Wacker Neuson (WAC) AI Stock Analysis

• Market Cap: €1.60B
• Dividend Yield: 2.57%
• Average Volume (3M): 38.27K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 1.23
• 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: 38,340
• 30 Day Avg. Volume: 38,274
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €25.83
• Price Target Upside: 10.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 65 Neutral
• Price Target: €25.00 ▲(7.07% Upside)

Wacker Neuson's overall stock score is primarily supported by its strong financial stability and cash flow generation. However, technical analysis and valuation present challenges, with mixed market signals and a high P/E ratio suggesting potential overvaluation. The absence of earnings call insights and corporate events leaves these areas unaddressed.

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 is a global leader in the construction equipment industry, specializing in the development, production, and distribution of light and compact equipment for construction, landscaping, and municipal applications. The company operates in various sectors, including construction, agriculture, and industrial applications, offering a wide range of products such as concrete equipment, excavators, and compactors. With a strong emphasis on innovation and sustainability, Wacker Neuson is recognized for its high-quality machinery and cutting-edge technologies.

How the Company Makes Money

Wacker Neuson generates revenue primarily through the sale of its construction equipment and machinery. The company has a diverse revenue model that includes direct sales to customers, distribution through dealer networks, and rental services for its equipment. Key revenue streams consist of new equipment sales, aftermarket services such as maintenance and parts sales, and rental income from leasing equipment to contractors and businesses. Additionally, Wacker Neuson benefits from strategic partnerships with dealers and distributors, which enhance its market reach and customer service capabilities. The company's focus on innovation allows it to leverage emerging trends in sustainability and urbanization, further contributing to its earnings through increased demand for advanced construction solutions.

Wacker Neuson Financial Statement Overview

Summary

Wacker Neuson presents a financially stable profile with low leverage, solid cash flow generation, and an overall positive outlook. However, it faces challenges in revenue growth and maintaining high profitability margins.

Income Statement

The income statement reflects moderate profitability with a stable gross profit margin of around 22.8% in TTM. The net profit margin is 2.4% showing some profitability challenges. Revenue growth has been inconsistent, with a decline in recent periods. EBITDA margin is moderate at 8.8% indicating decent operational efficiency.

Balance Sheet

The balance sheet is strong with a debt-to-equity ratio of 0.18, indicating low leverage. The equity ratio is high at 59.6%, suggesting financial stability. ROE is modest at 3.4%, pointing to moderate profitability for shareholders.

Cash Flow

Cash flow analysis shows strong operating cash flow to net income ratio of 6.5 in TTM, indicating robust cash generation. Free cash flow is positive, reflecting efficiency in cash management despite fluctuations in capital expenditures.

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: 23.35
• 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 23.35 is above the 20-day moving average (MA) of 23.13, above the 50-day MA of 23.29, and above the 200-day MA of 18.84, indicating a bullish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 51.62 is Neutral, neither overbought nor oversold. The STOCH value of 77.88 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
8TRA	73 Outperform	€15.78B	7.24	12.80%	5.33%	-2.98%	-14.55%
Sector *	71 Outperform	¥266.16B	14.97	8.32%	2.80%	6.19%	10.81%
VOS	71 Outperform	€1.67B	27.99	10.98%	1.27%	4.84%	2.72%
GIL	69 Neutral	€3.64B	28.94	8.88%	2.23%	-13.98%	45.95%
KGX	65 Neutral	€7.53B	32.76	3.89%	1.43%	-2.50%	-32.31%
JUN3	65 Neutral	€3.37B	11.68	12.41%	2.41%	-2.78%	-3.44%
WAC	65 Neutral	€1.60B	31.08	3.38%	2.57%	-17.26%	-65.19%