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Knorr-Bremse (KNRRY)
OTHER OTC:KNRRY
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Knorr-Bremse
(OTC:KNRRY)
73Outperform
Knorr-Bremse (KNRRY) vs. S&P 500 (SPY)
Market Cap
$15.37B
Dividend Yield1.06%
Average Volume (3M)713.00
Price to Earnings (P/E)32.0
Beta (1Y)0.57
Revenue Growth3.59%
EPS Growth27.76%
CountryUS
Employees29,051
SectorConsumer Cyclical
Sector Strength48
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.75
Shares Outstanding644,800,000
10 Day Avg. Volume0
30 Day Avg. Volume713
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)N/A
Price to Sales (P/S)1.39
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Knorr-Bremse Business Overview & Revenue Model
Company DescriptionKnorr-Bremse AG is a leading global supplier of braking systems and other safety-critical rail and commercial vehicle systems. The company operates through two main business segments: Rail Vehicle Systems and Commercial Vehicle Systems. In the Rail Vehicle Systems segment, Knorr-Bremse provides integrated systems for rail vehicles, including braking, entrance, and HVAC systems. The Commercial Vehicle Systems segment focuses on providing solutions such as braking systems, driver assistance systems, and steering systems for trucks, buses, and trailers.
How the Company Makes MoneyKnorr-Bremse generates revenue primarily through the sale of its advanced braking and safety systems to manufacturers and operators in the rail and commercial vehicle sectors. The company's revenue model is based on long-term supply contracts, aftermarket services, and maintenance agreements, ensuring a steady income stream. In the Rail Vehicle Systems segment, revenue is driven by the demand for high-performance and reliable systems for trains and metros, while the Commercial Vehicle Systems segment capitalizes on the need for safety and efficiency in road transportation. Additionally, Knorr-Bremse's strategic partnerships and investments in innovation contribute to its competitive position and financial performance.
Knorr-Bremse Financial Statement Overview
Summary
Knorr-Bremse demonstrates strong financial performance with healthy growth in revenue and profitability metrics across its financial statements. However, the rise in liabilities and negative investing cash flows warrant attention.Income Statement
Knorr-Bremse shows a healthy growth trajectory in the income statement. The TTM data indicates a consistent increase in total revenue, up from the previous year, reflecting a positive revenue growth rate. Gross and net profit margins are strong, indicating efficient cost management and profitability. The EBIT and EBITDA margins also showcase operational efficiency, although they show a slight compression compared to historical data.78
Positive
Balance Sheet
The balance sheet reflects a solid equity base with a stable equity ratio, indicating financial stability. The debt-to-equity ratio is moderate, suggesting a balanced capital structure. Return on Equity (ROE) is healthy, driven by consistent net income growth, but the increase in total liabilities could indicate rising financial commitments.72
Positive
Cash Flow
The cash flow statement highlights a robust operating cash flow, which comfortably covers net income, showing strong cash generation ability. The free cash flow has grown significantly, indicating improved cash management. However, the investing cash flow remains negative, which could be a point of concern if it results from unprofitable investments.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.97B | 7.93B | 7.15B | 6.71B | 6.16B | 6.94B | Gross Profit |
| 3.01B | 1.60B | 3.52B | 3.45B | 3.26B | 3.59B | EBIT |
| 942.12M | 886.30M | 772.71M | 929.90M | 831.34M | 1.06B | EBITDA |
| 1.31B | 1.21B | 1.04B | 1.22B | 1.10B | 1.22B | Net Income Common Stockholders |
| 609.90M | 552.53M | 489.28M | 621.31M | 495.50M | 588.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.44B | 1.29B | 1.45B | 1.44B | 2.32B | 1.94B | Total Assets |
| 8.34B | 8.25B | 8.01B | 7.20B | 7.39B | 6.85B | Total Debt |
| 2.21B | 2.76B | 2.68B | 2.15B | 2.98B | 2.53B | Net Debt |
| 942.22M | -1.29B | 1.34B | 768.30M | 699.88M | 653.02M | Total Liabilities |
| 5.29B | 5.35B | 5.32B | 4.77B | 5.47B | 4.95B | Stockholders Equity |
| 2.98B | 2.84B | 2.56B | 2.33B | 1.83B | 1.78B |
| Cash Flow | Free Cash Flow | ||||
| 693.49M | 539.43M | 189.41M | 579.96M | 674.34M | 667.64M | Operating Cash Flow |
| 1.06B | 914.59M | 541.55M | 975.49M | 1.04B | 985.79M | Investing Cash Flow |
| -820.74M | -410.64M | -505.00M | -534.37M | -576.39M | -353.82M | Financing Cash Flow |
| 650.97M | -397.67M | -160.81M | -1.42B | -10.37M | -505.17M |
Knorr-Bremse Technical Analysis
Positive
23.83
Price Trends
21.40
Positive
20.21
Positive
20.28
Positive
Market Momentum
0.84
Positive
53.34
Neutral
-0.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNRRY, the sentiment is Positive. The current price of 23.83 is below the 20-day moving average (MA) of 24.03, above the 50-day MA of 21.40, and above the 200-day MA of 20.28, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of -0.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNRRY.
