Analysis of Kardex

Company: Kardex

ISIN CH0100837282 | WKN A0RMWK

Business: A Swiss storage and distribution company. The company have two business units: The first one is Kardexremstar (with Carousel and lift systems, Office solutions and Warehouse solutions ) and secondly Kardexmlog (with Storage and retrieval systems, Conveyor systems, Turnkey systems solutions and Material flow systems).

Active: They are present in over 30 countries which they claim to be world wide.

P/E: 8.0

The P/E for Kardex is excellent with 8.0 and the P/B is slightly too high with 2.4 but still according to Graham it is a very clear buy! The earnings to sales seems to be ok with 8% and the ROE is spectacular with almost 30%! The book to debt ratio is also very good with 1.3.
In the last five years they have had a yearly revenue growth of 3.1% which is very good and then this gives us a motivated P/E of 10 to 14 which means that Kardex is today undervalued by the market.
They pay a fully acceptable dividend of 3.8% which represents only 31% of their earnings so that is also very good.

Conclusion: Graham is saying yes to Kardex and I also like it very much due to the excellent P/E, ROE and the ok dividend. However, Kardex was in a bit of trouble in 2010, meaning they made a loss, and directly they then ran out and printed more stocks. Personally I do not like when companies do that which makes me less interested in making an investment in Kardex.

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