DB:K34

Stock Analysis Report

Executive Summary

Konecranes Plc manufactures, sells, and services cranes, lifting equipment, and machine tools worldwide.


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: K34's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

23.6%

K34

6.7%

DE Machinery

9.1%

DE Market


1 Year Return

-46.2%

K34

-28.7%

DE Machinery

-13.1%

DE Market

Return vs Industry: K34 underperformed the German Machinery industry which returned -32.5% over the past year.

Return vs Market: K34 underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

K34IndustryMarket
7 Day23.6%6.7%9.1%
30 Day-7.1%-6.1%-1.0%
90 Day-31.8%-25.0%-20.7%
1 Year-46.2%-46.2%-26.6%-28.7%-10.6%-13.1%
3 Year-38.4%-42.6%-37.8%-42.2%-10.7%-18.1%
5 Year-26.4%-37.0%-24.0%-32.4%-10.7%-22.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

47.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: K34 (€17.12) is trading below our estimate of fair value (€34.74)

Significantly Below Fair Value: K34 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: K34 is poor value based on its PE Ratio (16.9x) compared to the Machinery industry average (10x).

PE vs Market: K34 is poor value based on its PE Ratio (16.9x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: K34 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: K34 is overvalued based on its PB Ratio (1.1x) compared to the DE Machinery industry average (1.1x).


Next Steps

Future Growth

How is Konecranes forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: K34's forecast earnings growth (29% per year) is above the savings rate (-0.4%).

Earnings vs Market: K34's earnings (29% per year) are forecast to grow faster than the German market (14.1% per year).

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

Revenue vs Market: K34's revenue (0.4% per year) is forecast to grow slower than the German market (4% per year).

High Growth Revenue: K34's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: K34's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has Konecranes performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K34 has high quality earnings.

Growing Profit Margin: K34's current net profit margins (2.4%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: K34's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: K34's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: K34 had negative earnings growth (-20.4%) over the past year, making it difficult to compare to the Machinery industry average (-19.9%).


Return on Equity

High ROE: K34's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Konecranes's financial position?


Financial Position Analysis

Short Term Liabilities: K34's short term assets (€1.9B) exceed its short term liabilities (€1.4B).

Long Term Liabilities: K34's short term assets (€1.9B) exceed its long term liabilities (€1.2B).


Debt to Equity History and Analysis

Debt Level: K34's debt to equity ratio (71.9%) is considered high.

Reducing Debt: K34's debt to equity ratio has increased from 54% to 71.9% over the past 5 years.

Debt Coverage: K34's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: K34's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


Next Steps

Dividend

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

6.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: K34's dividend (6.91%) is higher than the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: K34's dividend (6.91%) is in the top 25% of dividend payers in the German market (4.85%)


Stability and Growth of Payments

Stable Dividend: K34's dividends per share have been stable in the past 10 years.

Growing Dividend: K34's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116.8%), K34's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: K34's dividends in 3 years are forecast to be covered by earnings (56.6% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Rob Smith (54yo)

0.17

Tenure

Mr. Richard Robinson Smith, also known as Rob, has been a President, Chief Executive Officer and Member of Group Executive Board at Konecranes Plc since February 1, 2020. Mr. Smith served as Senior Vice Pr ...


Leadership Team

NamePositionTenureCompensationOwnership
Teo Ottola
CFO, Deputy CEO & Member of Executive Board12.67yrs€87.28k0.045% 648.2k
Richard Smith
President0.17yrno datano data
Sirpa Poitsalo
Senior VP3.75yrsno data0.042% 610.9k
Fabio Fiorino
Executive VP of Business Area Service & Member of Executive Board8.25yrsno data0.030% 439.1k
Timo Leskinen
Senior VP of Human Resources & Member of the Group Executive Board7.25yrsno data0.014% 200.5k
Mika Mahlberg
Executive VP of Business Area Port Solutions & Member of Executive Board3.25yrsno data0.011% 155.3k
Juha Matti Pankakoski
Executive Vice President of Technology & Member of Group Executive Board5.25yrsno data0.011% 162.3k
Carolin Paulus
Executive VP of Business Area Industrial Equipment & Member of Group Executive Board0.083yrno datano data
Ari Kiviniitty
Chief Technology Officer3.67yrsno datano data
Eero Tuulos
Vice President of Investor Relations2.25yrsno datano data

3.7yrs

Average Tenure

52yo

Average Age

Experienced Management: K34's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bertel Langenskiöld
Independent Director8.08yrs€77.50k0.0069% 100.3k
Ole Johansson
Independent Vice Chairman3.08yrs€121.00k0.018% 261.6k
Christoph Vitzthum
Independent Chairman4.08yrs€149.00k0.0064% 93.0k
Ulf Liljedahl
Independent Director3.58yrs€110.50k0.0028% 39.9k
Janina Kugel
Independent Director3.58yrs€76.00k0.0028% 39.9k
Päivi Rekonen
Independent Director2.08yrs€88.00k0.0019% 27.2k
Per Nerseth
Independent Director2.08yrs€86.50k0.0019% 27.2k
Anders Nielsen
Independent Director2.08yrs€71.50k0.0019% 27.2k

3.3yrs

Average Tenure

54.5yo

Average Age

Experienced Board: K34's board of directors are considered experienced (3.3 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

Konecranes Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Konecranes Plc
  • Ticker: K34
  • Exchange: DB
  • Founded: 1910
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €1.447b
  • Shares outstanding: 78.85m
  • Website: https://www.konecranes.com

Number of Employees


Location

  • Konecranes Plc
  • Koneenkatu 8
  • PO Box 661
  • Hyvinkää
  • Uusimaa
  • 5801
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KCRHLSE (OMX Nordic Exchange Helsinki)YesClass A sharesFIEURApr 1996
KNCR.FOTCPK (Pink Sheets LLC)YesClass A sharesUSUSDApr 1996
0METLSE (London Stock Exchange)YesClass A sharesGBEURApr 1996
K34DB (Deutsche Boerse AG)YesClass A sharesDEEURApr 1996
KCRHBATS-CHIXE (BATS 'Chi-X Europe')YesClass A sharesGBEURApr 1996
KNCR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Konecranes Plc manufactures, sells, and services cranes, lifting equipment, and machine tools worldwide. It operates through three segments: Service, Industrial Equipment, and Port Solutions. The Service segment offers specialized maintenance services and spare parts for various types and makes of industrial cranes and hoists. This segment provides inspections and preventive maintenance, predictive maintenance and remote monitoring, corrective maintenance and retrofits, consultation and modernization, new equipment, and spare parts services. The Industrial Equipment segment provides a range of industrial cranes for general manufacturing and various process industries; and crane components and lifting equipment solutions to other crane manufacturers and distributors. The Port Solutions segment offers container handling equipment, shipyard equipment, mobile harbor cranes, and heavy-duty lift-trucks, as well as port solution related software. The company’s products include workstation lifting systems, overhead cranes, hazardous environment cranes and hoists, lift trucks, and bulk handling equipment, as well as cores for lifting; and services comprise maintenance, inspection and preventive maintenance, predictive maintenance and remote monitoring, corrective maintenance and retrofit, consultation, modernization, and remote services. It serves the automotive, container handling, mining, general manufacturing, nuclear, petroleum and gas, power, paper and forest, shipyard, metals production, and waste to energy and biomass industries. The company was founded in 1910 and is headquartered in Hyvinkää, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 04:18
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.