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| Datum / Uhrzeit |
Titel |
Bewertung |
| 23.08.25 06:33:10 |
Wie steht es denn jetzt mit dem Krones-Kurs? Die Zahlen sehen ja gut aus, ist die Kursschwäche wirklich unbegründet? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Here's a 400-word summary of the text, followed by the German translation:
**Summary**
Despite a recent 5.3% share price decline, Krones (KRN) presents a promising long-term investment case, primarily driven by its strong Return on Equity (ROE). ROE, calculated as Net Profit (from continuing operations) divided by Shareholders' Equity, currently stands at a healthy 15% (based on trailing twelve months to June 2025). This means Krones is generating €0.15 in profit for every €1 of equity invested.
Crucially, Krones’ ROE significantly surpasses the industry average of 10%, contributing to a robust 45% net income growth over the last five years. This growth is further amplified by the company’s efficient profit retention, with a median payout ratio of 29%, retaining 71% of its income.
The company’s impressive growth isn't just a fluke; it’s linked to the reinvestment of profits. Companies with high ROE and profit retention tend to demonstrate higher growth rates than those with lower figures. Analysts believe other factors, such as efficient management and a well-covered dividend, are also playing a positive role.
The company’s future payout ratio is projected to remain steady at 30% over the next three years, and analysts expect the ROE to remain consistent at 15%. This stability reinforces the company’s strong financial position.
Investors should consider whether the market has accurately priced in Krones’ future earnings growth, a critical step before investing. The company's commitment to sharing profits with shareholders, demonstrated through a sustained dividend payment history of at least ten years, adds to its appeal.
Overall, Krones’ strong ROE, coupled with efficient profit retention and steady dividend payments, paint a positive picture for the company's future prospects.
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**German Translation:**
**Zusammenfassung**
Trotz eines jüngsten Rückgangs des Aktienkurses um 5,3 % stellt Krones (KRN) einen vielversprechenden langfristigen Anlagefall dar, der hauptsächlich auf seiner starken Eigenkapitalrendite (Return on Equity, ROE) basiert. Die ROE, berechnet als Nettogewinn (aus laufender Tätigkeit) geteilt durch das Eigenkapital, beträgt derzeit ein gesundes 15 % (basierend auf die letzten zwölf Monate bis Juni 2025). Dies bedeutet, dass Krones für jedes investierte Eigenkapital €0,15 an Gewinn erwirtschaftet.
Besonders wichtig ist, dass die ROE von Krones deutlich höher ist als der Branchenmittelwert von 10 %, was zu einem robusten Gewinnwachstum von 45 % über die letzten fünf Jahre geführt hat. Dieser Wachstumschub wird durch die effiziente Tilgung des Gewinns zusätzlich verstärkt, wobei ein mittlerer Ausschüttungsgrad von 29 % und die Tilgung von 71 % des Gewinns zur Anwendung kommen.
Das beeindruckende Wachstum des Unternehmens ist nicht nur ein Zufall, sondern wird durch die Investition des Gewinns weiter verstärkt, wobei Unternehmen mit hoher ROE und Gewinntilgung tendenziell höhere Wachstumsraten aufweisen als Unternehmen mit niedrigeren Werten. Analysten sind der Meinung, dass andere Faktoren, wie z. B. eine effiziente Unternehmensführung und eine gut gedeckte Dividende, ebenfalls eine positive Rolle spielen.
Das zukünftige Ausschüttungsverhältnis des Unternehmens wird in den nächsten drei Jahren bei 30 % erwartet und die ROE wird ebenfalls bei 15 % erwartet. Diese Stabilität stärkt die starke finanzielle Position des Unternehmens.
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| 05.08.25 06:43:35 |
Sind Investoren unterschätzen Krones AG (ETR:KRN) um 36%? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Entdecken Sie Krones Fair Values aus der Gemeinschaft und wählen Sie Ihre
Schlüsseleinsichten
Krones' geschätzter Fair Value beträgt €199 basierend auf 2 Stage Free Cash Flow zu Equity Krones' €127 Aktienkurssignale, dass es 36% unterschätzt werden könnte Unsere Fair Value-Schätzung ist 24% höher als Krones' Analyst-Preisziel von 160 €
Gibt der August-Aktiepreis für Krones AG (ETR:KRN) das, was es wirklich wert ist? Heute werden wir den Eigenwert der Aktie schätzen, indem wir die erwarteten zukünftigen Cashflows einnehmen und sie auf den heutigen Wert ermäßigen. Dafür nutzen wir das Discounted Cash Flow (DCF) Modell. Modelle wie diese können über das Verständnis eines Laienmenschen erscheinen, aber sie sind ziemlich einfach zu folgen.
