XTRA:8TRA

Stock Analysis Report

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Executive Summary

Traton SE manufactures commercial vehicles worldwide. More Details


Snowflake Analysis

Good value with reasonable growth potential.


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Share Price & News

How has Traton's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8TRA is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 8TRA's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

8TRA

-0.03%

DE Machinery

0.4%

DE Market


1 Year Return

10.1%

8TRA

15.7%

DE Machinery

4.9%

DE Market

Return vs Industry: 8TRA underperformed the German Machinery industry which returned 14.3% over the past year.

Return vs Market: 8TRA exceeded the German Market which returned 3.6% over the past year.


Shareholder returns

8TRAIndustryMarket
7 Day0.9%-0.03%0.4%
30 Day11.1%6.5%4.8%
90 Day39.1%16.2%12.2%
1 Year16.8%10.1%18.4%15.7%8.2%4.9%
3 Yearn/a-25.8%-30.5%6.5%-2.8%
5 Yearn/a9.1%-2.7%45.0%24.7%

Long-Term Price Volatility Vs. Market

How volatile is Traton's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Traton undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8TRA (€24.93) is trading below our estimate of fair value (€184.11)

Significantly Below Fair Value: 8TRA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8TRA is poor value based on its PE Ratio (72.1x) compared to the DE Machinery industry average (37.5x).

PE vs Market: 8TRA is poor value based on its PE Ratio (72.1x) compared to the German market (24.4x).


Price to Earnings Growth Ratio

PEG Ratio: 8TRA is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 8TRA is good value based on its PB Ratio (1x) compared to the DE Machinery industry average (1.6x).


Next Steps

Future Growth

How is Traton forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

74.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8TRA's forecast earnings growth (74.6% per year) is above the savings rate (0.07%).

Earnings vs Market: 8TRA's earnings (74.6% per year) are forecast to grow faster than the German market (25% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 8TRA's revenue (8.7% per year) is forecast to grow faster than the German market (6% per year).

High Growth Revenue: 8TRA's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8TRA's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Traton performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8TRA has a large one-off loss of €121.0M impacting its September 30 2020 financial results.

Growing Profit Margin: 8TRA's current net profit margins (0.8%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: 8TRA's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: 8TRA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8TRA had negative earnings growth (-87.8%) over the past year, making it difficult to compare to the Machinery industry average (-48%).


Return on Equity

High ROE: 8TRA's Return on Equity (1.3%) is considered low.


Next Steps

  • Explore strong past performing companies in the Capital Goods industry.

Financial Health

How is Traton's financial position?


Financial Position Analysis

Short Term Liabilities: 8TRA's short term assets (€13.9B) do not cover its short term liabilities (€15.0B).

Long Term Liabilities: 8TRA's short term assets (€13.9B) exceed its long term liabilities (€13.3B).


Debt to Equity History and Analysis

Debt Level: 8TRA's debt to equity ratio (84.7%) is considered high.

Reducing Debt: Insufficient data to determine if 8TRA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8TRA's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: 8TRA's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Traton current dividend yield, its reliability and sustainability?

4.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8TRA's dividend (4.01%) is higher than the bottom 25% of dividend payers in the German market (0.97%).

High Dividend: 8TRA's dividend (4.01%) is in the top 25% of dividend payers in the German market (3.5%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 8TRA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 8TRA's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (289%), 8TRA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 8TRA's dividends in 3 years are forecast to be well covered by earnings (34.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Matthias Grundler (55 yo)

0.50

Tenure

Mr. Matthias Grundler has been Supervisory Board Member at Volkswagen Financial Svcs AG since 2020. He has been Chairman of Management Board of Traton SE at Volkswagen AG since July 15, 2020. Mr. Grundler ...


Leadership Team

NamePositionTenureCompensationOwnership
Christian Schulz
CFO & Member of the Executive Board2.58yrs€2.26m0.00081%
€ 101.0k
Antonio Cortes
Member of the Executive Boardno data€1.59mno data
Henrik Henriksson
Member of the Executive Boardno data€2.68m0.00021%
€ 26.2k
Christian Levin
COO & Member of the Executive Boardno data€2.12mno data
Matthias Grundler
Chairman of Management Board0.50yrno datano data
Andreas Tostmann
Member of Management Board0.50yrno datano data
Rolf Woller
Head of Investor Relationsno datano datano data
Klaus Schartel
General Counselno datano datano data
Julia Kroeber-Riel
Head of Group Communications & Governmental Relationsno datano datano data
Annette Danielski
Head of Group Financeno datano datano data

0.5yrs

Average Tenure

55yo

Average Age

Experienced Management: 8TRA's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hans Potsch
Chairman of the Supervisory Board2yrs€310.00kno data
Frank Witter
Member of the Supervisory Board2yrsno datano data
Albert Kirchmann
Member of the Supervisory Board2yrs€78.00kno data
Manfred Döss
Member of the Supervisory Board2yrsno datano data
Nina MacPherson
Member of the Supervisory Board2yrs€123.00kno data
Hiltrud Werner
Member of the Supervisory Board2yrsno datano data
Christian Porsche
Member of the Supervisory Board2yrs€120.00kno data
Julia Kuhn-Piech
Member of the Supervisory Board2yrs€244.00kno data
Athanasios Stimoniaris
Employee Representative Deputy Chairman of the Supervisory Board2yrs€375.00kno data
Gunnar Kilian
Member of the Supervisory Board2yrsno datano data
Wolf-Michael Schmid
Member of the Supervisory Board2yrs€80.00kno data
Torsten Bechstädt
Employee Representative Member of the Supervisory Board2yrs€143.00kno data

2.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 8TRA's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Traton SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Traton SE
  • Ticker: 8TRA
  • Exchange: XTRA
  • Founded: NaN
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: €12.465b
  • Shares outstanding: 500.00m
  • Website: https://www.traton.com

Number of Employees


Location

  • Traton SE
  • Dachauer Str 641
  • Munich
  • Bavaria
  • 80995
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8TRADB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURJun 2019
8TRAOM (OMX Nordic Exchange Stockholm)YesOrdinary Bearer SharesSESEKJun 2019
8TRAWBAG (Wiener Boerse AG)YesOrdinary Bearer SharesATEURJun 2019
8TRAXTRA (XETRA Trading Platform)YesOrdinary Bearer SharesDEEURJun 2019
8TRASBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Bearer SharesGBSEKJun 2019

Biography

Traton SE manufactures commercial vehicles worldwide. It operates through Industrial Business and Financial Services segments. The company offers light and heavy-duty commercial vehicles, such as trucks an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 20:36
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.