Wacker Neuson (WAC) AI Stock Analysis

• Market Cap: €1.26B
• Dividend Yield: 3.34%
• Average Volume (3M): 42.89K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 1.23
• Revenue Growth: -15.59%
• EPS Growth: -61.34%
• Country: DE
• Employees: 6,019
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.36
• 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: €24.25
• Price Target Upside: 35.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €19.50 ▲(8.57% Upside)

Wacker Neuson's overall stock score reflects a stable financial position with strong cash flow generation, but challenges in revenue growth and profitability. The technical analysis indicates bearish momentum, with the stock trading below key moving averages and in oversold conditions. The valuation suggests the stock may be overvalued, though the dividend yield offers some investor appeal.

Positive Factors

Cash Generation

Wacker Neuson's improving cash flow metrics indicate robust cash generation, which enhances financial flexibility and supports future investments.

Balance Sheet Health

A low debt-to-equity ratio suggests a strong capital structure, providing stability and reducing financial risk in volatile market conditions.

Operational Efficiency

Consistent EBIT and EBITDA margins indicate effective cost management and operational efficiency, supporting profitability despite revenue challenges.

Negative Factors

Declining Revenue Growth

A negative revenue growth trend indicates potential market share loss or demand issues, which could impact long-term business sustainability.

Profitability Pressure

Decreasing profit margins suggest increased cost pressures or pricing challenges, potentially affecting long-term profitability.

Declining ROE

A declining ROE indicates reduced profitability relative to equity, which could signal inefficiencies in utilizing shareholder capital.

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 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 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	2.10B	2.23B	2.65B	2.25B	1.87B	1.62B
Gross Profit	482.60M	518.00M	646.50M	534.30M	483.50M	400.30M
EBITDA	198.30M	225.80M	360.50M	273.90M	266.90M	133.20M
Net Income	44.30M	70.20M	185.90M	142.60M	137.90M	14.10M
Balance Sheet
Total Assets	2.50B	2.49B	2.64B	2.32B	2.32B	2.13B
Cash, Cash Equivalents and Short-Term Investments	62.80M	71.80M	66.40M	85.30M	328.10M	298.00M
Total Debt	333.30M	477.20M	512.10M	364.60M	507.30M	503.80M
Total Liabilities	1.03B	989.00M	1.15B	929.40M	1.03B	908.70M
Stockholders Equity	1.47B	1.50B	1.50B	1.39B	1.29B	1.22B
Cash Flow
Free Cash Flow	255.90M	202.70M	-50.30M	-110.20M	249.50M	318.10M
Operating Cash Flow	342.10M	305.30M	113.20M	-6.40M	331.70M	405.00M
Investing Cash Flow	-94.30M	-120.70M	-138.10M	5.60M	-182.60M	-76.00M
Financing Cash Flow	-253.60M	-177.50M	-5.00M	-250.80M	-128.90M	-91.60M

Wacker Neuson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

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 17.96 is below the 20-day moving average (MA) of 18.81, below the 50-day MA of 21.29, and below the 200-day MA of 21.46, indicating a bearish trend. The MACD of -0.86 indicates Negative momentum. The RSI at 21.69 is Positive, neither overbought nor oversold. The STOCH value of 5.93 is Positive, 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	72 Outperform	€3.08B	10.83	11.92%	2.75%	-1.50%	2.01%
GIL	68 Neutral	€3.67B	29.19	8.88%	2.20%	-13.98%	45.95%
8TRA	66 Neutral	€13.60B	7.64	10.20%	6.14%	-7.11%	-30.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VOS	61 Neutral	€1.36B	23.59	10.59%	1.56%	9.63%	-7.69%
KGX	60 Neutral	€8.12B	29.88	4.56%	1.34%	-2.20%	-18.16%
WAC	58 Neutral	€1.26B	28.28	3.00%	3.34%	-15.59%	-61.34%