Unternehmen können auf viele Arten geschätzt werden, so würden wir darauf hinweisen, dass ein DCF nicht perfekt für jede Situation ist. Für diejenigen, die begeisterte Lernende der Equity-Analyse sind, kann das Analysemodell Simply Wall St hier etwas von Interesse für Sie sein.
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Das Modell
Wir nutzen das 2-stufige Wachstumsmodell, das bedeutet, dass wir zwei Phasen des Unternehmenswachstums berücksichtigen. Im ersten Zeitraum kann das Unternehmen eine höhere Wachstumsrate haben und die zweite Stufe wird in der Regel eine stabile Wachstumsrate angenommen. Um damit zu beginnen, müssen wir die nächsten zehn Jahre der Cashflows abschätzen. Soweit möglich verwenden wir Analyst-Schätzungen, aber wenn diese nicht verfügbar sind, extrapolieren wir den vorherigen freien Cashflow (FCF) aus der letzten Schätzung oder dem gemeldeten Wert. Wir gehen davon aus, dass Unternehmen mit einem schrumpfenden freien Cashflow ihre Schrumpfrate verlangsamen und dass Unternehmen mit wachsendem freien Cashflow ihre Wachstumsrate in diesem Zeitraum langsam sehen werden. Wir tun dies, um zu reflektieren, dass Wachstum in den frühen Jahren eher langsamer als in späteren Jahren.
Ein DCF ist alles über die Idee, dass ein Dollar in der Zukunft weniger wertvoll ist als ein Dollar heute, und so wird die Summe dieser zukünftigen Cashflows auf den heutigen Wert reduziert:
10-jähriger freier Cashflow (FCF) Schätzung
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (€, Millions) €301.8m €354.2m €332.0m €319.5m €312.2m €308.5m €307.1m €307.2m €308.5m €310.6m Wachstumskursschätzung Quelle Analyst x6 Analyst x6 Analyst x1 Est @ -3,78% Est @ -2.26% Est @ -1.20% Est @ -0,46% Est @ 0,06% Est @ 0,42% Est @ 0,68% Derzeitiger Wert (€, Millionen) Ermäßigt @ 5,8% €285 €216 €280 €255 €235 €220 €207 €207 €
("Est" = FCF-Wachstumsrate geschätzt von Simply Wall St)
Aktueller Wert von 10-jährigem Cash Flow (PVCF) = €2,4b
Geschichte geht weiter
Wir müssen nun den Terminal-Wert berechnen, der alle zukünftigen Cashflows nach diesem zehnjährigen Zeitraum ausmacht. Aus einigen Gründen wird eine sehr konservative Wachstumsrate verwendet, die die des BIP-Wachstums eines Landes nicht überschreiten kann. In diesem Fall haben wir den 5-Jahres-Durchschnitt des 10-jährigen Staatsanleihen-Renditens (1,3%) verwendet, um zukünftiges Wachstum zu schätzen. In der gleichen Weise wie bei der 10-jährigen "Wachstums"-Periode vergünstigen wir die zukünftigen Cashflows auf den heutigen Wert, wobei die Eigenkapitalkosten 5,8% betragen.
