KHD Humboldt Wedag (KWG) AI Stock Analysis

• Market Cap: €88.47M
• Dividend Yield: N/A
• Average Volume (3M): 7.26K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.39
• Revenue Growth: -0.67%
• EPS Growth: 2431.93%
• Country: DE
• Employees: 944
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.06
• Shares Outstanding: 49,703,570
• 10 Day Avg. Volume: 12,118
• 30 Day Avg. Volume: 7,258
• PEG Ratio: 0.05
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 6.28
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €2.00 ▲(8.11% Upside)

KHD Humboldt Wedag's stock score is primarily driven by its strong financial performance and attractive valuation. The company's improved profitability and robust balance sheet are significant strengths. However, the technical analysis indicates bearish momentum, which is a concern. The lack of earnings call data and corporate events does not affect the score.

Positive Factors

Profitability Improvements

The improvement in gross profit margin indicates enhanced production efficiency, contributing to better profitability and competitive positioning.

Balance Sheet Strength

A low debt-to-equity ratio reflects reduced leverage, enhancing financial stability and flexibility for future investments and growth.

Operational Efficiency

The significant rise in EBIT margin demonstrates improved operational efficiency, which can lead to sustained profitability and competitive advantage.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Decreased Operating Cash Flow

The decrease in operating cash flow suggests potential issues in cash management, which could affect the company's ability to fund operations and growth.

Revenue Growth Challenges

Negative revenue growth indicates challenges in expanding market share or product adoption, which could hinder long-term business expansion.

KHD Humboldt Wedag Business Overview & Revenue Model

Company Description

KHD Humboldt Wedag International AG provides engineering products and services for the cement industry. It operates through, Capex and Plant Services segments. The company engages in the process technology, design, engineering, project management, and supply of technology and equipment, such as grinding, pyro process, and system automation equipment. It offers grinding solutions, such as roller press grinding machines and separators; pyro lines or to retrofit select components comprise preheaters; calcined clay; Pyrorotor, a technology for processing alternative fuels; Pyroredox, a gasification reactor for reducing nitrogen oxides emissions; rotary kilns; calciners; firing systems; and clinker coolers. The company also provides automation solutions, which include burner management systems, cooler hydraulic control systems, ROLCOX to monitor, control, and analyze roller press operations for optimum grinding; ROMIX-c automatic raw meal control systems; and Scanex-IC that measures the temperature of areas smaller than a refractory brick. In addition, it offers training and education services for cement plant personnel, roller press scanner and roller refurbishment, consulting and assistance, audits and advisory, and maintenance support services, as well as e-learning programs about the pyro process; supplies spare and wear parts. KHD Humboldt Wedag International AG operates in North America, India, the Rest of Asia, China, the Middle East, the Rest of Europe, Russia, South America, Africa, Germany, and internationally. The company was founded in 1856 and is headquartered in Cologne, Germany. KHD Humboldt Wedag International AG is a subsidiary of AVIC International Engineering Holdings Pte. Ltd.

How the Company Makes Money

KHD Humboldt Wedag generates revenue primarily through the sale of engineering services, equipment, and technology solutions for cement and mineral processing plants. Key revenue streams include the sale of proprietary machinery, such as rotary kilns and grinding mills, as well as consulting and project management services associated with the construction and optimization of industrial plants. The company also benefits from long-term service contracts, maintenance agreements, and spare parts sales, which provide a stable income source over time. Significant partnerships with global construction firms and cement manufacturers further enhance its market reach and contribute to its earnings, as does the increasing demand for energy-efficient and sustainable production technologies.

KHD Humboldt Wedag Financial Statement Overview

Summary

KHD Humboldt Wedag shows significant improvements in profitability and a strong balance sheet with low leverage and good cash reserves. Despite a slight revenue decline, the company has improved operational efficiency, reflected in enhanced margins. The cash flow generation is robust, although there is room for improvement in operating cash flows.

Income Statement

KHD Humboldt Wedag has shown a notable improvement in its financial performance over recent years. The gross profit margin increased from approximately 14.2% in 2023 to 20.2% in 2024, indicating more efficient production. The net profit margin also improved from 1.9% in 2023 to 4.8% in 2024, showcasing enhanced profitability. However, revenue declined by 2.9% from 2023 to 2024, which is a concern despite improved margins. The EBIT margin rose significantly from 0.07% to 5.2%, and the EBITDA margin improved to 9.2% from 4.6%, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet indicates a strong financial position with a debt-to-equity ratio of 0.06 in 2024, down from 0.09 in 2023, highlighting reduced leverage. The equity ratio slightly declined from 39.8% in 2023 to 42.0% in 2024, signaling a stable capital structure. ROE improved to 9.9% in 2024 from 4.5% in 2023, showing better returns to shareholders. The company's strong cash position with negative net debt enhances its financial flexibility.

Cash Flow

The cash flow analysis reveals consistent free cash flow generation, although the free cash flow decreased slightly from €13.9 million in 2023 to €11.1 million in 2024. The operating cash flow to net income ratio remains healthy, indicating sufficient cash generation from operations. However, the decline in operating cash flow from €16.7 million in 2023 to €13.2 million in 2024 suggests a need for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	209.67M	218.13M	224.68M	210.37M	226.26M	151.23M
Gross Profit	48.73M	44.04M	31.96M	27.58M	19.30M	11.12M
EBITDA	20.82M	19.48M	10.30M	7.92M	4.06M	-1.72M
Net Income	14.98M	10.57M	4.28M	283.00K	-1.14M	-7.96M
Balance Sheet
Total Assets	240.14M	255.06M	237.45M	254.01M	303.70M	258.92M
Cash, Cash Equivalents and Short-Term Investments	79.06M	92.16M	127.35M	138.55M	66.78M	69.03M
Total Debt	4.59M	6.49M	8.08M	34.60M	28.10M	28.46M
Total Liabilities	137.23M	147.55M	142.48M	161.62M	212.99M	169.79M
Stockholders Equity	102.41M	107.01M	94.47M	91.90M	90.20M	88.64M
Cash Flow
Free Cash Flow	30.64M	11.08M	14.17M	-21.65M	-8.96M	-8.08M
Operating Cash Flow	32.58M	13.21M	16.66M	-17.89M	-6.74M	-6.33M
Investing Cash Flow	9.52M	503.00K	17.25M	-5.08M	9.09M	4.12M
Financing Cash Flow	-2.13M	-1.76M	-27.20M	-1.67M	-1.61M	-1.41M

KHD Humboldt Wedag Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.85
• 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:KWG, the sentiment is Negative. The current price of 1.85 is above the 20-day moving average (MA) of 1.84, above the 50-day MA of 1.80, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 32.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:KWG.

KHD Humboldt Wedag Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JEN	76 Outperform	€1.53B	21.02	7.17%	1.97%	-5.27%	-13.70%
KRN	75 Outperform	€4.29B	14.81	14.99%	1.95%	8.15%	16.17%
JUN3	73 Outperform	€3.71B	13.03	11.92%	2.29%	-1.50%	2.01%
EIN	71 Outperform	€996.42M	13.41	18.12%	1.82%	10.71%	-15.68%
KWG	67 Neutral	€88.47M	5.91	14.68%	―	-0.67%	2431.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DEZ	62 Neutral	€1.65B	40.16	4.34%	2.03%	9.79%	-31.93%