Skip to Content

KONE Oyj Class B KNEBV

Morningstar Rating
€47.62 −0.82 (1.69%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Kone Earnings: Service and Modernization Order Strength Offsets Ongoing New Equipment Weakness

Investors warmed to Kone’s resilient first-quarter result, with the Kone share price responding positively to constant-currency new order growth of 1.6% in spite of challenging conditions within new elevator equipment markets globally. New equipment orders were down in the range of 0%-5%, with new elevator installation market conditions particularly challenging in North America and China where its property downturn is yet to subside. Still, first-quarter sales grew 3% in constant-currency terms, supported by strong growth in Kone’s service business and robust elevator modernization orders. Growth in elevator service markets was broad-based, but was most pronounced in Asia-Pacific, China, and the Middle East. Demand for elevator modernizations continued to grow at pace in all geographies, underscoring the significant opportunity that the aging global installed base of elevators poses to Kone and its original equipment manufacturing peers.

Price vs Fair Value

KNEBV is trading at a 219% premium.
Price
€48.44
Fair Value
€62.00
Uncertainty
Low
1-Star Price
€88.00
5-Star Price
€99.20
Economic Moat
Vkx
Capital Allocation
Zfxtvpqh

Bulls Say, Bears Say

Bulls

Kone has an installed-base business model that delivers strong and steady free cash flow generation thanks to the third-largest elevator service portfolio.

Bears

Global new elevator installations have likely peaked structurally as the rate of urbanization in the Asia-Pacific (ex-Southeast Asia) region slows.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if KNEBV is a good fit for your portfolio.

News

Trading Information

Previous Close Price
€48.44
Day Range
€47.6248.40
52-Week Range
€37.2051.38
Bid/Ask
€47.69 / €47.70
Market Cap
€24.64 Bil
Volume/Avg
575,090 / 620,455

Key Statistics

Price/Earnings (Normalized)
22.66
Price/Sales
2.30
Dividend Yield (Trailing)
3.59%
Dividend Yield (Forward)
3.59%
Total Yield
3.61%

Company Profile

Kone is a global top-four supplier of elevators and escalators. Kone began producing elevators in Finland in 1918 and today generates revenue in three ways: selling new elevators and escalators, modernizing old equipment, and servicing its installed base. Most of the company's profit comes from the last activity, where contracts are rolled over annually with built-in price increases. The bulk of Kone's business is in elevators, which are more numerous globally than escalators. Its business model is similar to its closest competitors Otis, Schindler, and TK Elevator.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Large Core
Total Number of Employees
63,647

Competitors

Valuation

Metric
KNEBV
OTIS
SCHN
Price/Earnings (Normalized)
22.6626.3131.55
Price/Book Value
12.185.68
Price/Sales
2.302.752.18
Price/Cash Flow
21.6423.3119.05
Price/Earnings
KNEBV
OTIS
SCHN

Financial Strength

Metric
KNEBV
OTIS
SCHN
Quick Ratio
0.690.850.40
Current Ratio
0.980.991.30
Interest Coverage
56.0414.5434.88
Quick Ratio
KNEBV
OTIS
SCHN

Profitability

Metric
KNEBV
OTIS
SCHN
Return on Assets (Normalized)
10.76%14.60%8.05%
Return on Equity (Normalized)
37.70%21.69%
Return on Invested Capital (Normalized)
30.10%59.74%18.27%
Return on Assets
KNEBV
OTIS
SCHN
See how this stock stacks up to its competitors with Morningstar Investor

Specialty Industrial Machinery Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
SIEGY
Siemens AG ADRHdmhblrpnmGmzs$152.1 Bil
ETN
Eaton Corp PLCXbmnldmfRxwygtm$136.3 Bil
ITW
Illinois Tool Works IncGvwwbdgzcQxcpbh$70.8 Bil
PH
Parker Hannifin CorpGlvhtkrrYnhlmt$67.7 Bil
EMR
Emerson Electric CoTbqwbztGfzh$64.1 Bil
IR
Ingersoll Rand IncHtfcdykwWftht$38.5 Bil
OTIS
Otis Worldwide Corp Ordinary SharesNrjknxxPsk$38.5 Bil
CMI
Cummins IncPbhtjnmqShdtw$38.1 Bil
XYL
Xylem IncPwdmwjgWycgzr$34.0 Bil
ROK
Rockwell Automation IncSgyyjlwXcvb$29.5 Bil

Sponsor Center