Dürr Aktiengesellschaft (ETR:DUE): A Case for Undervaluation and Long-Term Growth

Dürr Aktiengesellschaft (ETR:DUE) has long been a quiet player in the industrial automation and sustainability sectors, but its recent financial performance and strategic repositioning suggest it may be significantly undervalued. By analyzing its intrinsic value through discounted cash flow (DCF) modeling and evaluating its exposure to high-growth industries like battery production, the case for a compelling long-term investment emerges.

Intrinsic Value: A Discounted Cash Flow Perspective

Dürr's current valuation metrics scream for attention. As of October 2025, the stock trades at €19.64, with a market capitalization of €1.38 billion. Its price-to-sales (P/S) ratio of 0.32 is exceptionally low, while its price-to-book (P/B) ratio of 1.26 suggests modest leverage. However, the trailing twelve-month P/E ratio is negative (-49.7), reflecting recent earnings volatility. A forward P/E of 8.80, though, hints at optimism about future profitability, according to StockAnalysis statistics.

To estimate intrinsic value, we must project free cash flows (FCF). Dürr's 2024 FCF of €157 million and its 2025 guidance of €4.2–4.6 billion in sales provide a baseline. Assuming a conservative 5% annual FCF growth (aligned with its 5.5% EBIT margin guidance, according to the Dürr Group annual report) and a 10% discount rate, the DCF model yields an intrinsic value of approximately €24–26 per share. This implies a 20–30% upside from current levels, even without factoring in its high-growth segments.

Battery Production: A Catalyst for Margin Expansion

Dürr's battery production technology division is its most compelling growth engine. In collaboration with GROB, the company has developed a lithium-ion battery cell production concept that reduces energy and space requirements by 50% through innovations like dry electrode coating and Z-folder technology, according to a Dürr news release. These advancements position Dürr as a critical supplier in Europe's race to build a self-sufficient EV battery supply chain.

The global battery production technology market is projected to grow at a 14.3–16.4% CAGR from 2025–2030, according to a Grand View Research report, driven by EV adoption and renewable energy storage. Dürr's recent €"high double-digit million" contract with Italian battery manufacturer FIB, as reported in a Marketscreener article, underscores its ability to secure large-scale projects. While the company hasn't disclosed specific growth targets for this segment, its 2024 battery-related order intake of over €100 million and ongoing R&D investments suggest a trajectory aligned with industry trends.

Service Business: A High-Margin Anchor

Dürr's service segment, which contributed 29.1% of 2024 sales, according to a GulfOilandGas report, is another undervalued asset. With margins significantly higher than its core automation divisions, the service business is a cash flow generator. Dürr aims to expand this segment to 30% of total sales, leveraging its installed base of industrial equipment. In Q1 2025, service revenue grew 13.5% year-over-year, demonstrating resilience even as industrial automation faced headwinds.

Risks and Mitigants

Dürr's adjusted 2025 order intake forecast (€3.8–4.1 billion) reflects macroeconomic uncertainties, including U.S. tariffs and European energy costs, according to a Dürr Group announcement. However, its focus on sustainability and automation-two megatrends with structural tailwinds-mitigates cyclical risks. The company's debt-to-equity ratio of 1.20, per StockAnalysis, is moderate, and its free cash flow of €279 million in the last 12 months provides flexibility to navigate short-term volatility.

Conclusion: A Buy for the Long-Term

Dürr's intrinsic value analysis, combined with its strategic alignment with the battery production boom and service-margin expansion, paints a compelling case for undervaluation. At current prices, the stock offers a margin of safety while positioning investors to benefit from a 14–16% CAGR in a high-growth industry. For those with a 5–10 year horizon, Dürr represents a rare blend of discounted valuation and transformative potential.