KWS SAAT (KWS) AI Stock Analysis

• Market Cap: €2.06B
• Dividend Yield: 1.52%
• Average Volume (3M): 12.31K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.32
• Revenue Growth: -19.73%
• EPS Growth: -13.98%
• Country: DE
• Employees: 4,618
• Sector: Industrials
• Sector Strength: 88
• Industry: Agricultural Farm Products
• EPS (TTM): 9.62
• Shares Outstanding: 33,000,000
• 10 Day Avg. Volume: 14,632
• 30 Day Avg. Volume: 12,310
• PEG Ratio: 2.23
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.43
• 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: €73.00
• Price Target Upside: 18.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: €73.00 ▲(18.12%Upside)

KWS SAAT's solid financial performance and positive technical indicators are the primary drivers of its overall stock score. The company's stable margins and strong cash flows support its position in the agricultural sector. While the valuation is reasonable, the absence of notable corporate events or earning call insights limits further assessment.

KWS SAAT Business Overview & Revenue Model

Company Description

KWS SAAT SE & Co. KGaA is a leading global seed company that specializes in the breeding and distribution of a diverse range of crops. Headquartered in Einbeck, Germany, KWS operates in the agriculture sector, with a focus on developing high-yield seeds for farmers worldwide. The company's core products include seeds for corn, sugar beets, cereals, and oilseed crops, among others. KWS is committed to innovation and sustainability, investing heavily in research and development to improve crop productivity and resilience.

How the Company Makes Money

KWS SAAT generates revenue primarily through the sale of high-quality seeds to farmers and agricultural businesses. The company's key revenue streams include the sale of seeds for various crops such as corn, sugar beets, cereals, and oilseeds. KWS invests significantly in research and development to create genetically superior seeds that enhance yield and are resistant to environmental stressors. These innovations allow KWS to command premium pricing for its products. Additionally, KWS may engage in strategic partnerships and licensing agreements to expand its market reach and enhance its product offerings, contributing to its revenue generation. Factors such as agricultural trends, global demand for crops, and advancements in biotechnology also play a significant role in the company's earnings.

KWS SAAT Financial Statement Overview

Summary

KWS SAAT demonstrates stable financial performance with strong profitability margins, a solid balance sheet, and robust cash flows. Despite revenue fluctuations, the company maintains efficient operations and prudent financial management, positioning itself well in the agricultural farm products industry.

Income Statement

KWS SAAT's income statement reflects a stable financial performance in the agricultural sector. The TTM gross profit margin stands at 100%, indicating effective cost management. However, the net profit margin for the TTM is approximately 14.5%, which is modest but shows profitability. Revenue has fluctuated, with a decline from the previous year. The EBIT margin is solid at 14.9%, and EBITDA margin is robust at 16.4%, indicating efficient operations.

Balance Sheet

The balance sheet of KWS SAAT is strong, with a debt-to-equity ratio of 0.29, indicating conservative leverage. The return on equity (ROE) is impressive at around 14%, reflecting efficient use of equity. The equity ratio is approximately 58%, suggesting a solid capital structure and low financial risk.

Cash Flow

KWS SAAT's cash flow statement reveals a healthy cash generation capacity with a positive free cash flow. The operating cash flow to net income ratio is about 1.16, showing effective cash management. The free cash flow to net income ratio is also strong at 1.16, indicating efficient cash utilization.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.68B	1.82B	1.54B	1.31B	1.28B
Gross Profit	1.06B	1.02B	845.21M	739.54M	732.65M
EBITDA	396.98M	283.15M	252.64M	254.38M	229.60M
Net Income	130.83M	126.99M	107.76M	110.61M	95.33M
Balance Sheet
Total Assets	2.96B	2.75B	2.65B	2.38B	2.24B
Cash, Cash Equivalents and Short-Term Investments	259.22M	241.53M	258.92M	263.34M	183.13M
Total Debt	658.79M	785.13M	770.00M	742.20M	636.12M
Total Liabilities	1.56B	1.46B	1.41B	1.32B	1.24B
Stockholders Equity	1.40B	1.29B	1.25B	1.05B	994.36M
Cash Flow
Free Cash Flow	6.74M	35.14M	6.17M	87.41M	21.73M
Operating Cash Flow	157.92M	144.65M	100.32M	168.32M	136.16M
Investing Cash Flow	-103.39M	-100.14M	-90.87M	-84.16M	-499.86M
Financing Cash Flow	24.75M	-59.34M	-28.43M	34.93M	-82.48M

KWS SAAT Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KWS, the sentiment is Neutral. The current price of 61.8 is below the 20-day moving average (MA) of 63.35, above the 50-day MA of 60.23, and above the 200-day MA of 58.37, indicating a neutral trend. The MACD of 0.94 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 16.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:KWS.

KWS SAAT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KWS	77 Outperform	€2.06B	16.63	9.99%	1.52%	-19.73%	-13.98%
Sector *	58 Neutral	HK$13.96B	4.77	-2.71%	5.86%	3.74%	-52.98%
SZU	53 Neutral	€2.05B	50.64	-8.56%	1.99%	-9.94%	-148.75%
CEA	50 Neutral	€65.01M	―	-77.69%	―	-16.25%	43.58%