KONTRON AG (KTN.DE) Stock Fundamental Analysis
FRA:KTN - Deutsche Boerse Ag - AT0000A0E9W5 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to KTN. KTN was compared to 74 industry peers in the IT Services industry. While KTN is still in line with the averages on profitability rating, there are concerns on its financial health. KTN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KTN had positive earnings in the past year.
In the past year KTN had a positive cash flow from operations.
In the past 5 years KTN has always been profitable.
KTN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.50%, KTN is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
KTN has a better Return On Equity (14.56%) than 64.86% of its industry peers.
The Return On Invested Capital of KTN (7.75%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KTN is significantly below the industry average of 11.05%.
The 3 year average ROIC (5.19%) for KTN is below the current ROIC(7.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 14.56% | ||
| ROIC | 7.75% |
ROA(3y)8.93%
ROA(5y)6.96%
ROE(3y)21.31%
ROE(5y)17.84%
ROIC(3y)5.19%
ROIC(5y)5%
1.3 Margins
KTN's Profit Margin of 5.51% is fine compared to the rest of the industry. KTN outperforms 70.27% of its industry peers.
KTN's Profit Margin has improved in the last couple of years.
KTN has a Operating Margin (7.05%) which is in line with its industry peers.
KTN's Operating Margin has improved in the last couple of years.
The Gross Margin of KTN (44.37%) is worse than 64.86% of its industry peers.
KTN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.05% | ||
| PM (TTM) | 5.51% | ||
| GM | 44.37% |
OM growth 3Y18.89%
OM growth 5Y3.27%
PM growth 3Y3.81%
PM growth 5Y4.24%
GM growth 3Y4.79%
GM growth 5Y2.94%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KTN is creating some value.
The number of shares outstanding for KTN has been reduced compared to 1 year ago.
KTN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KTN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.82 indicates that KTN is not a great score, but indicates only limited risk for bankruptcy at the moment.
KTN has a Altman-Z score (2.82) which is comparable to the rest of the industry.
The Debt to FCF ratio of KTN is 11.33, which is on the high side as it means it would take KTN, 11.33 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.33, KTN is doing worse than 68.92% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that KTN is not too dependend on debt financing.
KTN has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: KTN outperforms 45.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 11.33 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.16
WACC6.67%
2.3 Liquidity
A Current Ratio of 1.56 indicates that KTN should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.56, KTN is doing good in the industry, outperforming 71.62% of the companies in the same industry.
KTN has a Quick Ratio of 1.56. This is a bad value and indicates that KTN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.95, KTN is doing worse than 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
KTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.52%, which is quite impressive.
Measured over the past years, KTN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.11% on average per year.
KTN shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.41%.
Measured over the past years, KTN shows a quite strong growth in Revenue. The Revenue has been growing by 8.45% on average per year.
EPS 1Y (TTM)26.52%
EPS 3Y24.27%
EPS 5Y14.11%
EPS Q2Q%24.95%
Revenue 1Y (TTM)31.41%
Revenue growth 3Y18.88%
Revenue growth 5Y8.45%
Sales Q2Q%8.24%
3.2 Future
KTN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.48% yearly.
KTN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.
EPS Next Y26.86%
EPS Next 2Y21.16%
EPS Next 3Y17.22%
EPS Next 5Y9.48%
Revenue Next Year8.62%
Revenue Next 2Y8.23%
Revenue Next 3Y7.29%
Revenue Next 5Y6.09%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.08, which indicates a correct valuation of KTN.
KTN's Price/Earnings ratio is a bit cheaper when compared to the industry. KTN is cheaper than 67.57% of the companies in the same industry.
KTN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.32.
The Price/Forward Earnings ratio is 11.13, which indicates a very decent valuation of KTN.
KTN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KTN is cheaper than 78.38% of the companies in the same industry.
KTN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 11.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KTN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, KTN is valued a bit more expensive than 64.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.04 | ||
| EV/EBITDA | 8.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of KTN may justify a higher PE ratio.
A more expensive valuation may be justified as KTN's earnings are expected to grow with 17.22% in the coming years.
