How to buy ThyssenKrupp stocks in 2024

1. eToro

eToro was launched in 2007 and has since risen to be the most popular social trading platform with a user base of over 17 million worldwide. The platform makes trading accessible to anyone and anywhere by courting beginners and experts with its rich library of tools and resources. You can read our full eToro review here.

Security and Privacy

eToro is regulated by the Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC) and has received its brokerage licenses to operate in Europe, USA, and Australia from several regulatory agencies.

eToro uses standard security features such as SSL encryption and 2FA, thereby protecting users' personal information and funds from a security breach.

Fees and Features

Firstly, eToro is a multi-asset platform, that is, users have access to more than 2,000 financial assets like stocks, ETFs, cryptocurrencies, indices, and more. Another great feature of eToro is the social trading feature which allows you to join and connect with a community of other traders worldwide to shape your trading decisions. The platform also has a CopyTrader feature that allows one to copy the trading strategies of more experienced traders. eToro also offers its users free insurance that protects them in case of insolvency or an event of misconduct.

eToro offers zero commission when you open a long, non-leveraged position on a stock or ETF. However, every withdrawal comes with a $5 fee. The platform also charges an inactivity fee of $10 every month if you don't trade for 12 months.

Pros

• Copy trading feature
• SSL encryption to protect users' information
• Trading is commission-free

Cons

• Limited customer service

2. Capital.com

Capital.com is a multi-asset asset broker launched in 2016. The platform now has over 500,000 registered users with more than $5 billion in volume traded. Capital.com is built to help trading decisions with its Patented AI trade bias detection system. You can read our full Capital.com review here.

Security and Privacy

Capital.com is licensed and regulated by top regulatory bodies such as FCA, ASIC, NBRB, FSA, and CySEC. Users' information is secured and encrypted by Transport Layer Security, and users' funds are stored in a separate account.

Fees & Features

The brokerage's users can access 6100+ market options with CFD trading. It also provides educational materials to make a better trader out of its users. Capital.com also offers educational materials to assist customers in making more informed decisions. Customers can speculate on upward and downward movements in over 3000 markets. In its mobile trading app, the broker offers an AI-powered tool that provides individualized trading insights by utilizing a detection algorithm to uncover various cognitive biases.

Unlike many platforms, Capital.com operates a free service with no hidden charges, and it upholds its transparent fee policy.

Pros

• 24hrs email and chat support
• MetaTrader integration
• Commission-void trading

Cons

• Mostly limited to CFDs

3. Skilling

Skilling is a fast-growing multi-asset broker with awesome trading terms. At its inception in 2016, its main focus was on bond market investment, and since then, it has grown into creating a new model for the stock exchange. In addition, users can trade various financial assets, including CFDs, forex, and cryptocurrencies. You can read our full Skilling review here.

Security and Privacy

Skilling takes the privacy and security of its users' assets very seriously. All information entered into the platform is encrypted, and only authorized personnel can access the information. The platform also uses two-factor authentication to protect its users.

Skilling is regulated by the Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA), which means customers can be assured about their assets' security.

Fees and Features

Skilling has four main platforms: Skilling Trader, Skilling cTrader, Skilling MetaTrader 4, and Skilling Copy. Skilling Trader is intended for traders of all skill levels and provides access to all trading analysis tools. Skilling cTrader, on the other hand, is designed for more experienced traders, focusing on order execution and charting capabilities. MetaTrader 4 is a forex and CFD trading platform with a highly customizable interface. Finally, Skilling Copy is a trading platform that allows members to follow or copy the trading strategies of seasoned traders for a fee.

Skilling charges no fees for inactivity, deposits, or withdrawals. However, commissions on FX pairs and Spot Metals are charged on Premium accounts. These fees begin at $30 per million USD traded.

Pros

• Flexibility and ease of use
• Access to Forex, CFDs, among many others
• Excellent customer service
• Highly secured and well regulated

Cons

• Single currency operation
• Not accessible in the US and Canada.

When investing in a company, it is vital to understand the business model. Knowing how the company makes money, its strategies, and what management plans to do to continue growing the business are all critical factors that determine the company's intrinsic value. Below is a deep dive into the mechanics of ThyssenKrupp AG company.

ThyssenKrupp History

ThyssenKrupp was born from the merger of two German steel companies: Thyssen AG, founded in 1891, and Krupp, founded in 1811. In the 1980s, the two businesses began negotiating the merger and started closely aligning their business segments. Finally, in 1997, the merger began and was completed in March 1999.

Shortly after completing the merger in 1999, the newly formed ThyssenKrupp AG was officially registered on the Frankfurt Stock Exchange under the ticker TKA. The company has since acquired billions of euros in assets and divested other subsidiaries.

What Is ThyssenKrupp's Strategy?

