KWS SAAT (KWS) AI Stock Analysis

• Market Cap: €2.20B
• Dividend Yield: 1.46%
• Average Volume (3M): 11.26K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.34
• Revenue Growth: -7.03%
• EPS Growth: -70.17%
• Country: DE
• Employees: 4,618
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Farm Products
• EPS (TTM): -0.30
• Shares Outstanding: 33,000,000
• 10 Day Avg. Volume: 13,157
• 30 Day Avg. Volume: 11,255
• PEG Ratio: -8.23
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 29.04
• 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: €80.00
• Price Target Upside: 16.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €75.00 ▲(9.17% Upside)

KWS SAAT's strong financial performance, characterized by revenue growth and improved profitability, is the most significant factor. Positive technical indicators further enhance the stock's attractiveness. Valuation is fair, but cash flow management remains a concern.

Positive Factors

Research and Development

KWS's heavy investment in R&D for genetically superior seeds enhances crop yield and resilience, supporting long-term competitive advantage and market leadership.

Balance Sheet Strength

Improved debt-to-equity ratio strengthens KWS's balance sheet, reducing financial risk and enhancing its ability to invest in growth opportunities.

Profitability

Improved net profit margins indicate effective cost management and operational efficiency, supporting sustainable profitability and shareholder value.

Negative Factors

Revenue Growth Decline

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

Cash Flow Management

Inconsistent free cash flow growth may hinder KWS's ability to fund operations and strategic initiatives, affecting financial flexibility and growth potential.

EBITDA Margin Volatility

Fluctuating EBITDA margins suggest potential volatility in operating efficiency, which could impact profitability and financial predictability.

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 primarily through the sale of seeds and related products. Its key revenue streams include the sale of hybrid seeds for corn, sugarbeet, and cereals, which are developed through extensive research and development efforts in plant breeding. The company also earns income from licensing its genetic technologies and traits to other agricultural companies. Additionally, KWS benefits from strategic partnerships with research institutions and agricultural companies, enhancing their product offerings and expanding their market reach. The company's focus on innovation and sustainable agricultural practices further supports its earnings by meeting the growing demand for efficient and high-yield crops in a competitive global market.

KWS SAAT Financial Statement Overview

Summary

KWS SAAT shows strong revenue growth and improved profitability with a solid balance sheet. However, cash flow management poses challenges, particularly in sustaining free cash flow growth.

Income Statement

KWS SAAT has demonstrated strong revenue growth over the years, with a notable increase in gross profit margins, indicating efficient cost management. The net profit margin has improved significantly, reflecting enhanced profitability. However, the EBIT and EBITDA margins have shown some fluctuations, suggesting potential volatility in operating efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved, indicating a reduction in leverage and a stronger equity position. Return on equity has shown a positive trend, suggesting effective use of shareholder funds. However, the equity ratio remains moderate, indicating room for strengthening the balance sheet further.

Cash Flow

KWS SAAT's operating cash flow has been stable, but free cash flow growth has been inconsistent, with recent declines. The operating cash flow to net income ratio suggests adequate cash generation relative to profits, but the free cash flow to net income ratio indicates potential challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.68B	1.68B	1.68B	1.50B	1.54B	1.31B
Gross Profit	1.06B	1.06B	1.06B	910.40M	845.21M	739.54M
EBITDA	344.82M	350.52M	384.98M	283.15M	252.64M	254.38M
Net Income	236.35M	236.35M	130.83M	126.99M	107.76M	110.61M
Balance Sheet
Total Assets	2.68B	2.68B	2.96B	2.75B	2.65B	2.38B
Cash, Cash Equivalents and Short-Term Investments	33.02M	33.02M	259.22M	241.53M	258.92M	263.34M
Total Debt	483.53M	483.53M	658.79M	785.13M	774.73M	746.73M
Total Liabilities	1.07B	1.07B	1.56B	1.46B	1.41B	1.32B
Stockholders Equity	1.60B	1.60B	1.40B	1.29B	1.25B	1.05B
Cash Flow
Free Cash Flow	226.54M	118.42M	10.88M	35.14M	6.17M	87.41M
Operating Cash Flow	226.54M	226.54M	146.94M	144.65M	100.32M	168.32M
Investing Cash Flow	166.83M	166.83M	-103.39M	-100.14M	-90.87M	-84.16M
Financing Cash Flow	-236.85M	-236.85M	24.75M	-59.34M	-28.43M	34.93M

KWS SAAT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 68.7 is above the 20-day moving average (MA) of 66.77, above the 50-day MA of 66.73, and above the 200-day MA of 61.31, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 61.03 is Neutral, neither overbought nor oversold. The STOCH value of 78.17 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
KWS	74 Outperform	€2.20B	17.16	11.16%	1.46%	-7.03%	-70.17%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SZU	53 Neutral	€1.92B	-6.21	-11.78%	2.06%	-14.58%	-191.94%
CEA	49 Neutral	€45.77M	6.25	83.64%	―	0.20%	―
BYW6	40 Underperform	€1.63B	-0.30	―	―	-11.67%	-1069.47%