Knorr-Bremse Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $15.37B | 32.02 | 15.37% | 1.06% | 3.59% | 27.76% | |
70 Outperform | $44.28B | 11.35 | 41.27% | 2.22% | 0.14% | 444.36% | |
70 Outperform | $5.18B | 10.51 | 10.81% | 3.27% | -0.70% | -7.27% | |
64 Neutral | $2.15B | ― | -3.92% | 2.83% | -2.57% | -248.28% | |
62 Neutral | $526.58M | 15.86 | 5.79% | ― | 0.75% | ― | |
62 Neutral | $6.30B | 19.09 | 6.46% | 1.53% | -11.10% | -46.32% | |
59 Neutral | $12.50B | 11.24 | 1.20% | 3.72% | 1.27% | -20.93% |
* Consumer Cyclical Sector Average
Performance Comparison
KNRRY
Knorr-Bremse
23.83
4.99
26.49%
AXL
American Axle
4.56
-2.49
-35.32%
BWA
BorgWarner
29.45
-3.76
-11.32%
CMI
Cummins
331.08
45.48
15.92%
DAN
Dana Holding
14.73
2.89
24.41%
LEA
Lear
96.60
-41.04
-29.82%
Knorr-Bremse Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 14.95% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook, with strong performance and strategic achievements in the rail segment and financial improvements, like increased EBITDA margins and successful bond issuance. However, these were tempered by challenges in the truck segment, including revenue declines and market uncertainties, which may affect future guidance.Highlights
Strong Order Intake
Order intake was over EUR 1.9 billion, with a book-to-bill ratio of 1.02, indicating strong demand despite a weak truck market.
Increased EBITDA Margin
Operating EBITDA margin increased to 12.3%, 80 basis points higher than the previous year, driven by good operating leverage and better pricing.
Successful Bond Issue
Issued a dual tranche bond amounting to EUR 1.1 billion, including the first green bond, which was 4x oversubscribed.
Positive Rail Segment Performance
Rail segment revenues increased by around 7%, with an operating EBITDA margin increase of 160 basis points to 16%.
Free Cash Flow Improvement
Free cash flow improved to EUR 184 million, contributing to a 9-month level improvement of nearly EUR 200 million.
Lowlights
Truck Segment Challenges
Truck revenues faced a 9% decline due to weak market conditions, with a corresponding European market decline of roughly 25%.
CVS Division Margin Decrease
Operating EBITDA margin for the CVS division decreased by 60 basis points to 10%.
Market Uncertainties
Ongoing uncertainties in the truck market and potential integration costs affecting margin guidance.
Company Guidance
In the Q3 2024 earnings call for Knorr-Bremse, several key metrics were highlighted. The order intake surpassed EUR 1.9 billion, with a book-to-bill ratio of 1.02, indicating strong demand despite challenges in the global truck market. Revenue also exceeded EUR 1.9 billion, with the Rail Vehicle Systems (RVS) division experiencing a 7% increase while the Commercial Vehicle Systems (CVS) division saw a 9% decline. The operating EBITDA margin improved to 12.3%, up 80 basis points from the previous year, attributed to efficiencies and better pricing strategies. The free cash flow reached EUR 184 million, with the year-to-date figure improving by nearly EUR 200 million to EUR 248 million. The guidance for 2024 remains a revenue range of EUR 7.8 billion to EUR 8.1 billion, an operating EBITDA margin between 11.5% and 13%, and a free cash flow between EUR 550 million and EUR 650 million. For 2025, Knorr-Bremse anticipates mid-single-digit revenue growth for RVS, while CVS is expected to have flat to slightly growing revenues, with the overall margin potentially improving.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.