One-glance verdict
Overvalued
$-44.07 our estimate vs market $37.74
186% below our estimate, beyond the bull case
Fundamentals snapshot
Traton SE
TRATF · PNK · Industrials · Farm & Heavy Construction Machinery
Current price
$37.74
52-week range
$30.65 - $46.07
Market cap
$19.64B
Balance sheet
Stretched
4.40x Stretched
Net debt $29.56B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
- Reward Free cash flow was positive in 1/10 years.
- Reward Dividend yield is 2.8% with 6-year payout history.
What this company does
Traton SE
Traton SE makes and sells big trucks and buses all over the world, with money coming mostly from selling these vehicles and related services like financing and insurance. This matters because they are a key player in moving goods and people, impacting everything from your groceries to how businesses operate.
How the company got here
Traton SE, formerly known as Volkswagen Truck & Bus AG, was established in 2015 by Volkswagen AG to consolidate its commercial vehicle brands. The company's roots trace back to Volkswagen's early involvement in the Brazilian commercial vehicle market in the late 1970s. Over the years, Volkswagen strategically acquired and integrated major truck manufacturers like Scania and MAN, and later Navistar (which includes the International brand). This consolidation created a global powerhouse in the commercial vehicle industry. Traton went public with a listing on the Frankfurt and Stockholm stock exchanges in June 2019, marking a significant step in its journey as an independent entity within the Volkswagen Group.
What it actually does
Traton SE is a major global manufacturer of commercial vehicles. Think of the big trucks you see on the highway, delivery vans, and buses that transport people. Traton designs, produces, and sells these types of vehicles under various well-known brands. Beyond just selling vehicles, the company also offers services related to transportation and logistics, including financial services, digital platforms, and charging solutions for electric vehicles.
Scania Vehicles and Services
Scania is one of Traton's premium brands, primarily focusing on heavy-duty trucks for long-distance transport and construction. They also offer specialized vehicles and services tailored to specific industries. Scania has a strong global presence, serving markets across Europe, the Americas, Asia, Africa, and Oceania. This segment is known for its profitability and efficiency within the Traton Group.
MAN Truck & Bus
MAN is a German brand with a broad range of offerings, including light commercial vehicles, heavy-duty trucks for long-haul and distribution, and construction vehicles. MAN also produces buses for urban, intercity, and touring use. While historically operating on thinner margins compared to Scania, MAN is a significant contributor to Traton's overall sales and has a strong presence in Europe and Asia.
International Motors
The International brand, formerly Navistar, is a key player in the North American market. It offers a comprehensive range of mobility solutions, including heavy trucks and buses under the IC Bus brand, often used for school transportation. International is known for its extensive dealer network and strong customer relationships in North and South America.
Volkswagen Truck & Bus
This segment focuses on vehicles tailored for emerging markets, emphasizing robustness, reliability, and efficiency. It leverages the Volkswagen brand's global recognition to offer value-for-money solutions in regions where these attributes are particularly important. This part of Traton's business is crucial for its presence in developing economies.
TRATON Financial Services
This segment acts as the financial arm of Traton, providing essential services that support the sale and use of its vehicles. It offers financing, leasing, and insurance solutions to customers, dealers, and distributors worldwide. By offering these financial products, Traton Financial Services helps customers acquire and maintain their commercial fleets, contributing to the overall business of the group.
What management is betting on now
Traton's main strategic focus, known as 'The TRATON Way Forward,' is centered on transforming transportation for a sustainable future. This involves embracing decarbonization, digitalization, and creating value for customers and stakeholders. Management is investing in areas like electric mobility, developing charging infrastructure through joint ventures, and enhancing digital services like the RIO platform. The goal is to not only sell vehicles but to provide comprehensive mobility solutions that are environmentally responsible and technologically advanced.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $-44.07 vs current price $37.74
Our most-likely fair value is $-44.07 a share — about 216.8% below today's price of $37.74, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $29.6B. Interest coverage 4.4x.
Net debt
$29.56B
Interest coverage
4.40x
Traton SE is healthier than 0 of 1 peers on balance-sheet leverage.
Stretched
Worse cushion
Baseline
Better cushion
TRATF
BASELINE
Traton SE
Total debt $32.87B Interest coverage 4.40x This is the baseline the peer rows are being compared against.
What you should know
The case for and against TRATF
2 Rewards
0 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
-
Dividend yield is 2.8% with 6-year payout history.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
5.21x
Forward P/E
—
P/B
0.82x
P/S
0.44x
EV/EBITDA
9.09x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
17.8%
Operating margin
6.1%
Net margin
6.9%
ROE
16.2%
ROA
2.3%
Health
Liquidity and balance-sheet strength
Debt / equity
1.43x
Current ratio
1.01x
Quick ratio
0.66x
Total debt
$32.87B
Total cash
$3.32B
Growth
How the business has been compounding
Revenue TTM
$50.48B
Revenue 5Y CAGR
3.0%
EPS TTM
7.24
EPS 5Y CAGR
10.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.01B
Free CF TTM
$-2.12B
FCF margin
-4.2%
Dividend
Shareholder payout
Yield
2.8%
Payout ratio
14.9%
Last ex-div date
2026-06-17