Education
About Us
Working with TipRanks
Follow Us
Knorr-Bremse AG Unsponsored ADR (KNRRY)
:KNRRY
Top Page
Knorr-Bremse
(OTC:KNRRY)
Select Model
Select Model
Rating:70Outperform
Price Target:
$26.00
▲(12.02% Upside)
Knorr-Bremse's strong financial performance and robust earnings call results are the primary drivers of its stock score. The company's solid balance sheet and cash flow generation provide a stable foundation. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. Challenges in the North American truck market and FX headwinds also pose risks.
Knorr-Bremse (KNRRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.15B
Dividend Yield1.98%
Average Volume (3M)572.00
Price to Earnings (P/E)31.1
Beta (1Y)0.57
Revenue Growth0.15%
EPS Growth-26.41%
CountryUS
Employees29,051
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.26
Shares Outstanding644,800,000
10 Day Avg. Volume0
30 Day Avg. Volume572
Financial Highlights & Ratios
PEG Ratio-1.29
Price to Book (P/B)3.69
Price to Sales (P/S)1.43
P/FCF Ratio16.15
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue2.20
Enterprise Value/Gross Profit4.04
Enterprise Value/Ebitda11.22
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.11
Revenue Forecast (FY)$9.06B
Knorr-Bremse Business Overview & Revenue Model
Company DescriptionKnorr-Bremse AG is a leading global provider of braking systems and other safety-critical subsystems for rail and commercial vehicles. Founded in 1905 and headquartered in Munich, Germany, the company operates in two primary segments: Rail Vehicle Systems and Commercial Vehicle Systems. Knorr-Bremse's core products include brake control systems, air supply systems, and various electronic components, which are designed to enhance safety, efficiency, and sustainability in transportation. The company is recognized for its innovation and commitment to quality, providing solutions that meet the rigorous demands of the global automotive and rail industries.
How the Company Makes MoneyKnorr-Bremse generates revenue through the sale of its braking systems and subsystems to original equipment manufacturers (OEMs) and the aftermarket. The company has established strong relationships with major vehicle manufacturers, enabling it to secure significant contracts for new vehicle production. Additionally, Knorr-Bremse earns revenue from the aftermarket by providing maintenance, repair, and replacement parts for existing vehicles, which is a vital component of its business model. Key revenue streams include direct sales of products, long-term service agreements, and partnerships with vehicle manufacturers and transport operators. The company also benefits from ongoing investments in research and development, allowing it to innovate and expand its product offerings in response to evolving market needs, such as electric and autonomous vehicle technologies.
Knorr-Bremse Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the RVS segment and successful strategic acquisitions, which are expected to bolster future growth. However, significant challenges persist in the North American truck market, leading to a cautious outlook. The overall financial performance remains robust, but external market conditions pose risks.Q3-2025 Updates
Positive Updates
Strong Organic Growth and Profitability in RVS
RVS posted strong organic growth and increased profitability quarter-over-quarter through the BOOST program. The division's acquisition of duagon is expected to expand its offerings and enhance synergies.
Slight Margin Expansion in CVS
Despite challenges in the North American truck market, the CVS segment achieved a slight margin expansion through cost and efficiency measures and a resilient aftermarket business.
Improved EBIT Margin
Operating EBIT margin improved by 100 basis points year-over-year, with a reported margin of 13.3%, marking the best profitability within the last 16 quarters.
Successful Duagon Acquisition
The acquisition of Duagon is expected to enhance Knorr-Bremse's RVS segment and unlock synergies in electronics, supporting growth in Railway Electronics and Signaling technology units.
Strong Free Cash Flow
Free cash flow in Q3 amounted to EUR 159 million, converting into more than 100%, with a 104% cash conversion rate.
Negative Updates
Challenges in North American Truck Market
The North American truck market faced significant challenges, with truck production rates declining significantly in Q3 and a near-term recovery appearing unlikely.
Lowered Expectations for North American Truck Production
Due to a weaker than expected North American market, Knorr-Bremse lowered its truck production rate expectations for the second half of the year.
FX Headwinds
The company faced unfavorable FX developments, which impacted free cash flow and revenue figures negatively.
Softening European Truck Market
The European truck market showed signs of softening, with some postponements into the next year.
