| Kion Group AG (DE000KGX8881) | |||
46,90 EURStand (close): 01.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 08.04.25 13:00:53 | KION GROUP's (ETR:KGX) Shareholders Will Receive A Bigger Dividend Than Last Year |  |
| The board of KION GROUP AG (ETR:KGX) has announced that it will be paying its dividend of €0.82 on the 30th of May, an increased payment from last year's comparable dividend. This makes the dividend yield about the same as the industry average at 2.7%. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. KION GROUP's Payment Could Potentially Have Solid Earnings Coverage We aren't too impressed by dividend yields unless they can be sustained over time. However, prior to this announcement, KION GROUP's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business. Over the next year, EPS is forecast to expand by 59.4%. If the dividend continues on this path, the payout ratio could be 19% by next year, which we think can be pretty sustainable going forward.XTRA:KGX Historic Dividend April 8th 2025 View our latest analysis for KION GROUP Dividend Volatility The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was €0.55 in 2015, and the most recent fiscal year payment was €0.82. This works out to be a compound annual growth rate (CAGR) of approximately 4.1% a year over that time. It's encouraging to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth anyway, which makes this less attractive as an income investment. Dividend Growth Is Doubtful Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Over the past five years, it looks as though KION GROUP's EPS has declined at around 6.6% a year. Declining earnings will inevitably lead to the company paying a lower dividend in line with lower profits. However, the next year is actually looking up, with earnings set to rise. We would just wait until it becomes a pattern before getting too excited. Our Thoughts On KION GROUP's Dividend Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. The payments haven't been particularly stable and we don't see huge growth potential, but with the dividend well covered by cash flows it could prove to be reliable over the short term. This company is not in the top tier of income providing stocks. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 3 warning signs for KION GROUP that investors should know about before committing capital to this stock. Is KION GROUP not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. 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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| 28.03.25 09:12:05 | Public companies who have a significant stake must be disappointed along with institutions after KION GROUP AG's (ETR:KGX) market cap dropped by €371m | |
| Key Insights The considerable ownership by public companies in KION GROUP indicates that they collectively have a greater say in management and business strategy 52% of the business is held by the top 2 shareholders 33% of KION GROUP is held by Institutions Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you want to know who really controls KION GROUP AG (ETR:KGX), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. While institutions who own 33% came under pressure after market cap dropped to €5.4b last week,public companies took the most losses. In the chart below, we zoom in on the different ownership groups of KION GROUP. See our latest analysis for KION GROUP XTRA:KGX Ownership Breakdown March 28th 2025 What Does The Institutional Ownership Tell Us About KION GROUP? Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors have a fair amount of stake in KION GROUP. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at KION GROUP's earnings history below. Of course, the future is what really matters.XTRA:KGX Earnings and Revenue Growth March 28th 2025 KION GROUP is not owned by hedge funds. Weichai Power Co., Ltd. is currently the company's largest shareholder with 47% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.0% and 3.0%, of the shares outstanding, respectively. 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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. Story Continues Insider Ownership Of KION GROUP 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid. General Public Ownership The general public-- including retail investors -- own 20% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Public Company Ownership Public companies currently own 47% of KION GROUP stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for KION GROUP you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. 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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| 13.03.25 12:50:28 | KION GROUP (ETR:KGX) Will Pay A Larger Dividend Than Last Year At €0.82 | |
