| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 85.89 | -3 |
| Intrinsic value (DCF) | 21.98 | -75 |
| Graham-Dodd Method | 71.84 | -19 |
| Graham Formula | 53.92 | -39 |
Drägerwerk AG & Co. KGaA is a leading German medical and safety technology company with a global presence across Europe, the Americas, Africa, Asia, and Australia. Founded in 1889 and headquartered in Lübeck, Germany, Dräger specializes in developing, producing, and marketing advanced system solutions, equipment, and services for acute point-of-care applications, including emergency, perioperative, critical, and perinatal care. The company also provides innovative safety technology solutions such as personal protective equipment, gas detection systems, and hazard management services for industrial, mining, and public safety sectors. Dräger's diverse product portfolio includes anesthesia devices, ventilators, patient monitoring systems, and software applications, alongside fire training facilities and alcohol/drug testing devices. With a strong emphasis on R&D and a legacy of over 130 years, Drägerwerk is a trusted name in healthcare and industrial safety, serving hospitals, fire departments, police, and disaster protection agencies worldwide. The company's commitment to quality and technological innovation positions it as a key player in the medical devices and safety equipment industry.
Drägerwerk presents a stable investment opportunity with its diversified revenue streams across medical and safety technology sectors. The company's solid market position, backed by a long-standing reputation and global footprint, offers resilience against economic downturns, as evidenced by its low beta of 0.332. With FY revenue of €3.37 billion and net income of €124.4 million, Dräger demonstrates consistent profitability, supported by a healthy diluted EPS of €6.61. The company's strong cash position (€223.5 million) and moderate debt levels (€395.6 million) provide financial flexibility. However, investors should note the capital-intensive nature of the medical devices industry and potential margin pressures from R&D and regulatory compliance costs. The dividend yield, with a payout of €2.03 per share, adds income appeal. Dräger's focus on critical care and safety solutions – essential in both healthcare and industrial settings – provides defensive characteristics, though growth may be tempered by competition and pricing pressures in mature markets.
Drägerwerk competes in two distinct but complementary markets: medical technology (especially acute care equipment) and industrial safety solutions. In medical devices, its competitive advantage stems from deep clinical expertise, particularly in anesthesia and ventilation systems where it holds strong brand recognition among hospital providers. The company's integrated system approach – combining hardware, software, and services – creates switching costs for customers. In safety technology, Dräger benefits from its heritage as a pioneer in gas detection and respiratory protection, with specialized solutions for hazardous environments that few competitors can match. However, the company faces intensifying competition from larger medical technology conglomerates with greater R&D budgets and broader product portfolios. Dräger's mid-size scale (€1.1B market cap) may limit its ability to compete on price against mass-market producers, forcing reliance on technological differentiation and service quality. Geographic concentration in Europe (though with growing international presence) also creates exposure to regional healthcare spending policies. The dual focus on medical and safety markets provides diversification benefits but requires balancing R&D priorities across different regulatory environments and customer needs.