Education
About Us
Working with TipRanks
Follow Us
Kuehne + Nagel (KHNGY)
OTHER OTC:KHNGY
Top Page
Kuehne + Nagel
(OTC:KHNGY)
Select Model
Select Model
Rating:54Neutral
Price Target:
$45.00
▲(3.07% Upside)
Action:ReiteratedDate:03/12/26
The score is driven primarily by mixed fundamentals: strong cash-flow resilience is offset by weaker profitability and a more leveraged 2025 balance sheet. Earnings-call guidance and cost actions provide moderate support, while technical indicators remain bearish and valuation looks stretched despite the high dividend yield.
Positive Factors
Strong cash generation
Sustained positive free cash flow and very high Q4 conversion provide durable financial flexibility. This supports dividends, funds the CHF 200m cost program and potential debt paydown, and cushions operating volatility, enabling strategic investments without immediate reliance on external financing.
Market position in air & contract logistics
Market-share gains in higher‑value air segments and strength in contract logistics (record quarterly EBIT and 25% rolling L12M ROCE) reflect durable competitive positioning. Exposure to hyperscalers, healthcare and aerospace supports more stable, higher-margin revenue over cycles.
Technology & AI platform readiness
Cloud migration and an AI stack create structural productivity levers across pricing, bookings and customs automation. Early double‑digit pilot gains suggest sustainable unit‑cost improvement potential, which can enhance margins and operational scale once broadly deployed (management expects material impact from 2027).
Negative Factors
Deteriorating balance sheet leverage
A sharp rise in debt alongside lower equity reduces financial cushioning and increases sensitivity to revenue or margin shocks. Higher leverage can constrain strategic optionality, raise refinancing and interest risk, and limit ability to invest or absorb cyclical freight downturns without corrective measures.
Weaker profitability trend
Material declines in underlying EBIT and EPS across the most recent period indicate structural margin pressure from yield weakness and mix shifts. Reduced earnings power limits reinvestment capacity, weakens organic capital generation under stress and extends the timeline to restore prior profitability levels.
Rising working-capital intensity
Higher net working‑capital intensity meaningfully ties up cash in operations, raising funding needs and magnifying the impact of revenue swings. Coupled with nonrecurring provisions that generate cash outflows in 2026, elevated NWC increases liquidity and margin vulnerability in the medium term.
Kuehne + Nagel (KHNGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.75B
Dividend Yield5.3%
Average Volume (3M)2.96K
Price to Earnings (P/E)23.3
Beta (1Y)0.67
Revenue Growth10.63%
EPS Growth-7.68%
CountryUS
Employees77,130
SectorIndustrials
Sector Strength72
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)0.33
Shares Outstanding603,768,900
10 Day Avg. Volume2,733
30 Day Avg. Volume2,959
Financial Highlights & Ratios
PEG Ratio-0.93
Price to Book (P/B)9.41
Price to Sales (P/S)0.84
P/FCF Ratio13.30
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit2.68
Enterprise Value/Ebitda10.78
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kuehne + Nagel Business Overview & Revenue Model
Company DescriptionKuehne + Nagel (KHNGY) is a global leader in logistics and supply chain management, providing services across various sectors including sea freight, air freight, contract logistics, and overland transportation. Established in 1890, the company has built a strong reputation for its comprehensive and innovative logistics solutions, catering to a diverse range of industries such as automotive, consumer goods, pharmaceuticals, and technology. Kuehne + Nagel operates a vast network that spans more than 100 countries, supporting its clients with end-to-end logistics services and digital solutions.
How the Company Makes MoneyKuehne + Nagel primarily makes money by arranging and managing the movement and storage of goods for customers and charging fees and margins for these services. A core revenue stream is freight forwarding in ocean and air freight: the company buys transportation capacity from carriers (e.g., ocean shipping lines and airlines) and sells end-to-end freight services to shippers, earning revenue from customer freight charges and typically capturing gross profit as the spread between what it charges customers and what it pays carriers, plus service fees for planning, documentation, and coordination. It also generates revenue from customs brokerage and related compliance services by charging customers for import/export clearance, duties/tax administration support, and trade documentation handling. In contract logistics, the company earns fees for warehousing, fulfillment, inventory management, value-added services (such as packaging, labeling, and kitting where offered), and distribution operations, often under multi-year customer contracts with pricing based on storage used, labor/handling activities, and throughput volumes. Road and rail logistics contribute through domestic and cross-border transport management services, including less-than-truckload/truckload brokerage or managed transport (where applicable), with revenue tied to shipment volumes, lanes, and service level requirements. Overall earnings are influenced by global trade volumes, freight rate environments, capacity conditions with carriers, customer mix, and the company’s ability to maintain service quality and procurement terms; specific partnership details are null.
Kuehne + Nagel Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced picture: several strong operational and financial positives (notably robust Q4 free cash flow and cash conversion, market share gains in Air, record Contract Logistics performance, completed cloud migration and promising AI pilots, and implementation of a CHF 200m cost program) were offset by material full-year profit declines (underlying EBIT down 14%, EPS down 25%), earlier-year yield pressure in Sea Logistics, one-off provisions (CHF 122m) with cash outflows mainly in 2026, a rising working capital intensity and currency headwinds. Management provided constructive 2026 recurring EBIT guidance (CHF 1.2–1.4bn) but kept AI benefits conservatively out of near-term guidance. Overall, the results show operational resilience and a path to improvement but with meaningful near-term challenges and uncertainties.Q4-2025 Updates
Positive Updates
Market Share Expansion in Air and Sea
Continued expansion of market share in Air Logistics and improved SME share in Sea Logistics; Air volume growth of 7% in Q4 (well ahead of estimated market growth of 4-5%) and ongoing market share gains in hyperscalers, health care and aerospace.
Strong Air Yield Recovery
Average air yields increased by 8% quarter-over-quarter into the Q4 peak season; unit costs ticked down 1% Q/Q while volume grew ~6-7% Q/Q, supporting Q4 Air EBIT of CHF 107m (CHF 132m excluding nonrecurring items) and a recurring Air Logistics conversion rate of 29%.
Record Contract Logistics Performance
Contract Logistics delivered a record quarterly EBIT of CHF 78m in Q4 (excluding nonrecurring items), representing 20% year-over-year EBIT growth (23% excl. currency) and a Q4 recurring conversion rate of 8%; rolling L12M ROCE stable at 25%.
Road Logistics Signs of Demand Recovery
Road Logistics achieved net turnover growth of 6% in Q4 (excluding currency effects), stronger than full-year growth, with Q4 EBIT (ex nonrecurring items) of CHF 19m, nearly double last year's result and a recurring conversion rate of 6% (double last year).
Free Cash Flow and Cash Conversion Strength
Very strong cash generation in Q4: free cash flow of CHF 396m and free cash flow conversion of 147% (vs 93% prior year); full year free cash conversion at 86%.
Cost Reduction Program Implemented
Announced measures to reduce operating costs by at least CHF 200m; company confirms implementation of all necessary measures prior to year-end 2025 and expects full run-rate savings by year-end 2026 with net impact estimated at ~CHF 100m in 2026.
Technology and AI Platform Ready
Completed migration of in-house transport management system to the cloud and established an AI stack; early AI use cases show tangible benefits (pricing quotes twice as fast, booking time reduced from minutes to seconds, customs automation, and double-digit productivity gains in dynamic workforce planning pilots). Management expects material AI impact within ~18 months.
Dividend and Financial Discipline
Supervisory Board to propose dividend distribution of CHF 6 per share, reflecting healthy profitability and strong cash conversion; management comfortable with current net debt/EBITDA leverage at ~1.5x and intends to manage refinancing to reduce interest costs over time.
Combined Sea & Air Conversion and Resilience
Combined sea and air conversion rate at 28% excluding nonrecurring items (IMC consolidation reduced conversion by about 1 percentage point); management reports yield stabilization in Sea Logistics in Q4 and expects no similar degree of yield pressure going forward as seen in Q2/Q3 2025.
Negative Updates
Full-Year Profitability Decline
Underlying group EBIT declined by 14% year-over-year on a full-year basis, primarily driven by yield pressure in Sea Logistics during Q2 and Q3 2025.
Earnings Per Share Reduction
Group EPS declined by 25% year-over-year; decline narrows to 15% when excluding nonrecurring items and factoring in a reported ~3% currency headwind.
Sea Logistics Volume and Yield Pressure Earlier in Year
Sea Logistics full-year volume was flat YoY and Q4 volume declined 2% YoY versus a strong prior-year comp; Sea faced yield pressure in Q2 and Q3 which reduced profitability (Q4 recurring Sea conversion 23% or 25% organic).
One-Off Charges and Timing of Cash Outflows
Q4 recorded a net drag of CHF 122m at EBIT chiefly due to provisions related to the cost reduction program; management noted the vast majority of cash outflows related to these provisions will occur in 2026.
Working Capital Intensity and NWC Increase
Net working capital intensity increased to 5.2% at Q4 (5.1% in Q3, 4.4% at end of 2024) and net working capital rose ~8% year-over-year, driven in part by disproportionate growth in airfreight charter business; company updated NWC corridor to 4.5%-5.5%.
Currency Headwinds and Translation Risk
Management reported a ~3% currency headwind on EPS in 2025 and expects a further ~5% translation pressure from U.S. dollar depreciation in 2026 versus 2025, which could weigh on reported results.
Geopolitical and Capacity Uncertainty
Near-term uncertainty from Middle East developments (Red Sea / Suez disruption) and impacted air capacity (reports of grounded capacity up to ~18% in some commentaries) create demand/supply volatility; management has not fully incorporated potential Red Sea timeline shifts into 2026 guidance.
Conservative Near-Term AI Financial Impact
Although AI pilots are promising, management intentionally did not factor material AI productivity gains into 2026 guidance and expects most measurable productivity effects to materialize from 2027 onward, leaving short-term benefits limited.
Shift in Cost-Savings Composition
Composition of the CHF 200m+ gross savings has shifted toward a greater proportion of FTE reductions (structural rather than variable savings), which raises near-term workforce and execution implications.
Company Guidance
Management reiterated 2026 recurring group EBIT guidance of CHF 1.2–1.4 billion, with an expected effective tax rate of ~25% and an additional ~5% negative currency‑translation headwind from USD depreciation versus 2025; the cost‑reduction program remains on track for at least CHF 200 million of gross annual savings (greater share now from FTE reductions), with an estimated net impact of ~CHF 100 million in 2026 and full run‑rate by year‑end 2026 (Q4 one‑offs of CHF 122 million, most cash outflows expected in 2026). They adjusted the net working‑capital intensity corridor to 4.5–5.5% (Q4 2025 NWC intensity 5.2% vs 5.1% in Q3 and 4.4% at end‑2024; NWC +8% y/y), confirmed strong free‑cash‑flow seasonality after generating CHF 396 million in Q4 (conversion 147% in Q4; 86% FY), proposed a CHF 6 per‑share dividend, said net‑debt/EBITDA is ~1.5x (comfortable), expect Q1 recurring EBIT to be roughly comparable to Q3 2025 (Q1 typically weaker vs H2) and are not yet factoring material AI productivity gains into 2026 (material traction expected from 2027).Kuehne + Nagel Financial Statement Overview
Summary
