KION GROUP AG (KGX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:KGX - DE000KGX8881 - Common Stock
64.8 EUR
-0.85 (-1.29%)
We assign a fundamental rating of 2 out of 10 to KGX. KGX was compared to 115 industry peers in the Machinery industry. KGX may be in some trouble as it scores bad on both profitability and health. KGX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- KGX had positive earnings in the past year.
- In the past year KGX had a positive cash flow from operations.
- Each year in the past 5 years KGX has been profitable.
- KGX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of KGX (1.50%) is worse than 63.48% of its industry peers.
- With a Return On Equity value of 4.52%, KGX perfoms like the industry average, outperforming 40.87% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 2.66%, KGX is doing worse than 71.30% of the companies in the same industry.
- KGX had an Average Return On Invested Capital over the past 3 years of 2.76%. This is significantly below the industry average of 8.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 4.52% | ||
| ROIC | 2.66% |
ROA(3y)1.42%
ROA(5y)1.88%
ROE(3y)4.29%
ROE(5y)5.77%
ROIC(3y)2.76%
ROIC(5y)3.17%
1.3 Margins
- With a Profit Margin value of 2.41%, KGX perfoms like the industry average, outperforming 40.87% of the companies in the same industry.
- KGX's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 4.67%, KGX is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
- KGX's Operating Margin has declined in the last couple of years.
- The Gross Margin of KGX (26.68%) is worse than 75.65% of its industry peers.
- In the last couple of years the Gross Margin of KGX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.67% | ||
| PM (TTM) | 2.41% | ||
| GM | 26.68% |
OM growth 3Y-3.51%
OM growth 5Y-3.32%
PM growth 3Y-17.21%
PM growth 5Y-9.52%
GM growth 3Y3.13%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KGX is destroying value.
- Compared to 1 year ago, KGX has about the same amount of shares outstanding.
- KGX has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for KGX is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.30, we must say that KGX is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.30, KGX is not doing good in the industry: 71.30% of the companies in the same industry are doing better.
- KGX has a debt to FCF ratio of 9.24. This is a negative value and a sign of low solvency as KGX would need 9.24 years to pay back of all of its debts.
- The Debt to FCF ratio of KGX (9.24) is worse than 60.00% of its industry peers.
- KGX has a Debt/Equity ratio of 0.81. This is a neutral value indicating KGX is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.81, KGX is not doing good in the industry: 68.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.24 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.47
WACC5.68%
2.3 Liquidity
- KGX has a Current Ratio of 0.97. This is a bad value and indicates that KGX is not financially healthy enough and could expect problems in meeting its short term obligations.
- KGX's Current ratio of 0.97 is on the low side compared to the rest of the industry. KGX is outperformed by 84.35% of its industry peers.
- A Quick Ratio of 0.63 indicates that KGX may have some problems paying its short term obligations.
- The Quick ratio of KGX (0.63) is worse than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- KGX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.56%.
- The Earnings Per Share has been decreasing by -4.90% on average over the past years.
- Looking at the last year, KGX shows a decrease in Revenue. The Revenue has decreased by -2.20% in the last year.
- KGX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.49% yearly.
EPS 1Y (TTM)-12.56%
EPS 3Y-6.62%
EPS 5Y-4.9%
EPS Q2Q%31.08%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y3.77%
Revenue growth 5Y5.49%
Sales Q2Q%0.19%
3.2 Future
- Based on estimates for the next years, KGX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.10% on average per year.
- The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y-14.21%
EPS Next 2Y7.5%
EPS Next 3Y11.36%
EPS Next 5Y13.1%
Revenue Next Year-2%
Revenue Next 2Y1.82%
Revenue Next 3Y3.24%
Revenue Next 5Y4.18%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 18.10, the valuation of KGX can be described as rather expensive.
- 71.30% of the companies in the same industry are more expensive than KGX, based on the Price/Earnings ratio.
- KGX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 14.68, the valuation of KGX can be described as correct.
- KGX's Price/Forward Earnings ratio is in line with the industry average.
- KGX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.1 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
- 67.83% of the companies in the same industry are more expensive than KGX, based on the Enterprise Value to EBITDA ratio.
- 73.04% of the companies in the same industry are more expensive than KGX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.91 | ||
| EV/EBITDA | 8.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.5%
EPS Next 3Y11.36%
5. Dividend
5.1 Amount
- KGX has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.50, KGX has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.83, KGX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
- The dividend of KGX decreases each year by -10.09%.
Dividend Growth(5Y)-10.09%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
- 39.55% of the earnings are spent on dividend by KGX. This is a low number and sustainable payout ratio.
DP39.55%
EPS Next 2Y7.5%
EPS Next 3Y11.36%
KION GROUP AG / KGX.DE FAQ
What is the fundamental rating for KGX stock?
ChartMill assigns a fundamental rating of 2 / 10 to KGX.DE.
What is the valuation status of KION GROUP AG (KGX.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to KION GROUP AG (KGX.DE). This can be considered as Fairly Valued.
How profitable is KION GROUP AG (KGX.DE) stock?
KION GROUP AG (KGX.DE) has a profitability rating of 3 / 10.
What is the expected EPS growth for KION GROUP AG (KGX.DE) stock?
The Earnings per Share (EPS) of KION GROUP AG (KGX.DE) is expected to decline by -14.21% in the next year.
How sustainable is the dividend of KION GROUP AG (KGX.DE) stock?
The dividend rating of KION GROUP AG (KGX.DE) is 3 / 10 and the dividend payout ratio is 39.55%.