XTRA:KGX

Stock Analysis Report

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Executive Summary

KION GROUP AG provides industrial trucks, warehouse technology, supply chain solutions, and related services worldwide.


Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has KION GROUP's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KGX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.5%

KGX

4.7%

DE Machinery

3.1%

DE Market


1 Year Return

2.8%

KGX

-13.4%

DE Machinery

0.1%

DE Market

Return vs Industry: KGX exceeded the German Machinery industry which returned -14% over the past year.

Return vs Market: KGX exceeded the German Market which returned 0.2% over the past year.


Shareholder returns

KGXIndustryMarket
7 Day11.5%4.7%3.1%
30 Day10.8%9.3%5.6%
90 Day3.1%-3.7%-1.8%
1 Year2.8%2.8%-12.4%-13.4%1.8%0.1%
3 Year-22.8%-25.5%-35.6%-39.4%-7.2%-14.3%
5 Year27.4%19.5%-15.7%-24.3%4.3%-9.1%

Price Volatility Vs. Market

How volatile is KION GROUP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KION GROUP undervalued compared to its fair value and its price relative to the market?

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KGX (€50.2) is trading below our estimate of fair value (€72.48)

Significantly Below Fair Value: KGX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KGX is good value based on its PE Ratio (13x) compared to the Machinery industry average (16x).

PE vs Market: KGX is good value based on its PE Ratio (13x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: KGX is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: KGX is overvalued based on its PB Ratio (1.7x) compared to the DE Machinery industry average (1.3x).


Next Steps

Future Growth

How is KION GROUP forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KGX's forecast earnings growth (27.9% per year) is above the savings rate (0.2%).

Earnings vs Market: KGX's earnings (27.9% per year) are forecast to grow faster than the German market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KGX's revenue (7% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: KGX's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KGX's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has KION GROUP performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KGX has high quality earnings.

Growing Profit Margin: KGX's current net profit margins (4.9%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: KGX's earnings have grown by 20% per year over the past 5 years.

Accelerating Growth: KGX's earnings growth over the past year (1.2%) is below its 5-year average (20% per year).

Earnings vs Industry: KGX earnings growth over the past year (1.2%) exceeded the Machinery industry -20.2%.


Return on Equity

High ROE: KGX's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is KION GROUP's financial position?


Financial Position Analysis

Short Term Liabilities: KGX's short term assets (€3.1B) do not cover its short term liabilities (€3.9B).

Long Term Liabilities: KGX's short term assets (€3.1B) do not cover its long term liabilities (€6.3B).


Debt to Equity History and Analysis

Debt Level: KGX's debt to equity ratio (51.2%) is considered high.

Reducing Debt: KGX's debt to equity ratio has reduced from 55.2% to 51.2% over the past 5 years.

Debt Coverage: KGX's debt is well covered by operating cash flow (35.9%).

Interest Coverage: KGX's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet


Next Steps

Dividend

What is KION GROUP's current dividend yield, its reliability and sustainability?

2.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KGX's dividend (2.59%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: KGX's dividend (2.59%) is low compared to the top 25% of dividend payers in the German market (3.93%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KGX has been paying a dividend for less than 10 years.

Growing Dividend: KGX's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.7%), KGX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KGX's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Köln Riske (62yo)

12.17yrs

Tenure

€4,454,000

Compensation

Mr. Gordon Riske, also known as Köln, serves as Non-Executive Director at Weichai International Hong Kong Energy Group Co., Limited. He has been Independent Director of Atlas Copco AB since April 23, 2020. ...


CEO Compensation Analysis

Compensation vs Market: Köln's total compensation ($USD4.95M) is above average for companies of similar size in the German market ($USD3.47M).

