ThyssenKrupp AG (Ticker: $TKA (-15.03%) | ISIN: DE0007500001)
Sector: Industry, mechanical engineering, materials
Head office: Essen, Germany
Description:
ThyssenKrupp AG is a global industrial group with a focus on technology, materials and mechanical engineering. The company developed from the merger of Thyssen and Krupp and is now active in various areas.
Core areas & products:
Automotive supply - Springs, stabilizers, steering systems
Materials & Steel - High-performance steels, precious metals, aluminum
Mechanical & plant engineering - Chemical plants, cement works
Marine & submarine construction - Military and civilian ships- Elevator & conveyor technology - Formerly ThyssenKrupp Elevator (sold)
Fundamental analysis
ThyssenKrupp AG shows a mix of strategic opportunities and challenges:
Financial health:
- Current financial metrics are not fully available, but strategic initiatives indicate a focus on cost reduction and restructuring.
- Cost reduction measures: ThyssenKrupp plans to save over €150 million in the Automotive division, including through headcount reductions and investment adjustments.
- Marine Systems spinoff: The planned spinoff of the Marine Systems division through an IPO could increase financial flexibility and strengthen the focus on profitable areas.
Growth prospects:
- Defense sector: rising military spending in Europe offers significant opportunities for the Marine Systems Division. A major order for six frigates worth over €15 billion has already led to a significant increase in the share price.
- Diversification: ThyssenKrupp is active in several sectors, including automotive technology and green technologies, which spreads the risk and offers long-term growth potential.
Risks:
- Market volatility: the stock is highly dependent on developments in the defense sector and the global economic situation.
- Competitive pressure: The automotive industry is under pressure, which could weigh on margins in this segment.
Entry zones:
- Potential entry zones are close to the identified support levels, particularly at €4.55 and €4.65. These areas could attract stronger buying interest, making them interesting entry points.
Support zones:
- Main support zones are at €4.55 (S3) and €4.65 (S1). These levels have been identified based on historical price movements and technical indicators and could serve as important areas for potential buying.
Current price:
- The current price of ThyssenKrupp AG is €10.04 (as of March 19, 2025). This is well above the identified support and resistance levels, indicating a potentially bullish trend.
Conclusion:
The technical analysis shows that the entry zones could be close to the support levels at €4.55 and €4.65. The current price of €10.04 indicates a possible continuation of the upward trend. Note, however, that the analysis is based on historical data and external market factors have not been taken into account. A comprehensive trading strategy should include additional indicators and market news.
Future outlook: Rising military spending in Europe
Market performance:
- Rising military spending in Europe has already led to a significant rise in the share price. Analysts see ThyssenKrupp as a long-term investment, but recommend considering short-term profit-taking after the recent rise.
- Fiscal multiplier: Goldman Sachs estimates that every €100 spent on defense could boost GDP by about €50 over two years, which could also benefit ThyssenKrupp.
Sector dynamics:
- Marine Systems Division: this division is benefiting strongly from increased demand for defense technologies. The planned carve-out could offer additional value creation potential.
- Diversification: ThyssenKrupp is well positioned to benefit from broader industrial trends, particularly in green technologies.
Risks:
- Economic challenges: Higher defense spending could lead to inflation and rising debt, which could weigh on the overall economy.
- Market volatility: The share remains susceptible to short-term fluctuations, particularly in the event of geopolitical developments.
Conclusion
ThyssenKrupp AG offers an interesting investment profile with strong growth opportunities in the defense sector and a diversified business structure. The current price of €10 could be a good entry point, especially if the stock goes through a short-term consolidation. In the long term, the company could benefit from rising military spending in Europe and strategic initiatives to cut costs and focus on profitable areas.