company background image
KNEB

KONE Oyj HLSE:KNEBV Stock Report

Last Price

€42.30

Market Cap

€21.9b

7D

-0.7%

1Y

-40.0%

Updated

08 Aug, 2022

Data

Company Financials +
KNEBV fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance3/6
Financial Health5/6
Dividends3/6

KNEBV Stock Overview

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide.

KONE Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for KONE Oyj
Historical stock prices
Current Share Price€42.30
52 Week High€72.18
52 Week Low€41.33
Beta0.58
1 Month Change-10.34%
3 Month Change-2.02%
1 Year Change-40.00%
3 Year Change-18.81%
5 Year Change-4.36%
Change since IPO646.85%

Recent News & Updates

Jul 28
Here's Why KONE Oyj (HEL:KNEBV) Can Manage Its Debt Responsibly

Here's Why KONE Oyj (HEL:KNEBV) Can Manage Its Debt Responsibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Jul 11
Returns At KONE Oyj (HEL:KNEBV) Appear To Be Weighed Down

Returns At KONE Oyj (HEL:KNEBV) Appear To Be Weighed Down

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...

Shareholder Returns

KNEBVFI MachineryFI Market
7D-0.7%0.7%1.2%
1Y-40.0%-33.1%-19.7%

Return vs Industry: KNEBV underperformed the Finnish Machinery industry which returned -34.1% over the past year.

Return vs Market: KNEBV underperformed the Finnish Market which returned -20.2% over the past year.

Price Volatility

Is KNEBV's price volatile compared to industry and market?
KNEBV volatility
KNEBV Average Weekly Movement4.5%
Machinery Industry Average Movement5.5%
Market Average Movement5.0%
10% most volatile stocks in FI Market9.0%
10% least volatile stocks in FI Market3.4%

Stable Share Price: KNEBV is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KNEBV's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190863,106Henrik Ehrnroothhttps://www.kone.com

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. It offers elevators, escalators, and automatic building doors. The company also provides maintenance services; modernization solutions; and various residential solutions.

KONE Oyj Fundamentals Summary

How do KONE Oyj's earnings and revenue compare to its market cap?
KNEBV fundamental statistics
Market Cap€21.92b
Earnings (TTM)€799.50m
Revenue (TTM)€10.37b

27.4x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KNEBV income statement (TTM)
Revenue€10.37b
Cost of Revenue€5.20b
Gross Profit€5.18b
Other Expenses€4.38b
Earnings€799.50m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)1.54
Gross Margin49.91%
Net Profit Margin7.71%
Debt/Equity Ratio8.3%

How did KNEBV perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

113%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is KNEBV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KNEBV?

Other financial metrics that can be useful for relative valuation.

KNEBV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA16.7x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does KNEBV's PE Ratio compare to its peers?

KNEBV PE Ratio vs Peers
The above table shows the PE ratio for KNEBV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average41.7x
WRT1V Wärtsilä Oyj Abp
124.5x42.2%€5.1b
VALMT Valmet Oyj
14.9x8.3%€4.8b
CGCBV Cargotec
8.2x11.2%€2.2b
KCR Konecranes
19.1x26.3%€2.0b
KNEBV KONE Oyj
27.4x11.1%€21.9b

Price-To-Earnings vs Peers: KNEBV is good value based on its Price-To-Earnings Ratio (27.4x) compared to the peer average (41.7x).


Price to Earnings Ratio vs Industry

How does KNEBV's PE Ratio compare vs other companies in the European Machinery Industry?

Price-To-Earnings vs Industry: KNEBV is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the Finnish Machinery industry average (26.6x)


Price to Earnings Ratio vs Fair Ratio

What is KNEBV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KNEBV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.4x
Fair PE Ratio28.7x

Price-To-Earnings vs Fair Ratio: KNEBV is good value based on its Price-To-Earnings Ratio (27.4x) compared to the estimated Fair Price-To-Earnings Ratio (28.7x).


Share Price vs Fair Value

What is the Fair Price of KNEBV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KNEBV (€42.3) is trading below our estimate of fair value (€66.8)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is KONE Oyj forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KNEBV's forecast earnings growth (11.1% per year) is above the savings rate (0.2%).

Earnings vs Market: KNEBV's earnings (11.1% per year) are forecast to grow faster than the Finnish market (7.8% per year).

High Growth Earnings: KNEBV's earnings are forecast to grow, but not significantly.

Revenue vs Market: KNEBV's revenue (4.3% per year) is forecast to grow faster than the Finnish market (1.7% per year).

High Growth Revenue: KNEBV's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KNEBV's Return on Equity is forecast to be high in 3 years time (37%)


Discover growth companies

Past Performance

How has KONE Oyj performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KNEBV has high quality earnings.

Growing Profit Margin: KNEBV's current net profit margins (7.7%) are lower than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: KNEBV's earnings have grown by 0.4% per year over the past 5 years.

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

Earnings vs Industry: KNEBV had negative earnings growth (-21.8%) over the past year, making it difficult to compare to the Machinery industry average (-15.4%).


Return on Equity

High ROE: KNEBV's Return on Equity (32.6%) is considered high.


Discover strong past performing companies

Financial Health

How is KONE Oyj's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: KNEBV's short term assets (€6.4B) exceed its short term liabilities (€5.9B).

Long Term Liabilities: KNEBV's short term assets (€6.4B) exceed its long term liabilities (€861.2M).


Debt to Equity History and Analysis

Debt Level: KNEBV has more cash than its total debt.

Reducing Debt: KNEBV's debt to equity ratio has increased from 7.8% to 8.3% over the past 5 years.

Debt Coverage: KNEBV's debt is well covered by operating cash flow (509%).

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


Balance Sheet


Discover healthy companies

Dividend

What is KONE Oyj current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.96%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KNEBV's dividend (4.96%) is higher than the bottom 25% of dividend payers in the Finnish market (2.33%).

High Dividend: KNEBV's dividend (4.96%) is in the top 25% of dividend payers in the Finnish market (4.88%)


Stability and Growth of Payments

Stable Dividend: KNEBV's dividend payments have been volatile in the past 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (113.2%), KNEBV's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (111%), KNEBV's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.9yrs

Average management tenure


CEO

Henrik Ehrnrooth (53 yo)

13.5yrs

Tenure

€4,298,417

Compensation

Mr. Henrik Ehrnrooth, M.Sc. (Econ), has been the Chief Executive Officer and President at Kone Oyj since April 1, 2014 and has also been its Member of Executive Board since February 2009. Mr. Ehrnrooth ser...


CEO Compensation Analysis

Compensation vs Market: Henrik's total compensation ($USD4.39M) is about average for companies of similar size in the Finnish market ($USD4.37M).

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


Leadership Team

Experienced Management: KNEBV's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: KNEBV's board of directors are considered experienced (8 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

KONE Oyj's employee growth, exchange listings and data sources


Key Information

  • Name: KONE Oyj
  • Ticker: KNEBV
  • Exchange: HLSE
  • Founded: 1908
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: €21.919b
  • Shares outstanding: 518.17m
  • Website: https://www.kone.com

Number of Employees


Location

  • KONE Oyj
  • Keilasatama 3
  • PO Box 7
  • Espoo
  • Uusimaa
  • 2150
  • Finland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.