KWS SAAT (KWS) AI Stock Analysis

• Market Cap: €1.88B
• Dividend Yield: 1.75%
• Average Volume (3M): 12.78K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.38
• Revenue Growth: -17.37%
• EPS Growth: 18.08%
• Country: DE
• Employees: 4,823
• Sector: Industrials
• Sector Strength: 83
• Industry: Agricultural Farm Products
• EPS (TTM): N/A
• Shares Outstanding: 33,000,000
• 10 Day Avg. Volume: 11,016
• 30 Day Avg. Volume: 12,784
• PEG Ratio: -0.86
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.29
• 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: €78.00
• Price Target Upside: 36.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

KWS SAAT's strong financial performance is the primary driver of its stock score, backed by robust profitability and a stable balance sheet. The technical analysis suggests a neutral outlook with mixed indicators. Valuation metrics indicate a fair market price, supported by a moderate dividend yield. These factors collectively contribute to a solid overall stock score.

KWS SAAT Business Overview & Revenue Model

Company Description

KWS SAAT SE & Co. KGaA develops, produces, and distributes seeds for farmers in Germany, rest of Europe, North and South America, and internationally. It operates through four segments: Corn, Sugarbeet, Cereals, and Vegetables segments. The Corn segment produces and distributes seed for corn, soybeans, and sunflowers. The Sugarbeet segment engages in the development, breeding, production, and distribution of diploid hybrid potatoes and sugar beet seeds. The Cereals segment breeds, produces and distributes seeds for rye, wheat, barley, and rapeseed. This segment also generates remainder from other crops, including sorghum, peas, catch crops, and oats. The Vegetables segment provides seeds for spinach, beans, carrots, and tomatoes. The company was formerly known as KWS SAAT SE and changed its name to KWS SAAT SE & Co. KGaA in July 2019. KWS SAAT SE & Co. KGaA was founded in 1856 and is headquartered in Einbeck, Germany.

How the Company Makes Money

KWS generates revenue through the sale of seeds across its diverse portfolio of crops. The company's primary revenue streams include the sale of commercial seeds directly to farmers, agricultural cooperatives, and distributors worldwide. KWS invests heavily in research and development to create innovative and resilient seed varieties that meet the evolving needs of modern agriculture, which helps drive demand and sales. Strategic partnerships and collaborations with research institutions and other agricultural companies further enhance their product offerings and market reach. Additionally, KWS offers services related to seed technology and agricultural consulting, contributing to their overall earnings.

KWS SAAT Financial Statement Overview

Summary

KWS SAAT demonstrates strong financial performance with robust profitability and effective equity utilization. The income statement is solid, though the company should monitor cash flow and leverage closely to sustain growth. The balance sheet shows resilience despite minor fluctuations in assets and liabilities.

Income Statement

KWS SAAT shows strong performance in the income statement with a stable gross profit margin at 100% TTM, supported by consistent revenue figures. The EBIT margin is healthy at 17.6% TTM, and the net profit margin is robust at 14.7% TTM. Despite a recent decline in revenue from the previous year's annual report, the company has maintained profitability through cost management.

Balance Sheet

The balance sheet of KWS SAAT reflects stability with an equity ratio of 54.2% TTM, indicating solid financial health. The debt-to-equity ratio is manageable at 0.43, suggesting reasonable leverage. The return on equity is strong at 16.5% TTM, showing effective use of equity capital. However, slight fluctuations in total assets and liabilities warrant attention.

Cash Flow

The cash flow statement indicates strong free cash flow generation with a significant growth rate of 2352% TTM. The operating cash flow to net income ratio is 0.75 TTM, indicating efficient cash conversion from profits. However, the free cash flow to net income ratio of 0.98 TTM is slightly below expectations, reflecting some cash flow management challenges.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.58B	1.68B	1.82B	1.54B	1.31B	1.28B
	Gross Profit
1.58B	1.06B	1.02B	845.21M	739.54M	732.65M
	EBIT
277.65M	301.95M	222.76M	155.06M	137.03M	137.37M
	EBITDA
273.29M	396.98M	330.55M	246.59M	235.69M	229.60M
	Net Income Common Stockholders
231.43M	130.83M	126.99M	107.76M	110.61M	95.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
306.00M	259.22M	241.53M	258.92M	263.34M	183.13M
	Total Assets
3.35B	2.96B	2.75B	2.65B	2.38B	2.24B
	Total Debt
862.90M	658.79M	785.13M	770.00M	742.20M	636.12M
	Net Debt
600.30M	436.43M	612.14M	566.33M	519.46M	544.65M
	Total Liabilities
1.89B	1.56B	1.46B	1.41B	1.32B	1.24B
	Stockholders Equity
1.46B	1.40B	1.29B	1.25B	1.05B	994.36M
Cash Flow		Free Cash Flow
226.02M	6.74M	35.14M	6.17M	87.41M	21.73M
	Operating Cash Flow
174.12M	157.92M	144.65M	100.32M	168.32M	136.16M
	Investing Cash Flow
155.00M	-103.39M	-100.14M	-90.87M	-84.16M	-499.86M
	Financing Cash Flow
-369.85M	24.75M	-59.34M	-28.43M	34.93M	-82.48M

KWS SAAT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KWS, the sentiment is Positive. The current price of 57.1 is above the 20-day moving average (MA) of 55.39, above the 50-day MA of 56.07, and below the 200-day MA of 59.69, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 77.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:KWS.

KWS SAAT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SY1	76 Outperform	€14.14B	29.58	12.56%	1.06%	5.67%	40.46%
KWS	73 Outperform	€1.88B	16.35	13.57%	1.75%	-17.37%	18.08%
DEQ	69 Neutral	€1.51B	12.15	6.17%	13.21%	-9.12%	―
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
BAS	59 Neutral	€38.60B	52.23	2.02%	7.86%	-2.04%	2258.97%
BAYN	56 Neutral	€23.62B	―	-7.87%	0.46%	-2.16%	13.22%
SDF	47 Neutral	€2.80B	91.49	-1.05%	4.50%	-5.67%	-133.79%