Yahoo Finance Why Kuehne + Nagel International AG (VTX:KNIN) Could Be Your Next Investment
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Kuehne + Nagel International AG (VTX:KNIN) due to its excellent fundamentals in more than one area. KNIN is a financially-robust company with a strong history and an optimistic future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Kuehne + Nagel International here.
Excellent balance sheet with solid track record and pays a dividend
KNIN is expected to churn out cash in the short term, with its operating cash flow predicted to expand by 54%. This underlies the notable 35% return on equity over the next few years leading up to 2021. KNIN delivered a bottom-line expansion of 7.2% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 37% return to shareholders, which is what investors like to see!
KNIN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that KNIN has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. KNIN appears to have made good use of debt, producing operating cash levels of 2.82x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Kuehne + Nagel International, I’ve put together three fundamental factors you should further examine:
Valuation: What is KNIN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KNIN is currently mispriced by the market.
Dividend Income vs Capital Gains: Does KNIN return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from KNIN as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KNIN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
