ENXTAM:KENDR

Stock Analysis Report

Executive Summary

Kendrion N.V. develops, manufactures, and markets electromagnetic systems and components for industrial and automotive applications in Germany, Europe, the Americas, Asia, and internationally.

Rewards

Trading at 54.4% below its fair value

Earnings are forecast to grow 55.28% per year

Risk Analysis

Has a high level of debt

Dividend of 4.16% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (2.2%) are lower than last year (4%)



Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.2%

KENDR

-0.5%

NL Electrical

1.9%

NL Market


1 Year Return

-4.8%

KENDR

26.7%

NL Electrical

10.3%

NL Market

Return vs Industry: KENDR underperformed the Dutch Electrical industry which returned 26.8% over the past year.

Return vs Market: KENDR underperformed the Dutch Market which returned 10.2% over the past year.


Shareholder returns

KENDRIndustryMarket
7 Day4.2%-0.5%1.9%
30 Day-0.5%4.5%1.1%
90 Day-7.1%10.9%3.8%
1 Year-1.0%-4.8%32.0%26.7%14.9%10.3%
3 Year-16.3%-23.6%30.6%19.5%36.2%21.3%
5 Year-10.6%-23.5%65.8%-25.6%54.2%23.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KENDR (€20.9) is trading below our estimate of fair value (€45.86)

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


Price To Earnings Ratio

PE vs Industry: KENDR is poor value based on its PE Ratio (30.5x) compared to the Electrical industry average (23.4x).

PE vs Market: KENDR is poor value based on its PE Ratio (30.5x) compared to the Dutch market (21x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KENDR is good value based on its PB Ratio (1.5x) compared to the NL Electrical industry average (3.3x).


Next Steps

Future Growth

How is Kendrion forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

55.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KENDR's forecast earnings growth (55.3% per year) is above the savings rate (-0.2%).

Earnings vs Market: KENDR's earnings (55.3% per year) are forecast to grow faster than the Dutch market (12.5% per year).

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

Revenue vs Market: KENDR's revenue (7.6% per year) is forecast to grow faster than the Dutch market (6.8% per year).

High Growth Revenue: KENDR's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KENDR's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has Kendrion performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KENDR has a large one-off loss of €9.1M impacting its September 30 2019 financial results.

Growing Profit Margin: KENDR's current net profit margins (2.2%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: KENDR's earnings have declined by -8.3% per year over the past 5 years.

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

Earnings vs Industry: KENDR had negative earnings growth (-50%) over the past year, making it difficult to compare to the Electrical industry average (2.3%).


Return on Equity

High ROE: KENDR's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kendrion's financial position?


Financial Position Analysis

Short Term Liabilities: KENDR's short term assets (€134.8M) exceed its short term liabilities (€78.5M).

Long Term Liabilities: KENDR's short term assets (€134.8M) exceed its long term liabilities (€122.5M).


Debt to Equity History and Analysis

Debt Level: KENDR's debt to equity ratio (49.1%) is considered high.

Reducing Debt: KENDR's debt to equity ratio has reduced from 70.3% to 49.1% over the past 5 years.

Debt Coverage: KENDR's debt is well covered by operating cash flow (28.9%).

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


Balance Sheet

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

Debt Coverage by Assets: KENDR's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

4.16%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.1%markettop25%5.4%industryaverage2.4%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: KENDR's dividend (4.16%) is higher than the bottom 25% of dividend payers in the Dutch market (2.06%).

High Dividend: KENDR's dividend (4.16%) is low compared to the top 25% of dividend payers in the Dutch market (5.42%).


Stability and Growth of Payments

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

Growing Dividend: KENDR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (127%), KENDR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KENDR's dividends in 3 years are forecast to be well covered by earnings (43.7% payout ratio).


Next Steps

Management

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

€784k

CEO Compensation


CEO

Joep van Beurden (59yo)

4.2yrs

Tenure

€783,800

Compensation

Mr. Jozef Aloysius Johannes van Beurden, also known as Joep, has been Chief Executive Officer and Member of Executive Board at Kendrion NV since December 1, 2015. Mr. van Beurden served as the Chief Execut ...


CEO Compensation Analysis

Compensation vs Market: Joep's total compensation ($USD849.83K) is about average for companies of similar size in the Dutch market ($USD849.83K).

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


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

Kendrion N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kendrion N.V.
  • Ticker: KENDR
  • Exchange: ENXTAM
  • Founded: 1859
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: €308.382m
  • Shares outstanding: 14.76m
  • Website: https://www.kendrion.com

Number of Employees


Location

  • Kendrion N.V.
  • Utrechtseweg 33
  • Zeist
  • Utrecht
  • 3704 HA
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KENDRENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 1990
0G68LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1990
KNDR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1990
K3EDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1990
KENDRABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1990

Biography

Kendrion N.V. develops, manufactures, and markets electromagnetic systems and components for industrial and automotive applications in Germany, Europe, the Americas, Asia, and internationally. The company operates in two segments, Automotive and Industrial. The Industrial segment offers switching, linear, locking, holding, door, oscillating, elevator brake, rotary, and custom solenoids; and industrial control systems to optimize automatic processes with pneumatics, fluid, solenoid, and control technologies. This segment also provides electromechanical brakes and clutches that are used in access control systems, aircraft interiors, elevator systems, energy generation and distribution, industrial appliances, industrial safety systems, medical equipment, robotics and automation, and textile machinery. The Automotive segment offers electromagnetic actuators, and mechatronic systems and components primarily for use in fuel systems, engine management, active damping, sound design, sensor technology, and assistance systems of passenger cars; and electronic systems and components primarily for use in the areas of commercial vehicles, such as bus and truck, as well as construction and agricultural machinery, municipal vehicles, and fire-protection technology and gensets. The company was formerly known as Schuttersveld N.V. and changed its name to Kendrion N.V. in 2001. Kendrion N.V. was founded in 1859 and is headquartered in Zeist, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/15 21:39
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.