HLSE:KNEBV

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

KNEBV

-7.2%

FI Machinery

-3.2%

FI Market


1 Year Return

23.0%

KNEBV

-12.3%

FI Machinery

-7.5%

FI Market

Return vs Industry: KNEBV exceeded the Finnish Machinery industry which returned -13% over the past year.

Return vs Market: KNEBV exceeded the Finnish Market which returned -6.6% over the past year.


Shareholder returns

KNEBVIndustryMarket
7 Day0%-7.2%-3.2%
30 Day0.5%-14.1%-7.5%
90 Day18.9%5.2%7.6%
1 Year27.1%23.0%-1.9%-12.3%1.3%-7.5%
3 Year50.5%35.2%-0.5%-15.8%5.0%-11.0%
5 Year105.6%72.0%40.6%10.9%31.9%4.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KNEBV (€61.78) is trading above our estimate of fair value (€31.59)

Significantly Below Fair Value: KNEBV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KNEBV is poor value based on its PE Ratio (35.1x) compared to the Machinery industry average (19.7x).

PE vs Market: KNEBV is poor value based on its PE Ratio (35.1x) compared to the Finnish market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: KNEBV is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: KNEBV is overvalued based on its PB Ratio (13.1x) compared to the FI Machinery industry average (1.3x).


Next Steps

Future Growth

How is KONE Oyj forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KNEBV's forecast earnings growth (9.6% per year) is above the savings rate (0.4%).

Earnings vs Market: KNEBV's earnings (9.6% per year) are forecast to grow slower than the Finnish market (13.8% per year).

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

Revenue vs Market: KNEBV's revenue (4.6% per year) is forecast to grow slower than the Finnish market (4.9% per year).

High Growth Revenue: KNEBV's revenue (4.6% 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 (31.7%)


Next Steps

Past Performance

How has KONE Oyj performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KNEBV has high quality earnings.

Growing Profit Margin: KNEBV's current net profit margins (9.2%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: KNEBV's earnings have declined by -1.7% per year over the past 5 years.

Accelerating Growth: KNEBV's earnings growth over the past year (9.4%) exceeds its 5-year average (-1.7% per year).

Earnings vs Industry: KNEBV earnings growth over the past year (9.4%) exceeded the Machinery industry -20.1%.


Return on Equity

High ROE: KNEBV's Return on Equity (37.3%) is considered high.


Next Steps

Financial Health

How is KONE Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: KNEBV's short term assets (€5.3B) exceed its short term liabilities (€4.7B).

Long Term Liabilities: KNEBV's short term assets (€5.3B) exceed its long term liabilities (€892.9M).


Debt to Equity History and Analysis

Debt Level: KNEBV's debt to equity ratio (3%) is considered satisfactory.

Reducing Debt: KNEBV's debt to equity ratio has reduced from 10.8% to 3% over the past 5 years.

Debt Coverage: KNEBV's debt is well covered by operating cash flow (1676.6%).

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


Balance Sheet


Next Steps

Dividend

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

2.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KNEBV's dividend (2.75%) is higher than the bottom 25% of dividend payers in the Finnish market (2.4%).

High Dividend: KNEBV's dividend (2.75%) is low compared to the top 25% of dividend payers in the Finnish market (5.23%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.6%), KNEBV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KNEBV's dividends in 3 years are forecast to be covered by earnings (85.1% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Henrik Ehrnrooth (51yo)

6.25yrs

Tenure

€4,278,327

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 ($USD4.83M) is about average for companies of similar size in the Finnish market ($USD3.97M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Henrik Ehrnrooth
CEO, President & Member of the Executive Board6.25yrs€4.28m0.065% 20.9m
Ilkka Hara
CFO & Member of Executive Board3.92yrsno data0.0069% 2.2m
Klaus Cawén
EVP of M&A & Strategic Alliances and Executive Board Member29.5yrsno data0.069% 22.0m
Pierre Liautaud
Executive VP of South Europe9.25yrsno data0.013% 4.3m
William Johnson
Executive VP of Greater China & Member of the Executive Board8yrsno data0.024% 7.8m
Tomio Pihkala
Executive VP of New Equipment Business & Member of the Executive Board6.83yrsno data0.018% 5.8m
Mikko Korte
Executive VP of Operations Development & Member of the Executive Board4.5yrsno data0.011% 3.4m
Axel Berkling
Executive VP of the Asia-Pacific Region & Member of the Executive Board3.75yrsno data0.0094% 3.0m
Thomas Hinnerskov
Executive VP of Central & North Europe and Member of the Executive Board3.75yrsno data0.0081% 2.6m
Susanne Skippari
Interim Head of Marketing3.42yrsno data0.0051% 1.6m

5.4yrs

Average Tenure

51.5yo

Average Age

Experienced Management: KNEBV's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Antti Herlin
Chairman of the Board17.5yrs€1.06m0.33% 104.4m
Matti Alahuhta
Independent Director17.42yrsno data0.15% 46.6m
Anne Brunila
Independent Director11.42yrsno data0.00058% 185.8k
Ravi Kant
Independent Director6.42yrsno data0.00041% 131.3k
Sirpa Pietikäinen
Independent Director14.42yrsno data0.0016% 502.8k
Jussi Herlin
Vice Chairman of the Boardno datano data0.021% 6.8m
Juhani Kaskeala
Independent Director11.42yrsno data0.00057% 182.5k
Susan Duinhoven
Director0.42yrno datano data
Iiris Herlin
Director5.5yrsno data0.026% 8.3m

11.4yrs

Average Tenure

63yo

Average Age

Experienced Board: KNEBV's board of directors are seasoned and experienced ( 11.4 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KONE Oyj
  • Ticker: KNEBV
  • Exchange: HLSE
  • Founded: 1910
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €32.026b
  • Shares outstanding: 518.39m
  • Website: https://www.kone.com

Number of Employees


Location

  • KONE Oyj
  • Keilasatama 3
  • P.O. box 7
  • Espoo
  • Uusimaa
  • 2150
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KNEBVHLSE (OMX Nordic Exchange Helsinki)YesClass B SharesFIEURJun 2005
KC4DB (Deutsche Boerse AG)YesClass B SharesDEEURJun 2005
0II2LSE (London Stock Exchange)YesClass B SharesGBEURJun 2005
KNYJ.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJun 2005
KC4XTRA (XETRA Trading Platform)YesClass B SharesDEEURJun 2005
KNEBVHBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBEURJun 2005
KC4ETLX (Eurotlx)YesClass B SharesITEURJun 2005
KNYJ.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. It offers elevators, escalators, auto walks, and automatic building doors. The company also provides maintenance services under the KONE Care and KONE 24/7 Connected name; modernization solutions; various residential solutions; KONE Access, an access control system, which is integrated with elevator system and building doors; destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. In addition, it offers people flow planning and consulting services; and solutions for special buildings and large projects. The company was founded in 1910 and is based in Espoo, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 20:51
End of Day Share Price2020/07/09 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.