Company Guidance
During the Knorr-Bremse conference call for the third quarter of 2025, the company reported strong financial results, emphasizing its strategic initiatives and market positioning. The company achieved an order intake of nearly EUR 2 billion, with revenues of EUR 1.9 billion, reflecting a 3% organic growth. The operating EBIT margin improved by 100 basis points year-over-year, reaching 13.3%, marking the best profitability in the last 16 quarters. Free cash flow was robust at EUR 159 million, with a cash conversion rate of 104%. The RVS division posted strong organic growth, with an order intake of EUR 1.2 billion and an EBIT margin of 17.0%. The CVS division managed a slight margin expansion to 10.5% despite challenges in the North American truck market. The company confirmed its operating guidance for 2025, anticipating the lower end of its revenue guidance due to currency fluctuations and market conditions, while remaining confident in reaching its EBIT margin midpoint. Knorr-Bremse's ongoing BOOST program and strategic acquisitions, like those of Duagon and Travis Road Services, are expected to drive future growth, particularly in digital and service-oriented markets.Knorr-Bremse Financial Statement Overview
Summary
Knorr-Bremse is in a solid financial position, characterized by stable profitability and a strong balance sheet with zero debt. The company's ability to generate cash flow is commendable, aiding in maintaining financial flexibility. While revenue growth is flat, the company's profitability and cash generation capabilities are strong, supporting ongoing operations and potential future investments.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.85B | 7.88B | 7.93B | 7.15B | 6.71B | 6.16B |
| Gross Profit | 4.28B | 4.24B | 4.02B | 3.52B | 3.45B | 3.26B |
| EBITDA | 1.54B | 1.53B | 1.21B | 1.05B | 1.21B | 1.06B |
| Net Income | 421.93M | 445.00M | 552.53M | 489.28M | 621.31M | 495.50M |
Balance Sheet | ||||||
| Total Assets | 8.59B | 9.61B | 8.25B | 8.01B | 7.20B | 7.39B |
| Cash, Cash Equivalents and Short-Term Investments | 1.43B | 2.35B | 1.29B | 1.45B | 1.44B | 2.32B |
| Total Debt | 0.00 | 3.17B | 2.76B | 2.68B | 2.15B | 2.98B |
| Total Liabilities | 5.63B | 6.49B | 5.35B | 5.32B | 4.77B | 5.47B |
| Stockholders Equity | 2.88B | 3.04B | 2.84B | 2.56B | 2.33B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 820.40M | 696.00M | 540.00M | 189.41M | 579.96M | 674.34M |
| Operating Cash Flow | 1.15B | 1.04B | 914.59M | 541.55M | 975.49M | 1.04B |
| Investing Cash Flow | -763.87M | -750.00M | -410.64M | -505.00M | -534.37M | -576.39M |
| Financing Cash Flow | -95.66M | 630.00M | -397.67M | -160.81M | -1.42B | -10.37M |
Knorr-Bremse Technical Analysis
Positive
23.21
Price Trends
23.78
Positive
24.54
Positive
23.84
Positive
Market Momentum
0.07
Negative
68.82
Neutral
94.29
Negative
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 23.21 is below the 20-day moving average (MA) of 23.40, below the 50-day MA of 23.78, and below the 200-day MA of 23.84, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 68.82 is Neutral, neither overbought nor oversold. The STOCH value of 94.29 is Negative, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.68B | 13.41 | 8.96% | 2.81% | -1.90% | -13.86% | |
74 Outperform | $9.29B | 12.63 | 31.09% | 2.37% | 0.84% | 26.17% | |
73 Outperform | $17.88B | 65.70 | 3.25% | ― | 2.16% | -85.91% | |
72 Outperform | $9.67B | 72.46 | 2.24% | 1.09% | 0.08% | -83.69% | |
71 Outperform | $2.93B | 9.63 | 23.16% | 0.25% | -4.03% | -39.51% | |
70 Outperform | $15.15B | 31.09 | 14.16% | 1.98% | 0.15% | -26.41% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
KNRRY
Knorr-Bremse
25.03
6.30
33.64%
ALV
Autoliv
124.51
26.01
26.41%
BWA
BorgWarner
46.01
11.69
34.06%
APTV
Aptiv
82.74
26.60
47.38%
LEA
Lear
109.57
14.05
14.71%
VC
Visteon
107.01
13.39
14.30%
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.