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Kontron AG (DE:KTN)
XETRA:KTN

Kontron AG (KTN) AI Stock Analysis

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DE

Kontron AG

(XETRA:KTN)

Rating:73Outperform
Price Target:
Kontron AG is positioned well in the Computer Hardware industry, with strong financial performance characterized by robust revenue growth and stable profitability. Technical analysis indicates a neutral outlook, with a long-term positive trend. Valuation metrics suggest the stock is fairly valued, with an attractive dividend yield. The absence of recent earnings call and corporate events data means these factors do not currently impact the overall assessment.
Positive Factors
Dividend Increase
The proposed dividend increased by 20% YoY to €0.60 per share.
Sales Quality
The quality of sales improved significantly, lifting the gross margin to 44.0%.
Software & Solutions Performance
Software & Solutions remains the best-performing segment with sales of €152m in 4Q (+84% YoY) and org. growth of 12.4% for the full year.
Negative Factors
Challenging Quarter
The final quarter turned out to be more challenging than expected mainly due to the prolonged slow-down in solar and some delays in wall box deliveries.
Sales Expectations
4Q24 sales at €477m came in 13% below consensus expectations.

Kontron AG (KTN) vs. iShares MSCI Germany ETF (EWG)

Kontron AG Business Overview & Revenue Model

Company DescriptionKontron AG is a global leader in the development of embedded computing technology, offering a comprehensive range of products and services across various sectors including industrial automation, telecommunications, transportation, medical, and defense. The company specializes in providing high-performance and reliable embedded computer systems, IoT solutions, and cloud services that enhance connectivity and operational efficiency for its clients.
How the Company Makes MoneyKontron AG generates revenue primarily through the sale of its embedded computing products and IoT solutions. The company's key revenue streams include hardware sales, where it offers a variety of embedded boards and modules, computer systems, and customized solutions. Additionally, Kontron derives income from software and services related to IoT and cloud computing, which involve system integration, consulting, and support services. Strategic partnerships with industry leaders and ongoing research and development contribute to its earnings by driving innovation and expanding its product offerings to meet the evolving needs of its diverse customer base.

Kontron AG Financial Statement Overview

Summary
Kontron AG presents a strong financial profile with impressive revenue growth and stable profitability. The balance sheet is well-structured, though slightly high leverage could be a concern. Cash flow management is effective, with room for further improvement in free cash flow generation.
Income Statement
82
Very Positive
Kontron AG has shown a strong revenue growth trajectory with a notable increase of 37.4% from the previous year. The gross profit margin stands at 22.7%, reflecting a solid ability to maintain cost efficiency. The net profit margin improved to 5.4%, indicating enhanced profitability. EBIT and EBITDA margins are healthy at 6.8% and 11.8% respectively, showing effective operational management. However, there is room for improvement in profitability margins compared to industry leaders.
Balance Sheet
75
Positive
The balance sheet reflects a stable equity base with a debt-to-equity ratio of 0.96, indicating moderate leverage. Return on equity (ROE) is 14.3%, showcasing efficient use of shareholder capital. The equity ratio stands at 34.7%, suggesting a balanced approach to financing. While the company maintains a solid financial structure, the debt levels are slightly higher, which could pose risks if interest rates rise.
Cash Flow
78
Positive
Free cash flow growth has been robust, with significant generation from operations. The operating cash flow to net income ratio is 1.09, reflecting strong cash conversion capability. The free cash flow to net income ratio is 0.31, indicating positive cash generation, although capital expenditures have impacted free cash flow levels. Overall, the company demonstrates good cash flow management, though there is potential to enhance free cash flow further.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.71B1.68B1.23B1.10B1.34B1.25B
Gross Profit
409.61M383.04M258.27M183.80M264.20M200.11M
EBIT
120.80M114.16M86.48M14.79M62.68M68.58M
EBITDA
209.59M198.15M134.90M47.08M93.15M133.38M
Net Income Common Stockholders
94.47M90.69M77.71M-12.83M48.26M55.61M
Balance SheetCash, Cash Equivalents and Short-Term Investments
330.04M314.82M330.04M548.23M300.00M279.77M
Total Assets
1.37B1.82B1.37B1.44B1.35B1.25B
Total Debt
264.68M610.45M264.68M362.72M381.22M329.82M
Net Debt
-63.22M298.55M-63.22M-71.50M89.10M51.74M
Total Liabilities
766.69M1.17B766.69M805.19M928.87M837.16M
Stockholders Equity
601.96M632.46M601.96M633.84M418.56M404.04M
Cash FlowFree Cash Flow
30.47M27.76M70.58M3.95M48.29M106.89M
Operating Cash Flow
107.61M98.98M116.86M44.44M95.28M140.81M
Investing Cash Flow
-128.90M-127.09M25.73M143.67M-66.32M-77.18M
Financing Cash Flow
-129.65M10.95M-190.22M-90.78M-11.28M-65.78M

Kontron AG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price23.00
Price Trends
50DMA
22.32
Positive
100DMA
21.77
Positive
200DMA
19.44
Positive
Market Momentum
MACD
0.17
Positive
RSI
52.40
Neutral
STOCH
65.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KTN, the sentiment is Positive. The current price of 23 is above the 20-day moving average (MA) of 22.99, above the 50-day MA of 22.32, and above the 200-day MA of 19.44, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 65.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:KTN.

Kontron AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEJEN
76
Outperform
€1.12B12.889.13%1.81%1.39%13.98%
DEKTN
73
Outperform
€1.49B15.0014.43%2.18%31.41%24.30%
DEOHB
67
Neutral
€1.52B397,000.00<0.01%0.75%-2.53%-99.99%
66
Neutral
$4.50B12.285.32%248.52%4.13%-12.36%
DEPFV
62
Neutral
€1.58B41.92
4.54%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:KTN
Kontron AG
23.00
1.08
4.93%
DE:PFV
Pfeiffer Vacuum Technology
160.20
6.94
4.53%
DE:JEN
Jenoptik
19.50
-9.12
-31.86%
DE:OHB
OHB SE
79.40
36.19
83.76%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.