Kontron AG (KTN) AI Stock Analysis

• Market Cap: €1.47B
• Dividend Yield: 2.65%
• Average Volume (3M): 159.07K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.66
• Revenue Growth: 5.49%
• EPS Growth: 64.76%
• Country: DE
• Employees: 4,475
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.36
• Shares Outstanding: 66,096,100
• 10 Day Avg. Volume: 125,641
• 30 Day Avg. Volume: 159,073
• PEG Ratio: 0.68
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 43.17
• 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: €29.00
• Price Target Upside: 28.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €23.50 ▲(3.89% Upside)

Kontron AG's overall stock score is driven by a strong valuation with a low P/E ratio and decent dividend yield, indicating potential undervaluation. However, technical analysis reveals bearish trends and weak momentum, which weigh down the score. Financial performance is stable but challenged by negative revenue growth, impacting the overall assessment.

Positive Factors

Operational Efficiency

Kontron AG's enhanced margins and strong ROE indicate effective cost management and efficient use of resources, supporting long-term profitability.

Cash Flow Generation

The positive growth in free cash flow suggests Kontron AG's ability to generate cash, providing financial flexibility for investments and debt management.

Balance Sheet Health

A moderate debt level and strong ROE indicate a stable financial position, enabling Kontron AG to sustain operations and invest in growth opportunities.

Negative Factors

Revenue Growth Challenges

The negative revenue growth rate highlights difficulties in expanding sales, which could impact future profitability and market competitiveness.

Sales Expansion Issues

Struggles in expanding sales and moderate cash flow ratios may hinder Kontron AG's ability to capitalize on market opportunities and invest in growth.

Gross Profit Margin Decline

A slight decline in gross profit margin could indicate rising costs or pricing pressures, potentially affecting long-term profitability if not addressed.

Kontron AG Business Overview & Revenue Model

Company Description

Kontron AG is a IoT technology company, which provides support for the industries to achieve their business goals with intelligent solutions. The company offers value-adding technologies to customers through its automated industrial processes, smarter and safer transportation to advanced communication, medical and energy solutions. The company was founded by Hermann Oberlehner in 1990 and is headquartered in Linz, Austria.

How the Company Makes Money

Kontron AG generates revenue primarily through the sale of its embedded computing products and IoT solutions. Its revenue model is based on a combination of hardware sales, software licenses, and service contracts, which include system integration and support. Key revenue streams include direct sales to original equipment manufacturers (OEMs) and system integrators, as well as partnerships with technology providers that enhance its product offerings. Significant partnerships with companies in various sectors, such as telecommunications and industrial automation, also contribute to its earnings by providing access to broader markets and collaborative development opportunities.

Kontron AG Financial Statement Overview

Summary

Kontron AG demonstrates a solid financial position with strong cash flow generation and improved leverage. While revenue growth has recently declined, profitability remains stable, and operational efficiency has improved. The company is well-positioned to manage its financial obligations and invest in future growth, though it should focus on reversing the negative revenue trend.

Income Statement

Kontron AG's income statement shows a mixed performance. The TTM Gross Profit Margin is 23.90%, indicating a healthy ability to cover costs, though slightly lower than the previous year. The Net Profit Margin is stable at 5.51%, showing consistent profitability. However, the Revenue Growth Rate is negative at -1.64%, suggesting a recent decline in sales. The EBIT and EBITDA margins have improved slightly, indicating better operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial position. The Debt-to-Equity Ratio has improved significantly to 0.67, indicating reduced leverage. Return on Equity is strong at 15.31%, reflecting efficient use of equity. The Equity Ratio is not explicitly provided, but the improvement in leverage suggests a more stable capital structure.

Cash Flow

Kontron AG's cash flow statement shows robust performance with a significant Free Cash Flow Growth Rate of 94.66%, indicating strong cash generation. The Operating Cash Flow to Net Income Ratio is 0.17, suggesting adequate cash flow relative to net income. The Free Cash Flow to Net Income Ratio is 0.28, showing a healthy conversion of earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.69B	1.68B	1.23B	1.10B	1.34B	1.25B
Gross Profit	373.96M	383.04M	258.27M	183.80M	264.20M	200.11M
EBITDA	257.83M	198.15M	134.90M	45.42M	93.15M	131.41M
Net Income	141.69M	90.69M	77.71M	-12.83M	48.26M	55.61M
Balance Sheet
Total Assets	1.81B	1.82B	1.37B	1.44B	1.35B	1.25B
Cash, Cash Equivalents and Short-Term Investments	240.38M	314.82M	330.04M	548.23M	300.00M	279.77M
Total Debt	448.07M	610.45M	264.68M	362.72M	381.22M	329.82M
Total Liabilities	1.12B	1.17B	766.69M	805.19M	928.87M	837.16M
Stockholders Equity	673.15M	632.46M	601.96M	633.84M	418.56M	404.04M
Cash Flow
Free Cash Flow	59.31M	27.76M	70.58M	3.95M	48.29M	106.89M
Operating Cash Flow	132.02M	98.98M	116.86M	44.44M	95.28M	140.81M
Investing Cash Flow	-67.52M	-127.09M	25.73M	143.67M	-66.32M	-77.18M
Financing Cash Flow	-88.14M	10.95M	-190.22M	-90.78M	-11.28M	-65.78M

Kontron AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KTN, the sentiment is Neutral. The current price of 22.62 is below the 20-day moving average (MA) of 22.97, below the 50-day MA of 23.74, and below the 200-day MA of 24.06, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 46.23 is Neutral, neither overbought nor oversold. The STOCH value of 34.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:KTN.

Kontron AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JEN	72 Outperform	€1.09B	14.09	7.17%	2.00%	-5.27%	-13.70%
KTN	64 Neutral	€1.47B	9.94	21.98%	2.65%	5.49%	64.76%
PFV	64 Neutral	€1.55B	49.21	5.47%	4.67%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OHB	59 Neutral	€2.03B	351.58	1.49%	0.55%	10.80%	-91.79%