| Krones AG (DE0006335003) | |||
139,00 EURStand (close): 01.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 08.04.25 06:31:03 | Returns On Capital Are Showing Encouraging Signs At Krones (ETR:KRN) |  |
| 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. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. 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. View Comments |
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| 22.03.25 07:33:37 | Krones Full Year 2024 Earnings: In Line With Expectations | |
| 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). The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.XTRA:KRN Earnings and Revenue Growth March 22nd 2025 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. View Comments |
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| 16.03.25 06:04:54 | Are Robust Financials Driving The Recent Rally In Krones AG's (ETR:KRN) Stock? |  |
| 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. View Comments |
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| 26.02.25 05:39:12 | Are Investors Undervaluing Krones AG (ETR:KRN) By 31%? | |
| 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%. Story Continues 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. View Comments |
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| 10.02.25 13:13:32 | Krones (ETR:KRN) shareholders have earned a 14% CAGR over the last five years | |
| 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. Story Continues 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. View Comments |
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| 02.01.25 11:00:40 | Krones (ETR:KRN) Ticks All The Boxes When It Comes To Earnings Growth | |
| 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! Story Continues 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. View Comments |
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| 11.12.24 10:57:41 | Is Krones AG (ETR:KRN) Potentially Undervalued? | |
| While Krones AG (ETR:KRN) might not have the largest market cap around , it saw significant share price movement during recent months on the XTRA, rising to highs of €130 and falling to the lows of €113. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Krones' current trading price of €122 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Krones’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Krones Is Krones Still Cheap? According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Krones’s ratio of 15.4x is trading slightly below its industry peers’ ratio of 16.01x, which means if you buy Krones today, you’d be paying a reasonable price for it. And if you believe that Krones should be trading at this level in the long run, then there’s not much of an upside to gain over and above other industry peers. Although, there may be an opportunity to buy in the future. This is because Krones’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Can we expect growth from Krones?XTRA:KRN Earnings and Revenue Growth December 11th 2024 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Krones' earnings over the next few years are expected to increase by 63%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? KRN’s optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at KRN? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio? Story Continues Are you a potential investor? If you’ve been keeping an eye on KRN, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for KRN, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. In terms of investment risks, we've identified 1 warning sign with Krones, and understanding it should be part of your investment process. If you are no longer interested in Krones, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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 |
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| 27.11.24 09:08:36 | Krones AG (ETR:KRN) insiders have significant skin in the game with 37% ownership | |
| Key Insights Significant insider control over Krones implies vested interests in company growth A total of 2 investors have a majority stake in the company with 52% ownership 20% of Krones is held by Institutions A look at the shareholders of Krones AG (ETR:KRN) can tell us which group is most powerful. The group holding the most number of shares in the company, around 37% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company. With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions. Let's delve deeper into each type of owner of Krones, beginning with the chart below. View our latest analysis for Krones XTRA:KRN Ownership Breakdown November 27th 2024 What Does The Institutional Ownership Tell Us About Krones? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in Krones. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Krones, (below). Of course, keep in mind that there are other factors to consider, too.XTRA:KRN Earnings and Revenue Growth November 27th 2024 We note that hedge funds don't have a meaningful investment in Krones. Volker Kronseder is currently the largest shareholder, with 37% of shares outstanding. VMAX Familienstiftung is the second largest shareholder owning 15% of common stock, and ODDO BHF Asset Management SAS holds about 2.2% of the company stock. To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Insider Ownership Of Krones The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Story Continues Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our information suggests that insiders maintain a significant holding in Krones AG. Insiders own €1.4b worth of shares in the €3.7b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently. General Public Ownership With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Krones. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Private Company Ownership It seems that Private Companies own 15%, of the Krones stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Krones , and understanding them should be part of your investment process. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. 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 |
