Stock Analysis & Valuation Rosenbauer International AG (ROI.DE)

• Previous Close: €47.60
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	608.56	1178
Intrinsic value (DCF)	98.95	108
Graham-Dodd Method	49.19	3
Graham Formula	117.92	148

Strategic Investment Analysis

Company Overview

Rosenbauer International AG (ROI.DE) is a global leader in firefighting and disaster protection systems, headquartered in Leonding, Austria. Founded in 1866, the company specializes in manufacturing and distributing a comprehensive range of firefighting equipment, including protective gear, extinguishing systems, and specialized vehicles such as municipal fire trucks, aerial ladders, and hazardous material (HAZMAT) response units. Rosenbauer serves customers in approximately 120 countries through its extensive service network, offering maintenance, refurbishment, and training services. The company operates in the industrials sector, specifically within the agricultural machinery industry, though its core business is firefighting technology. Rosenbauer’s innovative digital solutions, such as fleet management systems and drone technology, enhance operational efficiency for emergency responders. With a market capitalization of €282.2 million, the company continues to expand its global footprint while maintaining a strong reputation for quality and reliability in firefighting solutions.

Investment Summary

Rosenbauer International AG presents a niche investment opportunity in the firefighting and disaster protection sector. The company benefits from steady demand for firefighting equipment and services, supported by global urbanization and increasing regulatory safety standards. However, its relatively small market cap (€282.2M) and modest profitability (net income of €27M in FY 2023) suggest limited scalability compared to larger industrial peers. The company’s low beta (0.684) indicates lower volatility than the broader market, making it a defensive play. Key risks include high debt levels (€425.7M) and capital-intensive operations, evidenced by negative free cash flow after capital expenditures. Investors should weigh Rosenbauer’s established market position against its financial constraints and competitive pressures.

Competitive Analysis

Rosenbauer International AG holds a strong position in the global firefighting equipment market, competing primarily with large industrial manufacturers and specialized fire safety firms. Its competitive advantage lies in its long-standing reputation, diversified product portfolio, and extensive service network. The company’s focus on innovation—such as compressed air foam systems (CAFS) and digital fleet management—differentiates it from traditional equipment suppliers. However, Rosenbauer faces competition from larger conglomerates with greater financial resources and broader industrial capabilities. Its specialization in firefighting limits diversification, making it vulnerable to sector-specific downturns. Additionally, the company’s high debt burden could constrain R&D and expansion efforts compared to cash-rich competitors. Rosenbauer’s regional strength in Europe contrasts with competitors that dominate North America and emerging markets, presenting both growth opportunities and challenges in market penetration.

Major Competitors

• Oshkosh Corporation (OVV): Oshkosh (OVV) is a major competitor with a strong presence in fire apparatus and defense vehicles. Its Pierce Manufacturing subsidiary is a leading U.S. fire truck producer, giving it scale advantages over Rosenbauer in North America. However, Oshkosh’s broader industrial exposure dilutes its focus on firefighting compared to Rosenbauer’s specialized approach.
• REV Group Inc (REV.F): REV Group manufactures emergency vehicles, including fire trucks and ambulances, under brands like E-ONE and Ferrara. It competes directly with Rosenbauer in municipal and industrial fire apparatus but lacks Rosenbauer’s global service network. REV’s financial performance has been inconsistent, with recent restructuring efforts aimed at improving profitability.
• The Mosaic Company (MOG.A): MOG.A is incorrectly listed here; it is an agricultural chemicals company and not a competitor to Rosenbauer. A more accurate competitor would be Magirus GmbH (a subsidiary of CNH Industrial), a European fire truck manufacturer with a strong regional presence but limited global reach compared to Rosenbauer.
• CNH Industrial N.V. (CNHI): CNH Industrial’s Magirus brand competes with Rosenbauer in firefighting vehicles, particularly in Europe. CNH’s broader agricultural and construction equipment business provides financial stability but less focus on fire safety innovation. Rosenbauer’s specialized R&D gives it an edge in advanced firefighting systems.