Carl Zeiss Meditec (AFX) AI Stock Analysis

• Market Cap: €5.55B
• Dividend Yield: 0.98%
• Average Volume (3M): 166.10K
• Price to Earnings (P/E): 34.6
• Beta (1Y): 1.45
• Revenue Growth: 5.21%
• EPS Growth: -39.36%
• Country: DE
• Employees: 2,066
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.52
• Shares Outstanding: 89,440,570
• 10 Day Avg. Volume: 138,555
• 30 Day Avg. Volume: 166,104
• PEG Ratio: -3.39
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -429.34
• 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: €62.75
• Price Target Upside: 1.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Carl Zeiss Meditec has a strong financial foundation with effective profitability and operational efficiency. However, moderated growth rates and potential risks from liabilities present challenges. The technical indicators point to a bearish trend, while the valuation suggests the stock might be overvalued. Investors should be cautious of the lack of short-term momentum and consider the valuation in the context of industry expectations.

Positive Factors

Growth in China

Management mentions a clear upturn in refractive consumables in China, indicating a positive Chinese growth contribution.

Leadership

The new CEO, Maximilian Foerst, has extensive experience in the Chinese market, which is a key focus area for the company.

Product Approvals

Approval of Visumax 800 in China should drive better equipment revenue during H2.

Negative Factors

Market Performance

Carl Zeiss materially underperformed in 2024 as results missed expectations, consensus estimates were cut and valuation multiples compressed.

Profitability Concerns

There may be questions over DORC's profitability as operating expenses are mounting.

Tariff Impact

Tariffs notably affect manufacturing in Germany and Singapore, which could impact guidance adjustments.

Carl Zeiss Meditec Business Overview & Revenue Model

Company Description

Carl Zeiss Meditec (AFX) is a prominent player in the medical technology sector, specializing in the development and distribution of cutting-edge solutions for ophthalmology and microsurgery. As a subsidiary of the global optics and optoelectronics company Carl Zeiss AG, the company provides innovative products such as diagnostic and surgical systems for eye care professionals and surgeons worldwide.

How the Company Makes Money

Carl Zeiss Meditec generates revenue through the sale of its advanced medical devices and systems that cater to the needs of ophthalmologists and surgeons. The company's revenue streams predominantly include direct sales of equipment like optical coherence tomography systems, surgical microscopes, and intraocular lenses. Additionally, the company benefits from service contracts, maintenance agreements, and the sale of consumables related to its products. Strategic partnerships and collaborations with healthcare institutions and research organizations further bolster its market presence and drive sales. These diverse revenue streams enable Carl Zeiss Meditec to maintain a robust financial performance in the competitive medical technology industry.

Carl Zeiss Meditec Financial Statement Overview

Summary

Carl Zeiss Meditec exhibits strong profitability and effective equity utilization, with good operational efficiency. The company maintains a low debt profile, enhancing its financial stability. However, growth rates have moderated, and there is potential risk from liabilities that could impact future financial flexibility. Management should focus on reinvigorating growth and maintaining a healthy balance between liabilities and equity.

Income Statement

Carl Zeiss Meditec shows a strong Gross Profit Margin and consistent Net Income growth, indicating solid profitability and operational efficiency. The Revenue Growth Rate is positive but has slowed down in recent years, suggesting a potential plateau in growth. Both EBIT and EBITDA margins are healthy, indicating good control over costs.

Balance Sheet

The company's Debt-to-Equity Ratio is low, showing strong solvency and low reliance on debt financing. ROE is robust, emphasizing effective use of equity to generate profits. However, the Equity Ratio is relatively low due to substantial liabilities, which could pose a risk if not managed carefully.

Cash Flow

The company has a stable Free Cash Flow, although growth has been modest. Operating Cash Flow to Net Income Ratio is strong, reflecting efficient cash generation from operations. However, Free Cash Flow to Net Income has fluctuated, indicating variability in cash availability for reinvestment and financing.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.56B	2.07B	2.09B	1.90B	1.65B	1.34B
	Gross Profit
1.56B	1.09B	1.21B	1.13B	967.21M	745.52M
	EBIT
315.24M	176.35M	327.14M	413.08M	348.42M	206.60M
	EBITDA
251.80M	406.08M	502.77M	482.36M	409.21M	266.41M
	Net Income Common Stockholders
157.03M	178.73M	290.40M	293.91M	236.28M	122.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.75M	20.29M	10.60M	7.73M	7.44M	5.20M
	Total Assets
2.92B	3.39B	3.03B	2.82B	2.40B	2.01B
	Total Debt
142.01M	151.35M	155.70M	127.90M	121.27M	68.61M
	Net Debt
126.67M	131.06M	145.09M	120.17M	113.83M	63.40M
	Total Liabilities
812.91M	1.34B	860.02M	792.73M	718.59M	562.73M
	Stockholders Equity
2.09B	2.04B	2.16B	2.02B	1.66B	1.43B
Cash Flow		Free Cash Flow
-12.34M	95.11M	137.00M	106.23M	296.56M	133.54M
	Operating Cash Flow
220.02M	247.32M	250.86M	188.20M	362.66M	178.53M
	Investing Cash Flow
-429.50M	-412.31M	-110.98M	-148.89M	-75.20M	-71.95M
	Financing Cash Flow
223.65M	176.25M	-135.09M	-38.24M	-285.89M	-122.96M

Carl Zeiss Meditec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.05
• 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 DE:AFX, the sentiment is Positive. The current price of 62.05 is above the 20-day moving average (MA) of 59.86, above the 50-day MA of 59.97, and above the 200-day MA of 57.92, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 67.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:AFX.

Carl Zeiss Meditec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	75 Outperform	$55.06B	26.18	11.14%	1.93%	5.83%	13.44%
QGEN	70 Outperform	$8.89B	101.20	2.67%	―	3.31%	―
AFX	66 Neutral	€5.55B	34.56	7.48%	0.98%	5.21%	-39.36%
RHK	65 Neutral	€850.12M	21.59	3.09%	―	12.23%	-8.23%
FME	65 Neutral	€14.67B	23.73	4.37%	2.38%	0.10%	27.83%
SRT3	63 Neutral	€14.43B	165.84	3.55%	0.32%	3.99%	-36.36%
Sector *	52 Neutral	$5.15B	3.05	-44.13%	2.84%	16.42%	-0.48%