Vossloh (VOS) AI Stock Analysis

• Market Cap: €1.67B
• Dividend Yield: 1.28%
• Average Volume (3M): 39.45K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.90
• Revenue Growth: -2.85%
• EPS Growth: 35.08%
• Country: DE
• Employees: 4,383
• Sector: Industrials
• Sector Strength: 90
• Industry: Railroads
• EPS (TTM): 0.24
• Shares Outstanding: 19,320,597
• 10 Day Avg. Volume: 42,365
• 30 Day Avg. Volume: 39,445
• PEG Ratio: 0.18
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.72
• 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: €85.50
• Price Target Upside: -0.81% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: €98.00 ▲(13.69%Upside)

Vossloh's strong financial performance and cash flow generation are significant strengths, supporting its position in the railroad industry. However, technical indicators point to an overbought condition, and the high P/E ratio suggests potential overvaluation risks. The absence of earnings call insights or notable corporate events means these factors are not influencing the current assessment.

Positive Factors

Acquisition Impact

The acquisition of Sateba is expected to contribute approximately €30 million in sales and €4 million in EBIT per month.

Future Growth Prospects

Guidance for full-year growth was confirmed, with an expected 6.5% year-over-year increase driven by future deliveries in Fastening solutions in China.

Order Backlog

Order backlog increased by 15% year-over-year and 11% sequentially, reaching €926 million, showing strong future demand.

Negative Factors

EBIT Performance

EBIT decreased by 59% year-over-year, highlighting significant profitability challenges.

Sales Performance

Sales declined by 7% year-over-year, indicating a challenging start to the year.

Vossloh Business Overview & Revenue Model

Company Description

Vossloh AG manufactures and markets rail infrastructure products and services worldwide. It operates through three divisions: Core Components, Customized Modules, and Lifecycle Solutions. The Core Components division develops, produces, and markets rail fastening systems for light-rail, heavy-haul, and high-speed lines, as well as urban transport. This division also manufactures concrete rail ties, switch ties, and concrete low-vibration blocks for slab tracks and crossing panels. The Customized Modules division manufactures, installs, and maintains switches and crossings, as well as related control and monitoring systems for light-rail and high-speed applications. The Lifecycle Solutions division engages in rail trading, long-rail unloading at construction sites, welding new rails, reconditioning old rails, on-site welding, rail replacement, rail grinding/milling, rail inspection, and construction site supervision activities. This division also organizes and monitors rail shipments to construction sites; and enables on-site availability of the unloading systems. The company was founded in 1883 and is based in Werdohl, Germany.

How the Company Makes Money

Vossloh makes money through several key revenue streams centered around its rail infrastructure offerings. The company generates significant revenue from the sale of rail fastening systems and switch systems, which are critical for the construction and maintenance of railway tracks. Additionally, Vossloh provides rail services such as track maintenance, inspection, and monitoring, which also contribute to its income. The company benefits from long-term contracts with national and regional rail operators, ensuring a steady flow of income. Furthermore, Vossloh's focus on innovation allows it to offer advanced and efficient rail technology solutions, further enhancing its market position and profitability. Strategic partnerships and collaborations with other players in the rail industry also play a role in expanding Vossloh's business opportunities and revenue potential.

Vossloh Financial Statement Overview

Summary

Vossloh displays strong financial health with steady revenue growth, improving profit margins, and robust cash flow generation. The capital structure is fairly balanced, though monitoring debt levels remains crucial. The company is well-positioned for continued growth in the transportation industry, underpinned by solid operational and cash flow metrics.

Income Statement

Vossloh demonstrated solid revenue growth with a consistent upward trajectory over the past years. The gross profit margin improved to 27.2% in 2024 from previous years, indicating effective cost management. Net profit margin increased significantly to 5.7% in 2024, up from 3.7% in 2023, driven by higher net income. The EBIT and EBITDA margins also showed positive trends, reflecting enhanced operational efficiency.

Balance Sheet

The company maintains a stable equity ratio of 48.7%, which suggests a balanced capital structure. However, the debt-to-equity ratio of 0.31 in 2024, while manageable, indicates a reliance on debt financing. Positive ROE of 9.5% in 2024 signals effective utilization of equity capital, although improvements in equity returns can further strengthen the financial position.

Cash Flow

Vossloh experienced a healthy growth in free cash flow, which increased by 15.4% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.97 in 2024 highlights efficient cash conversion from earnings. The free cash flow to net income ratio of 1.17 suggests robust cash flow relative to net earnings, supporting future growth and debt repayment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.19B	1.21B	1.21B	1.05B	942.80M	869.70M
Gross Profit	325.10M	329.20M	316.00M	236.80M	218.00M	196.90M
EBITDA	111.45M	164.60M	151.00M	131.70M	123.70M	125.50M
Net Income	67.00M	69.20M	44.70M	47.70M	28.20M	47.00M
Balance Sheet
Total Assets	1.51B	1.49B	1.39B	1.37B	1.29B	1.22B
Cash, Cash Equivalents and Short-Term Investments	94.20M	97.30M	100.50M	80.70M	77.30M	69.40M
Total Debt	28.20M	253.50M	312.40M	315.70M	286.50M	419.50M
Total Liabilities	755.70M	738.90M	754.20M	743.70M	701.50M	802.00M
Stockholders Equity	725.90M	726.10M	462.10M	597.90M	559.30M	398.60M
Cash Flow
Free Cash Flow	64.50M	80.70M	69.90M	26.70M	29.60M	4.10M
Operating Cash Flow	127.50M	136.40M	137.30M	71.60M	81.30M	56.10M
Investing Cash Flow	0.00	-49.70M	-65.40M	-44.90M	-57.90M	-3.00M
Financing Cash Flow	0.00	-83.90M	-39.40M	-29.30M	-30.80M	-67.40M

Vossloh Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.20
• 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:VOS, the sentiment is Positive. The current price of 86.2 is above the 20-day moving average (MA) of 84.23, above the 50-day MA of 78.63, and above the 200-day MA of 57.18, indicating a bullish trend. The MACD of 3.07 indicates Positive momentum. The RSI at 66.18 is Neutral, neither overbought nor oversold. The STOCH value of 63.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:VOS.

Vossloh Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOS	71 Outperform	€1.67B	25.30	11.64%	1.28%	-2.85%	35.08%
Sector *	65 Neutral	€4.02B	9.14	18.29%	3.69%	3.84%	-103.41%
0J9C	―	€1.57B	15.13	4.78%	3.08%	―	―
0ZPV	―	€1.13B	13.60	9.13%	1.93%	―	―
0BQE	―	€1.66B	13.61	11.29%	2.95%	―	―
0G77	―	€1.50B	―	-8.65%	0.80%	―	―
0FWF	―	€37.76M	5.36	8.05%	―	―	―