Terminalwert (TV)= FCF2035 × (1 + g) ÷ (r – g) = €311m× (1 + 1,3%) ÷ (5,8%– 1,3%) = €6,9b
Aktueller Wert von Terminal Value (PVTV)= TV / (1 + r)10= €6.9b÷ ( 1 + 5.8%)10= €3.9b
Der Gesamtwert ist die Summe der Cashflows für die nächsten zehn Jahre plus den ermäßigten Terminalwert, was zu dem Total Equity Value führt, der in diesem Fall 6,3 Mrd. € beträgt. Um den Eigenwert pro Aktie zu erhalten, teilen wir diese durch die Gesamtzahl der ausstehenden Aktien. Im Vergleich zum aktuellen Aktienkurs von €127 erscheint das Unternehmen mit einem Rabatt von 36% ziemlich unterschätzt, wo der Aktienkurs derzeit gehandelt wird. Die Annahmen in jeder Berechnung haben einen großen Einfluss auf die Bewertung, so ist es besser, dies als grobe Schätzung zu betrachten, nicht genau bis zum letzten Cent. XTRA:KRN Ermäßigter Cash Flow 5. August 2025
Wichtige Annahmen
Wir weisen darauf hin, dass die wichtigsten Beiträge zu einem ermäßigten Cashflow der Diskontsatz und natürlich die tatsächlichen Cashflows sind. Ein Teil der Investition kommt mit Ihrer eigenen Bewertung der zukünftigen Leistung eines Unternehmens, also versuchen Sie die Berechnung selbst und überprüfen Sie Ihre eigenen Annahmen. Der DCF betrachtet auch nicht die mögliche Zyklizität einer Branche oder die zukünftigen Kapitalanforderungen eines Unternehmens, so dass er kein vollständiges Bild von der potenziellen Leistung eines Unternehmens gibt. Angesichts der Tatsache, dass wir Krones als potenzielle Aktionäre betrachten, werden die Eigenkapitalkosten als Diskontsatz und nicht die Kapitalkosten (oder gewichtete durchschnittliche Kapitalkosten, WACC) verwendet, die Schulden ausmachen. Bei dieser Berechnung haben wir 5,8% verwendet, was auf einer behebelten Beta von 1.051 basiert. Beta ist ein Maß für die Volatilität eines Bestands im Vergleich zum gesamten Markt. Wir erhalten unsere Beta aus der branchendurchschnittlichen Beta von weltweit vergleichbaren Unternehmen, mit einer verhängten Grenze zwischen 0,8 und 2,0, die ein angemessenes Angebot für ein stabiles Geschäft ist.
Schauen Sie sich unsere neueste Analyse für Krones an
SWOT-Analyse für Krones
Stärke
Das Ergebniswachstum im vergangenen Jahr überstieg die Industrie.
Schulden werden nicht als Risiko angesehen.
Dividenden werden durch Einnahmen und Cashflows abgedeckt.
Schwäche
Das Ergebniswachstum im vergangenen Jahr liegt unter dem 5-Jahresdurchschnitt.
Dividende ist im Vergleich zu den Top 25% der Dividendenempfänger auf dem Maschinenmarkt niedrig.
Möglichkeit
Der Jahresumsatz wird voraussichtlich schneller wachsen als der deutsche Markt.
Guter Wert basierend auf P/E-Verhältnis und geschätztem Fair Value.
Threat
Das Jahresergebnis wird voraussichtlich langsamer wachsen als der deutsche Markt.
Bewegung Auf:
Obwohl die Bewertung eines Unternehmens wichtig ist, ist es nur einer von vielen Faktoren, die Sie für ein Unternehmen bewerten müssen. Es ist nicht möglich, eine törichte Bewertung mit einem DCF-Modell zu erhalten. Stattdessen ist die beste Verwendung für ein DCF-Modell, um bestimmte Annahmen und Theorien zu prüfen, ob sie dazu führen würden, dass das Unternehmen unterbewertet oder überbewertet wird. Wenn ein Unternehmen mit einer anderen Rate wächst, oder wenn sich seine Kosten für Eigenkapital oder risikofreie Rate stark ändert, kann die Ausgabe sehr unterschiedlich aussehen. Was ist der Grund für den Aktienkurs, der unter dem Eigenwert sitzt? Für Krones haben wir drei wesentliche Faktoren zusammengestellt, die Sie erkunden sollten:
Risiken: Betrachten Sie zum Beispiel die immer gegenwärtige Art des Investitionsrisikos. Wir haben 1 Warnzeichen mit Krones identifiziert, und das sollte Teil Ihres Investitionsprozesses sein. Zukünftiges Ergebnis: Wie vergleicht die Wachstumsrate von KRN mit ihren Peers und dem breiteren Markt? Tauchen Sie tiefer in die Analyst-Konsenszahl der kommenden Jahre ein, indem Sie mit unserem kostenlosen Analysten-Wachstums-Erwartungsdiagramm interagieren. Andere solide Unternehmen: Niedrige Schulden, hohe Eigenkapitalrendite und gute vergangene Leistung sind für ein starkes Geschäft grundlegend. Warum nicht erkunden Sie unsere interaktive Liste von Aktien mit soliden Business-Grundlagen, um zu sehen, ob es andere Unternehmen gibt, die Sie möglicherweise nicht berücksichtigt haben!
PS. Die einfache Mauer St app führt jeden Tag eine ermäßigte Cashflow-Bewertung für jeden Bestand am XTRA durch. Wenn Sie die Berechnung für andere Bestände finden möchten, suchen Sie hier.
Haben Sie Feedback zu diesem Artikel? Über den Inhalt? Kontaktieren Sie uns direkt. Alternativ, E-Mail Editorial-team (at) einfachwallst.com.
