Draegerwerk AG & Co. KGaA (DRW8) AI Stock Analysis

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Draegerwerk AG & Co. KGaA

(XETRA:DRW8)

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Rating:75Outperform

Price Target:EUR 85.00▲(7.87% Upside)

Action:reiterated

Date:10/31/26

Draegerwerk's solid overall score of 75 is primarily driven by an attractive valuation, excellent cash flow generation, and major fundamental milestones like the lifting of its FDA warning letter. While the core business shows strong resilience and margin recovery, investors should be mindful of near-term bearish technical trends and ongoing challenges in the Medical division.

Positive Factors

Recovery in growth and cash generationThe sharp improvement in revenue, operating cash flow and free cash flow indicates that Dräger has rebuilt operating momentum after the 2022 trough. Stronger internal cash generation can support investment, debt reduction and customer support while improving resilience over the next several quarters.

Negative Factors

Medical remains loss-makingMedical has improved but still consumes earnings capacity rather than contributing positive operating profit. Continued losses in a core segment could restrain group margin expansion, limit the benefit of revenue growth and require sustained execution before profitability becomes durable.

Draegerwerk AG & Co. KGaA (DRW8) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.33B
Dividend Yield: 2.80%
Average Volume (3M): 3,763
Price to Earnings (P/E): 11.8
Beta (1Y): 0.63
Revenue Growth: 5.06%
EPS Growth: 40.18%
Country: Germany
Employees: 16,687
Sector: General
Sector Strength: 55
Industry: Medical - Devices

Draegerwerk AG & Co. KGaA Business Overview & Revenue Model

Company Description

Headquartered in Lübeck, Germany, and established in 1889, Drägerwerk AG & Co. KGaA is a global provider of advanced medical and safety technology solutions. The company serves a diverse international clientele across Europe, the Americas, Africa, As...

How the Company Makes Money

Dräger generates revenue primarily through the sale of equipment, consumables/accessories tied to its installed base, and recurring service and maintenance offerings across its Medical and Safety segments. 1) Product/equipment sales (often higher-tic...

Draegerwerk AG & Co. KGaA Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:2.34%|Next Earnings Date:Apr 29, 2025

Earnings Call SentimentPositive

The call was predominantly positive. Dräger reported strong nine-month order intake, sales, earnings, cash flow, balance-sheet improvement and Safety division momentum, confirmed full-year guidance, and highlighted the lifting of the FDA warning letter and opportunities in defense. These positives were tempered by third-quarter EBIT and Medical performance declines, higher functional expenses, a negative net tariff effect, weaker China demand, Americas and APAC pressure in specific areas, and the need for tight fourth-quarter cost management.

Positive Updates

Strong Nine-Month Top-Line and Earnings Growth

Order intake was around EUR 2.7 billion and noticeably above the high prior-year level. Net sales grew by around EUR 110 million to around EUR 2.5 billion, while earnings rose by roughly EUR 35 million to around EUR 112 million. The EBIT margin increased to 4.6%.

Negative Updates

Americas Order Intake Decline

Group order intake growth was supported by all regions except the Americas, which saw a significant decline as a result of a major hospital infrastructure systems order from Mexico in the second quarter of 2025.

Company Guidance

For the full year of 2026, Dräger confirmed guidance for net sales growth of 2% to 6%, net of currency effects, and an EBIT margin of 6% to 8%; the target remains unchanged to keep full year expense growth below net sales growth, free cash flow is expected to continue to develop positively, and the company expects order intake and sales to be better for the remainder of the year, with the fourth quarter being the best quarter. The goal to increase defense business from roughly EUR 100 million, which was had in around '25, to around EUR 300 million is unchanged, and the dividend policy remains unchanged at distributing at least 30% of net income as dividend.

Draegerwerk AG & Co. KGaA Financial Statement Overview

Summary

Strong fundamental performance driven by a highly resilient balance sheet, aggressive debt reduction, and robust cash flow generation. A commendable recovery in revenue and expanding gross margins further support this positive outlook.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

84Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.59B	3.48B	3.37B	3.37B	3.05B	3.33B
Gross Profit	1.67B	1.52B	1.51B	1.46B	1.24B	1.54B
EBITDA	404.63M	384.83M	351.68M	318.33M	62.63M	421.65M
Net Income	169.59M	139.50M	124.41M	110.43M	-64.56M	154.23M
Balance Sheet
Total Assets	3.26B	3.28B	3.09B	3.09B	3.11B	3.18B
Cash, Cash Equivalents and Short-Term Investments	270.90M	284.06M	248.18M	279.36M	319.50M	577.38M
Total Debt	228.93M	405.11M	395.58M	471.38M	361.95M	348.01M
Total Liabilities	1.55B	1.65B	1.56B	1.69B	1.79B	1.92B
Stockholders Equity	1.71B	1.63B	1.54B	1.41B	1.32B	1.26B
Cash Flow
Free Cash Flow	227.35M	166.50M	103.52M	121.47M	-231.09M	274.54M
Operating Cash Flow	320.54M	238.33M	167.31M	189.68M	-144.23M	384.89M
Investing Cash Flow	-82.54M	-98.15M	-43.39M	-67.34M	36.83M	-109.92M
Financing Cash Flow	-162.12M	-83.99M	-161.38M	-154.56M	-29.38M	-334.64M

Draegerwerk AG & Co. KGaA Technical Analysis

Technical Analysis SentimentNeutral

Last Price78.80

Price Trends

50DMA83.53Negative

100DMA80.08Negative

200DMA74.87Positive

Market Momentum

MACD-2.87Negative

RSI43.55Neutral

STOCH71.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DRW8, the sentiment is Neutral. The current price of 78.80 is above the 20-day moving average (MA) of 78.53, below the 50-day MA of 83.53, and above the 200-day MA of 74.87, indicating a neutral trend. The MACD of -2.87 indicates Negative momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 71.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:DRW8.

Draegerwerk AG & Co. KGaA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

DE:DRW8 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:DRW8	75Outperform	EUR 1.67B	11.79	10.20%	2.80%	5.06%	40.18%
DE:AFX	73Outperform	EUR 3.13B	21.43	5.52%	1.54%	-0.06%	-38.81%
DE:SHL	70Outperform	EUR 48.37B	22.65	12.00%	2.23%	-0.92%	2.06%
DE:EUZ	69Neutral	EUR 837.87M	17.50	19.49%	1.57%	4.42%	35.68%
DE:SBS	61Neutral	EUR 303.90M	-638.75	-0.17%	2.35%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DE:M3V	55Neutral	EUR 36.40M	26.18	7.77%	4.77%	-6.92%	-67.82%

* General Sector Average

Performance Comparison

DE:DRW8 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:DRW8	Draegerwerk AG & Co. KGaA (0MT8)	78.80	21.79	38.23%
DE:AFX	Carl Zeiss Meditec	35.78	-5.06	-12.39%
DE:EUZ	Eckert & Ziegler Strahlen und Medizintechnik	14.00	-1.66	-10.63%
DE:M3V	MeVis Medical Solutions	19.90	-4.19	-17.40%
DE:SBS	STRATEC Biomedical	25.55	5.59	28.01%
DE:SHL	Siemens Healthineers	44.85	1.60	3.70%

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.

Date of analysis: Oct 31, 2026

Draegerwerk AG & Co. KGaA AI Stock Analysis