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1. Company Snapshot

1.a. Company Description

Drägerwerk AG & Co. KGaA operates as a medical and safety technology company in Europe, the Americas, Africa, Asia, and Australia.The company develops, produces, and markets system solutions, equipment, and services for acute point of care, including emergency care, perioperative care, critical care, and perinatal care.It also develops, produces, and markets products, system solutions, and services for personal protection, gas detection technology, and integrated hazard management to customers in industry and mining sectors, as well as public sectors, such as fire departments, police, and disaster protection.


The company's products portfolio includes anesthesia devices and ventilators, thermoregulation equipment, consumables and accessories, supply units, lights, gas management systems, patient monitoring, software applications, system products, and other services.Its product portfolio also comprises stationary and mobile gas detection systems, personal protective equipment, and alcohol and drug testing devices.In addition, the company offers various training and services, as well as fire training facilities for firefighters.


Drägerwerk AG & Co. KGaA was founded in 1889 and is headquartered in Lübeck, Germany.

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1.b. Last Insights on DRW3

Recent positive drivers behind Drägerwerk AG & Co. KGaA's performance include: * Receipt of Innovative Technology Designation for Atlan A350/A350XL Anesthesia Machines from Vizient, expanding its presence in the anesthesia equipment market. * Obtaining Authority to Operate (ATO) certification for Evita V800/V600 and Babylog VN800 mechanical ventilators, as well as Savina 300 series, under the Department of Defense's Risk Management Framework, enhancing its credibility in the government sector. * Launch of ProAir, a next-generation closed-circuit breathing apparatus, providing a continuous oxygen supply for up to four hours and revolutionizing respiratory protection for government operations in hazardous environments. These developments highlight Dräger's commitment to innovation and its expanding presence in critical markets, including anesthesia equipment and government operations.

1.c. Company Highlights

2. Drägerwerk's Q3 2025 Earnings: A Strong Performance

The company's financial performance for the first 9 months of 2025 was impressive, with a 9% increase in order intake to around EUR 2.6 billion and a 4% rise in net sales to around EUR 2.3 billion. The gross profit margin also expanded by 0.7 percentage points to 45.1%, despite currency headwinds and higher tariffs. Earnings per share (EPS) came in at EUR 0.6, beating analyst estimates of EUR -0.1. The strong performance was driven by both divisions, Medical and Safety, with the Medical division growing order intake by almost 12% to around EUR 1.5 billion.

Publication Date: Nov -29

📋 Highlights
  • Orders Surge to EUR 2.6B: – 9% growth in first 9 months 2025, highest since record 2020.
  • Net Sales Rise 4% to EUR 2.3B: – Driven by all divisions and regions in challenging economic conditions.
  • Gross Margin Expands 0.7pp to 45.1%: – Achieved despite currency headwinds and higher tariffs.
  • Medical Division Orders Up 12% to EUR 1.5B: – Strong demand for ventilators, anesthesia, and services.
  • Operating Cash Flow Grows EUR 35M to EUR 93M: – Improved working capital management reduced net debt.

Segment Performance

The Medical division saw high demand for ventilators, anesthesia machines, services, and consumables, with net sales rising by more than 10% in the third quarter. The Safety division also performed well, with order intake growing by roughly 6% in the first 9 months, driven by gas detection, respiratory, and personal protection products, and Engineered Solutions. Net sales rose significantly by roughly 10% in the third quarter, driven by EMEA and the Americas.

Cash Flow and Leverage

The company's operating cash flow improved by around EUR 35 million to roughly EUR 93 million in the first 9 months, mainly due to effective working capital management. Net financial debt had a modest reduction, keeping leverage at a healthy 0.7 net financial debt to EBITDA. The company expects a positive free cash flow in Q4, with no underlying risks to their Q4 cash flow situation.

Outlook and Valuation

The company has raised its guidance, expecting the upper half of its previous guidance, with net sales growth of 3.0% to 5.0% net of currency effects and an EBIT margin of 4.5% to 6.5%. Analysts estimate next year's revenue growth at 4.3%. With a P/E Ratio of 13.23 and an EV/EBITDA of 5.04, the stock appears reasonably valued. The company's return on invested capital (ROIC) is 4.34%, and its return on equity (ROE) is 6.7%, indicating a decent profitability. The Net Debt / EBITDA ratio is 0.85, indicating a manageable debt level.