Dieser Artikel von Simply Wall St ist allgemein in der Natur. Wir liefern Kommentare basierend auf historischen Daten und Analystenprognosen nur unter Verwendung einer unvoreingenommenen Methodik und unsere Artikel sind nicht als Finanzberatung gedacht. Es stellt keine Empfehlung dar, Aktien zu kaufen oder zu verkaufen, und berücksichtigt nicht Ihre Ziele oder Ihre finanzielle Situation. Wir wollen Ihnen langfristig fokussierte Analyse durch grundlegende Daten bringen. Beachten Sie, dass unsere Analyse möglicherweise nicht in den neuesten preisempfindlichen Unternehmensankündigungen oder qualitativen Material ausschlaggebend ist. Einfach Wand St hat keine Position in den genannten Beständen.
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| 21.07.25 04:08:45 |
Krones (ETR:KRN) shareholders have earned a 21% CAGR over the last five years |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For instance, the price of Krones AG (ETR:KRN) stock is up an impressive 144% over the last five years. It's also good to see the share price up 17% over the last quarter. But this could be related to the strong market, which is up 9.2% in the last three months.
Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.
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While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During five years of share price growth, Krones achieved compound earnings per share (EPS) growth of 88% per year. The EPS growth is more impressive than the yearly share price gain of 19% over the same period. So one could conclude that the broader market has become more cautious towards the stock.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).XTRA:KRN Earnings Per Share Growth July 21st 2025
We know that Krones has improved its bottom line lately, but is it going to grow revenue? You could check out this freereport showing analyst revenue forecasts.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Krones, it has a TSR of 161% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
Krones shareholders are up 12% for the year (even including dividends). But that was short of the market average. On the bright side, the longer term returns (running at about 21% a year, over half a decade) look better. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Krones is showing 1 warning sign in our investment analysis, you should know about...
Story continues
But note: Krones may not be the best stock to buy. So take a peek at this freelist of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
View comments |
| 08.04.25 06:31:03 |
Returns On Capital Are Showing Encouraging Signs At Krones (ETR:KRN) |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So on that note, Krones (ETR:KRN) looks quite promising in regards to its trends of return on capital.
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Understanding Return On Capital Employed (ROCE)
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on Krones is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.16 = €375m ÷ (€4.7b - €2.4b) (Based on the trailing twelve months to December 2024).
Thus, Krones has an ROCE of 16%. In absolute terms, that's a satisfactory return, but compared to the Machinery industry average of 8.9% it's much better.
Check out our latest analysis for Krones XTRA:KRN Return on Capital Employed April 8th 2025
Above you can see how the current ROCE for Krones compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our freeanalyst report for Krones .
So How Is Krones' ROCE Trending?
Investors would be pleased with what's happening at Krones. Over the last five years, returns on capital employed have risen substantially to 16%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 29%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.
On a side note, Krones' current liabilities are still rather high at 50% of total assets. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower.
Our Take On Krones' ROCE
A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Krones has. And a remarkable 116% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence.
Story Continues
On a final note, we've found 1 warning sign for Krones that we think you should be aware of.
For those who like to invest in solid companies, check out this freelist of companies with solid balance sheets and high returns on equity.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 22.03.25 07:33:37 |
Krones Full Year 2024 Earnings: In Line With Expectations |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Krones (ETR:KRN) Full Year 2024 Results
Key Financial Results
Revenue: €5.35b (up 12% from FY 2023). Net income: €276.9m (up 23% from FY 2023). Profit margin: 5.2% (up from 4.7% in FY 2023). The increase in margin was driven by higher revenue. EPS: €8.77 (up from €7.11 in FY 2023).
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All figures shown in the chart above are for the trailing 12 month (TTM) period
Krones Meets Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations.
Looking ahead, revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Germany.
Performance of the German Machinery industry.
The company's share price is broadly unchanged from a week ago.
Risk Analysis
Before we wrap up, we've discovered 1 warning sign for Krones that you should be aware of.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 16.03.25 06:04:54 |
Are Robust Financials Driving The Recent Rally In Krones AG's (ETR:KRN) Stock? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Krones (ETR:KRN) has had a great run on the share market with its stock up by a significant 11% over the last three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Specifically, we decided to study Krones' ROE in this article.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
View our latest analysis for Krones
How To Calculate Return On Equity?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Krones is:
14% = €250m ÷ €1.8b (Based on the trailing twelve months to September 2024).
The 'return' is the income the business earned over the last year. That means that for every €1 worth of shareholders' equity, the company generated €0.14 in profit.
Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
A Side By Side comparison of Krones' Earnings Growth And 14% ROE
To start with, Krones' ROE looks acceptable. On comparing with the average industry ROE of 10% the company's ROE looks pretty remarkable. This probably laid the ground for Krones' significant 48% net income growth seen over the past five years. However, there could also be other causes behind this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
We then compared Krones' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 17% in the same 5-year period.XTRA:KRN Past Earnings Growth March 16th 2025
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is KRN fairly valued? This infographic on the company's intrinsic value has everything you need to know.
Story Continues
Is Krones Making Efficient Use Of Its Profits?
The three-year median payout ratio for Krones is 28%, which is moderately low. The company is retaining the remaining 72%. This suggests that its dividend is well covered, and given the high growth we discussed above, it looks like Krones is reinvesting its earnings efficiently.
Additionally, Krones has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 27%. Accordingly, forecasts suggest that Krones' future ROE will be 15% which is again, similar to the current ROE.
Summary
In total, we are pretty happy with Krones' performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the company's future earnings growth forecasts take a look at this freereport on analyst forecasts for the company to find out more.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 26.02.25 05:39:12 |
Are Investors Undervaluing Krones AG (ETR:KRN) By 31%? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Key Insights
Krones' estimated fair value is €188 based on 2 Stage Free Cash Flow to Equity Krones is estimated to be 31% undervalued based on current share price of €129 Our fair value estimate is 24% higher than Krones' analyst price target of €152
In this article we are going to estimate the intrinsic value of Krones AG (ETR:KRN) by taking the forecast future cash flows of the company and discounting them back to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
Check out our latest analysis for Krones
What's The Estimated Valuation?
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
10-year free cash flow (FCF) estimate
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €259.5m €292.2m €374.5m €332.0m €307.4m €292.5m €283.6m €278.4m €275.8m €274.8m Growth Rate Estimate Source Analyst x5 Analyst x6 Analyst x2 Analyst x1 Est @ -7.40% Est @ -4.85% Est @ -3.07% Est @ -1.82% Est @ -0.95% Est @ -0.34% Present Value (€, Millions) Discounted @ 5.5% €246 €263 €319 €268 €235 €212 €195 €181 €170 €161
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = €2.3b
After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.1%. We discount the terminal cash flows to today's value at a cost of equity of 5.5%.
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Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €275m× (1 + 1.1%) ÷ (5.5%– 1.1%) = €6.3b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €6.3b÷ ( 1 + 5.5%)10= €3.7b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €5.9b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of €129, the company appears quite undervalued at a 31% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.XTRA:KRN Discounted Cash Flow February 26th 2025
The Assumptions
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Krones as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.5%, which is based on a levered beta of 1.017. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
SWOT Analysis for Krones
Strength
Earnings growth over the past year exceeded the industry.
Debt is not viewed as a risk.
Dividends are covered by earnings and cash flows.
Weakness
Earnings growth over the past year is below its 5-year average.
Dividend is low compared to the top 25% of dividend payers in the Machinery market.
Opportunity
Annual revenue is forecast to grow faster than the German market.
Trading below our estimate of fair value by more than 20%.
Threat
Annual earnings are forecast to grow slower than the German market.
Moving On:
Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price sitting below the intrinsic value? For Krones, we've compiled three additional factors you should look at:
Risks: Every company has them, and we've spotted 1 warning sign for Krones you should know about. Future Earnings: How does KRN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 14.02.25 15:30:15 |
Stocks to watch next week: Alibaba, Walmart, HSBC, Rio Tinto and Lloyds |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Trade tariffs and economic data continue to capture much of the market's attention, there are also a number of company earnings due out in the coming week.
Alibaba (BABA) is due to release its latest quarterly results, with investors focused on growth in its cloud business, in light of recent developments around the company's artificial intelligence (AI) push.
Quarterly results from retailer Walmart (WMT) will offer investors some insight into shopper sentiment, as inflation ticks up in the US.
In the UK, earnings releases from major banks continue with HSBC (HSBA.L) on Wednesday, with investors looking out for more details on the new CEO's restructuring plans.
Earnings from FTSE-listed (^FTSE) miners will also be in focus this week, with Rio Tinto (RIO.L) among those due to report.
Lloyds (LLOY.L) is another major UK-listed bank set to report next week, though analysts are expecting a fall in pre-tax income.
Here's more on what to look out for:
Alibaba (9988.HK, BABA) – Releases third quarter results on Thursday 20 February
Shares in Alibaba (9988.HK, BABA) have already surged nearly 50% since the start of the year, as investors cheer the company's drive in AI.
