Kendrion NV (KENDR) AI Stock Analysis

• Market Cap: €241.99M
• Dividend Yield: 3.06%
• Average Volume (3M): 38.01K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.89
• Revenue Growth: -14.95%
• EPS Growth: N/A
• Country: NL
• Employees: 1,318
• Sector: General
• Sector Strength: N/A
• Industry: Auto - Parts
• EPS (TTM): 0.51
• Shares Outstanding: 15,807,427
• 10 Day Avg. Volume: 53,475
• 30 Day Avg. Volume: 38,010
• PEG Ratio: -0.02
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 6.77
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.07
• Revenue Forecast (FY): €251.17M

• Rating: 66 Neutral
• Price Target: €17.50 ▲(21.70% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is driven primarily by improving financial health (profitability, cash flow, and reduced leverage), tempered by significant revenue contraction and a track record of volatility. Technicals are supportive with price above major moving averages and positive MACD, while valuation is reasonable with a moderate P/E and a ~2.62% dividend yield.

Positive Factors

Improved leverage

A materially lower debt-to-equity (~0.39 in 2025) reduces financial risk and interest burden, giving management more flexibility to fund R&D, withstand cyclical downturns, or pursue selective investments. A stronger capital structure supports durable operations and strategic optionality.

Solid cash generation

Positive operating cash flow and meaningful free cash flow in 2025 (FCF covering ~0.8x net income) indicate the business can self-fund working capital, dividends, and debt reduction. Reliable FCF, when sustained, underpins long-term investment and balance-sheet resilience.

OEM partnerships & R&D focus

Established, recurring OEM and industrial partnerships plus ongoing R&D strengthen Kendrion's competitive moat in electromagnetic components. Deep customer relationships and product innovation secure recurring orders and adaptation to technology shifts, supporting durable revenue streams.

Negative Factors

Significant revenue decline

A near-20% top-line contraction in 2025 erodes scale and pricing leverage, pressuring long-term margin recovery. Sustained revenue declines can reduce fixed-cost absorption and make it harder to convert improved margins into stable earnings and cash generation over the medium term.

Earnings and cash volatility

Intermittent losses and periods of negative free cash flow highlight inconsistency in earnings quality and cash conversion. This volatility undermines predictability for reinvestment, dividend policy, and deleveraging, raising execution risk unless performance steadies over several quarters.

End-market concentration risk

Heavy exposure to automotive OEMs leaves Kendrion sensitive to cyclical vehicle demand, supply-chain swings, and OEM pricing pressure. While industrial exposure helps diversify, sector concentration raises the risk that macro or industry-specific downturns materially impair revenues and margins.

Kendrion NV Business Overview & Revenue Model

Company Description

Kendrion N.V. develops, manufactures, and markets electromagnetic systems and components for industrial and automotive applications in Germany, rest of Europe, the Americas, Asia, and internationally. The company operates in two segments, Industrial and Automotive. It offers switching, linear, locking, holding, door, oscillating, elevator brake, rotary, and custom solenoids; and industrial control systems to optimize automatic processes. The company also provides electromagnetic brakes for industrial safety, fire protection, elevators, appliances, wind turbines and aircrafts; and microvalves for water cleaning. In addition, it offers electromagnetic components and solutions, as well as control units for use in active suspension systems, thermal management systems, fuel systems, acoustic vehicle alerting systems, sensor cleaning systems, transmission systems, and mobile hydraulics; and electronic systems and components for use in buses and trucks, as well as in construction and agricultural vehicles. The company was formerly known as Schuttersveld N.V. and changed its name to Kendrion N.V. in 2001. Kendrion N.V. was founded in 1859 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

Kendrion generates revenue through the sale of its electromagnetic products and systems to various industries, with a significant focus on the automotive sector. Key revenue streams include the manufacturing of components for automotive systems, which are sold to original equipment manufacturers (OEMs) and aftermarket suppliers. The company also benefits from long-term partnerships with major automotive and industrial players, allowing for stable contracts and recurring orders. Additionally, Kendrion invests in research and development to innovate and expand its product lines, ensuring competitiveness and addressing emerging market demands, which further contributes to its earnings.