| KION GROUP AG (ETR:KGX) will increase its dividend from last year's comparable payment on the 30th of May to €0.82. Despite this raise, the dividend yield of 1.9% is only a modest boost to shareholder returns. View our latest analysis for KION GROUP KION GROUP's Future Dividend Projections Appear Well Covered By Earnings It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Before making this announcement, KION GROUP was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow. Over the next year, EPS is forecast to expand by 62.8%. If the dividend continues on this path, the payout ratio could be 18% by next year, which we think can be pretty sustainable going forward.XTRA:KGX Historic Dividend March 13th 2025 Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. The annual payment during the last 10 years was €0.35 in 2015, and the most recent fiscal year payment was €0.82. This means that it has been growing its distributions at 8.9% per annum over that time. We like to see dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income. Dividend Growth Is Doubtful Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. KION GROUP has seen earnings per share falling at 6.6% per year over the last five years. Declining earnings will inevitably lead to the company paying a lower dividend in line with lower profits. However, the next year is actually looking up, with earnings set to rise. We would just wait until it becomes a pattern before getting too excited. In Summary In summary, while it's always good to see the dividend being raised, we don't think KION GROUP's payments are rock solid. The payments haven't been particularly stable and we don't see huge growth potential, but with the dividend well covered by cash flows it could prove to be reliable over the short term. We would probably look elsewhere for an income investment. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've picked out 3 warning signs for KION GROUP that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. 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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| 04.03.25 01:00:43 | KION GROUP AG (KIGRY) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic ... | |
| Group Order Intake: EUR10.3 billion, a 5% decline compared to the prior year. Revenue: Record EUR11.5 billion for the full year 2024. Adjusted EBIT: Increased 16% to EUR917 million; margin improved by 110 basis points to 8%. Free Cash Flow: EUR702 million, slightly below last year but exceeded market expectations. Earnings Per Share: EUR2.75, an increase of 18%. ITS Segment Revenue: EUR2.3 billion, a 1% decline year over year. ITS Segment Adjusted EBIT: EUR245 million with a margin of 10.6%. SCS Segment Order Intake: EUR624 million, impacted by customer hesitancy. SCS Segment Adjusted EBIT: EUR42 million with a margin of 5.4%. Group Adjusted EBIT for Q4: EUR250 million with a margin of 8.2%. Net Income for Q4: EUR111 million, earnings per share of EUR0.85. Free Cash Flow for Q4: Positive EUR271 million. Net Financial Debt: Decreased by EUR202 million to less than EUR1 billion. 2025 Revenue Guidance: EUR10.9 billion to EUR11.7 billion. 2025 Group Adjusted EBIT Guidance: EUR720 million to EUR870 million. 2025 Free Cash Flow Guidance: EUR400 million to EUR550 million. Warning! GuruFocus has detected 6 Warning Signs with KIGRY. Release Date: February 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points KION GROUP AG (KIGRY) achieved a record revenue of EUR11.5 billion in 2024, with an adjusted EBIT increase of 16% to EUR917 million. Earnings per share rose by 18% to EUR2.75, and a dividend of EUR0.82 is proposed, maintaining a payout ratio of approximately 30%. The company has made significant progress in operational and commercial agility, focusing on innovation, digitalization, and artificial intelligence. KION GROUP AG (KIGRY) is enhancing its presence in the growing automation market through strategic partnerships with NVIDIA and Accenture. The company reported a strong free cash flow of EUR702 million, exceeding capital market expectations despite being slightly below the previous year. Negative Points Group order intake declined by 5% to EUR10.3 billion, reflecting subdued markets in both operating segments during 2024. The ITS segment experienced a 1% revenue decline year over year, with a 4% decline in the new truck business. Order intake for the SCS segment was impacted by customer hesitancy due to macro and political uncertainty, with a 28% decline in Business Solutions orders. The company anticipates a temporary decline in adjusted EBIT and margins for the ITS segment in 2025 due to less favorable product and geography mix and intensifying competition. Free cash flow for 2025 is expected to be substantially below the prior year due to cash outflows from an efficiency program. Story Continues Q & A Highlights Q: Can you explain the assumptions behind the truck sales outlook for 2025, particularly regarding the order intake levels needed to achieve the high end of the guidance? A: Christian Harm, CFO: The revenue for 2025 is based on the order book we have so far. The normalization of the order book means revenue will follow the order intake throughout the year. We expect growth in ITS across different regions on a unit basis. On the upper end of the range, we anticipate an order intake similar to the prior year, while the lower end reflects a scenario where market revival does not occur as expected. Q: Regarding the warehouse automation project pipeline, is customer hesitancy