Wacker Neuson (WAC) AI Stock Analysis

• Market Cap: €1.68B
• Dividend Yield: 2.44%
• Average Volume (3M): 42.89K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 1.25
• 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: €23.50
• Price Target Upside: -4.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €26.00 ▲(5.91% Upside)

Wacker Neuson's overall stock score is driven by a mixed financial performance with strong balance sheet metrics but challenges in profitability and cash flow. Technical analysis indicates strong bullish momentum, although the stock appears overbought. The valuation suggests the stock might be overvalued, but the dividend yield offers some compensation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns effectively.

Strategic Partnerships

Strategic partnerships expand market reach and enhance distribution channels, supporting sustained revenue growth and competitive positioning in the construction equipment market.

Recurring Revenue Streams

Recurring revenue from after-sales services and maintenance ensures a stable income stream, enhancing financial predictability and customer retention over the long term.

Negative Factors

Declining Margins

Declining margins indicate pressure on cost management and profitability, which could affect the company's ability to invest in growth and innovation if not addressed.

Cash Flow Challenges

Challenges in cash flow generation can limit the company's ability to fund operations and strategic initiatives, potentially impacting long-term growth and financial health.

Reduced ROE

A declining ROE suggests reduced efficiency in generating returns from equity, which may signal challenges in operational effectiveness and shareholder value creation.

Wacker Neuson Business Overview & Revenue Model

Company Description

Wacker Neuson SE is a leading manufacturer of light and compact construction equipment, headquartered in Munich, Germany. The company operates in various sectors, including construction, agriculture, landscaping, and municipal applications. Wacker Neuson offers a diverse range of products such as excavators, compactors, concrete technology equipment, and generators, catering to the needs of contractors and municipalities worldwide.

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

Wacker Neuson demonstrates a mixed financial performance. The income statement shows challenges with declining revenue growth, though profitability margins remain stable. The balance sheet is solid with a low debt-to-equity ratio, but declining ROE indicates a need for better profitability. Cash flow metrics are improving, highlighting strong cash generation capabilities. Overall, the company is financially stable but faces challenges in revenue growth and profitability.

Income Statement

Wacker Neuson shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth, with a negative growth rate of -1.42%. Gross profit margin and net profit margin have decreased slightly compared to previous periods, indicating pressure on profitability. However, the company maintains a reasonable EBIT and EBITDA margin, suggesting operational efficiency. The declining revenue trend is a concern, but the company has managed to keep its profitability margins relatively stable.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.23 in the TTM period, which is an improvement from previous years. The return on equity has decreased to 2.98% in the TTM, indicating a decline in profitability relative to equity. The equity ratio remains strong, suggesting a solid capital structure. Overall, the balance sheet shows stability, but the declining ROE highlights a need for improved profitability.

Cash Flow

Cash flow analysis reveals a positive trend with a 7.25% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong, reflecting efficient cash management. Despite past fluctuations, the recent improvement in cash flow metrics suggests a strengthening cash position.

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	289.80M	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: Positive
• Last Price: 24.55
• 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:WAC, the sentiment is Positive. The current price of 24.55 is above the 20-day moving average (MA) of 22.93, above the 50-day MA of 20.30, and above the 200-day MA of 22.13, indicating a bullish trend. The MACD of 1.38 indicates Negative momentum. The RSI at 68.86 is Neutral, neither overbought nor oversold. The STOCH value of 32.43 is Neutral, 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
JUN3	73 Outperform	€3.57B	12.53	11.92%	2.29%	-1.50%	2.01%
KGX	69 Neutral	€8.74B	32.15	4.56%	1.23%	-2.20%	-18.16%
8TRA	68 Neutral	€15.19B	8.54	10.20%	5.60%	-7.11%	-30.83%
GIL	68 Neutral	€3.70B	29.38	8.88%	2.20%	-13.98%	45.95%
WAC	67 Neutral	€1.68B	27.24	4.12%	2.44%	-9.55%	-24.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VOS	62 Neutral	€1.47B	25.54	10.59%	1.45%	9.63%	-7.69%