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KION GROUP AG KGX

Rating as of

Morningstar’s Analysis

Valuation
Currency in EUR
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Kion Posts Another Exceptional Quarter of Demand; ITS Margins Remain Challenged

Analyst Note

| Denise Molina, CFA |

Kion saw exceptionally strong demand for both its ITS (forklifts) and SCS (warehouse automation equipment) divisions. Management expects demand to hit the high end of its guidance range for the 2021. Shares look fairly valued after a 5% increase at the time of writing. Our narrow moat rating remains intact. ITS orders were up 20% and SCS 58% in the quarter. Demand for both divisions has been bolstered by the whipsaw rebound in the economic recovery this year as well as labor shortages in the warehouse sector. For ITS, we expect order growth to normalize again in the near term, whereas SCS has more structural tailwinds from increasing warehouse automation equipment adoption as well as growth in e-commerce globally.

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Company Profile

Business Description

Kion Group is the number-two forklift truck manufacturer globally, after Toyota, and the number-one global warehouse automation equipment supplier. The Germany-headquartered company gets 70% of its revenue from the sale of new forklifts and maintenance services. Another roughly 30%, and growing portion, comes from warehouse automation equipment under the Dematic division, which caters to sectors such as e-commerce, third-party logistics, and supermarkets. Kion's forklift trucks and warehouse equipment service the same end markets.

Contact
Thea-Rasche-Strasse 8
Frankfurt am Main, HE, 60549, Germany
T +49 69201100
Sector Industrials
Industry Farm & Heavy Construction Machinery
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 38,957