Rankings Machinery & automation KONE
KONE
65
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- The TKE acquisition−9
- Quality of growth−4
- Multiples vs own history−4
Strengths
- Order intake+2
- Recurring service earnings+2
How the score is built
From 100 to 65, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 56.28 EUR
- Median analyst target
- 60.00 EUR
- Upside to median
- +6.6%
- Analysts
- 21
- Target range
- 46.00 – 82.00 EUR
- 52-week change
- −3%
- P/E (trailing)
- 29.6
- Forward P/E
- 23.5
- PEG
- 2.05
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 4 findings−10 of −30
- −4Quality of growthRevenue has only grown from EUR 10.51bn (2021) to 11.37bn (TTM), about 1-2% a year, and 2026 guidance is 3-6% at constant exchange rates. Growth has largely stalled.
- −2MarginOperating margin 12.0% (TTM) vs 12.5% in 2021 – no margin improvement in five years. Guidance for adjusted EBIT margin in 2026 is 12.3–13%, which is below Otis's level.
- −3Future segmentThe new-build market in China is expected to fall clearly again in 2026, and New Building Solutions in China remains a headwind. China used to be KONE's growth engine.
- −1Capital allocationThe dividend has made up 95–99% of net income for years (EUR 1.80/share, approx. EUR 933m). Net cash has fallen from EUR 2.33bn (2021) to 0.45bn (June 2026), and almost no buffer is left.
Price
Today's multiples against the company's own history and its peers. · 2 findings−5 of −35
- −4Multiples vs own historyForward P/E 22.0 vs 22.2–31.4 in 2021–2025 and EV/EBITDA 15.7 vs 16.2–21.5 – at the low end of its own history. But P/B is 11.5 vs 8.4–11.1, and 22x forward earnings is not cheap for a company growing 1–2% a year.
- −1FCF yieldFCF yield 4.6% (TTM), but analysts expect FCF of 1.16 bn EUR in 2026 vs 1.24 bn TTM, and the current share price does not account for the share count rising by up to about 50% with the TKE deal.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 2 findings−11 of −35
- −9The TKE acquisitionKONE is buying TK Elevator at an EV of EUR 29.4bn: about EUR 5bn in cash and up to 270m new shares (about 50% dilution). Net debt becomes about EUR 13.5bn (about 5x reported and 4x adjusted operating profit) vs net cash today. The deal is expected to face a lengthy competition review in the EU, USA and UK and may require divestments in Europe (see elevatorworld.com). It closes in Q2 2027 at the earliest, and the integration covers over 100,000 employees.
- −2Governance – dual share classAntti Herlin controls about 63% of the votes through Security Trading and Holding Manutas via unlisted A shares with 10 votes, so minority shareholders effectively have no influence (e.g. on the TKE deal).
Plus
Only documented strengths. · 2 findings+4 of +15
- +2Order intakeOrder intake rose 10.6% in Q2 2026 to EUR 2.56bn (H1 +4.2%), despite the weak Chinese new-build market.
- +2Recurring service earningsService and modernisation, which are stable and recurring businesses, grew 5.6–8.8% and offset the decline in new construction. Gross margin has risen from 51.6% (2021) to 57.1% (TTM).
Caveats
What the score does not capture, or where the data is weak.
The figures apply to KONE alone. The acquisition of TK Elevator (EV EUR 29.4bn, completion no earlier than Q2 2027) fundamentally changes the company: up to 270m new shares and net debt of about EUR 13.5bn. Multiples and ROIC before the acquisition therefore say little about what the combined company will look like. The high ROIC is due to small equity and customer prepayments. Not examined: tariffs and demand for new construction in Europe and North America.
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