The Drägerwerk share has started the trading day positively after the overall good business figures and is currently trading at around 48 euros, around 3 percent higher than yesterday. However, for the past 2 years, the stock has been in a sideways trend (as of March 7, 2024, around 10 am).

It is questionable whether the share of the medical technology company from Lübeck will perform significantly better in the coming quarters. Although the company is back in the profit zone, the outlook for 2024 is rather solid. Important for investors: Drägerwerk significantly increases its dividend.

Drägerwerk back to making profits With 3.4 billion euros, Drägerwerk achieved around 13 percent more revenue in the 2023 financial year than in the previous year. The EBIT also looked much better recently: After the company had to record a significant loss (just under 89 million euros) in 2022, the EBIT for 2023 was at around 166 million euros – this corresponds to an EBIT margin of 4.9 percent in the last year.

In the current year 2024, growth is expected to slow down slightly. In early 2023, there was a surge in demand for ventilators in China, which will not be the case in 2024. Drägerwerk expects an increase in sales between 1 and 5 percent and an EBIT margin between 2.5 and 5.5 percent. The company also forecasts an annual increase in margin of around 1 percent.

Drägerwerk share: The dividend is also appealing Overall, after the problems in 2022, Drägerwerk completed a very good 2023 financial year and is looking at a solid to optimistic future. This offers opportunities for the Drägerwerk share. And the dividend is also attractive: 1.74 euros per common share and 1.80 euros per preferred share are to be distributed.

This corresponds to a dividend yield of just over 3.5 percent at the current price of the Drägerwerk share. Investors should not expect wonders from the medical technology share in the next quarters, but Drägerwerk is back on track overall.

Source: https://aktienscreener.com/