# Knorr-Bremse AG (KBX.XETRA)

Canonical: https://gigainvestors.com/s/KBX.XETRA

Analysis as of: 2026-10-16T07:34:53.944Z. Financial observations: FY2012–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 99.10 per share; close as of 2026-10-15.

Estimated value: low EUR 44.23 per share, central EUR 49.42 per share, high EUR 56.33 per share. Buy at or below the central value EUR 49.42 per share. Valuation as of 2026-10-16T07:34:53.944Z; scenarios are not confidence intervals.

Expected annual return: 6.2% at the stated quote. About 6.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; DE 10-year bond 3.4% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.15×

- FY2018: 0.15×

- FY2019: 0.15×

- FY2020: 0.14×

- FY2021: 0.14×

- FY2022: 0.11×

- FY2023: 0.11×

- FY2024: 0.11×

- FY2025: 0.11×

### moat: fail

- Recent gross margin fell 29.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 27.1%

- ROIC, second-lowest year: 17.1%

- Typical minus recent gross margin: 29.9 pp

- Typical gross margin (annual median): 51.6%

- Recent gross margin (lower of latest and 3-year median): 21.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.7%

- ROIC including acquisitions, ten-year median: 17.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 54.1%

- FY2017: 50.8%

- FY2018: 44.3%

- FY2019: 37.1%

- FY2020: 28.1%

- FY2021: 26.1%

- FY2022: 17.6%

- FY2023: 18.4%

- FY2024: 16.4%

- FY2025: 17.1%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 2.8B

- Net income, five-year total: EUR 2.6B

- Return on incremental invested capital: -11.8%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 0.8 pp

- Working capital / revenue, final three-year average: 18.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.03×

- FY2025: 1.27×

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 50.8% vs 17.1%

- Per-share earnings: 3.32 to 3.09 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.7%

- Ordinary dilution, 5-year annual growth: 1.4%

- Market cap gain: EUR 3.8B

- Cumulative retained earnings: EUR 1.8B

- Diluted shares, 10-year annual growth: 0.7%

- Diluted shares, 5-year annual growth: 1.4%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -0.9%

- Per-share value change: EUR -0.23

- Per-share value, starting three-year median: EUR 3.32

- Per-share value, ending three-year median: EUR 3.09

- Average buyback yield: 1.0%

- Buyback history: 1 years

- Debt-funded buybacks: Yes

- Acquisition spending: EUR 1.5B

- Cumulative net income, 10 years: EUR 5.4B

- ROIC, first three-year median: 50.8%

- ROIC, last three-year median: 17.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 3.27

- FY2017: EUR 3.32

- FY2018: EUR 3.68

- FY2019: EUR 3.64

- FY2020: EUR 3.08

- FY2021: EUR 3.88

- FY2022: EUR 3.04

- FY2023: EUR 3.43

- FY2024: EUR 2.76

- FY2025: EUR 3.09

### accounting: pass

- Sloan accruals: -5.8%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.00×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.55×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.5%

- FY2017: -2.5%

- FY2018: -2.1%

- FY2019: -5.8%

- FY2020: -7.3%

- FY2021: -4.9%

- FY2022: -0.7%

- FY2023: -4.4%

- FY2024: -6.2%

- FY2025: -5.8%

## Holders

## Price story

Price needs cash profits to grow 10.6% a year for ten years · sales -0.8%

Story as of 2026-10-16T10:00:02.943Z; price observation 2026-10-15.

