An Examination Of Konecranes Plc (HEL:KCR)

Konecranes Plc (HEL:KCR) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of KCR, it is a financially-healthy company with a an impressive history of dividend payments and a excellent growth outlook. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Konecranes here.

Reasonable growth potential with adequate balance sheet and pays a dividend

KCR is an attractive stock for growth-seeking investors, with an expected earnings growth of 22% in the upcoming year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to more than double over the next year. This indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. KCR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. KCR’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps KCR expand.

HLSE:KCR Past and Future Earnings, March 1st 2019
HLSE:KCR Past and Future Earnings, March 1st 2019

KCR dishes out decent dividend payments over time, exceeding the low-risk savings rate, which is able to compensate investors for taking on the risk of holding a risky stock over a riskless asset. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.

HLSE:KCR Historical Dividend Yield, March 1st 2019
HLSE:KCR Historical Dividend Yield, March 1st 2019

Next Steps:

For Konecranes, I’ve put together three essential factors you should further research:

  1. Historical Performance: What has KCR’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Valuation: What is KCR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KCR is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KCR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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.

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. Thank you for reading.