Wacker Neuson (WAC) AI Stock Analysis

• Market Cap: €1.60B
• Dividend Yield: 2.55%
• Average Volume (3M): 44.34K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 1.17
• Revenue Growth: -17.26%
• EPS Growth: -65.19%
• Country: DE
• Employees: 6,019
• Sector: Industrials
• Sector Strength: 84
• Industry: Agricultural - Machinery
• EPS (TTM): 0.06
• Shares Outstanding: 70,140,000
• 10 Day Avg. Volume: 29,019
• 30 Day Avg. Volume: 44,342
• PEG Ratio: 1.41
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.08
• 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: €26.33
• Price Target Upside: 13.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: €26.00 ▲(12.55%Upside)

Wacker Neuson scores well due to strong financial performance and positive technical indicators. However, the high P/E ratio suggests the stock might be overvalued, which could limit further gains. The stock's performance is buoyed by solid revenue growth and efficient operations, while cash flow management and rising liabilities remain areas to watch.

Positive Factors

Order Intake

There have been signs of a gradual upturn in order intake, pointing to a stabilization of demand in the key markets.

Restructuring

Restructuring has now been largely completed, with an incremental headcount reduction of approximately 100 full-time equivalents.

Negative Factors

Earnings

EBIT fell short of expectations and was heavily impacted by underutilization of plants and dealer destocking.

Guidance

Management lowered the guidance for the fiscal year, suggesting a broader drawback across all regions.

Sales Performance

The first quarter showed a significant decline in group sales, with a pronounced weakness in all markets, especially in Europe and Asia.

Wacker Neuson Business Overview & Revenue Model

Company Description

Wacker Neuson SE manufactures and distributes light and compact equipment under the Wacker Neuson, Kramer, and Weidemann brand names in Europe, the Americas, and the Asia-Pacific. It operates through three segments: Light Equipment, Compact Equipment, and Services. The company offers internal and external vibrators for concrete compaction; trowels and screeds for concrete finishing; rammers, vibratory plates, and rollers for soil compaction; demolition products and saws; lighting; generators; pumps; and heaters. In addition, it offers compact construction equipment, including track and mobile excavators, wheel loaders, telescopic handlers, skid steer and backhoe loaders, compact track loaders, and wheel and track dumpers. The company also provides repair, maintenance, and spare parts; and used equipment, as well as rental, leasing, financing, training, telematics, and e-business services. It serves construction, gardening, landscaping, and agriculture sectors, as well as municipal bodies and companies in the recycling, energy, oil and gas, and rail transport sectors. The company was founded in 1848 and is headquartered in Munich, Germany.

How the Company Makes Money

Wacker Neuson makes money primarily through the sale and lease of its construction and compact machinery. The company operates in several key markets worldwide, with its revenue streams largely driven by product sales to construction firms, rental companies, and other industrial sectors requiring high-performance equipment. Additionally, Wacker Neuson generates revenue through after-sales services, spare parts, and maintenance support, which are critical for long-term customer relationships and equipment lifecycle management. Strategic partnerships and a wide distribution network also play a significant role in the company's earnings, enabling it to reach diverse markets and maintain a stable revenue flow.

Wacker Neuson Financial Statement Overview

Summary

Wacker Neuson exhibits strong financial performance with consistent revenue growth and efficient operations. The balance sheet is stable, though rising liabilities could pose risks. Cash flow management shows improvement but remains an area of potential concern.

Income Statement

Wacker Neuson has demonstrated solid revenue growth over the years, with a notable increase from 2020 to 2023. The company maintained a healthy gross profit margin, peaking in 2023. However, the net profit margin dipped in 2024 compared to 2023, indicating increased costs or other financial pressures. The EBIT and EBITDA margins were robust, suggesting efficient operations and strong earnings before interest and taxes.

Balance Sheet

The company's debt-to-equity ratio has been relatively stable, indicating prudent financial management. The return on equity (ROE) showed a positive trend, although it slightly dipped in 2024. The equity ratio remained strong, reflecting a solid capital structure with adequate shareholder equity to cover assets. However, the increase in total liabilities over the years could pose a risk if not managed carefully.

Cash Flow

Wacker Neuson's cash flow performance has been mixed. The operating cash flow to net income ratio improved significantly in 2024, indicating better cash generation from operations. However, free cash flow fluctuated, with negative figures in some years, highlighting potential challenges in managing capital expenditures or operational cash flows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.23B	2.65B	2.25B	1.87B	1.62B
Gross Profit	518.00M	646.50M	534.30M	483.50M	400.30M
EBITDA	225.80M	360.50M	273.90M	266.90M	133.20M
Net Income	70.20M	185.90M	142.60M	137.90M	14.10M
Balance Sheet
Total Assets	2.49B	2.64B	2.32B	2.32B	2.13B
Cash, Cash Equivalents and Short-Term Investments	71.80M	66.40M	85.30M	328.10M	298.00M
Total Debt	477.20M	512.10M	364.60M	507.30M	503.80M
Total Liabilities	989.00M	1.15B	929.40M	1.03B	908.70M
Stockholders Equity	1.50B	1.50B	1.39B	1.29B	1.22B
Cash Flow
Free Cash Flow	202.70M	-50.30M	-110.20M	249.50M	318.10M
Operating Cash Flow	305.30M	113.20M	-6.40M	331.70M	405.00M
Investing Cash Flow	-120.70M	-138.10M	5.60M	-182.60M	-76.00M
Financing Cash Flow	-177.50M	-5.00M	-250.80M	-128.90M	-91.60M

Wacker Neuson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WAC, the sentiment is Positive. The current price of 23.1 is above the 20-day moving average (MA) of 22.92, above the 50-day MA of 22.75, and above the 200-day MA of 17.29, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 80.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:WAC.

Wacker Neuson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAC	72 Outperform	€1.60B	31.35	3.38%	2.55%	-17.26%	-65.19%
Sector *	68 Neutral	£2.90B	10.32	8.40%	3.15%	2.88%	-10.00%
0OP0		€3.61B	45.98	12.25%	1.95%	―	―
0EXP		€3.99B	13.79	12.41%	1.75%	―	―
0QFU		€5.92B	28.20	3.39%	1.61%	―	―
0N2Z		€1.49B	22.51	11.64%	1.26%	―	―
8TRA	74 Outperform	€13.77B	5.47	14.10%	5.36%	-2.53%	-4.91%