HLSE:KCR

Stock Analysis Report

Executive Summary

Konecranes Plc manufactures, sells, and services lifting equipment worldwide.


Snowflake Analysis

Reasonable growth potential average dividend payer.


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: KCR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.0%

KCR

-5.1%

FI Machinery

-1.9%

FI Market


1 Year Return

-1.2%

KCR

8.9%

FI Machinery

9.8%

FI Market

Return vs Industry: KCR underperformed the Finnish Machinery industry which returned 8.9% over the past year.

Return vs Market: KCR underperformed the Finnish Market which returned 9.8% over the past year.


Shareholder returns

KCRIndustryMarket
7 Day-7.0%-5.1%-1.9%
30 Day5.2%-5.1%1.6%
90 Day5.4%2.0%8.7%
1 Year2.5%-1.2%13.1%8.9%14.8%9.8%
3 Year0.4%-9.4%21.4%9.7%33.6%17.6%
5 Year17.4%-2.6%37.3%17.9%44.6%17.3%

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

Valuation

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

31.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KCR (€30.19) is trading below our estimate of fair value (€44.08)

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


Price To Earnings Ratio

PE vs Industry: KCR is poor value based on its PE Ratio (29.4x) compared to the Machinery industry average (25.1x).

PE vs Market: KCR is poor value based on its PE Ratio (29.4x) compared to the Finnish market (22.1x).


Price to Earnings Growth Ratio

PEG Ratio: KCR is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: KCR is good value based on its PB Ratio (1.9x) compared to the FI Machinery industry average (2.1x).


Next Steps

Future Growth

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

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KCR's forecast earnings growth (23.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: KCR's earnings (23.4% per year) are forecast to grow faster than the Finnish market (9.7% per year).

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

Revenue vs Market: KCR's revenue (3.4% per year) is forecast to grow faster than the Finnish market (-0.1% per year).

High Growth Revenue: KCR's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KCR's Return on Equity is forecast to be low in 3 years time (15%).


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: KCR has a large one-off loss of €100.7M impacting its December 31 2019 financial results.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: KCR had negative earnings growth (-20.4%) over the past year, making it difficult to compare to the Machinery industry average (-16.4%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Konecranes's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Debt Level: KCR's debt to equity ratio (71.2%) is considered high.

Reducing Debt: KCR's debt to equity ratio has increased from 54.1% to 71.2% over the past 5 years.

Debt Coverage: KCR's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: KCR's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet

Inventory Level: KCR has a high level of physical assets or inventory.

Debt Coverage by Assets: KCR's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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

3.97%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Konecranes before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.0%marketbottom25%2.1%markettop25%4.5%industryaverage3.5%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: KCR's dividend (3.97%) is higher than the bottom 25% of dividend payers in the Finnish market (2.13%).

High Dividend: KCR's dividend (3.97%) is low compared to the top 25% of dividend payers in the Finnish market (4.55%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: KCR's dividends in 3 years are forecast to be well covered by earnings (49.7% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Rob Smith (53yo)

0

Mr. Rob Smith is President, Chief Executive Officer and Member of Group Executive Board at Konecranes Plc since February 1, 2020. Mr. Smith served as Senior Vice President & General Manager, Europe and Mi ...


Leadership Team

NamePositionTenureCompensationOwnership
Rob Smith
President0yrsno datano data
Teo Ottola
CFO & Member of Executive Board12.5yrsno data0.044% 1.1m
Mikko Uhari
Executive VP of Business Area Industrial Equipment & Member of Group Executive Board23.1yrsno data0.15% 3.6m
Sirpa Poitsalo
Senior VP3.6yrsno data0.042% 998.0k
Fabio Fiorino
Executive VP of Business Area Service & Member of Executive Board8.1yrsno data0.030% 722.5k
Timo Leskinen
Senior VP of Human Resources & Member of the Group Executive Board7.1yrsno data0.013% 319.7k
Mika Mahlberg
Executive VP of Business Area Port Solutions & Member of Executive Board3.1yrsno data0.010% 250.6k
Juha Matti Pankakoski
Executive Vice President of Technology & Member of Group Executive Board5.1yrsno data0.011% 257.3k
Minna Aila
Executive VP of Marketing & Corporate Affairs and Member of Group Executive Board1.4yrsno datano data
Ari Kiviniitty
Chief Technology Officer3.5yrsno datano data

5.1yrs

Average Tenure

53yo

Average Age

Experienced Management: KCR's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bertel Langenskiöld
Independent Director7.9yrs€85.00k0.0057% 135.7k
Ole Johansson
Vice Chairman2.9yrs€110.50k0.016% 388.5k
Christoph Vitzthum
Chairman3.9yrs€158.00k0.0040% 94.6k
Ulf Liljedahl
Independent Director3.4yrs€92.50k0.0015% 36.3k
Janina Kugel
Independent Director3.4yrs€80.50k0.0015% 36.3k
Päivi Rekonen
Independent Director1.9yrsno data0.00065% 15.5k
Per Nerseth
Independent Director1.9yrsno data0.00065% 15.5k
Anders Nielsen
Independent Director1.9yrsno data0.00065% 15.5k

3.2yrs

Average Tenure

54.5yo

Average Age

Experienced Board: KCR's board of directors are considered experienced (3.2 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: KCR
  • Exchange: HLSE
  • Founded: 1910
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €2.389b
  • Shares outstanding: 79.14m
  • 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 lifting equipment worldwide. It operates in 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. The Industrial Equipment segment provides industrial cranes for general manufacturing and various process industries; and crane components and lifting equipment solutions to other crane manufacturers and distributors under the Konecranes, Demag, SWF Krantechnik, Verlinde, R&M, and Donati brands. 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, corrective maintained and retrofit, consultation, modernization, and TURNCONNECT remote services. It serves the automotive, container handling, mining, general manufacturing, nuclear, petroleum and gas, power, paper and forest, shipyard, metal 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 Analysis2020/02/23 21:07
End of Day Share Price2020/02/21 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.