Price needs cash profits to grow 10.6% a year for ten years

### Sales · FY2024–2025

sales -0.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 5.5B 

- FY2017: EUR 6.2B 

- FY2018: EUR 6.6B 

- FY2019: EUR 6.9B 

- FY2020: EUR 6.2B 

- FY2021: EUR 6.7B 

- FY2022: EUR 7.1B 

- FY2023: EUR 7.9B 

- FY2024: EUR 7.9B 

- FY2025: EUR 7.8B 

### Gross margin · FY2025

gross margin 21.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 53.2% 

- FY2017: 52.2% 

- FY2018: 51.1% 

- FY2019: 51.7% 

- FY2020: 53.0% 

- FY2021: 51.5% 

- FY2022: 49.2% 

- FY2023: 50.7% 

- FY2024: 53.7% 

- FY2025: 21.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto parts; annual sales are EUR 7.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2025: revenue 7817300000; grossProfit 1694000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KBX.XETRA: Knorr-Bremse AG, together with its subsidiaries, develops, produces, and markets brake systems for rail and commercial vehicles and other safety-critical systems worldwide. It operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. The Rail Vehicle Systems segment offers braking systems, entrance and HVAC systems, sanitary systems, coupling systems, digital solutions, smart services for optimizing rail traffic, power electrics, rail computing and communication (RCC)/TCMS, signaling systems, stationary and mobile testing equipment, windshield wiper and wash systems, and extensive aftermarket solutions. The Commercial Vehicle Systems segment provides pneumatic braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves, and pedal units; steering systems; vehicle dynamics solutions, such as anti-lock braking systems and electronic stability programs; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems, such as vibration dampers, engine air management, transmission control, and gear/clutch actuation products for trucks, buses, trailers, and agricultural machinery. The company offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse AG operates as a subsidiary of KB Holding GmbH.

### Why customers stay

Margins ranged from 21.7% to 53.7% during 2023–25; it earns 27.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2023: grossProfit / revenue = 50.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2024: grossProfit / revenue = 53.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2025: grossProfit / revenue = 21.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); 10-year return on capital observations [[2016,0.5411251877194856],[2017,0.5079540390969143],[2018,0.44342359543296794],[2019,0.37144936603312884],[2020,0.2814206062282355],[2021,0.26139228293230093],[2022,0.17636086693010727],[2023,0.18371306136862928],[2024,0.16415449167103366],[2025,0.17120622568093385]]; median 0.2714064445802682. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2016: growth capex 0; upkeep 246311000; owner earnings 459469000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2017: growth capex 43774000; upkeep 186111000; owner earnings 535504000. Growth capex / owner earnings = 0.08174355373629329.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2018: growth capex 78553265.48352319; upkeep 245137734.5164768; owner earnings 534084265.4835232. Growth capex / owner earnings = 0.14708028406792037.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2019: growth capex 60610397.776507616; upkeep 257536602.22349238; owner earnings 579374397.7765076. Growth capex / owner earnings = 0.10461352453459281.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2020: growth capex 0; upkeep 361644000; owner earnings 402390000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2021: growth capex 105088000; upkeep 290438000; owner earnings 621310000. Growth capex / owner earnings = 0.16913939901176547.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2022: growth capex 47470000; upkeep 304678000; owner earnings 489276000. Growth capex / owner earnings = 0.09702090435664124.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2023: growth capex 42725000; upkeep 332432000; owner earnings 552529000. Growth capex / owner earnings = 0.07732625798826849.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2024: growth capex 0; upkeep 346000000; owner earnings 459000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); FY2025: growth capex 0; upkeep 236000000; owner earnings 676000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); Dividend observations: [[2016,384899000],[2017,385073000],[2018,871289000],[2019,282100000],[2020,290160000],[2021,245024000],[2022,298220000],[2023,233740000],[2024,264000000],[2025,282000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 59% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KBX.XETRA SharesStats.PercentInsiders = 58.994 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.6% yearly over ten years; actual decline was 0.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:53.944Z); Ten-year compound average after fade. Initial solved rate 0.13946772966390586. Price 99.1; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.049429280397022 → FY2025 3.914234263446495. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2018-10: EUR 80.00 per share