Alibaba's chairman Joseph Tsai confirmed reports on Thursday that the company was partnering with Apple (AAPL) to bring AI to iPhones in China.
"Apple has been very selective. They talked to a number of companies in China, and in the end they choose to do business with us," Tsai reportedly said in an an interview at the World Government Summit in Dubai. "They want to use our AI to power their phones."
Earlier this week, it was reported that Alibaba had denied rumours that it planned to invest in Chinese AI developer DeepSeek. The reports came after Alibaba recently released a new version of its AI-model Qwen 2.5, claiming that it surpassed the DeepSeek-V3 model.
In the second quarter, Alibaba (9988.HK, BABA) said that AI-related product revenue within its cloud business grew at triple-digits year-on-year for the fifth consecutive quarter. Overall revenue for this part of the business grew 7% year-on-year to 29.6 billion Chinese yuan (£3.2bn).
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Derren Nathan, head of equity analysis at Hargreaves Lansdown, said: "The cloud business hasn’t quite reached the heights of its American peers but saw strong profit growth last quarter."
"AI is a key driver of cloud consumption and the emergence of Chinese wannabe, DeepSeek, has caused quite a stir," he said. "The company’s denied its intention to take a stake in the start-up but has also released its own updated AI-engine alongside some punchy performance claims. Against this backdrop, investor sentiment has strengthened materially, so there is some pressure to deliver."
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Nathan said that Alibaba (9988.HK, BABA) is expected to report revenue growth of 9% in the cloud business for the third quarter.
Alibaba's total revenue in the second quarter rose 5% year-on-year to 236.5 billion Chinese yuan (£25.8bn) and Nathan said this figure is expected to have grown by 7% to 280 billion Chinese yuan in the third quarter.
"Markets find out next week how the eCommerce giant’s core business has performed against a background of strengthening Chinese retail sales," he said.
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Walmart (WMT) – Releases fourth-quarter earnings on Thursday 20 February
As one of the world's largest retailers by sales, Walmart's (WMT) results are closely watched on Wall Street, particularly as inflationary pressures persist.
Data released on Wednesday showed that US inflation grew by more than expected in January, with the consumer price index (CPI) rising 3% year-on-year compared to economist estimates of 2.9%.
Investors will, therefore, be looking to Walmart's results to get an idea of consumer health in the US.
Shares closed Thursday's session at a fresh all-time high of $105.05 (£83.25) per share, with the stock up 86% over the past year.
Read more: Where to park your money for better returns after interest rate cuts
In the third quarter, Walmart posted sales of $169.59bn, besting estimates of $167.5bn. Adjusted earnings per share of $0.58 also beat expectations of $0.53.
Foot traffic grew by 3.1% in the third quarter, compared to estimates of 2.82% and e-commerce sales were up 22%, which was much higher than expectations of 2.22%.
On the back of these strong results, Walmart raised its guidance for the full-year, saying it now expected net sales to grow by between 4.8% and 5.1%.
The retailer guided to adjusted earnings per share of between $2.42 and $2.47, which was up from previous estimates in the range of $2.35 and $2.43.
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HSBC (HSBA.L) – Releases full-year results on Wednesday 19 February
Georges Elhedery unveiled an overhaul of HSBC's (HSBA.L) structure in October, shortly after taking over as the bank's CEO.
The restructure divided the bank into four businesses as of the start of the year: Hong Kong, UK, corporate and institutional banking, as well as international wealth and premier banking.
HSBC (HSBA.L) said this was aimed at reducing the "duplication of processes and decision making" in the business.
Investors will be looking for more details on the changes when the bank releases its full-year results on Wednesday.
The Financial Times reported on Friday that the bank was preparing to unveil $1.5bn of annual cost savings from the restructuring in next week's results.
Meanwhile, Bloomberg reported that HSBC (HSBA.L) was planning to start a new round of job cuts at its investment bank next week.
Read more: Stocks that are trending today
A spokesperson for HSBC (HSBA.L) had not responded to Yahoo Finance UK's request for comment at the time of writing.
In the third quarter, HSBC posted a 10% jump in quarterly pre-tax profits to $8.5bn and announced an additional $3bn share buyback plan.
However, the bank's net interest income (NII) — the gap between what it pays out to savers and borrowers in interest — fell 17% compared to the same quarter last year and its net interest margin declined by 1.46%.
Looking to the upcoming results, Matt Britzman, senior equity analyst at Hargreaves Lansdown (HL.L), said: "Deposit trends are worth keeping in mind, savers have been easing off their transition to longer term accounts, but HSBC is more sensitive to migration than its peers.