still a function of spare capacity, especially in e-commerce? A: Richard Smith, CEO: The e-commerce players have grown into the capacity built during COVID. We are returning to pre-COVID mid-term capacity planning with large e-commerce customers. This indicates that e-commerce players are coming back to the market, which is a positive sign for growth in the supply chain solutions market. Q: Can you elaborate on the SCS revenue outlook, given the order intake in past years? A: Richard Smith, CEO: The SCS revenue outlook is supported by continued strong service growth and the ability to convert projects faster, particularly from large e-commerce players. This allows us to anticipate converting some orders within the year, supporting the upper end of the guidance. Q: How should we view the quarterly trajectory of ITS margins in 2025? A: Christian Harm, CFO: The first quarter of 2025 is likely to have a relatively stronger margin for the ITS segment compared to subsequent quarters. The full impact of cost-efficiency measures will be realized in 2026, with Q1 potentially being stronger than the following quarters. Q: What is the impact of intensifying competition, particularly from Chinese competitors, on your business? A: Richard Smith, CEO: We see increased competition, especially in Eastern Europe, from Chinese competitors entering the market at different pricing points. However, this is not a significant shift from previous quarters, as competition has always been strong in the market. 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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| 02.03.25 07:43:10 | Earnings Update: KION GROUP AG (ETR:KGX) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts | |
| Last week saw the newest yearly earnings release from KION GROUP AG (ETR:KGX), an important milestone in the company's journey to build a stronger business. Revenues of €12b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €2.75, missing estimates by 2.1%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. View our latest analysis for KION GROUP XTRA:KGX Earnings and Revenue Growth March 2nd 2025 Following the recent earnings report, the consensus from 17 analysts covering KION GROUP is for revenues of €11.1b in 2025. This implies a noticeable 3.5% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 45% to €1.50 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €11.0b and earnings per share (EPS) of €2.21 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates. It might be a surprise to learn that the consensus price target was broadly unchanged at €46.97, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values KION GROUP at €63.00 per share, while the most bearish prices it at €37.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 3.5% annualised decline to the end of 2025. That is a notable change from historical growth of 7.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - KION GROUP is expected to lag the wider industry. Story Continues The Bottom Line The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for KION GROUP. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that KION GROUP's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €46.97, with the latest estimates not enough to have an impact on their price targets. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for KION GROUP going out to 2027, and you can see them free on our platform here.. It is also worth noting that we have found 1 warning sign for KION GROUP that you need to take into consideration. 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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| 28.02.25 04:12:21 | KION GROUP Full Year 2024 Earnings: EPS Misses Expectations | |
| KION GROUP (ETR:KGX) Full Year 2024 Results Key Financial Results Revenue: €11.5b (flat on FY 2023). Net income: €360.3m (up 18% from FY 2023). Profit margin: 3.1% (up from 2.7% in FY 2023). EPS: €2.75 (up from €2.33 in FY 2023).XTRA:KGX Earnings and Revenue Growth February 28th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period KION GROUP EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.3%. Looking ahead, revenue is forecast to grow 3.8% 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 shares are up 5.4% from a week ago. Risk Analysis Don't forget that there may still be risks. For instance, we've identified 1 warning sign for KION GROUP 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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| 19.02.25 08:11:43 | Should You Be Worried About KION GROUP AG's (ETR:KGX) 5.8% Return On Equity? | |
