XTRA:WAC

Stock Analysis Report

Executive Summary

Wacker Neuson SE manufactures and distributes light and compact equipment under the Wacker Neuson, Kramer, and Weidemann brand names in Europe, the Americas, and Asia-Pacific.

Rewards

PE ratio (9.8x) is below the German market (20.8x)

Earnings are forecast to grow 12.29% per year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Unstable dividend track record

Profit margins (5.5%) are lower than last year (8.5%)



Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Caterpillar

NYSE:CAT

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WAC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.6%

WAC

-1.0%

DE Machinery

0.3%

DE Market


1 Year Return

-24.7%

WAC

-8.4%

DE Machinery

13.8%

DE Market

Return vs Industry: WAC underperformed the German Machinery industry which returned -2.6% over the past year.

Return vs Market: WAC underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

WACIndustryMarket
7 Day-6.6%-1.0%0.3%
30 Day-12.1%-1.1%1.3%
90 Day-5.5%3.3%5.2%
1 Year-20.7%-24.7%-5.5%-8.4%17.4%13.8%
3 Year7.5%-2.7%-14.8%-20.9%15.9%5.7%
5 Year-3.4%-17.3%7.9%-4.3%27.9%10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WAC (€14.29) is trading above our estimate of fair value (€12.23)

Significantly Below Fair Value: WAC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WAC is good value based on its PE Ratio (11.1x) compared to the Machinery industry average (16.7x).

PE vs Market: WAC is good value based on its PE Ratio (11.1x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: WAC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: WAC is good value based on its PB Ratio (0.9x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is Wacker Neuson forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAC's forecast earnings growth (12.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: WAC's earnings (13.2% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: WAC's earnings are forecast to grow, but not significantly.

Revenue vs Market: WAC's revenue (2.2% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: WAC's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Wacker Neuson performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAC has a high level of non-cash earnings.

Growing Profit Margin: WAC's current net profit margins (5.5%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: WAC's earnings have grown by 11.9% per year over the past 5 years.

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

Earnings vs Industry: WAC had negative earnings growth (-25.8%) over the past year, making it difficult to compare to the Machinery industry average (-13.7%).


Return on Equity

High ROE: WAC's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wacker Neuson's financial position?


Financial Position Analysis

Short Term Liabilities: WAC's short term assets (€1.3B) exceed its short term liabilities (€499.8M).

Long Term Liabilities: WAC's short term assets (€1.3B) exceed its long term liabilities (€538.1M).


Debt to Equity History and Analysis

Debt Level: WAC's debt to equity ratio (44.1%) is considered high.

Reducing Debt: WAC's debt to equity ratio has increased from 21.8% to 44.1% over the past 5 years.

Debt Coverage: WAC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: WAC's interest payments on its debt are well covered by EBIT (27x coverage).


Balance Sheet

Inventory Level: WAC has a high level of physical assets or inventory.

Debt Coverage by Assets: WAC's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Wacker Neuson's current dividend yield, its reliability and sustainability?

4.04%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.3%markettop25%3.6%industryaverage2.2%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: WAC's dividend (3.71%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: WAC's dividend (3.71%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

Stable Dividend: WAC's dividend payments have been volatile in the past 10 years.

Growing Dividend: WAC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41%), WAC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WAC's dividends in 3 years are forecast to be well covered by earnings (40.1% payout ratio).


Next Steps

Management

What is the CEO of Wacker Neuson's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Martin Lehner (53yo)

2.3yrs

Tenure

0

Mr. Martin Lehner has been Member of Executive Board at Wacker Neuson SE since October 2007 and its Chief Executive Officer since September 2017. Mr. Lehner served as Chief Technology Officer at Wacker Neu ...


Management Age and Tenure

3.0yrs

Average Tenure

53yo

Average Age

Experienced Management: WAC's management team is considered experienced (3 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

Experienced Board: WAC's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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.


Management Team

  • Martin Lehner (53yo)

    CEO & Member of Executive Board

    • Tenure: 2.3yrs
  • Wilfried Trepels (55yo)

    CFO & Member of Executive Board

    • Tenure: 3yrs
  • Katrin Neuffer

    Head of Corporate Communication & Investor Relations

    • Alexander Greschner (48yo)

      Chief Sales Officer & Member of Executive Board

      • Tenure: 3yrs

    Board Members

    • Kurt Helletzgruber (66yo)

      Member of Supervisory Board

      • Tenure: 12.3yrs
    • Hans Neunteufel

      Chairman of Supervisory Board

      • Matthias Schüppen (58yo)

        Member of Supervisory Board

        • Tenure: 5.7yrs
      • Elvis Schwarzmair

        Member of Supervisory Board

        • Ralph Wacker

          Deputy Chairman of Supervisory Board

          • Christian Kekelj

            Member of Supervisory Board

            • Tenure: 2.6yrs

          Company Information

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


          Key Information

          • Name: Wacker Neuson SE
          • Ticker: WAC
          • Exchange: XTRA
          • Founded: 1848
          • Industry: Construction Machinery and Heavy Trucks
          • Sector: Capital Goods
          • Market Cap: €1.042b
          • Shares outstanding: 70.14m
          • Website: https://wackerneusongroup.com

          Number of Employees


          Location

          • Wacker Neuson SE
          • Preussenstrasse 41
          • Munich
          • Bavaria
          • 80809
          • Germany

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          WACDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
          0K11LSE (London Stock Exchange)YesOrdinary SharesGBEURMay 2007
          WACXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURMay 2007
          WKRC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2007
          WACDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 2007
          WACSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFMay 2007
          WACWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMay 2007
          WACETLX (Eurotlx)YesOrdinary SharesITEURMay 2007

          Biography

          Wacker Neuson SE manufactures and distributes light and compact equipment under the Wacker Neuson, Kramer, and Weidemann brand names in Europe, the Americas, and Asia-Pacific. It operates through three segments: Light Equipment, Compact Equipment, and Services. The company offers internal and external vibrators for concrete compaction; trowels and screeds for concrete finishing; rammers, vibratory plates, and rollers for soil compaction; demolition products and saws; lighting; generators; pumps; and heaters. It also provides repair, maintenance, and spare parts; and used equipment, as well as rental, leasing, financing, training, telematics, and e-business services. In addition, the company offers compact construction equipment, including excavators, wheel loaders, telescopic handlers, skid steer and backhoe loaders, compact track loaders, and wheel and track dumpers. It serves construction, gardening, landscaping, and agriculture sectors, as well as municipal bodies and companies in the recycling, energy, oil and gas, and rail transport sectors. Wacker Neuson SE was founded in 1848 and is headquartered in Munich, Germany. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/26 21:30
          End of Day Share Price2020/01/24 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          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.