thyssenkrupp (TKA) AI Stock Analysis

• Market Cap: €6.78B
• Dividend Yield: 1.23%
• Average Volume (3M): 3.26M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.07
• Revenue Growth: -6.29%
• EPS Growth: N/A
• Country: DE
• Employees: 97,360
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.03
• 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: €11.30
• Price Target Upside: 3.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €12.50 ▲(14.78% Upside)

The score is driven primarily by mixed financial performance: profitability and leverage improved, but declining revenue and weak free cash flow are notable risks. Technicals are supportive with a clear uptrend, though overbought signals (RSI/Stoch) temper the outlook. Valuation is reasonable on P/E, but the low dividend yield provides limited support.

Positive Factors

Lower Leverage / Stronger Capital Structure

A materially lower debt-to-equity ratio improves financial flexibility and reduces interest burden, enhancing resilience to industrial cyclicality. This durable de‑leveraging supports capital allocation for maintenance, capex, or strategic investments over the next several quarters.

Improving Profitability Metrics

Improved gross margin and a return to positive net margin alongside a recovering ROE indicate better cost control and profit conversion. These operational improvements, if sustained, strengthen cash generation potential and support reinvestment across business units over coming quarters.

Diversified Industrial Business Model

A broad segment mix and partnerships reduce revenue concentration and exposure to any single cyclical end market. Recurring service streams (e.g., elevator maintenance) plus engineering capabilities create structural resilience and multiple levers for steady revenue over months to years.

Negative Factors

Revenue Decline Trend

Persistent revenue decline signals either weakening demand or market share pressure in core segments. Over a multi‑quarter horizon this erodes scale, pressures margins and limits ability to rebuild recurring revenue, making sustained recovery and investment more difficult.

Weak Free Cash Flow Generation

Very low FCF relative to earnings and a collapse in FCF growth materially constrain internal funding for capex, maintenance and deleveraging. Over months this raises reliance on external financing, limits strategic flexibility and amplifies vulnerability to cyclical slowdowns.

Negative Operating (EBIT) Margin

A negative EBIT margin indicates core operating weaknesses or structural cost inefficiencies; net profit may reflect one-offs or non‑operational items. Sustained negative operating profitability undermines long‑term competitiveness and margin recovery prospects.

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: improved gross margin (11.33% in 2025 vs 9.25% in 2024) and a return to positive net margin (1.42%), plus low leverage (debt-to-equity 0.09). Offsetting this, revenue declined (−1.6% in 2025), EBIT margin remains negative, and free cash flow weakened materially (down over 200%), indicating ongoing operational and cash-generation challenges.

Income Statement

Thyssenkrupp's income statement shows a mixed performance. The company has improved its gross profit margin to 11.33% in 2025 from 9.25% in 2024, indicating better cost management. However, revenue has declined by 1.6% in 2025, continuing a downward trend from previous years. The net profit margin has turned positive at 1.42% in 2025, a significant improvement from the negative margins in prior years, reflecting a return to profitability. Despite these improvements, the EBIT margin remains negative, suggesting ongoing operational challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.09 in 2025, down from 0.15 in 2024, indicating reduced leverage. The return on equity has improved to 4.76% in 2025 from a negative ROE in 2024, showing better utilization of equity. The equity ratio remains strong, suggesting a solid capital structure. However, the company needs to maintain this trajectory to ensure long-term stability.

Cash Flow

Cash flow analysis reveals challenges in free cash flow growth, which declined significantly by over 200% in 2025. The operating cash flow to net income ratio is 0.15, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is low at 0.07, suggesting limited cash available after capital expenditures. These metrics highlight the need for improved cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.84B	32.84B	35.04B	37.53B	41.14B	34.02B
Gross Profit	3.72B	3.72B	3.24B	2.66B	5.66B	4.36B
EBITDA	3.31B	3.08B	1.03B	1.83B	4.42B	1.30B
Net Income	465.00M	465.00M	-1.51B	-2.07B	1.14B	-19.00M
Balance Sheet
Total Assets	30.20B	30.20B	29.33B	33.29B	37.49B	36.81B
Cash, Cash Equivalents and Short-Term Investments	5.74B	5.74B	5.88B	7.35B	8.20B	9.53B
Total Debt	878.00M	878.00M	1.47B	3.02B	3.98B	5.43B
Total Liabilities	19.64B	19.64B	18.98B	20.60B	22.75B	25.97B
Stockholders Equity	9.77B	9.77B	9.58B	11.84B	14.20B	10.40B
Cash Flow
Free Cash Flow	54.00M	121.00M	-243.00M	307.00M	-679.00M	-1.36B
Operating Cash Flow	1.69B	1.68B	1.35B	2.06B	617.00M	92.00M
Investing Cash Flow	-851.00M	-851.00M	-1.13B	-1.58B	-277.00M	-510.00M
Financing Cash Flow	-934.00M	-934.00M	-1.64B	-716.00M	-1.79B	-1.28B

thyssenkrupp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.89
• 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:TKA, the sentiment is Positive. The current price of 10.89 is above the 20-day moving average (MA) of 10.67, above the 50-day MA of 9.74, and above the 200-day MA of 8.21, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 56.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	€4.35B	15.16	14.99%	1.95%	8.15%	16.17%
KGX	69 Neutral	€7.82B	28.73	4.56%	1.23%	-2.20%	-18.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
G1A	61 Neutral	€9.99B	24.77	17.71%	2.01%	2.26%	6.49%
TKA	58 Neutral	€6.78B	15.84	4.81%	1.23%	-6.29%	―
R3NK	55 Neutral	€5.13B	52.54	24.75%	0.80%	22.71%	396.57%
SHA0	52 Neutral	€9.61B	-6.81	-34.39%	3.15%	45.16%	-790.24%