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Kontron AG (DE:KTN)
XETRA:KTN
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Kontron AG (KTN) AI Stock Analysis

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DE:KTN

Kontron AG

(XETRA:KTN)

Rating:72Outperform
Price Target:
€28.00
▲(7.86% Upside)
Kontron AG's strong financial performance, characterized by robust revenue growth and stable profitability, is the primary driver of its stock score. Technical analysis indicates mixed signals, with some positive momentum indicators. The valuation is reasonable, supported by a solid dividend yield. Overall, the stock is well-positioned in the Computer Hardware industry, with opportunities for further optimization.
Positive Factors
Dividend Increase
The proposed dividend increased by 20% YoY to €0.60 per share.
Investor Confidence
The stock’s strong YTD performance reflects investor confidence in Kontron's positioning across 5G.
Margin Strategy
Kontron's steady execution of its margin-focused strategy is confirmed, with Software & Solutions remaining the key growth engine.
Negative Factors
Consensus Expectations
4Q24 sales at €477m came in 13% below consensus expectations.
Market Challenges
The final quarter turned out to be more challenging than expected mainly due to the prolonged slow-down in solar and some delays in wall box deliveries.
Sales Performance
Sales were down 7% YoY partially due to the phase-out of unprofitable EMS business from Katek and the JUMPtec deconsolidation.

Kontron AG (KTN) vs. iShares MSCI Germany ETF (EWG)

Kontron AG Business Overview & Revenue Model

Company DescriptionKontron AG, headquartered in Augsburg, Germany, is a global leader in embedded computing technology and Internet of Things (IoT) solutions. The company operates primarily within the technology and industrial sectors, offering a comprehensive range of products and services including embedded computer boards, modules, and systems. Kontron's offerings are utilized in a variety of applications across industries such as industrial automation, telecommunications, transportation, and healthcare, providing innovative solutions that enhance operational efficiency and connectivity.
How the Company Makes MoneyKontron AG generates revenue through the sale of its embedded computing products and IoT solutions. The company's revenue model is based on the production and distribution of high-performance computing boards, modules, and systems that are integrated into various industrial applications. Key revenue streams include direct sales to industrial clients, OEM partnerships, and strategic collaborations with technology providers to incorporate Kontron's solutions into broader systems. Additionally, Kontron benefits from service contracts and maintenance agreements, which provide recurring income. The company's strong focus on innovation and its ability to tailor solutions to specific industry needs are significant factors driving its financial performance.

Kontron AG Financial Statement Overview

Summary
Kontron AG presents a strong financial profile with impressive revenue growth and stable profitability. The balance sheet is well-structured, though slightly high leverage could be a concern. Cash flow management is effective, with room for further improvement in free cash flow generation.
Income Statement
82
Very Positive
Kontron AG has shown a strong revenue growth trajectory with a notable increase of 37.4% from the previous year. The gross profit margin stands at 22.7%, reflecting a solid ability to maintain cost efficiency. The net profit margin improved to 5.4%, indicating enhanced profitability. EBIT and EBITDA margins are healthy at 6.8% and 11.8% respectively, showing effective operational management. However, there is room for improvement in profitability margins compared to industry leaders.
Balance Sheet
75
Positive
The balance sheet reflects a stable equity base with a debt-to-equity ratio of 0.96, indicating moderate leverage. Return on equity (ROE) is 14.3%, showcasing efficient use of shareholder capital. The equity ratio stands at 34.7%, suggesting a balanced approach to financing. While the company maintains a solid financial structure, the debt levels are slightly higher, which could pose risks if interest rates rise.
Cash Flow
78
Positive
Free cash flow growth has been robust, with significant generation from operations. The operating cash flow to net income ratio is 1.09, reflecting strong cash conversion capability. The free cash flow to net income ratio is 0.31, indicating positive cash generation, although capital expenditures have impacted free cash flow levels. Overall, the company demonstrates good cash flow management, though there is potential to enhance free cash flow further.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.71B1.68B1.23B1.10B1.34B1.25B
Gross Profit409.61M383.04M258.27M183.80M264.20M200.11M
EBITDA209.59M198.15M134.90M47.08M93.15M133.38M
Net Income94.47M90.69M77.71M-12.83M48.26M55.61M
Balance Sheet
Total Assets1.37B1.82B1.37B1.44B1.35B1.25B
Cash, Cash Equivalents and Short-Term Investments330.04M314.82M330.04M548.23M300.00M279.77M
Total Debt264.68M610.45M264.68M362.72M381.22M329.82M
Total Liabilities766.69M1.17B766.69M805.19M928.87M837.16M
Stockholders Equity601.96M632.46M601.96M633.84M418.56M404.04M
Cash Flow
Free Cash Flow30.47M27.76M70.58M3.95M48.29M106.89M
Operating Cash Flow107.61M98.98M116.86M44.44M95.28M140.81M
Investing Cash Flow-128.90M-127.09M25.73M143.67M-66.32M-77.18M
Financing Cash Flow-129.65M10.95M-190.22M-90.78M-11.28M-65.78M

Kontron AG Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price25.96
Price Trends
50DMA
25.37
Positive
100DMA
23.70
Positive
200DMA
21.12
Positive
Market Momentum
MACD
0.36
Positive
RSI
44.25
Neutral
STOCH
25.70
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 25.96 is below the 20-day moving average (MA) of 27.48, above the 50-day MA of 25.37, and above the 200-day MA of 21.12, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of 25.70 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€1.07B12.329.13%2.09%1.39%13.98%
72
Outperform
€1.65B11.0621.98%2.31%16.68%79.64%
63
Neutral
€1.27B333,000.00<0.01%0.90%-2.53%-99.99%
62
Neutral
€1.54B40.775.47%4.73%
61
Neutral
$34.84B4.76-10.43%2.08%6.54%-10.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:KTN
Kontron AG
25.84
9.55
58.66%
DE:PFV
Pfeiffer Vacuum Technology
154.80
8.74
5.98%
DE:JEN
Jenoptik
18.76
-8.19
-30.38%
DE:OHB
OHB SE
66.40
22.84
52.44%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025