Company Overview
KONE Corporation is a global leader in elevator and escalator solutions, as well as advanced lift destination control systems (DLSCs). With over 60 years of experience, the company has established itself as a trusted partner for building owners, architects, and engineers worldwide. KONE's mission is to "elevate life" by providing innovative and sustainable mobility solutions that enhance the quality of life for people around the globe.
KONE's core values are built on a strong foundation of innovation, customer satisfaction, and social responsibility. The company is committed to delivering exceptional products and services that meet the evolving needs of its customers, while also promoting sustainability and reducing its environmental footprint. KONE's vision is to be the world leader in lift and escalator solutions, with a focus on creating value for its customers, employees, and shareholders.
Key Products/Services
KONE offers a wide range of products and services that cater to the diverse needs of its customers. Some of the key products include:
- Elevators and escalators: KONE's elevator and escalator solutions are designed to provide safe, reliable, and efficient mobility for people in buildings around the world.
- Destination control systems (DLSCs): KONE's DLSCs enable passengers to travel directly to their destination without the need for manual intervention, reducing waiting times and increasing overall efficiency.
- Maintenance and repair services: KONE provides comprehensive maintenance and repair services to ensure that its products are always in optimal working condition.
- Energy-efficient solutions: KONE offers energy-efficient solutions that reduce energy consumption and minimize the environmental impact of its products.
The benefits of KONE's products and services include improved safety, increased efficiency, reduced energy consumption, and enhanced customer satisfaction. By investing in KONE's solutions, building owners and architects can create more sustainable and livable environments for their users.
Benefits and Competitive Advantage
KONE's products and services offer numerous benefits to its customers, including:
- Improved safety: KONE's products are designed to provide safe and reliable mobility solutions that minimize the risk of accidents and injuries.
- Increased efficiency: KONE's DLSCs enable passengers to travel directly to their destination, reducing waiting times and increasing overall efficiency.
- Reduced energy consumption: KONE's energy-efficient solutions reduce energy consumption and minimize the environmental impact of its products.
- Enhanced customer satisfaction: KONE's products and services are designed to meet the evolving needs of its customers, providing a superior user experience.
KONE's competitive advantage lies in its ability to innovate and deliver exceptional products and services that meet the evolving needs of its customers. The company's strong brand reputation, global presence, and commitment to sustainability and social responsibility make it an attractive partner for building owners, architects, and engineers worldwide.
