Latest news with #KIGRY
Yahoo
05-06-2025
- Business
- Yahoo
Is Kion Group (KIGRY) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits. On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. One company to watch right now is Kion Group (KIGRY). KIGRY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.98. This compares to its industry's average Forward P/E of 24.07. KIGRY's Forward P/E has been as high as 18.65 and as low as 9.39, with a median of 11.61, all within the past year. Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KIGRY has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.13. Value investors will likely look at more than just these metrics, but the above data helps show that Kion Group is likely undervalued currently. And when considering the strength of its earnings outlook, KIGRY sticks out at as one of the market's strongest value stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kion Group (KIGRY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
KION GROUP AG (KIGRY) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst Challenges
Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. KION GROUP AG (KIGRY) reported an 11% increase in group order intake, reaching 2.7 billion, indicating strong demand across both operating segments. The company showcased innovative AI and automation solutions at key trade fairs, receiving positive feedback from customers. The service business demonstrated continued growth, with a 4% increase in the IDS segment and a 47% growth in the SCS segment. KION GROUP AG (KIGRY) has made significant investments in production, R&D, and sales networks, particularly in the APEC and Americas regions, preparing for geopolitical shifts. The company confirmed its outlook for fiscal year 2025, indicating confidence in its strategic direction despite economic uncertainties. Revenue declined by 2% year over year to 2.1 billion, with a 7% decline in the new truck business impacting overall performance. Adjusted EBIT decreased by 14% to 196 million, with a corresponding margin of 7%, reflecting lower volumes and reduced fixed cost absorption. Earnings per share were negative, at minus EUR36 cents, due to 191 million in expenses for an efficiency program. Geopolitical uncertainties, including escalating trade conflicts, pose potential risks to KION GROUP AG (KIGRY)'s value chains and markets. The company faces pricing pressure in the new truck business, impacting gross margins and contributing to lower profitability. Warning! GuruFocus has detected 8 Warning Signs with KIGRY. Q: With Q1 orders showing a better mix in the ITS business, do you think the trough in terms of the mix was reached last year and is now firmly behind the group? A: The mix for counterbalanced trucks was up 15% year on year, and warehouse trucks were up 8%, leading to an overall 10% increase. This positive development was seen across all regions, indicating a favorable mix for us. We have not seen any reversals in the positive development so far this year. - Rob Smith, CEO Q: Are clients adopting a wait-and-see attitude due to tariff uncertainties, or are they rethinking their supply chain organizations and ready to invest more in logistics? A: It's too early to tell, but the tariff discussions are exacerbating uncertainties, leading to hesitancy in starting new large-scale investments. However, there is a significant pickup in modernization and upgrade projects, which are like small automation projects. Customers are choosing to modernize existing facilities rather than starting new greenfield projects. - Rob Smith, CEO Q: Can the growth in the service and modernization part of your business improve the margin trajectory of the segment? A: The service business, including modernizations and upgrades, has a favorable margin profile. We have seen a significant increase in order intake for modernizations and upgrades, which is helpful for our margin development going forward. - Christian, CFO Q: Is the sales mix in Q1 consistent with the order intake mix, particularly between lower margin warehouse units and higher margin CB trucks? A: The order intake mix in the first quarter turned positive compared to the overall order book. The mix seen in the order intake is incorporated in our outlook for the full year, and it does not change our view on the segment's performance. - Christian, CFO Q: Are you seeing any changes in customer conversations or investment intentions due to recent geopolitical events like Liberation Day and tariffs? A: Long-term pipeline discussions with customers continue despite recent geopolitical events. The trend of increasing optionality in supply chains is positive for the warehouse automation market, and we expect this to continue as companies seek more flexibility. - Rob Smith, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
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. 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. 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. 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.
Yahoo
10-02-2025
- Business
- Yahoo
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. 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. 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: 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. 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. Sign in to access your portfolio
Yahoo
10-02-2025
- Business
- Yahoo
Alfa Laval AB (ALFVF) Q4 2024 Earnings Call Highlights: Strong Order Book and Robust Cash Flow ...
Order Book: SEK52 billion, with Marine at SEK27 billion, Energy at SEK10.6 billion, and Food & Water at SEK14.9 billion. Revenue: SEK67 billion for 2024, with SEK18.3 billion in Q4. Organic Growth: 7% for the year, 2% in Q4. Gross Profit Margin: 34.6% for the year, 34.4% in Q4. Operating Income: Increased by 12.7% for the year. Adjusted EBITA Margin: 16.6% for the year. EPS: SEK17.88 for the year, SEK4.96 in Q4. Cash Flow from Operating Activities: SEK12 billion for the year, SEK4 billion in Q4. Free Cash Flow: SEK8.8 billion for the year, SEK3 billion in Q4. Net Debt: SEK2.4 billion, with a debt to EBITDA ratio of 0.8. Return on Capital Employed: 23.2% for the year. Dividend Recommendation: SEK8.50 per share, totaling SEK3.5 billion. Warning! GuruFocus has detected 6 Warning Signs with KIGRY. Release Date: February 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Alfa Laval AB (ALFVF) reported strong growth in the fourth quarter and full year 2024, with favorable market conditions across most applications. The company enters 2025 with a solid SEK52 billion order book and good momentum in the short cycle business. Operational cash flow was robust, reaching a record SEK12 billion for the full year 2024. The Marine division achieved a record year with a 40% order intake growth in Q4, indicating strong market conditions. Service division saw a 13% organic growth in Q4, contributing to an 8% growth for the full year, supported by momentum across all divisions. Q4 margins were affected by one-off restructuring costs and project risk exposures, leading to a somewhat weaker seasonal performance. The Energy division faced challenges with a weak HVAC and heat pump market, although this was offset by growth in other areas. Currency fluctuations had a negative impact on the full year, mainly due to the movement of the US dollar to euro. The heat pump market is expected to recover only in the second half of 2025, indicating ongoing challenges in this segment. There is uncertainty regarding the order intake for the Marine division from Q2 2025 onwards, particularly in the cargo pumping business. Q: Can you provide insights into the growth of your data center business and the split between liquid and air cooling? A: The data center business showed good momentum in the second half of 2024, with expectations for continued growth into 2025. The business is approximately SEK2 billion, and while the exact split between liquid and air cooling isn't specified, water cooling is becoming increasingly important. Tom Erixon, President, CEO Q: How do you foresee the evolution of the Pumping Systems business, and what are the major offsets for potential order losses? A: The Pumping Systems business, particularly in Marine, is not expected to maintain the SEK15 billion order level due to capacity and market constraints. However, growth in offshore and service sectors, along with biofuel projects, are expected to offset potential declines. Tom Erixon, President, CEO Q: What are your expectations for Marine pricing in 2025, and can you elaborate on the restructuring in Food & Water and Marine? A: Marine pricing for 2025 is largely set, with a positive outlook on margins. The restructuring in Food & Water and Marine involved operational improvements and resource adjustments, with no major restructuring planned for 2025. Tom Erixon, President, CEO Q: Could you explain the impact of shipyard bottlenecks on Marine revenue recognition and the outlook for shipyard capacity in 2025? A: The deviation in Marine revenue recognition is more about forecasting precision rather than shipyard bottlenecks. The shipyard capacity is under pressure, but Alfa Laval is taking measures to support commissioning and maintain delivery schedules. Tom Erixon, President, CEO Q: How do you view the recovery in the heat pump market and the outlook for light industry tech? A: The heat pump market recovery is expected in the second half of 2025, with some signs of improvement. The light industry tech segment, including data centers, is stable with no major concerns. Tom Erixon, President, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
