thyssenkrupp (XTRA:TKA) - Share price, News & Analysis

Q: What is the Fair Price of TKA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TKA (€5.9) is trading below our estimate of [[fair value]] (€8.49)

TKA fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

TKA Stock Overview

thyssenkrupp AG operates in the areas of automotive technology, industrial components, marine systems, steel, and materials services in Germany, the United States, China, and internationally.

Rewards

Trading at 30.5% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 31.9% per year for the next 3 years

thyssenkrupp Competitors

Salzgitter

XTRA:SZG

€1.4b

Eisen- und Hüttenwerke

DB:EIS

€184.8m

Aurubis

XTRA:NDA

€3.0b

Fuchs Petrolub

XTRA:FPE1

€3.7b

Price History & Performance

Summary of all time highs, changes and price drops for thyssenkrupp
Historical stock prices
Current Share Price	€5.90
52 Week High	€11.36
52 Week Low	€4.82
Beta	2.23
1 Month Change	11.45%
3 Month Change	-28.08%
1 Year Change	-30.90%
3 Year Change	-37.30%
5 Year Change	-77.40%
Change since IPO	-68.42%

Recent News & Updates

Jun 03

thyssenkrupp (ETR:TKA) Takes On Some Risk With Its Use Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	TKA	DE Metals and Mining	DE Market
7D	-0.5%	-0.2%	-0.2%
1Y	-30.9%	-22.5%	-20.5%

Return vs Industry: TKA underperformed the German Metals and Mining industry which returned -22.7% over the past year.

Return vs Market: TKA underperformed the German Market which returned -20% over the past year.

Price Volatility

Is TKA's price volatile compared to industry and market?
TKA volatility
TKA Average Weekly Movement	7.3%
Metals and Mining Industry Average Movement	7.6%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	10.3%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: TKA is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TKA's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1811	97,542	Martina Merz	https://www.thyssenkrupp.com

thyssenkrupp AG operates in the areas of automotive technology, industrial components, marine systems, steel, and materials services in Germany, the United States, China, and internationally. The company’s Automotive Technology segment develops and manufactures components and systems, as well as automation solutions for the automotive industry. Its Industrial Components segment manufactures and sells forged components and system solutions for the resource, construction, and mobility sectors; and slewing rings, antifriction bearings, and seamless rolled rings for the wind energy and construction machinery sectors.

thyssenkrupp Fundamentals Summary

How do thyssenkrupp's earnings and revenue compare to its market cap?
TKA fundamental statistics
Market Cap	€3.67b
Earnings (TTM)	€893.00m
Revenue (TTM)	€37.74b

4.1x

P/E Ratio

0.1x

P/S Ratio

Is TKA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TKA income statement (TTM)
Revenue	€0
Cost of Revenue	€0
Gross Profit	€0
Other Expenses	€0
Earnings	€0

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)	1.43
Gross Margin	14.46%
Net Profit Margin	2.37%
Debt/Equity Ratio	31.8%

How did TKA perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is TKA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TKA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TKA. This is calculated by dividing TKA's market cap by their current preferred multiple.
What is TKA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€3.67b

TKA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.06x
Enterprise Value/EBITDA	1x
PEG Ratio	-0.1x

Price to Earnings Ratio vs Peers

How does TKA's PE Ratio compare to its peers?

TKA PE Ratio vs Peers

The above table shows the PE ratio for TKA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.5x
SZG Salzgitter	1.6x	-52.5%	€1.4b
EIS Eisen- und Hüttenwerke	24.2x	n/a	€184.8m
NDA Aurubis	4.2x	-33.4%	€3.0b
FPE1 Fuchs Petrolub	16.2x	11.7%	€3.7b
TKA thyssenkrupp	4.1x	-31.9%	€3.7b

Price-To-Earnings vs Peers: TKA is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (11.5x).

Price to Earnings Ratio vs Industry

How does TKA's PE Ratio compare vs other companies in the European Metals and Mining Industry?

Price-To-Earnings vs Industry: TKA is good value based on its Price-To-Earnings Ratio (4.1x) compared to the German Metals and Mining industry average (4.1x)

Price to Earnings Ratio vs Fair Ratio

What is TKA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TKA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.1x
Fair PE Ratio	6.5x

Price-To-Earnings vs Fair Ratio: TKA is good value based on its Price-To-Earnings Ratio (4.1x) compared to the estimated Fair Price-To-Earnings Ratio (6.5x).

Share Price vs Fair Value

What is the Fair Price of TKA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TKA (€5.9) is trading below our estimate of fair value (€8.49)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is thyssenkrupp forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-31.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TKA's earnings are forecast to decline over the next 3 years (-31.9% per year).

Earnings vs Market: TKA's earnings are forecast to decline over the next 3 years (-31.9% per year).

High Growth Earnings: TKA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TKA's revenue is expected to decline over the next 3 years (-5.6% per year).

High Growth Revenue: TKA's revenue is forecast to decline over the next 3 years (-5.6% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TKA's Return on Equity is forecast to be low in 3 years time (5.1%).

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Past Performance

How has thyssenkrupp performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-37.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TKA has high quality earnings.

Growing Profit Margin: TKA became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: TKA has become profitable over the past 5 years, growing earnings by -37.6% per year.

Accelerating Growth: TKA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TKA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (96.2%).

Return on Equity

High ROE: TKA's Return on Equity (7.7%) is considered low.

Discover strong past performing companies

Financial Health

How is thyssenkrupp's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TKA's short term assets (€25.4B) exceed its short term liabilities (€12.8B).

Long Term Liabilities: TKA's short term assets (€25.4B) exceed its long term liabilities (€10.7B).

Debt to Equity History and Analysis

Debt Level: TKA has more cash than its total debt.

Reducing Debt: TKA's debt to equity ratio has reduced from 364.7% to 31.8% over the past 5 years.

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

Interest Coverage: TKA's interest payments on its debt are well covered by EBIT (14.4x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.48%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate TKA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TKA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TKA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TKA's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: TKA is not paying a notable dividend for the German market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TKA has not reported any payouts.

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Management

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

5.2yrs

Average management tenure

CEO

Martina Merz (59 yo)

2.83yrs

Tenure

€3,638,000

Compensation

Ms. Martina Merz serves as Chief Executive Officer of thyssenkrupp AG since October 1, 2019 and as its Chairwoman of the Executive Board since April 1, 2020. She served as Chairwoman of Supervisory Board a...

CEO Compensation Analysis

Compensation vs Market: Martina's total compensation ($USD3.76M) is above average for companies of similar size in the German market ($USD2.38M).

Compensation vs Earnings: Martina's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: TKA's management team is seasoned and experienced (5.2 years average tenure).

Board Members

Experienced Board: TKA's board of directors are considered experienced (4.2 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/06/30
Annual Earnings	2021/09/30