It was a mixed start to the year for narrow-moat Kuehne+Nagel. The revenue decline in 2023 spilled into 2024, with a drop of 18% in the first quarter, leading to a reduction in earnings of 40%. On a more positive note, management was upbeat about demand trends and highlighted the material costs taken out of the business over the period. We reiterate our CHF 220 fair value estimate and see shares as overvalued currently.
KN has been in existence for more than 130 years and controls around 20% of global sea freight.
Sporadic supply gluts among air and ocean cargo carriers add volatility to KN's buy-and-sell rates.
|
Metric
|
KNIN
|
EXPD
|
CHRW
|
|---|---|---|---|
Price/Earnings (Normalized) | 23.00 | 22.27 | 27.05 |
Price/Book Value | 8.39 | 7.57 | 6.86 |
Price/Sales | 1.31 | 1.95 | 0.58 |
Price/Cash Flow | 16.54 | 21.38 | 21.90 |
|
Metric
|
KNIN
|
EXPD
|
CHRW
|
|---|---|---|---|
Quick Ratio | 1.15 | 1.79 | 1.30 |
Current Ratio | 1.19 | 2.02 | 1.37 |
Interest Coverage | 49.91 | 197.79 | 18.50 |
|
Metric
|
KNIN
|
EXPD
|
CHRW
|
|---|---|---|---|
Return on Assets (Normalized) | 10.74% | 16.17% | 7.18% |
Return on Equity (Normalized) | 38.22% | 29.03% | 28.44% |
Return on Invested Capital (Normalized) | 24.39% | 22.87% | 13.64% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
UPS
| United Parcel Service Inc Class B | Xkzgrkdmw | Qntp | $126.6 Bil | |
FDX
| FedEx Corp | Lghrcdpj | Qgdwfg | $63.7 Bil | |
DPSTF
| DHL Group | — | Ndyts | $50.8 Bil | |
DHLGY
| DHL Group ADR | Sylyqnqp | Cdpvyr | $50.8 Bil | |
ZTO
| ZTO Express (Cayman) Inc ADR | Ghhjdhyzsq | Yhpgswg | $17.9 Bil | |
JBHT
| JB Hunt Transport Services Inc | Lkgcvwpp | Ygrrql | $17.4 Bil | |
EXPD
| Expeditors International of Washington Inc | Fwhqddxd | Gbqxl | $16.6 Bil | |
CHRW
| C.H. Robinson Worldwide Inc | Vwfmtlclx | Hmph | $9.8 Bil | |
LSTR
| Landstar System Inc | Kkwrwgknv | Cxgg | $6.6 Bil | |
HUBG
| Hub Group Inc Class A | Qmtnkqpv | Bnxjy | $2.7 Bil |