Kendrion NV Financial Statement Overview

Summary

2025 shows a clear recovery with positive net margin (~5.9%), stronger EBIT margin (~8.7%), improved leverage (debt-to-equity ~0.39), and positive operating/free cash flow. The main drags are a sharp revenue decline (~19.8% YoY) and a history of earnings and free-cash-flow volatility (including losses/negative FCF in prior years).

Income Statement

Profitability has improved meaningfully versus the loss in 2024, with 2025 returning to a solid positive net margin (~5.9%) and stronger operating profitability (EBIT margin ~8.7%). However, the top line is contracting (2025 revenue down ~19.8% year over year), and results have been volatile over time (notably losses in 2022 and 2024). Overall, margins look healthier recently, but growth and earnings consistency remain key weaknesses.

Balance Sheet

Leverage has improved materially: debt-to-equity declined from ~1.02 (2022) and ~0.96 (2023) to ~0.39 in 2025, indicating a more conservative capital structure. Equity has been relatively stable, and return on equity is back to positive (~9.5% in 2025) after negative in 2024. The main risk is that profitability has been cyclical, which can pressure the balance sheet again if earnings weaken.

Cash Flow

Cash generation is currently solid: 2025 operating cash flow (~30.4m) and free cash flow (~24.2m) are both positive, and free cash flow covers a large portion of net income (~0.80x). That said, cash flow reliability has been uneven (negative free cash flow in 2021 and 2024), and cash conversion versus reported profit is not consistently strong across the period, pointing to potential working-capital or cycle-driven swings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	306.20M	245.50M	301.50M	309.00M	519.30M	464.00M
Gross Profit	156.20M	35.90M	151.90M	45.00M	248.80M	225.60M
EBITDA	37.90M	36.30M	35.90M	47.70M	-6.80M	50.40M
Net Income	-1.10M	14.50M	-4.50M	9.90M	-46.30M	14.40M
Balance Sheet
Total Assets	340.90M	272.20M	364.80M	462.30M	476.60M	490.80M
Cash, Cash Equivalents and Short-Term Investments	7.70M	29.40M	8.30M	20.60M	37.80M	18.60M
Total Debt	105.00M	59.70M	111.90M	165.60M	178.10M	149.20M
Total Liabilities	185.90M	118.80M	206.30M	290.30M	301.60M	267.80M
Stockholders Equity	155.00M	153.40M	158.50M	172.00M	175.00M	223.00M
Cash Flow
Free Cash Flow	0.00	24.20M	-5.10M	6.10M	200.00K	-2.20M
Operating Cash Flow	0.00	30.40M	18.50M	36.40M	37.90M	27.80M
Investing Cash Flow	0.00	53.50M	25.80M	-29.60M	-37.90M	-48.80M
Financing Cash Flow	0.00	-61.00M	-51.20M	-27.80M	22.10M	23.90M

Kendrion NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:KENDR, the sentiment is Neutral. The current price of 14.38 is below the 20-day moving average (MA) of 15.73, below the 50-day MA of 14.99, and above the 200-day MA of 12.73, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 52.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:KENDR.

Kendrion NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAMNB	74 Outperform	€2.46B	11.48	11.89%	2.69%	3.64%	-22.13%
HYDRA	74 Outperform	€283.37M	9.22	―	3.43%	-9.19%	-0.59%
KENDR	66 Neutral	€241.99M	11.29	6.36%	3.06%	-14.95%	―
AALB	62 Neutral	€3.64B	20.51	6.13%	4.08%	-4.31%	-50.34%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
FUR	55 Neutral	€1.17B	-47.40	9.91%	8.99%	-7.57%	-51.86%