| One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we'll look at ROE to gain a better understanding of KION GROUP AG (ETR:KGX). 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 simpler terms, it measures the profitability of a company in relation to shareholder's equity. Check out our latest analysis for KION GROUP How Do You Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for KION GROUP is: 5.8% = €342m ÷ €5.9b (Based on the trailing twelve months to September 2024). The 'return' is the amount earned after tax over the last twelve months. So, this means that for every €1 of its shareholder's investments, the company generates a profit of €0.06. Does KION GROUP Have A Good ROE? Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see KION GROUP has a lower ROE than the average (10%) in the Machinery industry classification.XTRA:KGX Return on Equity February 19th 2025 That's not what we like to see. However, a low ROE is not always bad. If the company's debt levels are moderate to low, then there's still a chance that returns can be improved via the use of financial leverage. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. To know the 2 risks we have identified for KION GROUP visit our risks dashboard for free. Why You Should Consider Debt When Looking At ROE Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used. Combining KION GROUP's Debt And Its 5.8% Return On Equity KION GROUP clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.09. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. Story Continues Conclusion Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. 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 01:00:30 | KION GROUP AG (KIGRY) (Q3 2024) Earnings Call Highlights: Navigating Challenges with Strategic ... | |
| Revenue: EUR 2.8 billion for Q3 2024. Adjusted EBIT: EUR 220 million with an adjusted EBIT margin of 8.1%. Free Cash Flow: Positive EUR 229 million. Earnings Per Share: EUR 0.55. Order Intake: EUR 2.4 billion, reflecting seasonal softness. Net Income: EUR 72 million attributable to shareholders. Net Debt Reduction: EUR 163 million decrease in net debt. Service Business Revenue Share: 50% of total revenues in the quarter. Guidance for Full Year 2024: Revenue between EUR 11.4 and 11.6 billion; Adjusted EBIT between EUR 850 and 910 million; Free cash flow between EUR 570 and 650 million. Warning! GuruFocus has detected 6 Warning Signs with KIGRY. Release Date: February 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points KION GROUP AG (KIGRY) reported a solid third quarter with stable adjusted EBIT and EBIT margins despite tough comparisons. The company successfully narrowed its guidance ranges for the full year, reflecting confidence in its performance. Free cash flow was positive at EUR229 million, driven by strong EBIT and improvements in networking capital. The new Center of Excellence for Automation in Antwerp, Belgium, is expected to enhance the company's capabilities in delivering innovative automation solutions. KION GROUP AG (KIGRY) has entered into a strategic partnership with Eurofork, enhancing its solution portfolio with automated high-density storage solutions. Negative Points Order intake was impacted by seasonal softness and customer hesitation due to macroeconomic and political uncertainties. Earnings per share declined year-on-year due to higher net financial and tax expenses, despite stable adjusted EBIT. The company faces ongoing challenges in the ITS segment with a mixed-driven lower margin. There is a continued expectation of subdued demand in the SCS segment due to macroeconomic uncertainties. The destocking process in the North American market is ongoing, affecting unit and value terms negatively. Q & A Highlights Q: With the normalization of order intake and revenue correlation, what measures can Kion Group take to mitigate potential revenue decline next year? A: Richard Smith, CEO: We remain committed to achieving and maintaining more than 10% margins by the end of our planning period in 2027. Lower revenues next year would be a temporary challenge, requiring cost adjustments to return margins above 10%. We have flexibility in our cost base and will share further information on 2025 expectations with our full-year 2024 financials. Q: Are you observing different momentum in smaller and mid-sized automation projects compared to larger ones? A: Richard Smith, CEO: The initial drop in interest rates was a positive step, but more reductions are needed. Our supply chain solutions business is building a balanced portfolio between service business, small-medium projects, and larger projects, which is crucial for good execution and profitability. Story Continues Q: Was there any one-off in the SCS service revenue growth, and how does it reflect in order intake? A: Richard Smith, CEO: There weren't any particular one-offs. Growth is due to an increased installed base and focus on service business. Christian Harm, CFO: Service business revenue equals sales, and while we can't split the order book by service elements, it logically flows from service to sales. Q: How is the competitive environment affecting Kion Group, especially with peers from Asia? A: Richard Smith, CEO: The competitive environment is intense, with a strong correlation between slower growth in the China market and increased export focus. All competitors, including us, continue to act rationally in pricing and commercial decisions. Q: Can you explain the dynamics of the SCS service business and its growth? A: Christian Harm, CFO: The service business includes maintaining equipment and upgrades, such as software and hardware. These are essential as equipment is used for a long time, providing repeated opportunities for maintenance and updates. 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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| 02.02.25 08:06:00 | KION GROUP (ETR:KGX) Has Some Way To Go To Become A Multi-Bagger | |
