Wacker Neuson (WAC) AI Stock Analysis

• Market Cap: €1.45B
• Dividend Yield: 2.46%
• Average Volume (3M): 42.89K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.30
• Revenue Growth: -9.55%
• EPS Growth: -24.60%
• Country: DE
• Employees: 6,019
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.39
• Shares Outstanding: 70,140,000
• 10 Day Avg. Volume: 68,405
• 30 Day Avg. Volume: 42,892
• PEG Ratio: -0.23
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 4.91
• 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: €22.50
• Price Target Upside: 8.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.73
• Revenue Forecast (FY): €2.37B

• Rating: 58 Neutral
• Price Target: €19.50 ▼(-6.25% Downside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

The score is held back primarily by weak technicals (price below all key moving averages with negative MACD and very low RSI), while financials are stable but pressured by declining margins and weaker cash flow trends. Dividend yield offers partial valuation support, but the P/E remains relatively elevated.

Positive Factors

Conservative leverage

A low debt-to-equity ratio of 0.23 indicates conservative leverage, giving the company durable financial flexibility. This supports cyclical resilience, capacity to fund capex or distributor/rental partnerships, and reduces refinancing risk through construction cycles.

Diversified revenue mix

A mix of equipment sales, leasing, parts, service contracts and distributor/rental partnerships creates recurring and aftermarket revenue. This diversification reduces sensitivity to single-market slumps and supports long-term customer retention and steady cash streams.

Solid cash conversion

A FCF-to-net-income ratio of 0.75 shows the business converts a meaningful share of accounting profits into cash. That durable cash generation supports reinvestment, service network spending and dividend/distribution capacity even amid margin pressure.

Negative Factors

Margin erosion

Sustained declines across gross, EBIT and EBITDA margins, with net margin around 2.10%, signal weakening operational efficiency. Over months this reduces retained earnings available for reinvestment and undermines returns on new product or market expansion.

Negative FCF growth

A -16.49% decline in free cash flow growth undermines liquidity expansion and constrains discretionary investment. Persisting FCF contraction can force reliance on external funding for capex or dealer support, weakening long-term strategic flexibility.

Weak return on equity

ROE falling to 2.98% signals deteriorating capital efficiency and lower shareholder value creation. Over several quarters this trend can deter long-term investors and reflects challenges in converting equity base into sustainable profit growth.

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 generates revenue primarily through the sale of its equipment and machinery to construction and industrial sectors. The company’s revenue model is driven by both direct sales and leasing of its products. Key revenue streams include the sale of compact construction equipment, parts, and service contracts. Additionally, Wacker Neuson benefits from strategic partnerships with distributors and rental companies, which expand its market reach. The company also engages in after-sales services and maintenance, providing ongoing support and generating recurring revenue. Factors such as global infrastructure investments and demand for efficient construction solutions contribute significantly to its earnings.

Wacker Neuson Financial Statement Overview

Summary

Overall mixed fundamentals: modest revenue growth but declining gross/EBIT/EBITDA margins and a low net margin (2.10%) weigh on profitability. Balance sheet strength (low debt-to-equity of 0.23) supports stability, but weakening ROE and negative free cash flow growth (-16.49%) limit the score.

Income Statement

Wacker Neuson shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 1.55%, but this is a slowdown compared to previous years. Gross profit margin has decreased slightly to 22.93% from 23.18% in 2024, indicating some pressure on cost management. Net profit margin is relatively low at 2.10%, reflecting challenges in converting revenue into profit. EBIT and EBITDA margins have also declined, suggesting reduced operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong with a low debt-to-equity ratio of 0.23 in the TTM period, indicating conservative leverage. Return on equity has decreased to 2.98% from 4.68% in 2024, showing a decline in profitability. The equity ratio remains stable, reflecting a solid capital structure.

Cash Flow

Cash flow analysis reveals some concerns, with a negative free cash flow growth rate of -16.49% in the TTM period. The operating cash flow to net income ratio is below 1, indicating potential issues in cash generation relative to net income. However, the free cash flow to net income ratio remains healthy at 0.75, suggesting decent cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.14B	2.23B	2.65B	2.25B	1.87B	1.62B
Gross Profit	492.20M	518.00M	646.50M	534.30M	483.50M	400.30M
EBITDA	217.40M	225.80M	360.50M	273.90M	266.90M	133.20M
Net Income	61.30M	70.20M	185.90M	142.60M	137.90M	14.10M
Balance Sheet
Total Assets	2.48B	2.49B	2.64B	2.32B	2.32B	2.13B
Cash, Cash Equivalents and Short-Term Investments	58.50M	71.80M	66.40M	85.30M	328.10M	298.00M
Total Debt	489.20M	477.20M	512.10M	364.60M	507.30M	503.80M
Total Liabilities	989.80M	989.00M	1.15B	929.40M	1.03B	908.70M
Stockholders Equity	1.49B	1.50B	1.50B	1.39B	1.29B	1.22B
Cash Flow
Free Cash Flow	213.70M	202.70M	-50.30M	-110.20M	249.50M	318.10M
Operating Cash Flow	293.20M	305.30M	113.20M	-6.40M	331.70M	405.00M
Investing Cash Flow	-84.30M	-120.70M	-138.10M	5.60M	-182.60M	-76.00M
Financing Cash Flow	-208.70M	-177.50M	-5.00M	-250.80M	-128.90M	-91.60M

Wacker Neuson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WAC, the sentiment is Negative. The current price of 20.8 is below the 20-day moving average (MA) of 21.04, below the 50-day MA of 22.64, and below the 200-day MA of 22.37, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 55.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:WAC.

Wacker Neuson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JUN3	73 Outperform	€3.66B	12.83	11.92%	2.29%	-1.50%	2.01%
KGX	69 Neutral	€8.36B	30.75	4.56%	1.23%	-2.20%	-18.16%
8TRA	68 Neutral	€18.29B	10.28	10.20%	5.67%	-7.11%	-30.83%
GIL	68 Neutral	€3.79B	30.13	8.88%	2.19%	-13.98%	45.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VOS	62 Neutral	€1.61B	27.99	10.59%	1.46%	9.63%	-7.69%
WAC	58 Neutral	€1.45B	23.47	4.12%	2.46%	-9.55%	-24.60%