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 529.4 | 529.4 | 529.4 | 529.4 | 529.4 | 529.4 | 529.4 |
| Target Valuation (MEur) | 50301.9 | 49319.8 | 49005.3 | 48745.4 | 47206.4 | 48210.3 | 48210.3 |
| Targer Price | 95.02 | 93.16 | 92.57 | 92.08 | 89.17 | 91.07 | 91.07 |
| Potential, % | 96.7 | 106.3 | 96.4 | 52.0 | 80.6 | 84.4 | 84.4 |
| Recommendation | Buy | Buy | Buy | Buy | Buy | Buy | Buy |
| MCAP (MEur) | 25569.8 | 23907.5 | 24950.4 | 32060.2 | 26141.5 | 26141.5 | 26141.5 |
| Price | 48.3 | 45.16 | 47.13 | 60.56 | 49.38 | 49.38 | 49.38 |
| EV | 24261.0 | 22894.0 | 24679.0 | 31360.0 | 25371.0 | 24759.0 | 23973.0 |
| P/S | 2.34 | 2.18 | 2.25 | 2.85 | 2.4 | 2.46 | 2.33 |
| EV/S | 2.22 | 2.09 | 2.22 | 2.79 | 2.33 | 2.33 | 2.14 |
| EV/EBIT | 22.55 | 19.08 | 19.76 | 23.47 | 22.03 | 22.45 | 18.72 |
| P/E | 31.16 | 25.66 | 25.96 | 32.32 | 26.96 | 24.06 | 18.99 |
| P/B | 8.92 | 8.58 | 8.62 | 11.34 | 9.04 | 6.57 | 4.88 |
| P/OCF | 48.12 | 21.2 | 19.97 | 25.26 | 23.07 | 30.35 | 25.26 |
| EV/OCF | 45.65 | 20.3 | 19.75 | 24.71 | 22.39 | 28.75 | 23.17 |
| P/FCF | 64.13 | 29.57 | 25.94 | 32.55 | 28.64 | 42.73 | 33.27 |
| EV/FCF | 60.85 | 28.32 | 25.66 | 31.83 | 27.79 | 40.47 | 30.51 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 10906.5 | 10952.3 | 11098.4 | 11245.2 | 10911.3 | 10619.7 | 11211.2 |
| Rev. Growth, % | 3.7 | 0.4 | 1.3 | 1.3 | -3.0 | -2.7 | 5.6 |
| Ebit | 1076.1 | 1200.1 | 1249.0 | 1336.2 | 1151.8 | 1102.7 | 1280.7 |
| Ebit Growth, % | -16.9 | 11.5 | 4.1 | 7.0 | -13.8 | -4.3 | 16.1 |
| Ebit, % | 9.9 | 11.0 | 11.3 | 11.9 | 10.6 | 10.4 | 11.4 |
| Profit | 820.5 | 931.6 | 961.0 | 991.9 | 969.7 | 1086.5 | 1376.7 |
| EPS | 1.55 | 1.76 | 1.82 | 1.87 | 1.83 | 2.05 | 2.6 |
| Profit Growth, % | -19.8 | 13.5 | 3.2 | 3.2 | -2.2 | 12.0 | 26.7 |
| Profit, % | 7.5 | 8.5 | 8.7 | 8.8 | 8.9 | 10.2 | 12.3 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 843.6 | 820.9 | 856.7 | 843.1 | 845.7 | 868.1 | 883.6 |
| Acc. Receivable | 2668.1 | 2495.1 | 2494.8 | 2350.7 | 2341.0 | 2489.2 | 2738.9 |
| Cash | 495.5 | 424.5 | 576.0 | 440.5 | 972.9 | 1584.8 | 2370.4 |
| Equity | 2866.5 | 2786.0 | 2893.1 | 2826.8 | 2890.2 | 3976.7 | 5353.4 |
| ROE, % | 28.6 | 33.4 | 33.2 | 35.1 | 33.6 | 27.3 | 25.7 |
| ROCE, % | 52.4 | 54.6 | 39.1 | 52.0 | 37.2 | 26.4 | 23.1 |
| Net Debt | -1309.0 | -1013.4 | -271.1 | -699.8 | -770.9 | -1382.8 | -2168.4 |
| Gearing, % | -45.7 | -36.4 | -9.4 | -24.8 | -26.7 | -34.8 | -40.5 |
| Equity ratio, % | 31.5 | 31.9 | 31.2 | 31.2 | 32.0 | 40.9 | 50.9 |
| Acc. Payable | 1132.8 | 927.0 | 982.9 | 967.6 | 996.6 | 944.3 | 878.2 |
| Total Assets | 9090.4 | 8730.8 | 9284.3 | 9052.0 | 9028.2 | 9727.1 | 10518.6 |
| ROA, % | 9.0 | 10.7 | 10.4 | 11.0 | 10.7 | 11.2 | 13.1 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 531.4 | 1127.9 | 1249.3 | 1269.1 | 1133.1 | 861.2 | 1034.9 |
| Investment Cash Flow | -132.7 | -319.4 | -287.4 | -284.0 | -220.2 | -249.4 | -249.2 |
| Free Cash Flow | 398.7 | 808.5 | 961.9 | 985.1 | 912.8 | 611.8 | 785.7 |
| OCF/CAPEX | 4.0 | 3.53 | 4.35 | 4.47 | 5.15 | 3.45 | 4.15 |
| Financial Cash Flow | -390.5 | -861.3 | -812.7 | -1139.5 | -385.6 | 0.0 | 0.0 |
Disclaimer
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