thyssenkrupp AG (TKAMY) AI Stock Analysis

• Market Cap: $6.84B
• Dividend Yield: 51.09%
• Average Volume (3M): 2.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -4.20%
• EPS Growth: 48.55%
• Country: US
• Employees: 97,360
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.39
• Shares Outstanding: 622,531,740
• 10 Day Avg. Volume: 3,939
• 30 Day Avg. Volume: 2,591
• PEG Ratio: 0.05
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -9.04
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.08
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $14.50 ▲(37.05% Upside)

thyssenkrupp AG's overall stock score reflects significant financial challenges, with declining revenues and profitability impacting the score. Technical analysis shows moderate bullish sentiment, while valuation metrics suggest caution due to a negative P/E ratio. The earnings call provided mixed signals, with positive operational highlights offset by sales declines and lowered guidance.

Positive Factors

Marine Systems Order Backlog

The record order backlog in Marine Systems, driven by significant submarine contracts, strengthens thyssenkrupp's revenue visibility and market position in the defense sector, providing a stable foundation for future growth.

Strong Balance Sheet

A strong balance sheet with substantial net cash and credit facilities enhances thyssenkrupp's financial stability, allowing flexibility in strategic investments and resilience against economic uncertainties.

Positive Free Cash Flow Guidance

Consistent positive free cash flow indicates effective cost management and operational efficiency, supporting thyssenkrupp's ability to fund growth initiatives and reduce debt.

Negative Factors

Sales Decline

A significant decline in sales across key segments like Steel and Materials highlights challenges in market demand, potentially impacting revenue and profitability in the medium term.

Adjusted EBIT Guidance Lowered

Lowered EBIT guidance reflects operational challenges and market pressures, which may hinder profitability improvements and strategic objectives in the near future.

Net Income Loss

A net income loss indicates ongoing profitability issues, which could strain financial resources and limit thyssenkrupp's ability to invest in growth and innovation.

thyssenkrupp AG Business Overview & Revenue Model

Company Description

thyssenkrupp AG is a diversified industrial group based in Germany, operating in various sectors including materials services, industrial components, automotive technology, and elevator technology. The company provides a wide range of products and services, including steel and non-ferrous metals, building materials, automotive parts, and advanced elevator systems. With a commitment to innovation and sustainability, thyssenkrupp aims to deliver high-quality solutions to its global customer base across multiple industries.

How the Company Makes Money

thyssenkrupp AG generates revenue through several key segments. The Materials Services division is a significant contributor, supplying materials such as steel, stainless steel, and non-ferrous metals to various industries. The Industrial Components segment focuses on producing components and systems for the automotive and mechanical engineering sectors, generating revenue through the sale of precision parts and assemblies. The Automotive Technology division provides advanced systems and components to automobile manufacturers, capitalizing on the growing demand for electric vehicles and lightweight materials. Additionally, the Elevator Technology segment is a major revenue stream, offering design, installation, and maintenance of elevators and escalators, particularly in urban infrastructure projects. Strategic partnerships and joint ventures with other companies enhance thyssenkrupp's market reach and operational capabilities, contributing to its overall financial performance.

thyssenkrupp AG Financial Statement Overview

Summary

thyssenkrupp AG's financial performance is under pressure with declining revenues and profitability. Despite operational improvements in gross profit and debt reduction, the company faces challenges with negative net income and return on equity. The strong cash position and improved free cash flow provide some financial flexibility.

Income Statement

thyssenkrupp AG's income statement shows a challenging environment with declining revenues and profitability. The TTM data indicates a gross profit margin of 9.83% and a negative net profit margin of -3.58%, highlighting profitability issues. Revenue growth has been negative, with a decline from the previous year. The EBIT and EBITDA margins are also under pressure, with EBIT being negative. Despite these challenges, there is a slight improvement in gross profit, suggesting some operational efficiencies.

Balance Sheet

The balance sheet of thyssenkrupp AG reflects a relatively stable financial position, albeit with some concerns. The equity ratio stands at 32.23%, indicating a solid equity base. The company has managed to bring down total debt significantly, resulting in a zero debt-to-equity ratio in the TTM period. However, the return on equity is negative, reflecting the ongoing profitability challenges. The company's strong cash position is a positive aspect, providing a cushion for financial stability.

Cash Flow

The cash flow statement reveals a mixed picture for thyssenkrupp AG. The TTM data shows a positive operating cash flow to net income ratio of -1.68, underscoring strong cash generation despite net losses. Free cash flow has improved significantly to a positive figure, driven by cost controls and reduced capital expenditures. However, the sustainability of free cash flow growth remains uncertain, given the recent volatility in operating performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.37B	35.04B	37.53B	41.14B	34.02B	28.90B
Gross Profit	2.97B	3.24B	2.66B	5.66B	4.36B	-286.00M
EBITDA	1.64B	1.03B	1.83B	2.99B	1.30B	-1.15B
Net Income	-1.23B	-1.51B	-2.07B	1.14B	-19.00M	-5.54B
Balance Sheet
Total Assets	28.23B	29.33B	33.29B	37.49B	36.81B	36.49B
Cash, Cash Equivalents and Short-Term Investments	4.27B	6.33B	7.83B	8.20B	9.53B	11.97B
Total Debt	0.00	1.47B	3.02B	3.98B	5.43B	6.50B
Total Liabilities	18.37B	18.98B	20.60B	22.75B	25.97B	26.32B
Stockholders Equity	9.09B	9.58B	11.84B	14.20B	10.40B	9.81B
Cash Flow
Free Cash Flow	-114.00M	-243.00M	307.00M	-679.00M	-1.36B	-5.51B
Operating Cash Flow	1.46B	1.35B	2.06B	617.00M	92.00M	-3.33B
Investing Cash Flow	-712.00M	-1.13B	-1.58B	-277.00M	-510.00M	12.41B
Financing Cash Flow	-811.00M	-1.64B	-716.00M	-1.79B	-1.28B	-1.96B

thyssenkrupp AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKAMY, the sentiment is Positive. The current price of 10.58 is above the 20-day moving average (MA) of 10.48, above the 50-day MA of 10.18, and above the 200-day MA of 8.19, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKAMY.

thyssenkrupp AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLI	78 Outperform	$12.60B	16.96	26.06%	0.88%	15.71%	29.60%
ATI	74 Outperform	$13.64B	32.38	25.43%	―	7.75%	6.84%
CRS	74 Outperform	$15.30B	37.57	23.16%	0.26%	2.40%	81.54%
WOR	70 Outperform	$2.74B	25.85	11.50%	1.27%	-39.38%	175.22%
ESAB	65 Neutral	$6.72B	27.94	13.86%	0.33%	1.19%	-7.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TKAMY	56 Neutral	$6.84B	―	-12.28%	51.09%	-4.20%	48.55%

thyssenkrupp AG Corporate Events

Thyssenkrupp’s Earnings Call: Mixed Sentiments and Strategic Moves

Thyssenkrupp’s recent earnings call presented a mixed bag of sentiments. While the company celebrated significant achievements in its Marine Systems division and maintained a positive outlook for free cash flow, these positives were overshadowed by challenges such as declining sales, a lowered EBIT guidance, and a net income loss. The company also faced market headwinds and cash flow volatility, which added to the complexity of its financial landscape.

Thyssenkrupp AG Reports Strong Order Intake Amid Sales Decline

Thyssenkrupp AG is a diversified industrial group primarily engaged in the engineering, materials, and technology sectors, with a significant presence in the steel and automotive industries. The company is known for its innovative solutions and global reach.