KHD Humboldt Wedag International AG
KHD Humboldt Wedag International AG Fundamental Analysis
KHD Humboldt Wedag International AG (KWG.DE) shows moderate financial fundamentals with a PE ratio of 5.77, profit margin of 7.14%, and ROE of 14.43%. The company generates $0.2B in annual revenue with weak year-over-year growth of -2.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KWG.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakKWG.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKWG.DE trades at attractive valuation levels.
Growth Score
WeakKWG.DE faces weak or negative growth trends.
Financial Health Score
ExcellentKWG.DE maintains a strong and stable balance sheet.
Profitability Score
WeakKWG.DE struggles to sustain strong margins.
Key Financial Metrics
Is KWG.DE Expensive or Cheap?
P/E Ratio
KWG.DE trades at 5.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KWG.DE's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values KHD Humboldt Wedag International AG at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.27 times EBITDA. This is generally considered low.
How Well Does KWG.DE Make Money?
Net Profit Margin
For every $100 in sales, KHD Humboldt Wedag International AG keeps $7.14 as profit after all expenses.
Operating Margin
Core operations generate 6.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.43 in profit for every $100 of shareholder equity.
ROA
KHD Humboldt Wedag International AG generates $5.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
KHD Humboldt Wedag International AG produces operating cash flow of $32.58M, showing steady but balanced cash generation.
Free Cash Flow
KHD Humboldt Wedag International AG generates strong free cash flow of $30.64M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.62 in free cash annually.
FCF Yield
KWG.DE converts 35.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How KWG.DE Stacks Against Its Sector Peers
| Metric | KWG.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.77 | 25.96 | Better (Cheaper) |
| ROE | 14.43% | 1263.00% | Weak |
| Net Margin | 7.14% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.07 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.28 | 10.05 | Neutral |
| ROA | 5.98% | -1497918.00% (disorted) | Weak |
KWG.DE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews KHD Humboldt Wedag International AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.11%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
156.00%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-10.58%
Industry Style: Cyclical, Value, Infrastructure
Declining