Fact based stock research
Knorr-Bremse (XTRA:KBX)
DE000KBX1006
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
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Knorr-Bremse stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 54 (better than 54% compared with investment alternatives), Knorr-Bremse (Heavy Machinery, Germany) shares have above-average financial characteristics compared with similar stocks. Shares of Knorr-Bremse are low in value (priced high) with a consolidated Value Rank of 26 (worse than 74% of alternatives). But they show above-average growth (Growth Rank of 72) and are safely financed (Safety Rank of 50, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 54, is a buy recommendation based on Knorr-Bremse's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Knorr-Bremse exhibits low value (Obermatt Value Rank of 26), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 72). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 50) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | Germany |
Industry | Heavy Machinery |
Index | CDAX, Human Rights, Renewables Users, MDAX |
Size class | X-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Knorr-Bremse
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 18 |
|
11 |
|
26 |
|
26 |
|
GROWTH | ||||||||
GROWTH | 1 |
|
5 |
|
67 |
|
72 |
|
SAFETY | ||||||||
SAFETY | 63 |
|
15 |
|
37 |
|
50 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
33 |
|
70 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
1 |
|
54 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 54 (better than 54% compared with investment alternatives), Knorr-Bremse (Heavy Machinery, Germany) shares have above-average financial characteristics compared with similar stocks. Shares of Knorr-Bremse are low in value (priced high) with a consolidated Value Rank of 26 (worse than 74% of alternatives). But they show above-average growth (Growth Rank of 72) and are safely financed (Safety Rank of 50, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 54, is a buy recommendation based on Knorr-Bremse's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Knorr-Bremse exhibits low value (Obermatt Value Rank of 26), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 72). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 50) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 18 |
|
11 |
|
26 |
|
26 |
|
GROWTH | ||||||||
GROWTH | 1 |
|
5 |
|
67 |
|
72 |
|
SAFETY | ||||||||
SAFETY | 63 |
|
15 |
|
37 |
|
50 |
|
COMBINED | ||||||||
COMBINED | 9 |
|
1 |
|
34 |
|
54 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 26 (worse than 74% compared with alternatives), Knorr-Bremse shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Knorr-Bremse. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 52% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 29 which means that the stock price compared with what market professionals expect for future profits is higher than 71% of comparable companies, indicating a low value concerning Knorr-Bremse's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 38 which means that the stock price compared with what market professionals expect for future profit levels is higher than 62% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 25 is also low. Compared with invested capital, the stock price is higher than for 75% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 26, is a hold recommendation based on Knorr-Bremse's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Knorr-Bremse? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Knorr-Bremse only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 15 |
|
30 |
|
31 |
|
29 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 33 |
|
26 |
|
44 |
|
38 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 5 |
|
12 |
|
19 |
|
25 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 64 |
|
71 |
|
58 |
|
52 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 18 |
|
11 |
|
26 |
|
26 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 72 (better than 72% compared with alternatives), Knorr-Bremse shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Knorr-Bremse. Sales Growth has a rank of 65 which means that currently, professionals expect the company to grow more than 65% of its competitors. Capital Growth is also above 49% of competitors with a rank of 58, and Stock Returns with the rank of 74 is also an outperformance. Only Profit Growth is low with a rank of 49 which means that currently, professionals expect the company to grow its profits less than 51% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 72, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Knorr-Bremse is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 21 |
|
26 |
|
48 |
|
65 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | 95 |
|
16 |
|
46 |
|
49 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
59 |
|
71 |
|
58 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 2 |
|
11 |
|
59 |
|
74 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 1 |
|
5 |
|
67 |
|
72 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 50 (better than 50% compared with alternatives), the company Knorr-Bremse has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Knorr-Bremse is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Knorr-Bremse. Refinancing is at 50, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 50% of its competitors. Liquidity is also good at 60, meaning the company generates more profit to service its debt than 60% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 29, which means the company has an above-average debt-to-equity ratio. It has more debt than 71% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 50 (better than 50% compared with alternatives), Knorr-Bremse has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Knorr-Bremse could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Knorr-Bremse and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 60 |
|
12 |
|
22 |
|
29 |
|
REFINANCING | ||||||||
REFINANCING | 21 |
|
29 |
|
49 |
|
50 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 62 |
|
61 |
|
51 |
|
60 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 63 |
|
15 |
|
37 |
|
50 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
40 |
|
24 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
32 |
|
46 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
65 |
|
84 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
34 |
|
69 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
33 |
|
70 |
|
new |
Free stock analysis by the purely fact based Obermatt Method for Knorr-Bremse from December 19, 2024.
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