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| 13.11.24 04:56:24 | Krones Third Quarter 2024 Earnings: EPS Misses Expectations | |
| Krones (ETR:KRN) Third Quarter 2024 Results Key Financial Results Revenue: €1.33b (up 13% from 3Q 2023). Net income: €65.6m (up 21% from 3Q 2023). Profit margin: 4.9% (up from 4.6% in 3Q 2023). The increase in margin was driven by higher revenue. EPS: €2.08 (up from €1.72 in 3Q 2023).XTRA:KRN Earnings and Revenue Growth November 13th 2024 All figures shown in the chart above are for the trailing 12 month (TTM) period Krones EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%. Looking ahead, revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 4.5% 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. View Comments |
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| 08.11.24 19:02:24 | Krones AG (KRNTY) Q3 2024 Earnings Call Highlights: Strong Order Intake and Revenue Growth ... | |
| Order Intake Q3: EUR 1.3 billion, in line with expectations. Order Intake 9 Months: EUR 4.1 billion, consistent with forecasts. Revenue 9 Months: Close to EUR 3.9 billion, 11.2% growth. EBITDA Q3: EUR 134.9 million, 10.2% margin. EBITDA 9 Months: EUR 391.1 million, 10.1% margin, 18% increase. EBIT Q3: EUR 89.9 million, 7.1% margin. Personnel Costs: EUR 1.168 billion, 30.0% of revenue. Material Costs: 49.1% of revenue. Employees: 20,025 as of September, increase of over 1,500 from December 2023. Filling and Packaging Technology Revenue: EUR 3.277 billion, 13.8% growth. Processing Technology Revenue: EUR 378 million, 11.7% growth. Intralogistics Revenue: EUR 220 million, decrease of EUR 46 million. Cash Position: EUR 305 million as of September. Equity Ratio: 40.5%. Working Capital: 17.1% of revenue. Free Cash Flow 9 Months: EUR 145 million. Return on Capital Employed: 18.3%. Warning! GuruFocus has detected 4 Warning Sign with KRNTY. Release Date: November 05, 2024 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Krones AG (KRNTY) reported a strong order intake of EUR 1.3 billion in Q3, aligning with expectations and maintaining a book-to-bill ratio above 1. The company achieved a revenue growth of 11.2% for the first nine months, with expectations to reach the upper end of their 9-13% growth guidance. Krones AG (KRNTY) reported a significant increase in EBITDA, with a margin improvement from 9.5% to 10.2% in Q3. The company has a robust order backlog, providing capacity utilization until the end of 2025, ensuring planning security for the future. Krones AG (KRNTY) maintained a strong cash position with EUR 305 million and a liquidity reserve of EUR 1.159 billion, indicating financial stability. Negative Points The Intralogistics segment experienced a revenue decrease of EUR 46 million, with challenges in executing orders due to customer project delays. There is uncertainty regarding the impact of geopolitical events, such as the US elections and conflicts in the Middle East, on future order intake. The company faces competitive pressure, particularly from Chinese and Italian competitors, affecting pricing and order acquisition. Krones AG (KRNTY) has not yet achieved its target delivery times, currently at 50 weeks, with plans to reduce to 40-45 weeks. The Processing Technology segment showed flat growth in Q3, with challenges in the US market and a need for a stronger sales force. Q & A Highlights Q: Can you provide an update on the order intake guidance and whether the 5.6 billion target mentioned in Q2 is still achievable? A: Christoph Klenk, CEO, stated that the order intake pipeline is robust enough to potentially reach the 5.6 billion target. However, achieving this depends on winning orders and customers not postponing them. The current estimate for Q4 is around 1.4 billion, which would lead to a book-to-bill ratio greater than one. External factors like the US elections and geopolitical tensions could impact this outcome. Story Continues Q: How do you see the growth outlook for the next year, especially considering the strong double-digit growth in recent quarters? A: Christoph Klenk, CEO, mentioned that while they plan to grow next year, it is too early to specify the level. The company has a good order backlog and expects continued growth in aftermarket business. However, the exact growth rate will be detailed in the 2025 guidance. Q: What is the current competitive landscape, particularly regarding pricing and competition from China? A: Christoph Klenk, CEO, noted that while there is price pressure, it is more customer-driven than competition-driven. The competitive landscape has not changed significantly, and there is no unreasonable behavior from competitors. The company continues to face challenges from Chinese and Italian competitors but maintains its pricing strategy. Q: How is the intralogistics segment performing, and what are the expectations for the future? A: Christoph Klenk, CEO, explained that the intralogistics segment has a strong order intake and expects good growth in 2024. Some project executions were delayed due to customers not completing their facilities, but these are expected to resume, contributing to revenue growth next year. Q: What is the impact of potential US import tariffs on Krones, and how is the company prepared for this? A: Christoph Klenk, CEO, stated that Krones has assumed a potential 10% increase in import taxes regardless of the US election outcome. The company is well-positioned as its major competition is based in Europe, and it has localized production for processing and intralogistics in North America. This strategy helps mitigate the impact of potential tariffs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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