle customer relationships, and raise switching costs that underpin durable revenue visibility.

Negative Factors

Profitability and EBIT margin volatility

Fluctuating operating profitability and a weak recent EBIT margin suggest structural cost or operational challenges. Persistent variability in converting revenue into operating profit can erode returns on invested capital and limit funding for strategic initiatives over time.

Free cash flow volatility and past negative FCF

Intermittent negative free cash flow and variability imply sensitivity to capex timing or working capital swings. This undermines predictability of internally funded investments, dividends or buybacks and can constrain capital allocation during cyclical downturns.

Potential liquidity considerations from cash swings

While leverage is low, fluctuations in cash and short-term assets raise the risk of episodic liquidity tightness. For a business executing large projects and public tenders, such swings can strain working capital, slow project execution, or require short-term financing.

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 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: 1045.00
• 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:KSB3, the sentiment is Positive. The current price of 1045 is above the 20-day moving average (MA) of 961.40, above the 50-day MA of 950.64, and above the 200-day MA of 867.73, indicating a bullish trend. The MACD of 9.87 indicates Negative momentum. The RSI at 78.84 is Negative, neither overbought nor oversold. The STOCH value of 98.15 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	77 Outperform	€1.79B	15.55	11.18%	2.84%	4.20%	-20.71%
JST	70 Outperform	€888.04M	30.70	8.47%	2.81%	21.74%	-20.68%
DEZ	69 Neutral	€1.52B	36.99	4.34%	2.03%	9.79%	-31.93%
STM	68 Neutral	€511.29M	22.14	3.68%	5.57%	-0.75%	-67.10%
PFV	64 Neutral	€1.57B	50.09	5.47%	4.66%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DUE	54 Neutral	€1.64B	-51.41	-7.86%	3.12%	-18.21%	-137.62%