Growth Initiatives

The company is making progress in its connected care launch, with positive customer feedback, and expects the project to start generating revenue from next year. Additionally, the defense-related demand in Germany is picking up, with a double-digit growth of around 25% year-over-year for the defense business, and the company expects to receive more than EUR 100 million in orders in the current year.

3. NewsRoom

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Dräger achieves perfect-score CMMC Level 2 Certification reinforcing cybersecurity leadership in Defense and Government healthcare and safety technology

Oct -29

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.17%)

6. Segments

Medical

Expected Growth: 5%

Drägerwerk's Medical segment growth is driven by increasing demand for ventilation and anesthesia solutions, expansion in emerging markets, and strategic acquisitions. The company's focus on innovation, particularly in digital healthcare and patient monitoring, also contributes to growth. Additionally, the rising need for critical care equipment and services, especially during the pandemic, has boosted sales.

Safety

Expected Growth: 3%

Drägerwerk's Safety segment growth is driven by increasing demand for gas detection and respiratory protection products, particularly in the oil and gas, chemical, and mining industries. Additionally, the company's focus on innovation, expansion into emerging markets, and strategic acquisitions contribute to its growth.

7. Detailed Products

Anesthesia Workstations

Dräger's anesthesia workstations provide advanced ventilation, anesthesia delivery, and patient monitoring capabilities for surgical and critical care settings.

Patient Monitoring Systems

Dräger's patient monitoring systems provide real-time vital sign monitoring, data analysis, and alarm management for patient care.

Ventilation Systems

Dräger's ventilation systems provide advanced respiratory care, including invasive and non-invasive ventilation, for patients in critical care settings.

Perioperative Care Solutions

Dräger's perioperative care solutions provide integrated systems for anesthesia, ventilation, and patient monitoring in surgical settings.

Gas Detection and Analysis

Dräger's gas detection and analysis solutions provide portable and fixed gas detection systems for industrial, oil and gas, and emergency response applications.

Dive Computers and Underwater Communication

Dräger's dive computers and underwater communication systems provide advanced safety and communication solutions for professional and recreational divers.

Fire and Emergency Services Equipment

Dräger's fire and emergency services equipment provides respiratory protection, gas detection, and communication solutions for firefighters and emergency responders.

8. Drägerwerk AG & Co. KGaA's Porter Forces

Forces Ranking

Threat Of Substitutes

Drägerwerk AG & Co. KGaA operates in the medical technology industry, where substitutes are limited. However, the company faces competition from alternative medical devices and technologies.

Bargaining Power Of Customers

Drägerwerk AG & Co. KGaA's customers are primarily hospitals and healthcare providers, who have limited bargaining power due to the company's strong brand reputation and high-quality products.

Bargaining Power Of Suppliers

Drägerwerk AG & Co. KGaA relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, the company may face challenges in sourcing high-quality components and materials.

Threat Of New Entrants

The medical technology industry has high barriers to entry, including regulatory hurdles and significant R&D investments. This limits the threat of new entrants and provides Drägerwerk AG & Co. KGaA with a competitive advantage.

Intensity Of Rivalry

The medical technology industry is highly competitive, with several established players competing for market share. Drägerwerk AG & Co. KGaA faces intense competition from companies such as Medtronic, Philips, and GE Healthcare.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.68%
Debt Cost 3.95%
Equity Weight 78.32%
Equity Cost 3.09%
WACC 3.28%
Leverage 27.69%

11. Quality Control: Drägerwerk AG & Co. KGaA passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Synektik

A-Score: 5.9/10

Value: 1.8

Growth: 9.8

Quality: 7.5

Yield: 5.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Drägerwerk

A-Score: 5.7/10

Value: 7.7

Growth: 3.3

Quality: 4.8

Yield: 3.8

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
EL.En

A-Score: 5.7/10

Value: 5.6

Growth: 6.1

Quality: 7.6

Yield: 6.2

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
ChemoMetec

A-Score: 4.8/10

Value: 0.0

Growth: 7.8

Quality: 9.4

Yield: 0.6

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Eckert & Ziegler

A-Score: 4.7/10

Value: 2.0

Growth: 7.1

Quality: 7.5

Yield: 1.2

Momentum: 7.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Guerbet

A-Score: 2.7/10

Value: 7.8

Growth: 2.6

Quality: 2.0

Yield: 2.5

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

68.0$

Current Price

68$

Potential

-0.00%

Expected Cash-Flows