- 2018-11: EUR 82.49 per share

- 2018-12: EUR 78.62 per share

- 2019-01: EUR 86.31 per share

- 2019-02: EUR 88.34 per share

- 2019-03: EUR 88.53 per share

- 2019-04: EUR 96.65 per share

- 2019-05: EUR 98.55 per share

- 2019-06: EUR 98.00 per share

- 2019-07: EUR 91.70 per share

- 2019-08: EUR 84.99 per share

- 2019-09: EUR 86.24 per share

- 2019-10: EUR 90.49 per share

- 2019-11: EUR 88.28 per share

- 2019-12: EUR 90.75 per share

- 2020-01: EUR 98.51 per share

- 2020-02: EUR 91.99 per share

- 2020-03: EUR 80.84 per share

- 2020-04: EUR 84.86 per share

- 2020-05: EUR 95.18 per share

- 2020-06: EUR 90.23 per share

- 2020-07: EUR 99.39 per share

- 2020-08: EUR 106.48 per share

- 2020-09: EUR 100.64 per share

- 2020-10: EUR 99.43 per share

- 2020-11: EUR 107.28 per share

- 2020-12: EUR 111.68 per share

- 2021-01: EUR 109.18 per share

- 2021-02: EUR 105.54 per share

- 2021-03: EUR 106.42 per share

- 2021-04: EUR 102.00 per share

- 2021-05: EUR 101.70 per share

- 2021-06: EUR 97.00 per share

- 2021-07: EUR 95.60 per share

- 2021-08: EUR 101.65 per share

- 2021-09: EUR 92.64 per share

- 2021-10: EUR 91.14 per share

- 2021-11: EUR 87.76 per share

- 2021-12: EUR 86.90 per share

- 2022-01: EUR 89.66 per share

- 2022-02: EUR 79.00 per share

- 2022-03: EUR 69.64 per share

- 2022-04: EUR 68.34 per share

- 2022-05: EUR 63.58 per share

- 2022-06: EUR 54.42 per share

- 2022-07: EUR 58.06 per share

- 2022-08: EUR 48.35 per share

- 2022-09: EUR 44.38 per share

- 2022-10: EUR 45.56 per share

- 2022-11: EUR 54.24 per share

- 2022-12: EUR 51.04 per share

- 2023-01: EUR 60.16 per share

- 2023-02: EUR 64.42 per share

- 2023-03: EUR 61.28 per share

- 2023-04: EUR 63.44 per share

- 2023-05: EUR 63.98 per share

- 2023-06: EUR 69.98 per share

- 2023-07: EUR 63.94 per share

- 2023-08: EUR 63.10 per share

- 2023-09: EUR 60.18 per share

- 2023-10: EUR 52.54 per share

- 2023-11: EUR 57.50 per share

- 2023-12: EUR 58.80 per share

- 2024-01: EUR 57.54 per share

- 2024-02: EUR 64.68 per share

- 2024-03: EUR 70.10 per share

- 2024-04: EUR 69.55 per share

- 2024-05: EUR 70.60 per share

- 2024-06: EUR 71.30 per share

- 2024-07: EUR 74.45 per share

- 2024-08: EUR 74.35 per share

- 2024-09: EUR 79.85 per share

- 2024-10: EUR 75.60 per share

- 2024-11: EUR 72.15 per share

- 2024-12: EUR 70.35 per share

- 2025-01: EUR 76.50 per share

- 2025-02: EUR 83.50 per share

- 2025-03: EUR 83.55 per share

- 2025-04: EUR 87.20 per share

- 2025-05: EUR 89.00 per share

- 2025-06: EUR 82.05 per share

- 2025-07: EUR 87.85 per share

- 2025-08: EUR 89.20 per share

- 2025-09: EUR 79.85 per share

- 2025-10: EUR 80.60 per share

- 2025-11: EUR 91.40 per share

- 2025-12: EUR 95.15 per share

- 2026-01: EUR 98.45 per share

- 2026-02: EUR 111.50 per share

- 2026-03: EUR 97.15 per share

- 2026-04: EUR 99.05 per share

- 2026-05: EUR 103.70 per share

- 2026-06: EUR 101.60 per share

- 2026-07: EUR 102.90 per share

- 2026-08: EUR 105.60 per share

- 2026-09: EUR 102.80 per share

- 2026-10: EUR 99.15 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 41.19 per share, central EUR 45.49 per share, high EUR 51.20 per share

- FY2017: low EUR 45.48 per share, central EUR 50.48 per share, high EUR 57.14 per share

- FY2018: low EUR 49.26 per share, central EUR 54.64 per share, high EUR 61.81 per share

- FY2019: low EUR 50.54 per share, central EUR 55.97 per share, high EUR 63.19 per share

- FY2020: low EUR 48.51 per share, central EUR 53.32 per share, high EUR 59.73 per share

- FY2021: low EUR 46.36 per share, central EUR 51.62 per share, high EUR 58.63 per share

- FY2022: low EUR 53.79 per share, central EUR 66.64 per share, high EUR 76.56 per share

- FY2023: low EUR 50.84 per share, central EUR 63.22 per share, high EUR 72.73 per share

- FY2024: low EUR 49.64 per share, central EUR 54.68 per share, high EUR 61.40 per share

- FY2025: low EUR 43.65 per share, central EUR 48.41 per share, high EUR 54.74 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:39.709Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations