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Klingelnberg

SWX:KLIN
Snowflake Description

Undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KLIN
SWX
CHF227M
Market Cap
  1. Home
  2. CH
  3. Capital Goods
Company description

Klingelnberg AG engages in the development, manufacture, and sale of machines for the production of bevel and cylindrical gears, and measuring centers for axially symmetrical objects of various types worldwide. The last earnings update was 6 days ago. More info.


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  • Klingelnberg has significant price volatility in the past 3 months.
KLIN Share Price and Events
7 Day Returns
-5.9%
SWX:KLIN
-0.3%
CH Machinery
-0%
CH Market
1 Year Returns
-29.2%
SWX:KLIN
14.4%
CH Machinery
13.3%
CH Market
KLIN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Klingelnberg (KLIN) -5.9% -3.2% -19.5% -29.2% - -
CH Machinery -0.3% 7.6% 15.7% 14.4% 26.5% 41.5%
CH Market -0% 3.2% 4.8% 13.3% 21.9% 13%
1 Year Return vs Industry and Market
  • KLIN underperformed the Machinery industry which returned 14.4% over the past year.
  • KLIN underperformed the Market in Switzerland which returned 13.3% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

KLIN Value

 Is Klingelnberg undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Klingelnberg to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Klingelnberg.

SWX:KLIN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year CH Government Bond Rate 3.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SWX:KLIN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate 3.3%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.078 (1 + (1- 18%) (9.18%))
1.107
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (1.107 * 5.96%)
9.87%

Discounted Cash Flow Calculation for SWX:KLIN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Klingelnberg is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SWX:KLIN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 9.87%)
2020 13.00 Analyst x1 11.83
2021 8.33 Analyst x3 6.90
2022 14.33 Analyst x3 10.81
2023 18.00 Analyst x2 12.35
2024 21.65 Analyst x2 13.52
2025 24.42 Est @ 12.81% 13.88
2026 26.85 Est @ 9.95% 13.89
2027 28.99 Est @ 7.95% 13.65
2028 30.89 Est @ 6.55% 13.24
2029 32.61 Est @ 5.57% 12.72
Present value of next 10 years cash flows €122.00
SWX:KLIN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €32.61 × (1 + 3.28%) ÷ (9.87% – 3.28%)
€510.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €510.44 ÷ (1 + 9.87%)10
€199.10
SWX:KLIN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €122.00 + €199.10
€321.10
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €321.10 / 8.84
€36.32
SWX:KLIN Discount to Share Price
Calculation Result
Exchange Rate EUR/CHF
(Reporting currency to currency of SWX:KLIN)
1.095
Value per Share
(CHF)
= Value per Share in EUR x Exchange Rate (EUR/CHF)
= €36.32 x 1.095
CHF39.78
Value per share (CHF) From above. CHF39.78
Current discount Discount to share price of CHF25.65
= -1 x (CHF25.65 - CHF39.78) / CHF39.78
35.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Klingelnberg is available for.
Intrinsic value
36%
Share price is CHF25.65 vs Future cash flow value of CHF39.78
Current Discount Checks
For Klingelnberg to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Klingelnberg's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Klingelnberg's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Klingelnberg's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Klingelnberg's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:KLIN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in EUR €1.80
SWX:KLIN Share Price ** SWX (2019-11-18) in CHF CHF25.65
SWX:KLIN Share Price converted to EUR reporting currency Exchange rate (CHF/ EUR) 0.913 €23.42
Switzerland Machinery Industry PE Ratio Median Figure of 25 Publicly-Listed Machinery Companies 23.34x
Switzerland Market PE Ratio Median Figure of 171 Publicly-Listed Companies 19.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Klingelnberg.

SWX:KLIN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SWX:KLIN Share Price ÷ EPS (both in EUR)

= 23.42 ÷ 1.80

13.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Klingelnberg is good value based on earnings compared to the CH Machinery industry average.
  • Klingelnberg is good value based on earnings compared to the Switzerland market.
Price based on expected Growth
Does Klingelnberg's expected growth come at a high price?
Raw Data
SWX:KLIN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
25%per year
Switzerland Machinery Industry PEG Ratio Median Figure of 23 Publicly-Listed Machinery Companies 1.18x
Switzerland Market PEG Ratio Median Figure of 124 Publicly-Listed Companies 2.17x

*Line of best fit is calculated by linear regression .

SWX:KLIN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.03x ÷ 25%

0.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Klingelnberg is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Klingelnberg's assets?
Raw Data
SWX:KLIN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in EUR €16.86
SWX:KLIN Share Price * SWX (2019-11-18) in CHF CHF25.65
SWX:KLIN Share Price converted to EUR reporting currency Exchange rate (CHF/ EUR) 0.913 €23.42
Switzerland Machinery Industry PB Ratio Median Figure of 25 Publicly-Listed Machinery Companies 2.3x
Switzerland Market PB Ratio Median Figure of 214 Publicly-Listed Companies 1.66x
SWX:KLIN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SWX:KLIN Share Price ÷ Book Value per Share (both in EUR)

= 23.42 ÷ 16.86

1.39x

* Primary Listing of Klingelnberg.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Klingelnberg is good value based on assets compared to the CH Machinery industry average.
X
Value checks
We assess Klingelnberg's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Klingelnberg has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KLIN Future Performance

 How is Klingelnberg expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
25%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Klingelnberg expected to grow at an attractive rate?
  • Klingelnberg's earnings growth is expected to exceed the low risk savings rate of 3.3%.
Growth vs Market Checks
  • Klingelnberg's earnings growth is expected to exceed the Switzerland market average.
  • Klingelnberg's revenue growth is expected to exceed the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:KLIN Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:KLIN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 25%
SWX:KLIN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 8.9%
Switzerland Machinery Industry Earnings Growth Rate Market Cap Weighted Average 14.5%
Switzerland Machinery Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 9.9%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SWX:KLIN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:KLIN Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 349 36 34 2
2023-03-31 335 31 33 2
2022-03-31 304 21 23 4
2021-03-31 271 15 17 3
2020-03-31 233 12 10 2
2019-11-18
SWX:KLIN Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-09-30 268 8 16
2019-06-30 273 18 18
2019-03-31 278 28 19
2018-12-31 279 23 17
2018-09-30 280 17 15
2018-06-30 268 12 14
2018-03-31 257 6 14
2017-03-31 231 11

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Klingelnberg's earnings are expected to grow significantly at over 20% yearly.
  • Klingelnberg's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:KLIN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Klingelnberg Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:KLIN Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 2.65 3.46 1.82 4.00
2021-03-31 1.94 3.01 0.77 4.00
2020-03-31 1.25 1.88 0.61 2.00
2019-11-18
SWX:KLIN Past Financials Data
Date (Data in EUR Millions) EPS *
2019-09-30 1.80
2019-06-30 2.00
2019-03-31 2.20
2018-12-31 1.96
2018-09-30 1.71
2018-06-30 1.70
2018-03-31 1.69
2017-03-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Klingelnberg is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Klingelnberg's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Klingelnberg has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KLIN Past Performance

  How has Klingelnberg performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Klingelnberg's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Klingelnberg's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Klingelnberg's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Klingelnberg's earnings growth has exceeded the CH Machinery industry average in the past year (9.1% vs 2.7%).
Earnings and Revenue History
Klingelnberg's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Klingelnberg Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:KLIN Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 267.55 15.91 103.38
2019-06-30 272.88 17.56 102.31
2019-03-31 278.21 19.22 101.25
2018-12-31 278.97 16.90 99.33
2018-09-30 279.72 14.58 97.41
2018-06-30 268.37 14.41 96.11
2018-03-31 257.03 14.23 94.81
2017-03-31 231.00 11.10 86.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Klingelnberg has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Klingelnberg used its assets more efficiently than the CH Machinery industry average last year based on Return on Assets.
  • Unable to establish if Klingelnberg improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Klingelnberg's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Klingelnberg has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KLIN Health

 How is Klingelnberg's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Klingelnberg's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Klingelnberg is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Klingelnberg's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Klingelnberg's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 9.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Klingelnberg Company Filings, last reported 1 month ago.

SWX:KLIN Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 148.89 19.02 8.75
2019-06-30 148.89 19.02 8.75
2019-03-31 162.97 6.46 28.70
2018-12-31 162.97 6.46 28.70
2018-09-30 136.91 0.00 8.11
2018-06-30 136.91 0.00 8.11
2018-03-31 120.26 28.33 8.63
2017-03-31
  • Klingelnberg's level of debt (12.8%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Klingelnberg's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (44.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 109.7x coverage).
X
Financial health checks
We assess Klingelnberg's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Klingelnberg has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KLIN Dividends

 What is Klingelnberg's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.83%
Current annual income from Klingelnberg dividends. Estimated to be 4.06% next year.
If you bought CHF2,000 of Klingelnberg shares you are expected to receive CHF77 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Klingelnberg's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (1.85%).
  • Klingelnberg's dividend is above the markets top 25% of dividend payers in Switzerland (3.6%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SWX:KLIN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Switzerland Machinery Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 2.2%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 163 Stocks 2.9%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.2%
Switzerland Bottom 25% Dividend Yield 25th Percentile 1.8%
Switzerland Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SWX:KLIN Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 1.26 4.00
2021-03-31 0.90 4.00
2020-03-31 0.44 2.00
2019-11-18
SWX:KLIN Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-07-09 0.898 3.364

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Klingelnberg has stable dividend payments.
  • Klingelnberg only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Klingelnberg's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Klingelnberg's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Klingelnberg afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Klingelnberg has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KLIN Management

 What is the CEO of Klingelnberg's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jan Klingelnberg
COMPENSATION €805,138
AGE 48
TENURE AS CEO 15.8 years
CEO Bio

Mr. Jan Klingelnberg is the Chief Executive Officer of Klingelnberg AG since 2004. Mr. Klingelnberg serves as the Chief Executive Officer and Managing Director of Klingelnberg GmbH and served as its Chairman of Supervisory Board. From 2002 to 2004, he was a Director of the Cylindrical Gears business unit at Klingelnberg GmbH, Germany. Between 2000 and 2002, Mr. Klingelnberg held various roles at ZF Passau GmbH in Brazil and in the US. Before that, he was a Manager for Corporate Strategy Planning at SMS Demag AG in Germany. From 2008, Mr. Klingelnberg has also been a member of the Managing Board of the VDMA for machine tools and production systems. Mr. Klingelnberg holds a degree in Industrial Management from Carnegie Mellon University in Pittsburgh, USA.

CEO Compensation
  • Insufficient data for Jan to compare compensation growth.
  • Jan's remuneration is about average for companies of similar size in Switzerland.
Management Team Tenure

Average tenure and age of the Klingelnberg management team in years:

4.8
Average Tenure
48
Average Age
  • The tenure for the Klingelnberg management team is about average.
Management Team

Jan Klingelnberg

TITLE
Chief Executive Officer
COMPENSATION
€805K
AGE
48
TENURE
15.8 yrs

Christoph Küster

TITLE
Chief Finance Officer
AGE
45
TENURE
4.8 yrs

Martin Boelter

TITLE
Chief Operating Officer
AGE
58
TENURE
4.8 yrs
Board of Directors Tenure

Average tenure and age of the Klingelnberg board of directors in years:

6.8
Average Tenure
63
Average Age
  • The tenure for the Klingelnberg board of directors is about average.
Board of Directors

Jörg Wolle

TITLE
Chairman of the Board
COMPENSATION
€165K
AGE
62
TENURE
1.8 yrs

Diether Klingelnberg

TITLE
Director
COMPENSATION
€9K
AGE
75
TENURE
28.8 yrs

Hans-Martin Schneeberger

TITLE
Director
COMPENSATION
€58K
AGE
64
TENURE
12.8 yrs

Hans-Georg Härter

TITLE
Director
COMPENSATION
€47K
AGE
74
TENURE
11.8 yrs

Roger Baillod

TITLE
Director
COMPENSATION
€67K
AGE
61
TENURE
1.4 yrs

Michael Hilb

TITLE
Director
COMPENSATION
€59K
AGE
42
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CHF) Value (CHF)
X
Management checks
We assess Klingelnberg's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Klingelnberg has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KLIN News

Simply Wall St News

Does The Hype Around Klingelnberg AG's (VTX:KLIN) Growth Justify Its August Share Price?

This tells us the stock is undervalued relative to the current CH market average of 17.95x , and undervalued based on its latest annual earnings update compared to the Machinery average of 19.2x. … But, seeing as Klingelnberg is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … A PE ratio of 12.97x and expected year-on-year earnings growth of 13% give Klingelnberg a low PEG ratio of 0.98x.

