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Knorr-Bremse AG (DE:KBX)
XETRA:KBX
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Knorr-Bremse AG
(XETRA:KBX)
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Rating:62Neutral
Price Target:
€85.00
▲(6.05% Upside)
Knorr-Bremse AG's overall stock score reflects a stable financial position with some risks, particularly in revenue and cash flow. The earnings call provided a positive outlook with strategic growth initiatives, but technical indicators suggest a bearish trend. The valuation appears high, which may limit upside potential.
Positive Factors
Strategic Acquisitions
The acquisition of Duagon strengthens Knorr-Bremse's electronics and software capabilities, providing synergies and expanding its digital market presence, which is crucial for long-term competitiveness and innovation in the industry.
Order Intake Growth
A robust order intake indicates strong demand for Knorr-Bremse's products, supporting future revenue growth and market position, especially in the rail sector, which is a key area for the company's strategic focus.
Improved Cash Flow and ROCE
Improved cash flow and ROCE reflect efficient capital utilization and operational effectiveness, enhancing financial stability and the ability to invest in growth opportunities.
Negative Factors
Revenue Decline
A significant decline in revenue poses a risk to Knorr-Bremse's market position and profitability, potentially impacting its ability to invest in future growth and innovation.
Challenging North American Truck Market
The downturn in the North American truck market affects Knorr-Bremse's commercial vehicle segment, potentially leading to reduced revenues and necessitating workforce adjustments.
Cash Flow Constraints
Declining free cash flow indicates potential liquidity issues, which could limit Knorr-Bremse's ability to fund operations and strategic initiatives, impacting long-term growth prospects.
Knorr-Bremse AG (KBX) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€12.78B
Dividend Yield2.18%
Average Volume (3M)156.00K
Price to Earnings (P/E)29.4
Beta (1Y)1.12
Revenue Growth-1.77%
EPS Growth-28.68%
CountryDE
Employees29,051
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.89
Shares Outstanding161,200,000
10 Day Avg. Volume150,031
30 Day Avg. Volume155,999
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€90.80Price Target Upside13.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Knorr-Bremse AG Business Overview & Revenue Model
Company DescriptionKnorr-Bremse Aktiengesellschaft develops, produces, markets, and services braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. It offers braking, entrance and HVAC systems; power electrics and control technology; digital solutions for optimization of rail traffic, couplers; signal systems; stationary and mobile testing equipment; wiper and wash systems; and sanitary systems for mass transit and long distance rail vehicles. The company also provides braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves and pedal units; steering systems and vehicle dynamics solutions; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse Aktiengesellschaft is a subsidiary of KB Holding GmbH.
How the Company Makes MoneyKnorr-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 Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
Knorr-Bremse reported strong results in RVS and made strategic acquisitions, but faced significant challenges in the North American truck market and freight segment. Despite these challenges, strong order intake and improved financial metrics in other areas contributed to a balanced outlook.Q3-2025 Updates
Positive Updates
Strong RVS Performance
RVS posted strong organic growth, continuously increased its profitability quarter-over-quarter, and improved its operating EBIT margin by 100 basis points to 17.0%, beyond midterm guidance.
Duagon Acquisition
Acquisition of Swiss-based Duagon enhances Knorr-Bremse's portfolio in electronics and software solutions, unlocking synergies and increasing digital market presence.
Order Intake Growth
Knorr-Bremse achieved a strong order intake at almost EUR 2 billion, driven by strong rail order intake, leading to a more than 5% organic growth.
Improved Cash Flow and ROCE
Free cash flow in Q3 amounted to EUR 159 million. ROCE increased from 18.6% to 21%, marking a 240 basis point increase.
Negative Updates
Challenging North American Truck Market
Truck production rates in North America declined significantly in Q3 with a near-term recovery appearing unlikely. This led to a reduction in North American workforce by over 15%.
Freight Market Challenges
The freight market continues to face challenges, with a low concentration on the North American market, impacting overall demand.
Revenue Impacted by FX and Divestments
CVS revenues declined to EUR 833 million, down 9% year-over-year, driven by divestments and negative translationary FX impact.
Company Guidance
In the third quarter of 2025, Knorr-Bremse reported strong financial results, maintaining its operating guidance for the year despite challenging market conditions. The company achieved an order intake of nearly EUR 2 billion, with revenues of EUR 1.9 billion, marking over 5% organic growth. The operating EBIT margin improved by 100 basis points year-over-year to 13.3%, the highest in 16 quarters, supported by cost measures and a robust aftermarket performance. Free cash flow reached EUR 159 million, reinforcing a cash conversion rate above 100%. The RVS division saw organic growth and an operating EBIT margin of 17.0%, while CVS faced headwinds in North America but slightly expanded its margin. Knorr-Bremse's strategic acquisition of Duagon is expected to enhance its RVS segment and drive synergies in electronics, and the company is focused on increasing its after-sales service business through acquisitions like Travis Road Services. The firm remains committed to achieving a 14% EBIT margin in 2026, emphasizing cost control and operational efficiency.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.65
Positive
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.70
Positive
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.60
Neutral
| 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
Negative
80.15
Price Trends
82.06
Negative
84.22
Negative
83.76
Negative
Market Momentum
-0.43
Negative
46.24
Neutral
48.84
Neutral
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 80.15 is below the 20-day moving average (MA) of 80.25, below the 50-day MA of 82.06, and below the 200-day MA of 83.76, indicating a bearish trend. The MACD of -0.43 indicates Negative momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 48.84 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $13.26B | 8.90 | 14.83% | 2.86% | -26.66% | 82.24% | |
62 Neutral | €12.78B | 29.39 | 14.52% | 2.18% | -1.77% | -28.68% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | €8.91B | 46.31 | 6.30% | 1.17% | -0.29% | -41.38% | |
58 Neutral | €622.81M | 12.18 | 10.72% | 6.20% | -15.69% | -45.20% | |
55 Neutral | €6.45B | -5.65 | -34.39% | 3.66% | 45.16% | -790.24% | |
43 Neutral | €255.34M | -1.53 | -23.03% | 3.73% | -4.26% | -412.06% |
* Consumer Cyclical Sector Average
DE:KBX
Knorr-Bremse AG
80.15
7.00
9.57%
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-6.53
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13.76
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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.