KWS SAAT (KWS) AI Stock Analysis

• Market Cap: €2.05B
• Dividend Yield: 1.61%
• Average Volume (3M): 11.40K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.30
• Revenue Growth: -19.73%
• EPS Growth: -13.98%
• Country: DE
• Employees: 4,618
• Sector: Industrials
• Sector Strength: 89
• Industry: Agricultural Farm Products
• EPS (TTM): 9.62
• Shares Outstanding: 33,000,000
• 10 Day Avg. Volume: 11,919
• 30 Day Avg. Volume: 11,396
• PEG Ratio: 4.32
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -85.74
• 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: €74.50
• Price Target Upside: 20.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: €65.00 ▲(5.18%Upside)

KWS SAAT's overall stock score reflects strong financial performance, with solid profitability and cash flow metrics leading the assessment. The technical analysis suggests a stable market position, while valuation indicates a fair market price. The absence of earnings call data and corporate events analysis does not significantly impact the 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 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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.66B	1.68B	1.82B	1.54B	1.31B	1.28B
Gross Profit	1.66B	1.06B	1.02B	845.21M	739.54M	732.65M
EBITDA	272.69M	396.98M	283.15M	252.64M	254.38M	229.60M
Net Income	240.23M	130.83M	126.99M	107.76M	110.61M	95.33M
Balance Sheet
Total Assets	2.95B	2.96B	2.75B	2.65B	2.38B	2.24B
Cash, Cash Equivalents and Short-Term Investments	312.90M	259.22M	241.53M	258.92M	263.34M	183.13M
Total Debt	502.40M	658.79M	785.13M	770.00M	742.20M	636.12M
Total Liabilities	1.24B	1.56B	1.46B	1.41B	1.32B	1.24B
Stockholders Equity	1.71B	1.40B	1.29B	1.25B	1.05B	994.36M
Cash Flow
Free Cash Flow	277.72M	6.74M	35.14M	6.17M	87.41M	21.73M
Operating Cash Flow	277.72M	157.92M	144.65M	100.32M	168.32M	136.16M
Investing Cash Flow	132.71M	-103.39M	-100.14M	-90.87M	-84.16M	-499.86M
Financing Cash Flow	-393.85M	24.75M	-59.34M	-28.43M	34.93M	-82.48M

KWS SAAT Technical Analysis

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

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 61.8 is above the 20-day moving average (MA) of 58.70, above the 50-day MA of 57.32, and above the 200-day MA of 58.34, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 68.73 is Neutral, neither overbought nor oversold. The STOCH value of 92.06 is Negative, 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
KWS	76 Outperform	€2.05B	16.50	9.99%	1.61%	-19.73%	-13.98%
Sector *	58 Neutral	HK$13.95B	4.43	-3.01%	7.31%	3.67%	-54.16%
0AH7		€318.14M	―	-94.97%	―	―	―
0G7B		€2.26B	51.85	-4.06%	8.12%	―	―
CEA	50 Neutral	€73.14M	―	-77.69%	―	-16.25%	43.58%
GTK		€12.11M	15.10	14.23%	―	―	―