PEG (NY)0.6
PEG (5Y)1.14
EPS Next 2Y21.16%
EPS Next 3Y17.22%
5. Dividend
5.1 Amount
KTN has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
KTN's Dividend Yield is a higher than the industry average which is at 6.79.
Compared to an average S&P500 Dividend Yield of 2.40, KTN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
On average, the dividend of KTN grows each year by 25.49%, which is quite nice.
Dividend Growth(5Y)25.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
32.64% of the earnings are spent on dividend by KTN. This is a low number and sustainable payout ratio.
KTN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.64%
EPS Next 2Y21.16%
EPS Next 3Y17.22%
FRA:KTN (6/16/2025, 3:41:44 PM)
23.8
+0.56 (+2.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners27.83%
Inst Owner ChangeN/A
Ins Owners2.16%
Ins Owner ChangeN/A
Market Cap1.52B
Analysts86.67
Price Target30.95 (30.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend0.5
Dividend Growth(5Y)25.49%
DP32.64%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-13.72%
Min Revenue beat(2)-19.85%
Max Revenue beat(2)-7.6%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.19%
PT rev (3m)4.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.14%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 11.13 | ||
| P/S | 0.89 | ||
| P/FCF | 43.04 | ||
| P/OCF | 13.52 | ||
| P/B | 2.34 | ||
| P/tB | 6.82 | ||
| EV/EBITDA | 8.05 |
EPS(TTM)1.48
EY6.22%
EPS(NY)2.14
Fwd EY8.99%
FCF(TTM)0.55
FCFY2.32%
OCF(TTM)1.76
OCFY7.4%
SpS26.84
BVpS10.16
TBVpS3.49
PEG (NY)0.6
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 14.56% | ||
| ROCE | 11.01% | ||
| ROIC | 7.75% | ||
| ROICexc | 9.73% | ||
| ROICexgc | 18.99% | ||
| OM | 7.05% | ||
| PM (TTM) | 5.51% | ||
| GM | 44.37% | ||
| FCFM | 2.06% |
ROA(3y)8.93%
ROA(5y)6.96%
ROE(3y)21.31%
ROE(5y)17.84%
ROIC(3y)5.19%
ROIC(5y)5%
ROICexc(3y)8.87%
ROICexc(5y)9.77%
ROICexgc(3y)29.94%
ROICexgc(5y)N/A
ROCE(3y)7.82%
ROCE(5y)7.47%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-11.68%
ROICexc growth 3Y-12.19%
ROICexc growth 5Y-2.77%
OM growth 3Y18.89%
OM growth 5Y3.27%
PM growth 3Y3.81%
PM growth 5Y4.24%
GM growth 3Y4.79%
GM growth 5Y2.94%
F-Score8
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 11.33 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 92.38% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 4.69 | ||
| Cash Conversion | 55.04% | ||
| Profit Quality | 37.37% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.82 |
F-Score8
WACC6.67%
ROIC/WACC1.16
Cap/Depr(3y)85.49%
Cap/Depr(5y)77.11%
Cap/Sales(3y)3.94%
Cap/Sales(5y)3.84%
Profit Quality(3y)41.04%
Profit Quality(5y)83.08%
High Growth Momentum
Growth
EPS 1Y (TTM)26.52%
EPS 3Y24.27%
EPS 5Y14.11%
EPS Q2Q%24.95%
EPS Next Y26.86%
EPS Next 2Y21.16%
EPS Next 3Y17.22%
EPS Next 5Y9.48%
Revenue 1Y (TTM)31.41%
Revenue growth 3Y18.88%
Revenue growth 5Y8.45%
Sales Q2Q%8.24%
Revenue Next Year8.62%
Revenue Next 2Y8.23%
Revenue Next 3Y7.29%
Revenue Next 5Y6.09%
EBIT growth 1Y37.45%
EBIT growth 3Y41.34%
EBIT growth 5Y12%
EBIT Next Year91.8%
EBIT Next 3Y34.74%
EBIT Next 5Y20.6%
FCF growth 1Y-49.91%
FCF growth 3Y-16.85%
FCF growth 5Y-13.19%
OCF growth 1Y2.56%
OCF growth 3Y1.28%
OCF growth 5Y3.49%