ThyssenKrupp's strategy to grow its revenue is at its core to transform the group of companies into a high-performance multinational conglomerate with a lean management model and a structured portfolio of companies. The company plans to make this transformation with three key themes: Performance, Portfolio, and People. Management plans to continuously improve the performance and competitiveness of the company by adopting cutting-edge technology and making its operations more environmentally sustainable. The management also plans to realign its subsidiaries to divest companies that are no longer valuable or show little growth potential. Finally, the company plans to invest in its human capital.

How Does ThyssenKrupp Make Money?

ThyssenKrupp generates revenue from seven primary arms of operation. The operating segments of the company are as follows:

• The Automotive Technology segment is responsible for developing and manufacturing high-tech components and systems for the auto industry. In addition, this segment also conducts system engineering for the auto industry, including the development of automated production systems.
• The Industrial Components segment manufactures slewing rings, rolling bearings, and seamless rolled rings for the wind energy and construction machinery sectors. This operating segment is also responsible for manufacturing forged components and system solutions for the resource, construction, and mobility sectors.
• Plant Technology is another segment that does the construction of chemical, cement, and mining industries.
• The Elevator Technology segment is tasked with developing, installing, servicing, and modernizing passenger and freight elevators, escalators, moving walkways, passenger boarding bridges, stairs, and platform lifts. This segment was discontinued in 2020 after the completion of the acquisition of the segment by Advent International.
• Marine systems supply the systems for submarines and surface vessels, maritime electronics, and security systems. This segment contributes the smallest amount to the group's overall revenue but is one of three segments that report a profit.
• The Materials Services segment is the global materials distributor for the group. The segment is responsible for the production of stainless steel. The segment also focuses on customer-specific services such as processing, warehousing, logistics, and supply chain solutions. This segment contributes the most significant portion of the revenue generated, amounting to 30% of revenue over the past five years.
• Steel Europe is the segment responsible for producing carbon flat steel for the auto industry and other sectors. This segment is the second-largest contributor to revenue generated, averaging 20% over the past five years.

How Has ThyssenKrupp Performed in Recent Years?

ThyssenKrupp's stock performance was on an upward trend until 2017 when the stock price took a turn for the worse. Over the past five years to 2021, ThyssenKrupp stock produced a total return of -57%. ThyssenKrupp's revenue has decreased 15%, with an average revenue decrease of 3% per year. The stock's last dividend payout was in 2019 after deciding in 2020 to suspend their dividend payout due to the global economic climate at the time.

Fundamental analysis is a method used to evaluate the intrinsic value of a security. It involves analyzing various microeconomic and macroeconomic factors. The intrinsic price can then be compared to the current share price to determine whether the asset is overvalued or undervalued. We will examine fundamental factors in this guide: revenue, P/E, earnings per share, dividend yield, and cash flow.

ThyssenKrupp’s Revenue

A company's revenue refers to the total amount of income produced from the sale of goods or services directly to the company's primary operations. In the case of ThyssenKrupp, the company generates revenue from the sale of steel and machinery. Revenue is usually found in the profit and loss statement and is the first line item. The term revenue growth refers to the rate of increase in revenue from year to year. A company with high revenue growth is called a growth stock. More mature companies like ThyssenKrupp tend to have lower revenue growth but higher profit margins from economies of scale.

ThyssenKrupp’s Earnings-per-Share

Earnings-per-share, also called EPS, is a financial ratio that divides the earnings available to common shareholders by the weighted average shares outstanding over a certain period. The ratio indicates a company's ability to produce net profits, which is the residual money available to a company after paying the expenses incurred during that period. This ratio can be used to compare companies. For example, between two companies with the same number of outstanding shares, regardless of industry, the company with higher EPS indicates better profitability, and investors can expect this stock to perform better.

ThyssenKrupp’s P/E Ratio

The P/E ratio is the price-to-earnings ratio, and it shows the relationship between the stock price of a company and the earnings-per-share. This ratio is popular amongst investors as it better indicates the stock's intrinsic value than the EPS ratio. P/E ratios can be calculated using the company's earnings over the past twelve months. This is called a trailing P/E ratio, or it can be calculated using the forecasted earnings per share, which is called a forward P/E ratio. The trailing P/E ratio tells the investors whether the stock has been undervalued or overvalued in recent months. In contrast, the forward P/E ratio indicates how profitable the company may be in the future. The P/E ratio is also known as a valuation multiple and is usually reported as a multiple. For example, ThyssenKrupp's average P/E ratio over the past five years is 19x.

