| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39.24 | -18 |
| Intrinsic value (DCF) | 17.99 | -63 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
DMG Mori AG (GIL.DE) is a global leader in advanced machine tool manufacturing, specializing in precision turning, milling, and additive manufacturing solutions. Headquartered in Bielefeld, Germany, the company operates through two key segments: Machine Tools and Industrial Services. Its product portfolio includes high-performance turning machines, 5-axis milling centers, ultrasonic and lasertec machining solutions, and selective laser melting (SLM) for additive manufacturing. DMG Mori serves critical industries such as aerospace, automotive, medical, and semiconductor manufacturing, providing not only cutting-edge machinery but also comprehensive industrial services like maintenance, training, and software solutions. With a heritage dating back to 1870, DMG Mori combines German engineering excellence with global reach, supported by its parent company DMG Mori Co., Ltd. The company is listed on the Deutsche Börse (XETRA) and plays a pivotal role in the Industrials sector, particularly in the Tools & Accessories industry, driving innovation in smart manufacturing and Industry 4.0 applications.
DMG Mori AG presents a mixed investment profile. On the positive side, the company benefits from its strong market position in high-precision machine tools, a diversified industrial customer base, and technological leadership in additive manufacturing. However, its low beta (0.016) suggests limited correlation with broader market movements, which may appeal to defensive investors but could lag in bullish markets. Financial metrics show modest profitability (net income of €78.5M on €2.23B revenue) and stable operating cash flow (€172M), though diluted EPS of €1.00 indicates room for improvement. The dividend yield (~3.2% at current prices) adds income appeal. Key risks include cyclical exposure to capital goods demand, supply chain vulnerabilities in precision components, and intense competition from Asian manufacturers. The €74.4M net debt position is manageable given its cash reserves (€136M), but capex requirements (-€37.1M) may pressure free cash flow.
DMG Mori competes in the premium segment of machine tools, differentiating through technological integration (e.g., hybrid additive-subtractive systems) and strong service offerings. Its competitive advantages include: (1) Proprietary software ecosystems like CELOS that enhance machine connectivity and data analytics, creating sticky customer relationships; (2) Dual-brand strategy leveraging both German engineering (DMG) and Japanese precision (Mori Seiki) heritage; (3) Vertical integration in critical components like spindles and control systems. However, the company faces pricing pressure from lower-cost Asian competitors and must continually invest in R&D (evidenced by its additive manufacturing focus) to maintain differentiation. Its industrial services segment provides recurring revenue (~20% of total) that buffers against equipment sales cyclicality. Geographically, while strong in Europe and Japan, it has weaker penetration in China compared to local champions. The transition to IoT-enabled 'smart factories' presents both opportunity (higher-margin digital services) and risk (required R&D spend).