Intrinsic Value Dürr AG (DUE.DE)

• Previous Close: €22.50
• Intrinsic Value: €13.62
• Upside potential: -39%

Stock Valuation Context

Business Model And Market Position

Dürr AG is a global leader in mechanical and plant engineering, specializing in solutions for the automotive, woodworking, and industrial sectors. The company operates through five segments: Paint and Final Assembly Systems, Application Technology, Clean Technology Systems, Measuring and Process Systems, and Woodworking Machinery and Systems. Its core revenue model is driven by the design, construction, and modernization of production facilities, particularly for automotive paint shops and assembly lines. Dürr also provides advanced digital solutions, such as the DXQ software suite, which enhances plant monitoring and manufacturing efficiency. The company’s diversified portfolio includes technologies for spray application, exhaust-air purification, and battery electrode coating, positioning it as a key player in sustainable industrial processes. With a strong foothold in Europe and expanding global operations, Dürr leverages its engineering expertise to serve high-growth markets, including electric vehicle production and industrial automation. Its market position is reinforced by long-standing relationships with major automotive manufacturers and a reputation for innovation in precision engineering.

Revenue Profitability And Efficiency

Dürr AG reported revenue of €4.29 billion for the fiscal year ending December 2024, with net income of €101.5 million, reflecting a net margin of approximately 2.4%. The company generated €384.3 million in operating cash flow, demonstrating solid cash conversion efficiency. Capital expenditures of €115.4 million indicate ongoing investments in technology and infrastructure to support future growth.

Earnings Power And Capital Efficiency

The company’s diluted EPS of €1.41 underscores its earnings capability, though its beta of 1.453 suggests higher volatility relative to the market. Dürr’s capital efficiency is supported by its diversified revenue streams and focus on high-margin segments like digital solutions and clean technology systems, which align with global trends toward sustainability and automation.

Balance Sheet And Financial Health

Dürr maintains a robust balance sheet with €831.6 million in cash and equivalents, providing liquidity to navigate cyclical industry demands. Total debt of €1.33 billion is manageable given its cash position and operating cash flow. The company’s financial health is further reinforced by its ability to fund growth initiatives while maintaining flexibility.

Growth Trends And Dividend Policy

Dürr’s growth is driven by increasing demand for electric vehicle production systems and industrial automation. The company’s dividend of €0.7 per share reflects a commitment to shareholder returns, though its payout ratio remains conservative, allowing reinvestment in high-potential areas like battery manufacturing and digitalization.

Valuation And Market Expectations

With a market capitalization of €1.49 billion, Dürr trades at a moderate valuation, reflecting its niche expertise and cyclical exposure. Investors likely anticipate growth in its clean technology and digital segments, offset by macroeconomic uncertainties in the automotive sector.

Strategic Advantages And Outlook

Dürr’s strategic advantages lie in its engineering expertise, diversified product portfolio, and strong client relationships in the automotive industry. The outlook is positive, supported by trends in electrification and sustainability, though execution risks and global supply chain dynamics remain key monitorable factors.

Sources

Company filings, Bloomberg