ThyssenKrupp’s Dividend Yield

Dividends are a percentage of profits that a company pays to its shareholders and are usually reported per share. For example, in 2019, ThyssenKrupp stock declared a dividend of 0.15 euros per share. The dividend yield ratio is another financial ratio that indicates the annual value of dividends received by a shareholder relative to the market value per share of the paying stock. The ratio is usually reported as a percentage and is calculated by dividing the dividend received per share by the share's current price. For example, if a company pays $0.50 in dividends and the current stock price is $10.00, then the dividend yield on the stock is 5%.

ThyssenKrupp’s Cash Flow

A company's cash flow refers to the net balance of cash moving into and out of a business during a defined period. Cash flows can be positive or negative for different companies or the same company at different quarters in a given year. A sustainable and constant positive cash flow indicates that the company can meet its short-term obligations. On the other hand, a fluctuating cash flow or consistent negative cash flow indicates that the company is not generating enough cash from operations, therefore the company may eventually run out of cash. Investors must be wary of companies with unhealthy cash flows as these companies tend to have a declining stock price.

Why Buy ThyssenKrupp Stocks?

ThyssenKrupp is a defensive stock which means that when there is a lot of market volatility, ThyssenKrupp stock tends to remain stable at its intrinsic value. In other words, it has a low correlation to the market. The company pays a dividend and recently saw a price drop, making the stock a good buy. Here are some reasons you might want to buy ThyssenKrupp stock:

• You gain exposure to a diverse set of sectors like metals, materials, construction, and engineering.
• You are investing in a company that has been in operation for 22 years with more than 100,000 employees.
• Over the past five years to 2021, the company has used its cash to service and reduce its debt. This is a good sign, as a company with too much debt could lead to bankruptcy.

To be a profitable trader, you should consider the following five things when trading:

1. Understand the Company

It is never a good idea to invest in a company that you do not understand. This is called herd investing, and it can be costly when you blindly follow other traders. Some companies are famous for the products they sell, but most of the revenue they generate and the profits they earn may come from a different business segment. For example, most customers might know Amazon for its online presence, but a large percentage of its profits come from its cloud services. Amazon is the largest cloud service provider. Understanding the mechanisms by which a company makes money is the first indicator of the company's worth.

2. Understand the Basics of Investing

The best way to start investing is to start investing. This may seem obvious and straightforward, but placing that buy order or sell order isn't as simple as it sounds. It is essential to understand how to trade and how your platform works before beginning your trading journey. Doing this can save you quite a bit of money. You should understand the trading terms like stop-loss, bid/ask spread, and bear and bull markets. Trading is fascinating when you understand how the market works. Reading this guide is a great way to understand the basics of trading but reading more and doing your research is never a bad idea.

3. Carefully Choose Your Broker

Choosing the right broker can be the difference between making a profit or a loss in your trading journey. First, you must determine the best broker for your trading style. You may need a broker with high execution speeds and low trade fees if you plan to day trade. If you plan to swing trade or buy and hold, you might prefer a broker that charges low fees on overnight positions. As a beginner, you would want a broker with good customer service to help you navigate the platform, and you will need a demo account to practice your trading. Some traders who do not have access to major global currencies might need a broker that allows funding with credit cards rather than wire transfers. There are thousands of brokers, both on-shore and off-shore. It is up to the trader to do their due diligence when selecting the best broker for their trading style.

4. Decide How Much You Want to Invest

Before you begin your trading journey, you must first figure out how much you can afford and how much you are willing to invest. Unfortunately, not all of us can inherit millions and decide to invest it all. Most people become discouraged at this stage because they see other traders' accounts with large trading balances. However, saving and investing as little as $500 per month increases over a few years, especially when making sound investment decisions.

5. Decide On a Goal for Your Investment

Begin with the end in mind. This step is critical as it determines how much you should be saving each month and how you should be trading. If you have a short investment horizon and need a lump sum of cash, maybe as a down payment on a house, you will need to take on more risk than someone investing for retirement. Having a goal also influences your choice in brokers and what stocks you buy. For example, if you would like your trading account as another source of income, you may need to invest in high dividend stocks with a broker that charges withdrawal fees. Only you can determine your goal, and it is also acceptable to have more than one goal while trading.

In this guide, we took a deep dive into the ThyssenKrupp AG company. We went into the company's history and discussed how the company makes money; we examined the company's strategy for growth and discussed where the stock is traded. We then talked about the fundamental factors that contribute to the stock's intrinsic value, like P/E ratio, EPS, and dividend yield. We also offered some trading tips and a list of five things to consider when trading ThyssenKrupp stock.

All that is left for you to do is decide your investment goal and start trading. It is easy to overthink your trades or forget the basics, but applying the tools you learned, like your fundamental analysis and risk management, can save you from incurring losses.

For some, the idea of hitting buy or sell might be overwhelming. That's understandable; trading can be intimidating at times. When you feel this way, read some more and practice trading in your demo account some more. Remember, your trading journey begins long before you make your first investment.