Knorr-Bremse (KNRRY)
OTHER OTC:KNRRY
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Knorr-Bremse
(OTC:KNRRY)
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Rating:59Neutral
Price Target:
$29.00
▼(-1.56% Downside)
Action:DowngradedDate:03/23/26
The score is supported mainly by solid underlying financial performance (profitability and strong cash generation) and a positive earnings-call outlook with strong execution and clear FY2026 guidance. Offsetting this, technical signals remain bearish and valuation looks expensive for the current growth/momentum profile.
Positive Factors
Strong free cash flow and conversion
Consistent, high free cash generation and exceptional cash conversion create durable internal funding for capex, payouts, and selective M&A. This strengthens financial flexibility, funds BOOST restructuring and supports investment in product development without relying on external financing over the next 2–6 months.
Negative Factors
Recent sharp revenue contraction
A marked TTM revenue decline signals tangible demand weakness or timing shifts in OEM markets; persistent top-line contraction would pressure fixed-cost absorption and margins, reduce operating leverage and could strain strategic plans if recovery is delayed beyond the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow and conversion
Consistent, high free cash generation and exceptional cash conversion create durable internal funding for capex, payouts, and selective M&A. This strengthens financial flexibility, funds BOOST restructuring and supports investment in product development without relying on external financing over the next 2–6 months.
Read all positive factors
Knorr-Bremse (KNRRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.74B
Dividend Yield1.78%
Average Volume (3M)221.00
Price to Earnings (P/E)31.9
Beta (1Y)0.68
Revenue Growth0.15%
EPS Growth-26.41%
CountryUS
Employees29,051
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.22
Shares Outstanding644,800,000
10 Day Avg. Volume0
30 Day Avg. Volume221
Financial Highlights & Ratios
PEG Ratio2.00
Price to Book (P/B)5.27
Price to Sales (P/S)2.18
P/FCF Ratio20.48
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue2.34
Enterprise Value/Gross Profit5.92
Enterprise Value/Ebitda13.95
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.32
Revenue Forecast (FY)$9.59B
Knorr-Bremse Business Overview & Revenue Model
Company Description
Knorr-Bremse Aktiengesellschaft develops, produces, markets, and services braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. It offers br...
How the Company Makes Money
Knorr-Bremse makes money by selling original equipment (OE) systems and components to vehicle manufacturers and by generating recurring aftermarket revenue over the life of the vehicles it equips.
Key revenue streams include:
1) Original equipmen...
Knorr-Bremse Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presents a strong operational and financial performance for FY2025: management delivered on guidance, recorded a company-best free cash flow, materially delevered the balance sheet, improved margins (notably in Rail) and progressed BOOST portfolio and efficiency initiatives. There are notable challenges — a still-weak North American truck OE market, Q4 order volatility (RVS), and a planned but not-yet-completed HVAC disposal — and China is expected to normalize slightly in 2026. Overall, the positive execution on margins, cash generation, deleveraging and strategic portfolio moves significantly outweigh the outlined headwinds, and management signals continued disciplined, margin-accretive growth and clear guardrails for M&A.Positive Updates
Record Free Cash Flow and Exceptional Cash Conversion
Generated a record operating free cash flow of EUR 790 million in FY2025 (Q4 = EUR 471 million); cash conversion reached 131% (would be ~138% excluding ~EUR 80 million one-offs for severance).
Negative Updates
North America Truck Market Weakness and CVS Revenue Headwinds
CVS full-year revenues declined nominally ~4% to EUR 881 million; OE business down ~EUR 30 million YoY driven by North America; North America aftermarket down ~10% (though organic trends slightly better); market still viewed as bottoming with gradual recovery expected.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Free Cash Flow and Exceptional Cash Conversion
Generated a record operating free cash flow of EUR 790 million in FY2025 (Q4 = EUR 471 million); cash conversion reached 131% (would be ~138% excluding ~EUR 80 million one-offs for severance).
Read all positive updates
Company Guidance
Management guided FY‑2026 to group revenues of EUR 8.0–8.3bn, an operating EBIT margin of 14% and free cash flow of EUR 750–850m, with updated mid‑term targets to be published with Q2 results on 30 July; rail (RVS) is expected to record quarterly order intake of ~EUR 1.0–1.2bn and a full‑year book‑to‑bill around 1 (RVS Q4 ’25 margin 17%, FY ’25 RVS margin 16.5%), with an FY‑26 RVS operating margin slightly below 17.5% (including HVAC), while CVS is forecast to deliver low‑ to mid‑single‑digit organic revenue growth and to improve operating EBIT margin toward ~12% in 2026 (CVS FY ’25 margin 10.4%, Q4 ’25 margin 11.3%; Q4 CVS order intake EUR 977m, book‑to‑bill 1.1); management also reiterated capex guidance of ~4–5% of revenues (CapEx ’25 EUR 319m = 4.1%), expects typical seasonal cash conversion in 2026 after a record FCF of EUR 790m and 131% cash conversion in 2025, and confirmed financial flexibility (YE‑25 net debt EUR 627m, net‑debt/EBITDA ~0.5) to support selective, margin‑accretive M&A.Knorr-Bremse Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.51B | 7.88B | 7.93B | 7.15B | 6.71B |
| Gross Profit | 1.63B | 4.24B | 4.02B | 3.52B | 3.45B |
| EBITDA | 1.21B | 1.53B | 1.21B | 1.05B | 1.21B |
| Net Income | 512.92M | 445.00M | 552.53M | 489.28M | 621.31M |
Balance Sheet | |||||
| Total Assets | 9.20B | 9.61B | 8.25B | 8.01B | 7.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.74B | 2.35B | 1.29B | 1.45B | 1.44B |
| Total Debt | 3.08B | 3.17B | 2.76B | 2.68B | 2.15B |
| Total Liabilities | 6.02B | 6.49B | 5.35B | 5.32B | 4.77B |
| Stockholders Equity | 3.10B | 3.04B | 2.84B | 2.56B | 2.33B |
Cash Flow | |||||
| Free Cash Flow | 798.20M | 696.00M | 540.00M | 189.41M | 579.96M |
| Operating Cash Flow | 1.02B | 1.04B | 914.59M | 541.55M | 975.49M |
| Investing Cash Flow | -365.00M | -750.00M | -410.64M | -505.00M | -534.37M |
| Financing Cash Flow | -1.09B | 630.00M | -397.67M | -160.81M | -1.42B |
Knorr-Bremse Technical Analysis
Positive
29.46
Price Trends
30.19
Positive
28.65
Positive
26.59
Positive
Market Momentum
-0.30
Negative
58.74
Neutral
62.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNRRY, the sentiment is Positive. The current price of 29.46 is above the 20-day moving average (MA) of 28.64, below the 50-day MA of 30.19, and above the 200-day MA of 26.59, indicating a bullish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 58.74 is Neutral, neither overbought nor oversold. The STOCH value of 62.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNRRY.
Knorr-Bremse Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.33B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.60B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
69 Neutral | $8.26B | 12.37 | 29.57% | 2.60% | 0.84% | 26.17% | |
62 Neutral | $11.33B | 35.20 | 4.80% | 1.24% | 0.08% | -83.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $19.74B | 31.86 | 17.59% | 1.78% | 0.15% | -26.41% | |
57 Neutral | $12.94B | 101.80 | 1.78% | ― | 2.16% | -85.91% |
* Consumer Cyclical Sector Average
KNRRY
Knorr-Bremse
30.70
10.43
51.42%
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BWA
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APTV
Aptiv
60.73
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31.74%
LEA
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124.75
44.28
55.02%
VC
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32.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.