XTRA:KRN

Stock Analysis Report

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Executive Summary

Krones AG, together with its subsidiaries, engages in planning, developing, and manufacturing machinery and systems for the fields of process technology, filling and packaging technology, and intralogistics in Germany and internationally.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KRN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

KRN

1.1%

DE Machinery

3.5%

DE Market


1 Year Return

-17.2%

KRN

-13.0%

DE Machinery

3.0%

DE Market

Return vs Industry: KRN underperformed the German Machinery industry which returned -14.5% over the past year.

Return vs Market: KRN underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

KRNIndustryMarket
7 Day0.7%1.1%3.5%
30 Day-10.1%-3.9%-0.08%
90 Day10.0%19.8%21.0%
1 Year-16.0%-17.2%-12.2%-13.0%5.2%3.0%
3 Year-41.6%-44.6%-30.6%-34.7%4.5%-4.0%
5 Year-36.1%-41.1%-9.7%-18.8%11.5%-3.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Krones 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: KRN (€57.65) is trading below our estimate of fair value (€83.2)

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


Price To Earnings Ratio

PE vs Industry: KRN is poor value based on its PE Ratio (148.1x) compared to the Machinery industry average (15.4x).

PE vs Market: KRN is poor value based on its PE Ratio (148.1x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: KRN is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: KRN is good value based on its PB Ratio (1.3x) compared to the DE Machinery industry average (1.3x).


Next Steps

Future Growth

How is Krones forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

70.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRN's forecast earnings growth (70.5% per year) is above the savings rate (0.2%).

Earnings vs Market: KRN's earnings (70.5% per year) are forecast to grow faster than the German market (22.3% per year).

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

Revenue vs Market: KRN's revenue (6.1% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: KRN's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KRN's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Krones performed over the past 5 years?

-12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRN has a large one-off loss of €83.5M impacting its March 31 2020 financial results.

Growing Profit Margin: KRN's current net profit margins (0.3%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: KRN's earnings have declined by -12.1% per year over the past 5 years.

Accelerating Growth: KRN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KRN had negative earnings growth (-91.7%) over the past year, making it difficult to compare to the Machinery industry average (-22.8%).


Return on Equity

High ROE: KRN's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is Krones's financial position?


Financial Position Analysis

Short Term Liabilities: KRN's short term assets (€2.4B) exceed its short term liabilities (€1.7B).

Long Term Liabilities: KRN's short term assets (€2.4B) exceed its long term liabilities (€446.5M).


Debt to Equity History and Analysis

Debt Level: KRN's debt to equity ratio (17.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if KRN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: KRN's debt is well covered by operating cash flow (81.3%).

Interest Coverage: KRN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KRN's dividend (1.3%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: KRN's dividend (1.3%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: KRN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KRN's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (192.7%), KRN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KRN's dividends in 3 years are forecast to be well covered by earnings (29.6% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Christoph Klenk (57yo)

4.5yrs

Tenure

€829,000

Compensation

Mr. Christoph Klenk has been Chief Executive Officer and Chairman of the Executive Board at Krones Ag since January 1, 2016. Mr. Klenk served as an Interim Chief Financial Officer of Krones AG since July 2 ...


CEO Compensation Analysis

Compensation vs Market: Christoph's total compensation ($USD937.46K) is below average for companies of similar size in the German market ($USD1.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christoph Klenk
Chairman of Executive Board & CEO4.5yrs€829.00kno data
Thomas Ricker
Chief Sales Officer & Member of Executive Board8.5yrs€562.00kno data
Markus Tischer
Member of Executive Board6.5yrs€497.00kno data
Ralf Goldbrunner
Member of Executive Board5.83yrs€511.00kno data
Klaus Gerlach
Head of Central Intrl Ops & Services and Emp. Rep. Member of Supervisory Boardno data€41.00kno data
Norbert Broger
CFO & Member of Executive Board0.50yrno datano data
Olaf Scholz
Head of Investor Relationsno datano datano data
Roland Pokorny
Head of Corporate Communicationsno datano datano data
Ulrich Noll
Head of Finance & Administration - Africa/Middle Eastno datano datano data
Ingrid Reuschl
Head of Public Relationsno datano datano data

5.8yrs

Average Tenure

52yo

Average Age

Experienced Management: KRN's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Klaus Gerlach
Head of Central Intrl Ops & Services and Emp. Rep. Member of Supervisory Boardno data€41.00kno data
Hans-Jürgen Thaus
Independent Member of Supervisory Board6.08yrs€54.00kno data
Volker Kronseder
Chairman of Supervisory Board4.08yrs€109.50k37.17% 677.0m
Norman Kronseder
Member of Supervisory Boardno data€57.00kno data
Petra Schadeberg-Herrmann
Member of Supervisory Board9.08yrs€41.00kno data
Werner Schrödl
Employee Representative Deputy Chairman of the Supervisory Board13.08yrs€74.50kno data
Josef Weitzer
Employee Representative Member of Supervisory Board13.08yrs€57.00kno data
Jürgen Scholz
Employee Representative Member of the Supervisory Board13.08yrs€51.00kno data
Verena Di Pasquale
Employee Representative Member of Supervisory Board6yrs€41.00kno data
Susanne Nonnast
Independent Member of Supervisory Board4.08yrs€41.00kno data

7.6yrs

Average Tenure

59yo

Average Age

Experienced Board: KRN's board of directors are considered experienced (7.6 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

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


Key Information

  • Name: Krones AG
  • Ticker: KRN
  • Exchange: XTRA
  • Founded: 1951
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €1.821b
  • Shares outstanding: 31.59m
  • Website: https://www.krones.com

Number of Employees


Location

  • Krones AG
  • Böhmerwaldstrasse 5
  • Neutraubling
  • Bavaria
  • 93073
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KRNN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1998
KRNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1998
KRNXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURSep 1998
0LQ4LSE (London Stock Exchange)YesOrdinary SharesGBEURSep 1998
KRNDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURSep 1998
KRNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFSep 1998
KRNWBAG (Wiener Boerse AG)YesOrdinary SharesATEURSep 1998
KRNT.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REP 0.5 ORD SHSUSUSDAug 2008
KRNUDB (Deutsche Boerse AG)UNSP ADR EACH REP 0.5 ORD SHSDEEURAug 2008

Biography

Krones AG, together with its subsidiaries, engages in planning, developing, and manufacturing machinery and systems for the fields of process technology, filling and packaging technology, and intralogistics in Germany and internationally. It operates in two segments, Machines and Lines for Product Filling and Decoration, and Machines and Lines for Beverage Production/Process Technology. The company provides plant engineering solutions, such as planning new plants, plant expansion, plant structural planning, and energy and media optimization; and process technology systems for use in beer, soft drink, water, milk, wine, spirit, juice, and dairy products. It also provides filling technology products for bottle design, stretch blow moulder, PET recycling, bottle washing machine, filling technology, inspection technology, labeling, conveyor, product treatment, and block technology applications; and packaging, palletizing, block, and robot technology products. In addition, the company offers intralogistics solutions, such as warehouse management systems, in-house solutions, and order picking systems for the food and beverage industries; and IT solutions, including manufacturing execution system, process control system, and warehouse management systems for the beverage and food industry. It serves breweries; water, soft drink, and juice manufacturers; dairies; producers of wine, sparkling wine, and spirits or companies from the liquid-food field; and companies from the food, chemical, pharmaceutical, and cosmetic industries. Krones AG was founded in 1951 and is headquartered in Neutraubling, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 20:48
End of Day Share Price2020/07/06 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.