What Is KION GROUP AG's (ETR:KGX) Share Price Doing?

February 04, 2020
  •  Updated
September 30, 2022
XTRA:KGX
Source: Shutterstock

KION GROUP AG (ETR:KGX), which is in the machinery business, and is based in Germany, received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €65.64 at one point, and dropping to the lows of €56.70. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether KION GROUP's current trading price of €57.08 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at KION GROUP’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for KION GROUP

What is KION GROUP worth?

Good news, investors! KION GROUP is still a bargain right now. According to my valuation, the intrinsic value for the stock is €78.59, but it is currently trading at €57.08 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because KION GROUP’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from KION GROUP?

XTRA:KGX Past and Future Earnings, February 5th 2020
XTRA:KGX Past and Future Earnings, February 5th 2020

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. KION GROUP’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since KGX is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on KGX for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy KGX. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on KION GROUP. You can find everything you need to know about KION GROUP in the latest infographic research report. If you are no longer interested in KION GROUP, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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