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

knorr-bremse.com

ANALYSIS: With an Obermatt Combined Rank of 50 (better than 50% 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 28 (worse than 72% of alternatives), and are riskily financed (Safety Rank of 48, which means above-average debt burdens) but show above-average growth (Growth Rank of 66). ...read more

RECOMMENDATION: A Combined Rank of 50, is a buy recommendation based on Knorr-Bremse's financial characteristics. As the company Knorr-Bremse shows low value with an Obermatt Value Rank of 28 (72% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 66% of comparable companies (Obermatt Growth Rank is 66). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 48 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Knorr-Bremse, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	28
Growth Rank	66
Safety Rank	48
Combined Rank	50

Country	Germany
Industry	Heavy Machinery
Index	CDAX, Human Rights, Renewables Users, MDAX
Size class	X-Large

This stock has achievements: Top 10 Stock.

23-Jan-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Research History: Knorr-Bremse

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	18	11	26	28
GROWTH
GROWTH	1	5	67	66
SAFETY
SAFETY	63	15	37	48
SENTIMENT
SENTIMENT	n/a	33	70	^new
360° VIEW
360° VIEW	n/a	1	54	^new

Most recent update of the stock research: 23-Jan-2025. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Knorr-Bremse is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	18	11	26	28
GROWTH
GROWTH	1	5	67	66
SAFETY
SAFETY	63	15	37	48
COMBINED
COMBINED	9	1	34	50

Last update of combined financial performance: 23-Jan-2025. Stock analysis on combined financial performance: The higher the rank of Knorr-Bremse the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 28 (worse than 72% 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 28, 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	28

Last update of Value Rank: 23-Jan-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Knorr-Bremse; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 66 (better than 66% 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 57 which means that currently, professionals expect the company to grow more than 57% of its competitors. Capital Growth is also above 42% of competitors with a rank of 60, and Stock Returns with the rank of 81 is also an outperformance. Only Profit Growth is low with a rank of 42 which means that currently, professionals expect the company to grow its profits less than 58% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 66, 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	57
PROFIT GROWTH
PROFIT GROWTH	95	16	46	42
CAPITAL GROWTH
CAPITAL GROWTH	n/a	59	71	60
STOCK RETURNS
STOCK RETURNS	2	11	59	81
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	1	5	67	66

Last update of Growth Rank: 23-Jan-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Knorr-Bremse.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 48 (better than 48% compared with alternatives), the company Knorr-Bremse has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Knorr-Bremse is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, 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 48 (worse than 52% compared with alternatives), Knorr-Bremse has a financing structure that is riskier 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	48

Last update of Safety Rank: 23-Jan-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Knorr-Bremse and the more cash is available to service its debt.

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

Last update of Sentiment Rank: 23-Jan-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Knorr-Bremse.
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