Knorr-Bremse (KNRRY)
OTHER OTC:KNRRY
Want to see KNRRY full AI Analyst Report?
Top Page
Knorr-Bremse
(OTC:KNRRY)
Select Model
Select Model
Rating:69Neutral
Price Target:
$33.00
▲(12.02% Upside)
Action:Downgraded
Date:05/11/26
The score is driven mainly by solid financial performance (growth returning, steady operating profitability, strong free cash flow) and a supportive earnings update with confirmed guidance and improving margins. Technicals add a moderate tailwind with price above key moving averages, while valuation (P/E ~25.5 with a modest yield) is the main constraint on the overall score.
Positive Factors
Strong free cash flow generation
Sustained FCF (~$784M, ~75% of net income) provides durable funding for capex, working capital, M&A and shareholder returns. High cash conversion relative to earnings strengthens financial resilience through cycles and supports strategic investment without relying on external financing.
Negative Factors
Meaningful financial leverage
Debt nearly equals equity, leaving limited balance-sheet cushion. This reduces flexibility for counter-cyclical investment or opportunistic M&A, increases interest-rate and refinancing sensitivity, and tightens management choices if margins or cash flow deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained FCF (~$784M, ~75% of net income) provides durable funding for capex, working capital, M&A and shareholder returns. High cash conversion relative to earnings strengthens financial resilience through cycles and supports strategic investment without relying on external financing.
Read all positive factors
Knorr-Bremse (KNRRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.17B
Dividend Yield1.78%
Average Volume (3M)221.00
Price to Earnings (P/E)25.5
Beta (1Y)0.67
Revenue Growth6.98%
EPS Growth39.60%
CountryUS
Employees29,051
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.87
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 Cap0.95
Enterprise Value/Revenue2.33
Enterprise Value/Gross Profit7.36
Enterprise Value/Ebitda13.39
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.33
Revenue Forecast (FY)$9.67B
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:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone: strong operational execution (notably margin expansion across both divisions), record RVS backlog, CVS profitability rebound, disciplined capital allocation and confirmed guidance. Headwinds are present—China normalization, North American truck market weakness, HVAC divestment timing and geopolitical supply‑chain risk—but management presented concrete mitigation actions (BOOST and portfolio rotation), productivity gains, and a resilient aftermarket mix. On balance the positive drivers (margin recovery, backlog, ROCE, FCF improvement and confirmed guidance) outweigh the manageable lowlights.Positive Updates
Best Q1 in Five Years
Management stated this was Knorr-Bremse's best first quarter in the past five years, with strong execution despite geopolitical volatility.
Negative Updates
Slight Decline in Overall Order Intake
Group order intake declined only slightly YoY but was not a growth beat; management described project tender lumpy dynamics especially in Rail.
Read all updates
Q1-2026 Updates
Positive
Negative
Best Q1 in Five Years
Management stated this was Knorr-Bremse's best first quarter in the past five years, with strong execution despite geopolitical volatility.
Read all positive updates
Company Guidance
Knorr‑Bremse confirmed its 2026 guidance of group revenues EUR 8.0–8.3bn, an operating margin of at least 14% and free cash flow EUR 750–850m (assuming Feb 2026 FX and no major Middle East escalation). Q1 supports this outlook: group order intake >EUR2.2bn, revenues ~EUR2bn (+2% organic), operating EBIT margin +140bps y/y (highest Q1 in 5 years) and free cash flow EUR32m; capex was EUR62m, NWC EUR1.46bn and ROCE 21%. Division detail: RVS Q1 order intake EUR1.26bn (book‑to‑bill ~1.2), backlog >EUR5.9bn (+7%), Q1 revenues EUR1.06bn (+1% organic), Q1 EBIT margin 16.5% (+90bps) and FY RVS margin ~17.5%; CVS Q1 order intake EUR964m (book‑to‑bill 1.1), order book ~EUR1.9bn, Q1 revenues EUR878m (+3.6% organic), Q1 EBIT EUR101m (margin 11.5%, +200bps) and FY target toward 12% with low‑ to mid‑single‑digit organic revenue growth.Knorr-Bremse Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.81B | 7.51B | 7.88B | 7.93B | 7.15B | 6.71B |
| Gross Profit | 2.47B | 1.63B | 4.24B | 4.02B | 3.52B | 3.45B |
| EBITDA | 1.36B | 1.21B | 1.53B | 1.21B | 1.05B | 1.21B |
| Net Income | 553.10M | 512.92M | 445.00M | 552.53M | 489.28M | 621.31M |
Balance Sheet | ||||||
| Total Assets | 9.43B | 9.20B | 9.61B | 8.25B | 8.01B | 7.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.27B | 1.74B | 2.35B | 1.29B | 1.45B | 1.44B |
| Total Debt | 3.20B | 3.08B | 3.17B | 2.76B | 2.68B | 2.15B |
| Total Liabilities | 6.06B | 6.02B | 6.49B | 5.35B | 5.32B | 4.77B |
| Stockholders Equity | 3.29B | 3.10B | 3.04B | 2.84B | 2.56B | 2.33B |
Cash Flow | ||||||
| Free Cash Flow | 783.89M | 798.20M | 696.00M | 540.00M | 189.41M | 579.96M |
| Operating Cash Flow | 1.05B | 1.02B | 1.04B | 914.59M | 541.55M | 975.49M |
| Investing Cash Flow | -835.17M | -365.00M | -750.00M | -410.64M | -505.00M | -534.37M |
| Financing Cash Flow | -1.18B | -1.09B | 630.00M | -397.67M | -160.81M | -1.42B |
Knorr-Bremse Technical Analysis
Positive
29.46
Price Trends
29.09
Positive
29.41
Positive
26.99
Positive
Market Momentum
0.23
Negative
51.18
Neutral
77.51
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 29.39, above the 50-day MA of 29.09, and above the 200-day MA of 26.99, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 77.51 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $12.97B | 11.51 | 6.34% | 1.24% | 2.36% | 34.03% | |
74 Outperform | $6.65B | 8.78 | 10.41% | 2.63% | 2.86% | 17.30% | |
74 Outperform | $2.95B | 19.91 | 11.08% | 0.57% | -2.04% | -43.19% | |
72 Outperform | $8.60B | 13.85 | 27.78% | 2.60% | 6.14% | 7.30% | |
69 Neutral | $19.17B | 25.55 | 17.95% | 1.78% | 6.98% | 39.60% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $11.50B | 16.63 | 3.90% | ― | 5.20% | -71.83% |
* Consumer Cyclical Sector Average
KNRRY
Knorr-Bremse
29.34
4.82
19.67%
ALV
Autoliv
115.82
16.76
16.92%
BWA
BorgWarner
61.82
29.23
89.67%
APTV
Aptiv
53.01
-4.03
-7.07%
LEA
Lear
130.36
38.98
42.66%
VC
Visteon
108.50
24.09
28.54%
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.