| What are the early trends we should look for to identify a stock that could multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. However, after briefly looking over the numbers, we don't think KION GROUP (ETR:KGX) has the makings of a multi-bagger going forward, but let's have a look at why that may be. 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 KION GROUP is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.058 = €720m ÷ (€18b - €5.6b) (Based on the trailing twelve months to September 2024). So, KION GROUP has an ROCE of 5.8%. In absolute terms, that's a low return and it also under-performs the Machinery industry average of 9.1%. See our latest analysis for KION GROUP XTRA:KGX Return on Capital Employed February 2nd 2025 In the above chart we have measured KION GROUP's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our freeanalyst report for KION GROUP . So How Is KION GROUP's ROCE Trending? The returns on capital haven't changed much for KION GROUP in recent years. The company has employed 28% more capital in the last five years, and the returns on that capital have remained stable at 5.8%. Given the company has increased the amount of capital employed, it appears the investments that have been made simply don't provide a high return on capital. The Key Takeaway In conclusion, KION GROUP has been investing more capital into the business, but returns on that capital haven't increased. And in the last five years, the stock has given away 35% so the market doesn't look too hopeful on these trends strengthening any time soon. On the whole, we aren't too inspired by the underlying trends and we think there may be better chances of finding a multi-bagger elsewhere. If you want to know some of the risks facing KION GROUP we've found 2 warning signs (1 is a bit concerning!) that you should be aware of before investing here. If you want to search for solid companies with great earnings, check out this freelist of companies with good balance sheets and impressive 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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| 09.01.25 19:23:56 | Accenture plc (ACN): Among the Companies That Partnered with NVIDIA This Month | |
| We recently compiled a list of the 8 Companies That Partnered With Nvidia (NVDA) This Month.In this article, we are going to take a look at where Accenture plc (NYSE:ACN) stands against the other stocks that partnered with NVIDIA this month. Nvidia continues to be the biggest beneficiary of the rampant spending on AI infrastructure. The company’s Blackwell GPUs continue to be the most talked about technology in tech circles and that has catapulted the stock close to its all-time highs. For many, the stock continues to be an expensive bet and at current levels, it is hard to pull the trigger and invest in the company's stock. If you’re in the same boat and find it hard to buy a stock at its all-time highs, you may want to consider investing in companies that work with Nvidia. Nvidia’s accelerated computing technologies are powering many companies' products, especially those related to AI and autonomy.Accenture plc (ACN) Reports Strong Q1 Growth and Increased AI Bookings, Price Target Raised to $428 by Mizuho A team of data experts gathered around a computer monitor analyzing customer data. Accenture plc (NYSE:ACN) Accenture plc (NYSE:ACN) is a professional services company that specializes in consulting, strategy, operations, and digital technology. The company, together with a supply chain solutions company KION Group, is leveraging Nvidia’s Omniverse to improve business operations. Accenture plc (NYSE:ACN) will help KION improve the performance of warehouses through its expertise in digital technologies. The idea here is to create a digital twin using Nvidia’s Omniverse and use that digital twin to optimize and automate their operations. KION, a long-time client of Accenture, will accelerate the emergence of autonomous warehouses and factories by streamlining operations for future autonomous robots. Nvidia CEO Jensen Huang had this to say about the partnership with Accenture: By integrating Omniverse and Mega into their solutions, KION and Accenture can dramatically accelerate the development of industrial AI and autonomy for the world’s distribution and logistics ecosystem. Accenture stock has traded range-bound for over two years and this partnership with Nvidia could well be the catalyst that triggers the stock’s next bull run. Overall, ACN ranks 8th on our list of the companies that partnered with NVIDIA this month. While we acknowledge the potential of ACN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as ACN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. Story Continues READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’. Disclosure: None. This article was originally published at Insider Monkey. View Comments |
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