"Loan defaults will also be a hot topic with HSBC seeing its market leading credit quality slip a little of late."
"To the 2024 numbers, $65.2bn in net operating income is expected to generate around $31.7bn of profit before tax," he added.
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Rio Tinto (RIO.L) – Releases full-year results on Wednesday 19 February
Rio Tinto (RIO.L) is one of three major FTSE-listing (^FTSE) mining companies reporting next week, along with Antofagasta (ANTO.L) and Glencore (GLEN.L).
AJ Bell's investment experts Russ Mould, Danni Hewson and Dan Coatsworth said that concerns around China's economy and its demand for raw materials, as well as cost price inflation and mixed commodity prices have weighed on the mining sector over the past year.
"Rio Tinto’s biggest earner is iron ore where the price is down by nearly a fifth in the past 12 months, a trend that swamps gains in its other key metals of aluminium and copper," they said.
One story that has been in focus for investors recently has been reports that Rio Tinto and Glencore had held talks about a potential merger, though it was said discussions did not progress.
AJ Bell's Mould, Hewson and Coatsworth said: "Rio Tinto’s management will doubtless be keen to keep any such advances at more than an arm’s length ... and shareholders seem happier for miners to keep a tight rein on spending and mergers and acquisitions, even after the substantial reductions in debt and improvements in balance sheets of the past decade or so."
Read more: Rachel Reeves’ budget ‘will boost UK economic growth in 2025’
That said, investors will be looking for an update on how Rio Tinto's $6.7bn acquisition of Arcadium Lithium is progressing.
As for company performance, AJ Bell's investment experts said that Rio Tinto's earnings before interest, tax, depreciation and amortisation (EBITDA) in 2024 and 2025 is expected to come in broadly flat at $23bn to $24bn. Meanwhile, the miner's full-year dividend for last year is expected to fall to $3.86, which would be its lowest level since 2018.
"No increase is expected in 2025 either, as Rio digests Arcadium and works on several major projects, including Pilbara, the Oyu Tolgoi copper mine in Mongolia, the Simandou iron ore venture in Guinea and expansion at the Argentinian Rincon lithium mine, where first production began last November and Rio’s board has approved a $2.5bn budget to ramp up production to 60,000 tonnes of battery-grade lithium carbonate a year," they said.
"As a final point, Palliser Capital has been agitating for Rio Tinto to shift its primary stock market listing to New York, they added. "Little has come of this campaign, but it will be interesting to see if [CEO Jakob] Stausholm acknowledges it in his commentary."
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Lloyds (LLOY.L) – Releases full-year results on Thursday 20 February
Barclays (BARC.L) and NatWest (NWG.L) both beat expectations with their results this week, though share price falls following their releases suggest this wasn't enough to impress investors.
Investor attention now turning to Lloyds, which is expected to report a fall in pre-tax income for the year to £6.4bn ($8.07bn), down from £7.5bn in 2023, with a further drop to £5.5bn forecast for 2025.
AJ Bell's Mould, Hewson and Coatsworth said the expected fall is "thanks in part to a decline in net interest margins (as the Bank of England slowly cuts headline rates) and provisions relating to the Financial Conduct Authority’s investigation into the car financing market."
They said that analysts believe NII for the year will come in at £12.8bn, which would be down from £13.8bn in 2023 and expect Lloyds to report a figure of £13.4bn for 2025.
Read more: NatWest increases profits and dividends as Treasury cuts stake
"Litigation and conduct costs have also been minimal in 2024, but analysts and investors will be on the look-out here for any comments on the car financing market, where Lloyds took a £450m provision in the final period of 2023," they said. "The government has sought to intervene to cap any fine, but the Supreme Court will sit in judgement here in early April."
"Analysts expect another hit in 2025, when conduct costs are seen rising to £1.5bn from £440m in 2024 and £675m in 2023," they added.
As for cash returns, analysts are expecting Lloyds to declare a total dividend of 3.09p for 2024, which would be up from 2.65p in 2023, as well as a £2bn buyback.
"Such bumper cash returns, with the prospect of more to come in 2025, may be the biggest reason of all behind the storming share price performance across all of the FTSE 100’s (^FTSE) Big Five banks, although it will be interesting to see if the torrent of buybacks abates now the shares are no longer as cheap as they were," they said.
