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Knorr-Bremse (KNRRY)
OTHER OTC:KNRRY
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Knorr-Bremse
(OTC:KNRRY)
Rating:72Outperform
Price Target:―
Knorr-Bremse (KNRRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.59B
Dividend Yield2.05%
Average Volume (3M)201.00
Price to Earnings (P/E)34.0
Beta (1Y)0.53
Revenue Growth-0.50%
EPS Growth-19.08%
CountryUS
Employees29,051
SectorConsumer Cyclical
Sector Strength65
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.24
Shares Outstanding644,800,000
10 Day Avg. Volume209
30 Day Avg. Volume201
Financial Highlights & Ratios
PEG Ratio-7.89
Price to Book (P/B)4.27
Price to Sales (P/S)0.00
P/FCF Ratio15.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Knorr-Bremse Business Overview & Revenue Model
Company DescriptionKnorr-Bremse AG is a global leader in braking systems and a key player in the rail and commercial vehicle industries. Headquartered in Munich, Germany, the company specializes in developing, manufacturing, and maintaining braking systems, as well as other related safety-critical sub-systems for rail and commercial vehicles. With a strong focus on innovation, Knorr-Bremse is also involved in the development of driver assistance systems, powertrain solutions, and other advanced technologies to enhance vehicle safety and efficiency.
How the Company Makes MoneyKnorr-Bremse generates revenue through the sale of its braking systems and related technologies to manufacturers and operators in the rail and commercial vehicle sectors. The company's key revenue streams include the production and sale of rail vehicle systems, which encompass braking, entrance, and HVAC systems, and commercial vehicle systems, which include electronic braking, steering, and driver assistance systems. Additionally, Knorr-Bremse offers maintenance and after-market services, providing a steady income from long-term service agreements. Strategic partnerships with manufacturers and investments in innovative technologies further bolster its revenue potential, enabling the company to maintain its competitive edge in the market.
Knorr-Bremse Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q3-2024)
| % Change Since: -4.18%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook, with strong performance and strategic achievements in the rail segment and financial improvements, like increased EBITDA margins and successful bond issuance. However, these were tempered by challenges in the truck segment, including revenue declines and market uncertainties, which may affect future guidance.Q3-2024 Updates
Positive Updates
Strong Order Intake
Order intake was over EUR 1.9 billion, with a book-to-bill ratio of 1.02, indicating strong demand despite a weak truck market.
Increased EBITDA Margin
Operating EBITDA margin increased to 12.3%, 80 basis points higher than the previous year, driven by good operating leverage and better pricing.
Successful Bond Issue
Issued a dual tranche bond amounting to EUR 1.1 billion, including the first green bond, which was 4x oversubscribed.
Positive Rail Segment Performance
Rail segment revenues increased by around 7%, with an operating EBITDA margin increase of 160 basis points to 16%.
Free Cash Flow Improvement
Free cash flow improved to EUR 184 million, contributing to a 9-month level improvement of nearly EUR 200 million.
Negative Updates
Truck Segment Challenges
Truck revenues faced a 9% decline due to weak market conditions, with a corresponding European market decline of roughly 25%.
CVS Division Margin Decrease
Operating EBITDA margin for the CVS division decreased by 60 basis points to 10%.
Market Uncertainties
Ongoing uncertainties in the truck market and potential integration costs affecting margin guidance.