Simply Wall St -

Klingelnberg (VTX:KLIN) Has A Pretty Healthy Balance Sheet

SWX:KLIN Historical Debt, August 5th 2019 A Look At Klingelnberg's Liabilities According to the last reported balance sheet, Klingelnberg had liabilities of €71.6m due within 12 months, and liabilities of €20.8m due beyond 12 months. … While Klingelnberg has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Did Klingelnberg AG (VTX:KLIN) Use Debt To Deliver Its ROE Of 12%?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Klingelnberg: 12% = €19m ÷ €163m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Klingelnberg's Debt And Its 12% Return On Equity While Klingelnberg does have a tiny amount of debt, with debt to equity of just 0.04, we think the use of debt is very modest. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Estimating The Intrinsic Value Of Klingelnberg AG (VTX:KLIN)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (€, Millions) €8.0m €12.7m €16.3m €20.4m €21.5m €22.5m €23.5m €24.4m €25.3m €26.2m Growth Rate Estimate Source Analyst x1 Analyst x3 Analyst x3 Analyst x2 Analyst x2 Est @ 4.65% Est @ 4.24% Est @ 3.95% Est @ 3.75% Est @ 3.61% Present Value (€, Millions) Discounted @ 9.66% €7.3 €10.5 €12.4 €14.1 €13.6 €12.9 €12.3 €11.7 €11.0 €10.4 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= €116.2m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … SWX:KLIN Intrinsic value, July 16th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

What Kind Of Shareholder Appears On The Klingelnberg AG's (VTX:KLIN) Shareholder Register?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Klingelnberg is a smaller company with a market capitalization of CHF306m, so it may still be flying under the radar of many institutional investors. … Insider Ownership Of Klingelnberg The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Should You Consider Klingelnberg AG (VTX:KLIN)?

Flawless balance sheet and good value KLIN's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. … Investors have the opportunity to buy into the stock to reap capital gains, if KLIN's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. … Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

Simply Wall St -

Don’t Buy Klingelnberg AG (VTX:KLIN) Until You Understand Its ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Klingelnberg AG (VTX:KLIN): Is Growth Priced In?

Growth expectations for Klingelnberg AG (VTX:KLIN) are high, but many investors are starting to ask whether its last close at CHF32.85 can still be rationalized by the future potential. … See our latest analysis for Klingelnberg? … According to the analysts covering the company, the following few years should bring about good growth prospects for Klingelnberg

Simply Wall St -

Taking A Look At Klingelnberg AG's (VTX:KLIN) ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each CHF1 of shareholders' equity it has, the company made CHF0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Investors Should Know About Klingelnberg AG's (VTX:KLIN) Financial Strength

The direct benefit for Klingelnberg AG (VTX:KLIN), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … Is financial flexibility worth the lower cost of capital … Debt capital generally has lower cost of capital compared to equity funding.

Simply Wall St -

KLIN Company Info

Description

Klingelnberg AG engages in the development, manufacture, and sale of machines for the production of bevel and cylindrical gears, and measuring centers for axially symmetrical objects of various types worldwide. The company offers bevel gear cutting machines, bevel gear grinding machines, bevel gear lapping machines, and bevel gear testing machines, as well as related software, tools and fixtures, and tool management products. It also provides cylindrical gear cutting machines, cylindrical gear grinding machines, machining products, and related software; and precision measuring centers, optical metrology products, tool measurement products, roughness measurement products, and deviation analysis and additional application products, as well as dimension, form, and position measurement products. In addition, the company offers high-precision gear components and after sale services. It serves automotive, maritime propulsion, rail, mining/materials handling, oil and gas, agriculture, racing transmission, robot, aviation, and wind power industries, as well as crusher gearboxes, commercial vehicles, industrial gear units, and contract manufacturers. Klingelnberg AG was founded in 1863 and is headquartered in Zurich, Switzerland.

Details
Name: Klingelnberg AG
KLIN
Exchange: SWX
Founded: 1863
CHF226,746,000
8,840,000
Website: http://www.klingelnberg.com
Address: Klingelnberg AG
Binzmuhlestrasse 171,
Zurich,
Zurich, 8005,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SWX KLIN Registered Shares SIX Swiss Exchange CH CHF 19. Jun 2018
DB 2MK Registered Shares Deutsche Boerse AG DE EUR 19. Jun 2018
Number of employees
Current staff
Staff numbers
1,340
Klingelnberg employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 22:26
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/11/15
Last earnings filing: 2019/11/12
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.