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

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Draegerwerk AG & Co. KGaA

(XETRA:DRW8)

Select Model

Rating:67Neutral

Price Target:EUR 90.00▲(6.13% Upside)

Action:reiterated

Date:10/31/26

The score is driven primarily by improving fundamentals and a strong balance sheet (recovery in growth, margins, and free cash flow) plus supportive valuation (low P/E and a ~2.9% yield). These positives are tempered by weak technical momentum (price below key moving averages with negative MACD) and earnings-call risks around cost discipline, China softness, and the Medical division remaining loss-making despite progress.

Positive Factors

Safety growth and defense expansionThe Safety division is showing broad demand growth and stronger profitability, while multiyear defense opportunities could expand its order base. This combination supports a more durable growth profile because it adds scale, visibility, and diversification beyond hospital capital spending.

Negative Factors

Medical division remains loss-makingMedical remains a large but underperforming segment despite year-over-year improvement, so group profitability still depends heavily on the Safety division. Continued losses could absorb cash, limit reinvestment returns, and delay the improvement in earnings quality expected from the recovery.

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

Market Cap: EUR 1.48B
Dividend Yield: 2.61%
Average Volume (3M): 3,875
Price to Earnings (P/E): 12.4
Beta (1Y): 0.67
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 29, 2026(Q3-2026)|% Change Since:10.13%|Next Earnings Date:Apr 30, 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

Solid post-2022 recovery with strong TTM revenue growth (~49%), improving margins (gross ~46%, operating ~7.7%, net ~4.8%), and much higher operating/free cash flow (TTM FCF ~€227m). Balance sheet is a strength with low leverage (D/E ~0.23) and recovering ROE (~10.6%). Main constraint is volatility (sharp 2022 downturn) and still-modest net margins for the industry, with cash-flow consistency flagged as a risk.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

69Positive

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 SentimentPositive

Last Price84.80

Price Trends

50DMA82.76Positive

100DMA80.70Positive

200DMA75.23Positive

Market Momentum

MACD-0.69Negative

RSI57.96Neutral

STOCH69.21Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DRW8, the sentiment is Positive. The current price of 84.80 is above the 20-day moving average (MA) of 75.49, above the 50-day MA of 82.76, and above the 200-day MA of 75.23, indicating a bullish trend. The MACD of -0.69 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 69.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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:SHL	77Outperform	EUR 48.87B	22.20	11.72%	2.28%	1.09%	3.52%
DE:AFX	73Outperform	EUR 3.08B	20.96	5.52%	1.57%	-0.06%	-38.81%
DE:EUZ	69Neutral	EUR 907.32M	23.24	19.49%	1.43%	4.05%	―
DE:DRW8	67Neutral	EUR 1.80B	12.39	10.20%	2.61%	5.06%	40.18%
DE:SBS	61Neutral	EUR 325.17M	-697.50	-0.17%	2.15%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DE:M3V	55Neutral	EUR 36.22M	26.32	7.77%	4.75%	-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)	84.80	25.66	43.40%
DE:AFX	Carl Zeiss Meditec	35.00	-5.49	-13.56%
DE:EUZ	Eckert & Ziegler Strahlen und Medizintechnik	15.34	-0.52	-3.29%
DE:M3V	MeVis Medical Solutions	20.00	-3.90	-16.32%
DE:SBS	STRATEC Biomedical	27.90	7.94	39.78%
DE:SHL	Siemens Healthineers	43.95	3.15	7.72%

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