Cash flow is a clear strength (positive FCF and improved OCF/FCF in 2025), but profitability has weakened versus prior years and the 2025 balance sheet shows higher leverage with lower equity, increasing downside sensitivity if conditions stay soft.Income Statement
Revenue has been broadly flat to down recently (2025 down ~3% after modest growth in 2024), and profitability has stepped down materially versus the 2021–2022 peak. Earnings power weakened across 2023–2025 as operating profit and net income fell meaningfully, suggesting softer pricing/volumes and/or margin pressure. Positives include historically solid profitability for the sector and resilience through cycles, but the near-term trajectory is clearly negative versus prior years.56
Neutral
Balance Sheet
Balance-sheet risk increased in 2025: total debt rose sharply while equity declined, implying higher leverage and reduced financial cushion versus 2024. Earlier years showed more conservative leverage (e.g., lower debt relative to equity in 2022–2024), but the latest year signals a deterioration in capital structure. Assets are relatively stable, yet the combination of higher debt and lower equity raises sensitivity to an extended downturn.45
Neutral
Cash Flow
Cash generation remains a key strength: operating cash flow and free cash flow improved in 2025 versus 2024, and free cash flow has stayed positive across the period provided. Even with earnings down, the business continues to convert a meaningful portion of activity into cash, supporting flexibility for dividends, buybacks, or debt management. The main weakness is volatility versus the exceptional 2022 cash flow level, indicating cash flows can swing with the freight cycle.72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.48B | 24.80B | 23.85B | 39.40B | 32.80B |
| Gross Profit | 8.80B | 8.67B | 8.79B | 5.96B | 5.38B |
| EBITDA | 2.19B | 2.50B | 2.76B | 4.60B | 3.70B |
| Net Income | 882.00M | 1.18B | 1.43B | 2.64B | 2.03B |
Balance Sheet | |||||
| Total Assets | 11.93B | 11.72B | 10.97B | 14.75B | 14.65B |
| Cash, Cash Equivalents and Short-Term Investments | 750.00M | 1.15B | 2.07B | 3.78B | 2.31B |
| Total Debt | 3.96B | 2.35B | 1.82B | 1.70B | 1.89B |
| Total Liabilities | 9.71B | 8.46B | 7.81B | 10.60B | 11.44B |
| Stockholders Equity | 2.18B | 3.26B | 3.15B | 4.14B | 3.20B |
Cash Flow | |||||
| Free Cash Flow | 1.54B | 1.18B | 1.39B | 4.16B | 2.26B |
| Operating Cash Flow | 1.78B | 1.48B | 1.70B | 4.40B | 2.46B |
| Investing Cash Flow | -731.00M | -452.00M | -243.00M | -223.00M | -1.08B |
| Financing Cash Flow | -1.59B | -1.91B | -3.12B | -2.64B | -800.00M |
Kuehne + Nagel Technical Analysis
Neutral
43.66
Price Trends
45.53
Negative
43.04
Positive
42.36
Positive
Market Momentum
-0.61
Positive
41.52
Neutral
9.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KHNGY, the sentiment is Neutral. The current price of 43.66 is below the 20-day moving average (MA) of 44.86, below the 50-day MA of 45.53, and above the 200-day MA of 42.36, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 9.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KHNGY.
Kuehne + Nagel Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $82.23B | 17.37 | 15.67% | 1.94% | 3.09% | 14.94% | |
66 Neutral | $19.31B | 24.87 | 35.57% | 1.02% | 12.54% | 19.59% | |
66 Neutral | $82.23B | 11.75 | 35.12% | 6.55% | -1.25% | -2.25% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $22.23B | 50.75 | 17.81% | ― | -0.30% | -11.02% | |
61 Neutral | $20.24B | 32.93 | 32.52% | 1.51% | -7.08% | 71.39% | |
54 Neutral | $25.75B | 23.26 | 38.91% | 5.30% | 10.63% | -7.68% |
* Industrials Sector Average
KHNGY
Kuehne + Nagel
43.52
-3.91
-8.25%
CHRW
CH Robinson
170.64
73.18
75.08%
EXPD
Expeditors International
144.62
29.62
25.76%
XPO
XPO
189.72
78.20
70.12%
FDX
FedEx
349.74
107.99
44.67%
UPS
United Parcel
96.84
-13.11
-11.93%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.