Drägerwerk DRW3.DE
What does Drägerwerk do?
Drägerwerk is a medical and safety technology group from Lübeck. The company develops, manufactures and sells devices, system solutions and services for hospitals as well as for industry and public-sector customers. Its activities are divided into the areas Medical Technology and Safety Technology.
In medical technology, the offering includes ventilators, anesthesia workstations, patient monitoring, warming therapy for premature and newborn infants, as well as solutions for emergency medicine and intensive care units. Safety technology covers respiratory protection, gas detection technology, alcohol and drug testing devices, as well as risk management for fire brigades, police, civil protection, mining and industry. Revenue arises from device sales, from accessories and consumables, and from service and maintenance. In terms of competition, Dräger is regarded as an established specialist provider with a strong brand, a high quality standard and long-standing customer relationships. Competition consists of large international medical technology and safety equipment suppliers.
Score profile
Rank vs. Medical Devices (48 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Drägerwerk ranks in the middle in the group Medical Devices (4.1/10). On growth, the company ranks in the middle in the group Medical Devices (4.1/10). On valuation (higher = cheaper), the stock ranks among the best in the group Medical Devices (8.9/10). On financial strength, Drägerwerk ranks above average in the group Medical Devices (6.5/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 11.3x | 19.8x | better than 86 % |
| Trailing P/E | 11.1x | 26.1x | better than 91 % |
| EV/EBITDA | 5.9x | 17.2x | better than 91 % |
| Price/sales | 0.5x | 3.0x | better than 91 % |
| Price/book | 1.1x | 2.6x | better than 88 % |
| Revenue growth | 2.1% | 6.9% | better than 36 % |
| Earnings growth | 0.0% | 0.0% | better than 45 % |
| Gross margin | 46.4% | 60.6% | better than 20 % |
| Operating margin | 5.8% | 10.7% | better than 36 % |
| Net margin | 4.7% | 5.5% | better than 47 % |
| Return on equity | 10.5% | 6.6% | better than 60 % |
| Debt/equity | 21.2% | 54.9% | better than 69 % |
| Current ratio | 2.1x | 2.9x | better than 33 % |
| Free cash flow yield | 8.6% | 2.1% | better than 93 % |
| Dividend yield | 2.3% | 1.6% | – |
| Payout ratio | 25.2% | 35.7% | – |
| Beta | 0.56 | 1.06 | – |
Valuation: what is Drägerwerk worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Drägerwerk a model range of 149.55 EUR to 241.77 EUR per share.
4 analysts, average rating “Buy”, average price target 110.25 EUR (+10.6%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Investment budgets of hospitals and public-sector customers largely determine demand for ventilation, anesthesia and monitoring systems.
- Recurring revenue from service, maintenance and accessories stabilizes the business over the life cycle of the installed devices.
- Regulatory requirements on occupational health and safety, fire protection and gas detection create structural demand in safety technology.
Risks
- Supply chain disruptions and rising procurement costs for electronic components and materials can weigh on production and margins.
- Approval procedures and regulatory requirements in the medical device sector cause high effort and can delay market launches.
- Fluctuating tenders and budget decisions of public-sector customers as well as price pressure in international competition can weigh on revenue and earnings.
What to look for with Drägerwerk
The gross margin shows whether pricing power and cost development in hardware, as well as the higher-margin service business, support earnings.