thyssenkrupp (TKA) AI Stock Analysis

• Market Cap: €4.94B
• Dividend Yield: 1.23%
• Average Volume (3M): 3.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -6.29%
• EPS Growth: N/A
• Country: DE
• Employees: 97,360
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.57
• Shares Outstanding: 622,531,740
• 10 Day Avg. Volume: 3,315,313
• 30 Day Avg. Volume: 3,262,760
• PEG Ratio: -0.08
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 40.80
• 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: €11.22
• Price Target Upside: 41.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): €32.90B

• Rating: 47 Neutral
• Price Target: €7.50 ▼(-5.42% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by weak cash generation (materially negative free cash flow) and continued operating pressure (negative EBIT), despite a strong balance sheet with low leverage and a return to small net profitability. Technicals add downside pressure with the stock trading below key moving averages and bearish momentum, while valuation support is limited given the negative P/E and only modest dividend yield.

Positive Factors

Diversified business mix

A broad portfolio across elevators, materials, components, automotive and steel reduces reliance on any single cycle or customer. This diversification supports more stable revenue streams, cross-selling and capital reallocation options, helping resilience through industrial cycles over months to years.

Low leverage / strong balance sheet

Very low debt relative to equity gives the company durable financial flexibility: lower refinancing risk, room to fund capex or restructuring, and capacity to withstand cyclicality. This balance-sheet strength supports strategic choices during multi-quarter turnarounds or investment cycles.

Solid core profitability (EBITDA)

A roughly 10% EBITDA margin indicates the underlying business can generate operating cash profitably at an EBITDA level. Combined with a return to small net profit, this suggests operational improvements that, if sustained and converted to stronger EBIT/FCF, support durable earnings and reinvestment capacity.

Negative Factors

Weak cash generation / negative FCF

Materially negative free cash flow despite modest operating cash flow shows poor cash conversion, likely from heavy investments or working-capital strain. Persisting negative FCF undermines self-funding of capex/dividends and increases reliance on the balance sheet or external financing over the medium term.

Negative operating profit (EBIT)

Continued negative EBIT indicates structural costs, depreciation or items below EBITDA that erode operating profitability. Until management narrows the gap between EBITDA and EBIT sustainably, operating losses will limit FCF generation and the company’s ability to strengthen margins and returns over quarters.

Multi-year revenue decline

A multi-year downward revenue trend reduces scale benefits and weakens pricing power and margin leverage. If top-line decline persists, investments in transformation or growth face a smaller base to compound from, constraining long-term margin recovery and returns unless market share or end-market demand improves.

thyssenkrupp Business Overview & Revenue Model

Company Description

thyssenkrupp AG operates in the areas of automotive technology, industrial components, marine systems, steel, and materials services in Germany, the United States, China, and internationally. The company's Automotive Technology segment develops and manufactures components and systems, as well as automation solutions for the automotive industry. Its Industrial Components segment manufactures and sells forged components and system solutions for the resource, construction, and mobility sectors; and slewing rings, antifriction bearings, and seamless rolled rings for the wind energy and construction machinery sectors. The company's Multi Tracks segment builds plants for the chemical, cement, and mining industries. Its Marine Systems segment provides systems in the submarine and surface vessel construction, as well as in the field of maritime electronics and security technology. The company's Materials Services segment distributes materials and offers technical services for the production and manufacturing sectors. Its Steel Europe segment provides flat carbon steel products, intelligent material solutions, and finished parts. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.

How the Company Makes Money

thyssenkrupp generates revenue through various streams, primarily from its core business segments: Materials Services, Industrial Components, Automotive Technology, Elevator Technology, and Steel Production. The Materials Services segment provides logistics and supply chain solutions, catering to a diverse clientele across different industries. The Industrial Components division focuses on manufacturing and supplying components for machinery and equipment, while the Automotive Technology segment offers parts and systems to major automotive manufacturers. The Elevator Technology unit is involved in the design, manufacturing, and maintenance of elevators and escalators, contributing significantly to the company's income. The Steel segment produces a wide range of flat and long steel products, serving construction and manufacturing industries. Additionally, thyssenkrupp has formed strategic partnerships and joint ventures that enhance its market reach and innovation capabilities, further bolstering its revenue. Factors such as global economic conditions, demand fluctuations in key sectors, and advancements in technology also play a crucial role in shaping its earnings.

thyssenkrupp Financial Statement Overview

Summary

Mixed fundamentals: revenue is slightly down TTM (~-2%) and EBIT remains negative, but net income has improved to a small profit and EBITDA margin is solid (~10%). Balance sheet strength (low leverage) helps, yet sharply negative free cash flow in TTM (~-€1.25B) versus modest operating cash flow raises concerns about cash conversion and stability of the turnaround.