Company Guidance
In the Q3 2024 earnings call for Knorr-Bremse, several key metrics were highlighted. The order intake surpassed EUR 1.9 billion, with a book-to-bill ratio of 1.02, indicating strong demand despite challenges in the global truck market. Revenue also exceeded EUR 1.9 billion, with the Rail Vehicle Systems (RVS) division experiencing a 7% increase while the Commercial Vehicle Systems (CVS) division saw a 9% decline. The operating EBITDA margin improved to 12.3%, up 80 basis points from the previous year, attributed to efficiencies and better pricing strategies. The free cash flow reached EUR 184 million, with the year-to-date figure improving by nearly EUR 200 million to EUR 248 million. The guidance for 2024 remains a revenue range of EUR 7.8 billion to EUR 8.1 billion, an operating EBITDA margin between 11.5% and 13%, and a free cash flow between EUR 550 million and EUR 650 million. For 2025, Knorr-Bremse anticipates mid-single-digit revenue growth for RVS, while CVS is expected to have flat to slightly growing revenues, with the overall margin potentially improving.Knorr-Bremse Financial Statement Overview
Summary
Knorr-Bremse is in a solid financial position with stable profitability and a strong balance sheet, highlighted by zero debt and robust cash generation capabilities. This provides financial flexibility despite flat revenue growth.Income Statement
Knorr-Bremse shows a stable gross profit margin with consistent revenue levels over recent years. The TTM report indicates a gross profit margin of 53.74% and a net profit margin of 5.64%, reflecting strong operational efficiency despite a slight revenue decline. The absence of EBIT suggests a focus on EBITDA, with a healthy EBITDA margin of 19.48%.78
Positive
Balance Sheet
The company maintains a strong balance sheet with no debt, resulting in a debt-to-equity ratio of zero, which is a major advantage. The equity ratio of 31.67% suggests a balanced capital structure. Return on equity is moderate at 14.61%, indicating effective use of shareholder funds.82
Very Positive
Cash Flow
Operating cash flow is robust, supporting a free cash flow growth of 28.89% over the prior year. The operating cash flow to net income ratio stands at 2.34, demonstrating strong cash generation relative to net income. The company effectively converts profits into cash flow, though free cash flow is somewhat constrained by capital expenditures.75
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.88B | 7.93B | 7.15B | 6.71B | 6.16B |
| Gross Profit | 4.24B | 4.02B | 3.52B | 3.45B | 3.26B |
| EBITDA | 1.53B | 1.21B | 1.05B | 1.21B | 1.06B |
| Net Income | 445.00M | 552.53M | 489.28M | 621.31M | 495.50M |
Balance Sheet | |||||
| Total Assets | 9.61B | 8.25B | 8.01B | 7.20B | 7.39B |
| Cash, Cash Equivalents and Short-Term Investments | 2.35B | 1.29B | 1.45B | 1.44B | 2.32B |
| Total Debt | 0.00 | 2.76B | 2.68B | 2.15B | 2.98B |
| Total Liabilities | 6.49B | 5.35B | 5.32B | 4.77B | 5.47B |
| Stockholders Equity | 3.04B | 2.84B | 2.56B | 2.33B | 1.83B |
Cash Flow | |||||
| Free Cash Flow | 696.00M | 540.00M | 189.41M | 579.96M | 674.34M |
| Operating Cash Flow | 1.04B | 914.59M | 541.55M | 975.49M | 1.04B |
| Investing Cash Flow | -750.00M | -410.64M | -505.00M | -534.37M | -576.39M |
| Financing Cash Flow | 630.00M | -397.67M | -160.81M | -1.42B | -10.37M |
Knorr-Bremse Technical Analysis
Negative
23.87
Price Trends
24.70
Negative
23.84
Positive
21.71
Positive
Market Momentum
-0.07
Positive
43.84
Neutral
25.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNRRY, the sentiment is Negative. The current price of 23.87 is below the 20-day moving average (MA) of 24.28, below the 50-day MA of 24.70, and above the 200-day MA of 21.71, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.84 is Neutral, neither overbought nor oversold. The STOCH value of 25.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KNRRY.
Knorr-Bremse Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $15.09B | 11.62 | 15.52% | ― | -2.47% | -43.12% | |
76 Outperform | $7.69B | 28.13 | 5.38% | 1.26% | -8.23% | -52.61% | |
75 Outperform | $8.94B | 13.32 | 28.71% | 2.42% | -2.29% | 35.00% | |
74 Outperform | $5.63B | 12.34 | 10.00% | 2.93% | -3.15% | -6.70% | |
72 Outperform | $15.59B | 33.98 | 13.88% | 2.05% | -0.50% | -19.08% | |
62 Neutral | $16.79B | 10.79 | -7.01% | 3.04% | 1.73% | -25.15% | |
61 Neutral | $13.00B | ― | -22.18% | ― | -0.38% | -1681.25% |
* Consumer Cyclical Sector Average
Performance Comparison
KNRRY
Knorr-Bremse
23.87
4.08
20.62%
ALV
Autoliv
116.81
21.84
23.00%
BWA
BorgWarner
35.17
2.99
9.29%
APTV
Aptiv
70.13
1.26
1.83%
LEA
Lear
106.51
-8.04
-7.02%
MBLY
Mobileye Global, Inc. Class A
15.85
-8.82
-35.75%
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.