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Other companies reporting next week include:
Monday 17 February
Wilmington (WIL.L)
BHP (BHP.L)
Transocean (RIG)
Anglo American Platinum (AGPPF)
Tuesday 18 February
Glencore (GLEN.L)
InterContinental Hotels (IHG.L)
Springfield Properties (SPR.L)
Baidu (9888.HK)
Capgemini cap.pa (CAP.PA)
Kerry Group (KRZ.IR)
Medtronic (MDT)
Cadence Design (CDNS)
Occidental Petroleum (OXY)
Toll Brothers (TOL)
Wednesday 19 February
Philips (PHIA.AS)
Tenaris (TEN.MI)
Hochtief (HOT.DE)
Carrefour (CA.PA)
Analog Devices (ADI)
Carvana (CVNA)
CF Industries (CF)
AngloGold Ashanti (AU)
Alamos Gold (AGI)
Bausch & Lomb (BLCO)
Thursday 20 February
Centrica (CNA.L)
Mondi (MNDI.L)
Indivior (INDV.L)
Safestore (SAFE.L)
Lenovo (0992.HK)
Singapore Airlines (SIA1.SG)
Telstra (TLS.AX)
Schneider (SU.PA)
Airbus (AIR.PA)
Zurich (ZURN.SW)
Mercedes Benz (MBG.DE)
Renault (RNO.PA)
Repsol (REP.MC)
Accor (AC.PA)
Aegon (AGN.AS)
BE Semiconductor (BESI.AS)
Krones (KRN.DE)
Mercado Libre (MELI)
Nu (NU)
Newmont (NEM)
Cameco (CCJ)
Rivian (RIVN)
Baxter (BAX)
Life Nation (LYV)
Birkenstock (BIRK)
Dropbox (DBX)
Hasbro (HAS)
Shake Shack (SHAK)
Friday 21 February
Standard Chartered (STAN.L)
Air Liquide AI.PA)
EDF (EDF)
Sika (SKFOF)
Kingspan (KGSPF)
Constellation Energy (CEG)
You can read Yahoo Finance's full calendar here.
Read more:
UK narrowly avoids recession as economy grows 0.1% First-time buyer market rebounds as rate cuts improve affordability Barclays shares fall despite 24% rise in profits and £1bn share buyback announcement
Download the Yahoo Finance app, available for Apple and Android.
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| 10.02.25 13:13:32 |
Krones (ETR:KRN) shareholders have earned a 14% CAGR over the last five years |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. To wit, the Krones share price has climbed 79% in five years, easily topping the market return of 2.1% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 14% in the last year, including dividends.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
Check out our latest analysis for Krones
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the five years of share price growth, Krones moved from a loss to profitability. That would generally be considered a positive, so we'd hope to see the share price to rise.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).XTRA:KRN Earnings Per Share Growth February 10th 2025
We know that Krones has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Krones' financial health with this freereport on its balance sheet.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Krones' TSR for the last 5 years was 91%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
Krones shareholders are up 14% for the year (even including dividends). But that return falls short of the market. On the bright side, the longer term returns (running at about 14% a year, over half a decade) look better. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Krones you should know about.
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If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 02.01.25 11:00:40 |
Krones (ETR:KRN) Ticks All The Boxes When It Comes To Earnings Growth |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.
Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Krones (ETR:KRN). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
Check out our latest analysis for Krones
How Quickly Is Krones Increasing Earnings Per Share?
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Krones has grown EPS by 31% per year, compound, in the last three years. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be beaming.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Krones maintained stable EBIT margins over the last year, all while growing revenue 10% to €5.2b. That's a real positive.
In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.XTRA:KRN Earnings and Revenue History January 2nd 2025
In investing, as in life, the future matters more than the past. So why not check out this freeinteractive visualization of Krones' forecast profits?
Are Krones Insiders Aligned With All Shareholders?
Many consider high insider ownership to be a strong sign of alignment between the leaders of a company and the ordinary shareholders. So as you can imagine, the fact that Krones insiders own a significant number of shares certainly is appealing. Owning 37% of the company, insiders have plenty riding on the performance of the the share price. Shareholders and speculators should be reassured by this kind of alignment, as it suggests the business will be run for the benefit of shareholders. And their holding is extremely valuable at the current share price, totalling €1.4b. That means they have plenty of their own capital riding on the performance of the business!
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Is Krones Worth Keeping An Eye On?
For growth investors, Krones' raw rate of earnings growth is a beacon in the night. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in Krones' continuing strength. Fast growth and confident insiders should be enough to warrant further research, so it would seem that it's a good stock to follow. You still need to take note of risks, for example - Krones has 1 warning sign we think you should be aware of.
While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in DE with promising growth potential and insider confidence.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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