| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 6.88 | -22 |
| Graham Formula | 3.46 | -61 |
KROMI Logistik AG is a Germany-based industrial distribution company specializing in machining tools and supply chain solutions. Founded in 1964 and headquartered in Hamburg, the company operates across Germany, Europe, and Brazil, offering a comprehensive suite of services including purchasing management, logistics management, technology consulting, and data management. KROMI serves key industries such as general mechanical engineering, automotive supply, and aviation, providing tailored solutions like vendor-managed inventory, eProcurement, and CAD/CAM services. With a market capitalization of approximately €36.3 million, KROMI plays a critical role in optimizing tool procurement and machining processes for industrial clients. The company’s integrated approach combines procurement efficiency with technological expertise, positioning it as a niche player in the industrial distribution sector. Its focus on digital solutions, such as tool life controllers and cutting process analysis, enhances operational efficiency for manufacturers, making it a relevant partner in Industry 4.0 advancements.
KROMI Logistik AG presents a niche investment opportunity in the industrial distribution sector, with a focus on machining tools and supply chain optimization. The company’s FY 2022 revenue of €80.5 million and net income of €1.07 million reflect stable but modest profitability. Its low beta (0.50) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, the absence of dividends and limited scale compared to larger distributors may deter growth-focused investors. KROMI’s competitive edge lies in its integrated service offerings, including technology consulting and vendor-managed inventory, which foster customer stickiness. Risks include exposure to cyclical industrial demand and competition from larger global distributors. The company’s strong cash flow from operations (€3.34 million) and manageable debt (€2.64 million) provide financial stability, but growth prospects depend on expanding its digital solutions and geographic reach.
KROMI Logistik AG competes in the industrial tool distribution market by differentiating itself through value-added services like technology consulting and customized inventory management. Unlike broad-line distributors, KROMI focuses on machining tools, offering specialized expertise in tool procurement and process optimization. This niche positioning allows it to serve SMEs and mid-tier manufacturers that require tailored solutions rather than bulk purchasing. However, its regional focus (primarily Germany and Brazil) limits its scale compared to global players. The company’s competitive advantages include its vendor-managed inventory (VMI) system and CAD/CAM integration, which enhance operational efficiency for clients. Yet, its reliance on the automotive and aviation sectors exposes it to industry downturns. KROMI’s smaller size also restricts its bargaining power with suppliers, potentially affecting margins. To sustain growth, the company must invest in digital platforms (e.g., eProcurement) and expand into emerging markets where industrial automation is rising. Its ability to cross-sell technology management services could further deepen customer relationships and offset pricing pressures from larger competitors.