Compensation vs Earnings: Köln's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gordon Riske
CEO & Member of Executive Board12.17yrs€4.45mno data
Anke Groth
CFO, Labour Relations Director & Member of Executive Board1.83yrs€2.56mno data
Ching Quek
Chief of APAC & Americas Officer and Member of the Executive Board7.33yrs€2.53mno data
Eike Böhm
CTO & Member of Executive Board4.75yrs€2.21mno data
Karoline Jung-Senssfelder
Senior VP of Corporate Strategy & Investor Relationsno datano datano data
Joachim Kaffanke
Head of Legal & Corporate Officeno datano datano data
Michael Hauger
Senior Vice President of Corporate Communicationsno datano datano data
Christian Harm
Executive Vice President of Corporate Strategy8.33yrsno datano data
Jonathan M. Dawley
President & CEO of KION North Americano datano datano data

7.3yrs

Average Tenure

52yo

Average Age

Experienced Management: KGX's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander Dibelius
Independent Member of Supervisory Board13.17yrs€76.50kno data
Olaf Kunz
Employee Representative Member of Supervisory Board5.58yrs€79.50kno data
Michael Macht
Chairman of the Supervisory Board1yr€168.58kno data
Xuguang Tan
Member of Supervisory Board1yr€38.17kno data
Birgit Behrendt
Independent Member of Supervisory Board5.33yrs€62.50kno data
Kui Jiang
Member of Supervisory Board7.42yrs€76.50kno data
Özcan Pancarci
Employee Representative Deputy Chairman of Supervisory Board4.33yrs€136.00kno data
Hans Ring
Independent Member of the Supervisory Board6.83yrs€127.50kno data
Alexandra Schädler
Employee Representative Member of Supervisory Board6.58yrs€104.50kno data
Ping Xu
Member of Supervisory Board5.33yrs€62.50kno data

5.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: KGX's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

KION GROUP AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KION GROUP AG
  • Ticker: KGX
  • Exchange: XTRA
  • Founded: 2006
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: €5.922b
  • Shares outstanding: 117.96m
  • Website: https://www.kiongroup.com

Number of Employees


Location

  • KION GROUP AG
  • Thea-Rasche-Strasse 8
  • Frankfurt am Main
  • Hessen
  • 60549
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KGXDB (Deutsche Boerse AG)YesBearer SharesDEEURJun 2013
KGXXTRA (XETRA Trading Platform)YesBearer SharesDEEURJun 2013
0QFULSE (London Stock Exchange)YesBearer SharesGBEURJun 2013
KGXDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJun 2013
KGXWBAG (Wiener Boerse AG)YesBearer SharesATEURJun 2013
KGX NBMV (Bolsa Mexicana de Valores)YesBearer SharesMXMXNJun 2013
KGXSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJun 2013
KNNG.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJun 2013
KGXETLX (Eurotlx)YesBearer SharesITEURJun 2013
KIGR.YOTCPK (Pink Sheets LLC)UNSP ADR EA REPR 0.25 ORDUSUSDJul 2015
KGX1DB (Deutsche Boerse AG)UNSP ADR EA REPR 0.25 ORDDEEURJul 2015

Biography

KION GROUP AG provides industrial trucks, warehouse technology, supply chain solutions, and related services worldwide. The company operates through Industrial Trucks and Services, and Supply Chain Solutions segments. It develops, manufactures, and sells forklifts and warehouse trucks, such as counterbalance trucks with electric drive and internal combustion engine, ride-on and hand-operated industrial trucks, towing vehicles, and automated trucks and autonomous trucks under the Linde, Fenwick, STILL, OM STILL, Baoli, and OM Voltas brands. The company also manufactures and sells spare parts; leases industrial trucks and related items; offers maintenance and repair services; and finances long-term leases. In addition, it provides integrated technology and software solutions, including conveyors, sorters, storage and retrieval systems, picking equipment, palletisers, and robotic solutions under the Dematic brand name. The company was formerly known as KION Holding 1 GmbH. KION GROUP AG was founded in 2006 and is headquartered in Frankfurt am Main, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 23:38
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.