Deep Value: cash covers more than 100% of the stock price

This company holds roughly $177M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

KHD Humboldt Wedag International AG

KWG.DE

Industrial - Distribution · Industrials

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Good

Stability

Mixed

Valuation

Good

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Winston Score History

The full picture

KHD Humboldt Wedag International AG is a German industrial engineering company that designs and builds cement plants. It sells equipment, technology licenses, and engineering services to cement producers around the world. The company has a long history in the cement industry and is known for its pyroprocessing technology, which is the high-heat process used to turn raw materials into cement clinker.

KHD makes money by taking contracts to supply plant equipment, provide engineering work, and license its proprietary process technology to cement manufacturers. It operates globally, with a focus on markets in Asia, the Middle East, and Africa, where cement demand tends to be higher. The company is small, with a market cap around $100 million, and its competitive position rests on decades of specialized technical know-how in a narrow field. Its main risk is that cement plant investment cycles are lumpy and tied to construction activity, meaning revenue can be unpredictable from year to year.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+39.4% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+114.2% YoY

YoY Growth Rate

Strong earnings growth

Insider Activity

89.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€151M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

KHD Humboldt Wedag International AG grew revenue 39% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

20.2%

Thin — 20.2% gross margin

Profit after running costs

Operating Margin

5.3%

Thin — 5.3% operating margin

Return on the money invested

ROCE

10.0%

Below par — 10.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+0.4%

Nearly flat sales (+0.4% YoY)

Profit growth

EPS YoY

-30.4%

Earnings shrinking (-30.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

81%

Modest — 81% of profit becomes cash

Spare cash per sale

FCF Margin

1.8%

Thin free cash flow (1.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

8.28x

Comfortably covers interest (8.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

9.9x

no trend

Attractive valuation — P/E 9.9

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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