Krones KRN.DE
What does Krones do?
Krones is a machinery and plant manufacturer headquartered in Neutraubling that develops, manufactures and sells technology for the beverage and liquid food industry. Its offering ranges from individual machines to complete lines for process, filling and packaging technology. Customers are mainly breweries and producers of soft drinks, juices, and milk and dairy products, as well as, increasingly, companies in the food sector.
The business is divided into the segments Filling and Packaging Technology, Process Technology and Intralogistics. Besides new machine sales, Krones earns revenue from service, spare parts, modernizations and recycling solutions, for example for PET bottles. In competition, the company is among the world's leading providers in its field. Its position rests on a broad product range from a single source, the ability to integrate lines, a global service network and strong development expertise in areas such as resource efficiency and digitalization. Competitors include other international machinery manufacturers and specialized regional providers.
Score profile
Rank vs. Specialty Industrial Machinery (49 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Krones ranks in the middle in the group Specialty Industrial Machinery (4.2/10). On growth, the company ranks in the middle in the group Specialty Industrial Machinery (4.4/10). On valuation (higher = cheaper), the stock ranks among the best in the group Specialty Industrial Machinery (9.2/10). On financial strength, Krones ranks above average in the group Specialty Industrial Machinery (6.5/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 10.6x | 18.4x | better than 91 % |
| Trailing P/E | 11.5x | 26.2x | better than 93 % |
| PEG ratio | 0.7x | 1.7x | better than 92 % |
| EV/EBITDA | 5.6x | 16.5x | better than 93 % |
| Price/sales | 0.6x | 3.0x | better than 91 % |
| Price/book | 1.5x | 4.1x | better than 86 % |
| Revenue growth | 0.3% | 7.1% | better than 26 % |
| Earnings growth | 18.6% | 12.9% | better than 62 % |
| Gross margin | 52.9% | 40.2% | better than 85 % |
| Operating margin | 5.4% | 16.5% | better than 9 % |
| Net margin | 5.4% | 10.3% | better than 23 % |
| Return on equity | 14.2% | 13.5% | better than 52 % |
| Debt/equity | 3.3% | 47.2% | better than 91 % |
| Current ratio | 1.4x | 1.9x | better than 29 % |
| Free cash flow yield | 4.6% | 3.1% | better than 77 % |
| Dividend yield | 2.5% | 1.2% | – |
| Payout ratio | 29.1% | 32.4% | – |
| Beta | 0.97 | 1.06 | – |
Valuation: what is Krones worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Krones a model range of 65.19 EUR to 192.46 EUR per share.
10 analysts, average rating “Buy”, average price target 137.70 EUR (+24.3%).
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
- The willingness of beverage and food producers to invest in new capacity and efficiency projects largely determines order intake.
- A growing installed base of plants secures recurring revenue from service, spare parts and modernizations.
- Sustainability requirements, such as recycling and lower energy and water consumption, create demand for new technologies.
Risks
- As a cyclical capital goods manufacturer, Krones is sensitive to economic weakness and restrained customer investment.
- Fluctuations in material, energy and labor costs as well as supply chain disruptions can weigh on the margin.
- Large projects and international activities carry execution, currency and geopolitical risks.
What to look for with Krones
The EBITDA margin shows how well Krones manages prices, costs and project execution, which is particularly relevant in cyclical plant engineering.