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly down versus the prior year (about -2%), continuing a multi-year pattern of declining sales after the 2022 peak. Profitability has improved meaningfully from large losses in 2023–2024 to a small positive net profit in TTM, supported by a solid EBITDA margin (~10%). However, earnings quality remains mixed: EBIT is still negative in TTM, indicating ongoing operating/structural pressure below the EBITDA line, and margins remain thin for a cyclical industrial business.

Balance Sheet

Leverage looks conservative, with low debt relative to equity in TTM (debt-to-equity ~0.09) and a sizable equity base. This provides flexibility in a volatile metal fabrication cycle and lowers refinancing risk. The main weakness is returns: despite improving to a modest positive level in TTM, recent years included deeply negative returns on equity (2023–2024), highlighting that the balance sheet strength has not consistently translated into strong profitability.

Cash Flow

Cash generation weakened sharply in TTM: operating cash flow is modest (~€0.15B) while free cash flow is materially negative (~-€1.25B), a significant deterioration from positive free cash flow in FY2025. While net income is positive in TTM, free cash flow is not following through, suggesting heavier investment/working-capital drag and raising questions about near-term cash conversion. Historically, cash flow has been volatile (both positive and negative free cash flow years), which adds uncertainty.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	32.19B	32.84B	35.04B	37.53B	41.14B	34.02B
Gross Profit	3.48B	3.72B	3.24B	2.66B	5.66B	4.36B
EBITDA	2.29B	3.08B	1.03B	1.83B	4.42B	1.30B
Net Income	163.00M	465.00M	-1.51B	-2.07B	1.14B	-19.00M
Balance Sheet
Total Assets	28.04B	30.20B	29.33B	33.29B	37.49B	36.81B
Cash, Cash Equivalents and Short-Term Investments	4.05B	5.74B	5.88B	7.35B	8.20B	9.53B
Total Debt	826.00M	878.00M	1.47B	3.02B	3.98B	5.43B
Total Liabilities	17.74B	19.64B	18.98B	20.60B	22.75B	25.97B
Stockholders Equity	9.17B	9.77B	9.58B	11.84B	14.20B	10.40B
Cash Flow
Free Cash Flow	-1.25B	121.00M	-243.00M	307.00M	-679.00M	-1.36B
Operating Cash Flow	147.00M	1.68B	1.35B	2.06B	617.00M	92.00M
Investing Cash Flow	-824.00M	-851.00M	-1.13B	-1.58B	-277.00M	-510.00M
Financing Cash Flow	-935.00M	-934.00M	-1.64B	-716.00M	-1.79B	-1.28B

thyssenkrupp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.93
• 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:TKA, the sentiment is Negative. The current price of 7.93 is below the 20-day moving average (MA) of 9.39, below the 50-day MA of 10.30, and below the 200-day MA of 8.71, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 34.89 is Neutral, neither overbought nor oversold. The STOCH value of 22.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:TKA.

thyssenkrupp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRN	75 Outperform	€3.66B	14.37	14.99%	1.95%	8.15%	16.17%
G1A	71 Outperform	€9.95B	22.78	17.25%	2.01%	2.26%	6.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
R3NK	54 Neutral	€5.45B	53.43	23.55%	0.80%	22.71%	396.57%
KGX	52 Neutral	€5.85B	38.89	4.56%	1.23%	-2.20%	-18.16%
TKA	47 Neutral	€4.94B	-4.09	1.72%	1.23%	-6.29%	―
SHA0	45 Neutral	€6.60B	-18.63	-34.39%	3.15%	45.16%	-790.24%