Knorr-Bremse AG (KBX) AI Stock Analysis

• Market Cap: €13.03B
• Dividend Yield: 2.16%
• Average Volume (3M): 111.98K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 1.09
• Revenue Growth: -1.78%
• EPS Growth: -30.46%
• Country: DE
• Employees: 29,051
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.87
• Shares Outstanding: 161,200,000
• 10 Day Avg. Volume: 154,252
• 30 Day Avg. Volume: 111,977
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €90.55
• Price Target Upside: 12.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 57 Neutral
• Price Target: €88.00 ▲(8.84% Upside)

Knorr-Bremse AG's overall stock score is primarily influenced by its stable yet challenged financial performance, with declining revenue and cash flow posing risks. Technical analysis indicates bearish momentum, while valuation metrics suggest the stock may be overvalued. These factors collectively result in a cautious outlook.

Positive Factors

Business Model Strength

Knorr-Bremse's dual focus on OEM and aftermarket services ensures a steady revenue stream, enhancing resilience against market fluctuations.

Market Position

As a global leader in braking systems, Knorr-Bremse benefits from strong brand recognition and established customer relationships, supporting long-term growth.

Innovation and Product Expansion

By investing in automation and digitalization, Knorr-Bremse is well-positioned to capitalize on industry trends, driving future revenue and market share.

Negative Factors

Declining Revenue

A significant decline in revenue indicates potential challenges in market demand or competitive pressures, which could impact long-term profitability.

Cash Flow Constraints

Declining free cash flow and low cash conversion ratios suggest liquidity issues, potentially limiting the company's ability to invest in growth opportunities.

Profit Margin Decline

A declining profit margin reflects operational inefficiencies or pricing pressures, which could hinder the company's ability to sustain profitability.

Knorr-Bremse AG Business Overview & Revenue Model

Company Description

Knorr-Bremse AG (KBX) is a leading global manufacturer of braking systems and other safety-related components for rail and commercial vehicles. Founded in 1905 and headquartered in Munich, Germany, the company operates through two primary business segments: Rail Vehicle Systems and Commercial Vehicle Systems. Its core products include air brake systems, electronic braking systems, and various components that enhance vehicle safety and efficiency, catering to both OEM (original equipment manufacturers) and aftermarket customers worldwide.

How the Company Makes Money

Knorr-Bremse generates revenue primarily through the sale of its braking systems and components to the rail and commercial vehicle sectors. The company has a diverse revenue model that includes both original equipment sales to manufacturers and aftermarket services, which provide ongoing maintenance and replacement parts for existing systems. Key revenue streams include the sale of advanced electronic braking systems, pneumatic brake systems, and associated components. Additionally, partnerships with major automotive manufacturers and rail operators enhance its market position and contribute to stable earnings. The company's focus on innovation and expanding its product portfolio, particularly in automation and digitalization, further supports its growth and profitability.

Knorr-Bremse AG Financial Statement Overview

Summary

Knorr-Bremse AG shows a stable financial profile with some concerns. The income statement reveals a healthy gross profit margin but declining revenue and net profit margin. The balance sheet is solid with manageable leverage, but cash flow analysis indicates potential constraints due to declining free cash flow.

Income Statement

Knorr-Bremse AG's income statement shows mixed results. The TTM Gross Profit Margin is healthy at 46.45%, but has declined from previous years. The Net Profit Margin is modest at 5.37%, indicating moderate profitability. Revenue has decreased by 17.7% in the TTM, showing a concerning trend. EBIT and EBITDA margins are stable, but slightly below historical levels, suggesting some operational challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 1.08 in the TTM, indicating manageable leverage. Return on Equity is reasonable at 14.04%, though it has decreased from previous years. The Equity Ratio stands at 33.49%, showing a solid equity base relative to assets.

Cash Flow

Cash flow analysis reveals some weaknesses. Free Cash Flow has declined by 25.5% in the TTM, and the Operating Cash Flow to Net Income Ratio is at 0.43, indicating potential cash flow constraints. The Free Cash Flow to Net Income Ratio is 0.77, suggesting that cash generation is not fully aligned with reported profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.85B	7.88B	7.93B	7.15B	6.71B	6.16B
Gross Profit	3.65B	4.24B	4.02B	3.52B	3.45B	3.26B
EBITDA	1.28B	1.11B	1.21B	1.05B	1.21B	1.06B
Net Income	421.93M	445.00M	552.53M	489.28M	621.31M	495.50M
Balance Sheet
Total Assets	8.59B	9.63B	8.25B	8.01B	7.20B	7.39B
Cash, Cash Equivalents and Short-Term Investments	1.43B	2.26B	1.29B	1.45B	1.44B	2.32B
Total Debt	3.10B	554.80M	2.76B	2.68B	2.15B	2.98B
Total Liabilities	5.63B	6.50B	5.35B	5.32B	4.77B	5.47B
Stockholders Equity	2.88B	3.04B	2.84B	2.56B	2.33B	1.83B
Cash Flow
Free Cash Flow	872.11M	696.00M	539.43M	189.41M	579.96M	674.34M
Operating Cash Flow	1.13B	1.04B	914.59M	541.55M	975.49M	1.04B
Investing Cash Flow	-764.22M	-750.30M	-410.64M	-505.00M	-534.37M	-576.39M
Financing Cash Flow	-96.54M	629.10M	-397.67M	-160.81M	-1.42B	-10.37M

Knorr-Bremse AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KBX, the sentiment is Negative. The current price of 80.85 is below the 20-day moving average (MA) of 86.08, below the 50-day MA of 87.19, and below the 200-day MA of 81.91, indicating a bearish trend. The MACD of -1.61 indicates Positive momentum. The RSI at 28.79 is Positive, neither overbought nor oversold. The STOCH value of 7.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:KBX.

Knorr-Bremse AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CON	69 Neutral	11.20B	7.52	8.14%	3.39%	-26.66%	82.24%
SFQ	61 Neutral	693.62M	13.57	11.00%	5.56%	-15.69%	-45.20%
KBX	57 Neutral	€13.03B	30.89	14.67%	2.16%	-1.78%	-30.46%
HLE	55 Neutral	9.26B	48.10	11.03%	1.14%	-0.29%	-41.38%
SHA0	55 Neutral	5.64B	-4.94	-26.33%	4.18%	32.82%	-362.06%
ZIL2	51 Neutral	291.46M	-1.75	-27.39%	3.26%	-4.26%	-412.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%