investorscraft@gmail.com

Stock Analysis & ValuationDürr AG (DUE.DE)

Professional Stock Screener
Previous Close
22.50
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)31.7741
Intrinsic value (DCF)13.62-39
Graham-Dodd Method4.82-79
Graham Formula1.75-92

Strategic Investment Analysis

Company Overview

Dürr AG is a leading global mechanical and plant engineering company headquartered in Bietigheim-Bissingen, Germany. Founded in 1895, the company specializes in providing advanced manufacturing solutions, particularly for the automotive industry, through its Paint and Final Assembly Systems segment. Dürr also serves diverse industries with its Application Technology, Clean Technology Systems, Measuring and Process Systems, and Woodworking Machinery and Systems segments. The company’s innovative technologies include automated paint application systems, exhaust-air purification, battery electrode coating, and digital solutions like the DXQ software suite for smart manufacturing. With a strong presence in industrial machinery, Dürr plays a critical role in enhancing efficiency and sustainability in production processes worldwide. Its expertise in automation, environmental technology, and digitalization positions it as a key player in the Industrials sector, catering to high-growth markets such as electric vehicle manufacturing and sustainable industrial solutions.

Investment Summary

Dürr AG presents a compelling investment case due to its strong positioning in industrial automation and sustainable manufacturing solutions, particularly in the automotive sector. The company’s diversified revenue streams across multiple industrial segments mitigate sector-specific risks. However, its high beta (1.453) indicates sensitivity to market volatility, and its debt-to-equity ratio warrants caution. Positive aspects include steady revenue (€4.29B in the latest period), a healthy operating cash flow (€384M), and a dividend yield (~1.5% based on a €0.70 dividend per share). Investors should weigh its growth potential in electric vehicle infrastructure against cyclical exposure to automotive capex and global supply chain risks.

Competitive Analysis

Dürr AG holds a competitive edge in industrial machinery through its specialization in high-precision manufacturing systems, particularly for automotive paint shops and assembly lines. Its DXQ software suite enhances digital integration, giving it an advantage in Industry 4.0 adoption. The company’s Clean Technology Systems segment aligns with global sustainability trends, particularly in emissions control and battery production—key areas for EV growth. However, Dürr faces stiff competition from larger industrial conglomerates with broader portfolios and stronger balance sheets. Its focus on niche automation markets allows for higher margins but limits scalability compared to diversified peers. The company’s German engineering reputation ensures premium positioning, though cost pressures from Asian competitors remain a challenge. Strategic partnerships, such as those in battery coating technology, reinforce its innovation pipeline, but reliance on automotive capex cycles introduces cyclical risks.

Major Competitors

  • Siemens AG (SIEGn.DE): Siemens is a global industrial conglomerate with a dominant position in automation and digitalization (via Siemens Xcelerator). Its broader portfolio and stronger financials (higher revenue diversification) overshadow Dürr’s niche focus. However, Dürr’s specialized automotive solutions offer deeper domain expertise in paint and assembly systems.
  • Fraport AG (FRA.DE): Fraport operates in infrastructure and plant engineering but lacks Dürr’s specialization in industrial machinery. Not a direct competitor, though overlaps in environmental technology (e.g., exhaust systems) exist. Dürr’s automotive focus gives it a clearer growth runway.
  • ABB Ltd (ABB): ABB competes in industrial automation and robotics, with a stronger global footprint. Its modular automation solutions challenge Dürr’s DXQ software, but ABB lacks Dürr’s depth in automotive paint systems. ABB’s electrification segment diversifies its revenue away from cyclical industries.
  • Rockwell Automation (ROK): Rockwell excels in industrial automation and IoT solutions, competing indirectly with Dürr’s digital offerings. Its North American dominance contrasts with Dürr’s European base. Rockwell’s higher R&D spend poses a threat, but Dürr’s automotive specialization provides insulation.
  • ATS Automation Tooling Systems (ATS.TO): ATS focuses on automated manufacturing systems, overlapping with Dürr’s assembly technology. Its life sciences segment diversifies its client base, reducing automotive dependence. Dürr’s scale in Europe and paint shop technology remains a differentiator.
HomeMenuAccount