KHD Humboldt Wedag (KWG) AI Stock Analysis

• Market Cap: €100.40M
• Dividend Yield: N/A
• Average Volume (3M): 4.60K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.40
• Revenue Growth: -0.67%
• EPS Growth: 2431.93%
• Country: DE
• Employees: 944
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.06
• Shares Outstanding: 49,703,570
• 10 Day Avg. Volume: 7,878
• 30 Day Avg. Volume: 4,601
• PEG Ratio: 0.05
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 6.28
• 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: €2.00
• Price Target Upside: -1.17% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: €2.00 ▼(-0.99% Downside)

KHD Humboldt Wedag's overall score is driven by strong financial performance with improvements in profitability and a solid balance sheet. The technical analysis shows bullish momentum, although caution is advised due to potential overbought conditions. The valuation is reasonable, suggesting room for appreciation. The absence of recent earnings call insights or notable corporate events did not influence the score.

KHD Humboldt Wedag Business Overview & Revenue Model

Company Description

KHD Humboldt Wedag (KWG) is a global leader in the cement and minerals industry, specializing in the design, engineering, and supply of equipment and technologies for the production of cement and the processing of minerals. The company offers a wide range of products and services, including kiln systems, grinding and separation technologies, and complete plant solutions. With a strong focus on sustainability and innovation, KHD serves clients across various sectors, providing efficient and environmentally-friendly solutions for cement production and mineral processing.

How the Company Makes Money

KHD Humboldt Wedag generates revenue primarily through the sale of equipment and technology solutions for the cement and minerals industries. Key revenue streams include the sale of kiln systems, grinding equipment, and other machinery, as well as engineering services and project management for plant construction. The company also earns revenue from aftermarket services, including maintenance contracts and spare parts sales, which provide ongoing support to clients. Significant partnerships with major players in the cement industry further enhance KHD's market presence and contribute to its earnings, as these collaborations often lead to large-scale projects and long-term contracts.

KHD Humboldt Wedag Financial Statement Overview

Summary

KHD Humboldt Wedag exhibits significant improvements in profitability and a strong balance sheet with low leverage and ample cash reserves. Operational efficiency is enhanced, as shown in improved margins, although revenue has slightly declined. Cash flow generation is robust, but operating cash flow management can improve.

Income Statement

KHD Humboldt Wedag has shown a notable improvement in its financial performance over recent years. The gross profit margin increased from approximately 14.2% in 2023 to 20.2% in 2024, indicating more efficient production. The net profit margin also improved from 1.9% in 2023 to 4.8% in 2024, showcasing enhanced profitability. However, revenue declined by 2.9% from 2023 to 2024, which is a concern despite improved margins. The EBIT margin rose significantly from 0.07% to 5.2%, and the EBITDA margin improved to 9.2% from 4.6%, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet indicates a strong financial position with a debt-to-equity ratio of 0.06 in 2024, down from 0.09 in 2023, highlighting reduced leverage. The equity ratio slightly declined from 39.8% in 2023 to 42.0% in 2024, signaling a stable capital structure. ROE improved to 9.9% in 2024 from 4.5% in 2023, showing better returns to shareholders. The company's strong cash position with negative net debt enhances its financial flexibility.

Cash Flow

The cash flow analysis reveals consistent free cash flow generation, although the free cash flow decreased slightly from €13.9 million in 2023 to €11.1 million in 2024. The operating cash flow to net income ratio remains healthy, indicating sufficient cash generation from operations. However, the decline in operating cash flow from €16.7 million in 2023 to €13.2 million in 2024 suggests a need for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	209.67M	218.13M	224.68M	210.37M	226.26M	151.23M
Gross Profit	48.73M	44.04M	31.96M	27.58M	19.30M	11.12M
EBITDA	20.82M	19.48M	10.30M	7.92M	4.06M	-1.72M
Net Income	14.98M	10.57M	4.28M	283.00K	-1.14M	-7.96M
Balance Sheet
Total Assets	240.14M	255.06M	237.45M	254.01M	303.70M	258.92M
Cash, Cash Equivalents and Short-Term Investments	79.06M	92.16M	127.35M	138.55M	66.78M	69.03M
Total Debt	4.59M	6.49M	8.08M	34.60M	28.10M	28.46M
Total Liabilities	137.23M	147.55M	142.48M	161.62M	212.99M	169.79M
Stockholders Equity	102.41M	107.01M	94.47M	91.90M	90.20M	88.64M
Cash Flow
Free Cash Flow	30.64M	11.08M	14.17M	-21.65M	-8.96M	-8.08M
Operating Cash Flow	32.58M	13.21M	16.66M	-17.89M	-6.74M	-6.33M
Investing Cash Flow	9.52M	503.00K	17.25M	-5.08M	9.09M	4.12M
Financing Cash Flow	-2.13M	-1.76M	-27.20M	-1.67M	-1.61M	-1.41M

KHD Humboldt Wedag Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:KWG, the sentiment is Positive. The current price of 2.02 is below the 20-day moving average (MA) of 2.04, above the 50-day MA of 1.99, and above the 200-day MA of 1.78, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 44.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:KWG.

KHD Humboldt Wedag Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIN	82 Outperform	€937.54M	9.08	18.48%	1.82%	13.89%	85.44%
KWG	78 Outperform	€100.40M	6.70	14.68%	―	-0.67%	2431.93%
KRN	72 Outperform	€4.05B	14.10	15.37%	2.09%	10.25%	20.72%
JEN	71 Outperform	€1.13B	14.58	7.86%	1.93%	-2.59%	-3.21%
JUN3	65 Neutral	€3.00B	10.52	11.92%	2.72%	-1.50%	2.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DEZ	57 Neutral	€1.39B	52.94	3.09%	1.92%	1.57%	-70.53%