Traton 8TRA.DE
What does Traton do?
Traton is a commercial vehicle group and part of the Volkswagen Group. It brings together several truck and bus brands, including Scania, MAN, International and Volkswagen Truck & Bus. The offering ranges from heavy trucks to lighter commercial vehicles and construction trucks, as well as city buses, coaches and school buses. Diesel and gas engines are also part of the portfolio.
The company earns money from the sale of new vehicles to haulage companies, fleet operators and bus companies, and from the higher-margin service business, such as spare parts, maintenance and digital solutions like the RIO platform. Traton Financial Services provides financing, leasing and insurance, thereby supporting vehicle sales. In competitive terms, the group is among the large manufacturers of heavy commercial vehicles in Europe, North America and South America. It competes with Daimler Truck, Volvo and Paccar, among others. The brand diversity and shared technology platforms are intended to enable economies of scale.
Score profile
Rank vs. Farm & Heavy Construction Machinery (14 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Traton ranks in the middle in the group Farm & Heavy Construction Machinery (4.6/10). On growth, the company ranks among the best in the group Farm & Heavy Construction Machinery (8.2/10). On valuation (higher = cheaper), the stock ranks among the best in the group Farm & Heavy Construction Machinery (9.2/10). On financial strength, Traton ranks below average in the group Farm & Heavy Construction Machinery (3.5/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 5.9x | 14.2x | better than 96 % |
| Trailing P/E | 5.6x | 22.4x | better than 96 % |
| EV/EBITDA | 8.8x | 11.5x | better than 82 % |
| Price/sales | 0.4x | 0.9x | better than 96 % |
| Price/book | 0.9x | 1.9x | better than 96 % |
| Revenue growth | 8.7% | 5.1% | better than 68 % |
| Earnings growth | 417.0% | 1.0% | better than 96 % |
| Gross margin | 17.8% | 25.1% | better than 25 % |
| Operating margin | 6.1% | 7.4% | better than 32 % |
| Net margin | 6.9% | 4.8% | better than 61 % |
| Return on equity | 16.3% | 11.7% | better than 68 % |
| Debt/equity | 142.9% | 68.8% | better than 25 % |
| Current ratio | 1.0x | 1.9x | better than 4 % |
| Free cash flow yield | 6.0% | 3.2% | better than 75 % |
| Dividend yield | 4.9% | 1.2% | – |
| Payout ratio | 0.0% | 29.2% | – |
| Beta | 1.38 | 1.19 | – |
Valuation: what is Traton worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Traton a model range of 29.06 EUR to 83.65 EUR per share.
17 analysts, average rating “Hold”, average price target 37.50 EUR (+7.9%).
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
- Demand depends heavily on freight volumes, the economic cycle and the willingness of transport companies to invest.
- Service business, spare parts and financial services stabilize earnings because they are less cyclical than new vehicle sales.
- Group-wide synergies in purchasing, powertrains and development affect cost structure and profitability.
Risks
- The truck market is highly cyclical, so order intake and plant utilization can fall quickly in downturns.
- Stricter emission requirements and the shift to electric and alternative powertrains require high investment with uncertain returns.
- Tariffs, trade conflicts and currency fluctuations weigh on a business with global supply chains and sales markets, particularly in North America.
What to look for with Traton
The adjusted operating return on sales shows how well the group converts prices, costs and product mix into profit across the economic cycle.