thyssenkrupp (TKA) AI Stock Analysis

• Market Cap: €6.47B
• Dividend Yield: 1.23%
• Average Volume (3M): 3.26M
• Price to Earnings (P/E): 39.7
• Beta (1Y): 1.10
• 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: €11.47
• Price Target Upside: 6.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): €33.01B

• Rating: 50 Neutral
• Price Target: €10.50 ▼(-2.23% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weak cash conversion (materially negative free cash flow) and still-negative EBIT despite improving profitability, partially offset by a strong, low-leverage balance sheet. Technicals are mixed with longer-term support but softer near-term signals, while valuation is a headwind given the high P/E and modest dividend yield.

Positive Factors

Low leverage

A very low debt-to-equity ratio (~0.09) gives the company structural financial flexibility across cycles. This reduces refinancing risk, supports capital allocation for capex or restructuring, and allows management to pursue strategic moves without immediate liquidity pressure.

Large, diversified Materials Services

Having Materials Services represent over one-third of sales provides scale and diversification versus cyclical steel exposure. The unit’s size and potential spin-off options create strategic optionality to focus the core business or crystallize value while retaining a broad revenue base across industrial segments.

Improving profitability trend

Recovery from large losses to a small positive net profit and a ~10% EBITDA margin denotes structural operational improvements. If sustained, this margin base supports earnings stability across the industrial cycle and provides a foundation to convert operating gains into durable cash generation over time.

Negative Factors

Materially negative free cash flow

A large negative FCF (~-€1.25B) indicates structural cash conversion weakness from heavy capex or working-capital demands. Persistent negative FCF undermines internal funding of investments, increases reliance on external financing, and limits capacity for dividends or buybacks over the medium term.

Negative EBIT

Negative EBIT despite positive EBITDA suggests that depreciation, amortization, restructuring, or persistent overhead are eroding operating profits. This gap signals structural issues converting operational margins into true operating income, limiting sustainable profitability and return on capital.

Declining revenue trend

A multi-year downward revenue trend since the 2022 peak points to structural demand headwinds or market share pressures in core businesses. Falling top-line reduces operating leverage benefits, stresses fixed-cost absorption, and constrains long-term margin and return improvements unless growth stabilizes or reverses.

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

Balance sheet strength (low leverage, debt-to-equity ~0.09) supports a higher score, but operating and cash performance reduce it: revenue is slightly down (~-2% YoY), EBIT remains negative despite improved EBITDA margin (~10%), and free cash flow is materially negative (~-€1.25B) versus modest operating cash flow (~€0.15B).

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: Neutral
• Last Price: 10.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 10.74 is below the 20-day moving average (MA) of 11.16, above the 50-day MA of 10.38, and above the 200-day MA of 8.50, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 29.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€4.21B	14.10	14.99%	1.95%	8.15%	16.17%
KGX	69 Neutral	€8.36B	30.75	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	€10.63B	26.52	17.71%	2.01%	2.26%	6.49%
R3NK	55 Neutral	€5.95B	58.60	24.75%	0.80%	22.71%	396.57%
SHA0	52 Neutral	€10.27B	-7.26	-34.39%	3.15%	45.16%	-790.24%
TKA	50 Neutral	€6.47B	39.69	4.81%	1.23%	-6.29%	―