Kuehne + Nagel International AG

Kuehne + Nagel's capital structure shows a debt-to-equity ratio of 0.96, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 0.87, suggesting potential short-term liquidity constraints. With CHF 862 million in cash and equivalents and CHF 2.45 billion in long-term debt, the firm has a net cash outflow of CHF 1.59 billion, which raises concerns about its ability to meet short-term obligations without additional financing.

Profitability metrics reveal a return on equity (ROE) of 11.23% and a return on assets (ROA) of 2.59%. These figures are below the industry median for ROE and ROA in the logistics sector, indicating that Kuehne + Nagel is underperforming relative to its peers in terms of asset and equity utilization.

The company's revenue is primarily concentrated in its logistics services, with no significant diversification across business segments. Geographically, Kuehne + Nagel operates in over 120 countries, but the majority of its revenue is derived from Europe and Asia. This concentration exposes the company to regional economic fluctuations and regulatory changes in these key markets.

Looking ahead, Kuehne + Nagel is projected to experience a modest growth trajectory, with revenue expected to increase by 3.5% in the current fiscal year and 4.2% in the next fiscal year. This growth is driven by expanding demand in emerging markets and the company's strategic investments in digital logistics solutions.

Risk factors for Kuehne + Nagel include medium liquidity risk due to its current ratio and net cash outflow. The company's dilution potential is low, as there are no immediate plans for additional share issuance. However, the risk assessment highlights the need for careful monitoring of debt levels and cash flow management to ensure financial stability.

Recent events, including the company's Q4 earnings report and investor relations updates, indicate a focus on cost optimization and operational efficiency. The company has also announced plans to expand its logistics network in Asia, which is expected to enhance its market position in the region.

Net margin of 4.8% outperforms the 3.5% cohort median, reflecting strong bottom-line efficiency compared to competitors.

Cash conversion ratio of 1.7 is double the 0.82 cohort median, highlighting robust cash generation capabilities.

Free cash flow increased 8.5% year-over-year to CHF 616 million, showing improving cash flow trends.

Net income declined 18.8% annually over four years, signaling a persistent and severe earnings deterioration trend.

Debt-to-equity ratio of 0.96 is in the bottom quartile, indicating significantly higher leverage than peers.

Long-term debt rose to CHF 3.96 billion in FY2026, increasing financial obligations amidst declining profitability.

Revenue CHF 5.60B, −11,5% YoY; Operating income −14,7% YoY.

• ▍Revenue CHF 5.60B, −11,5% YoY
• ▍Operating income −14,7% YoY
• ▍Net income −15,8% YoY
• ▍Free cash flow −9,0% YoY
• ▍Net margin 4.4%

Revenue CHF 5.95B, −11,9% YoY; Operating income −49,4% YoY.

• ▍Revenue CHF 5.95B, −11,9% YoY
• ▍Operating income −49,4% YoY
• ▍Net income −47,0% YoY
• ▍Free cash flow −29,0% YoY
• ▍Net margin 2.6%

Revenue CHF 6.04B, −6,8% YoY; Operating income −37,4% YoY.

• ▍Revenue CHF 6.04B, −6,8% YoY
• ▍Operating income −37,4% YoY
• ▍Net income −40,1% YoY
• ▍Free cash flow −22,0% YoY
• ▍Net margin 3.2%

Revenue CHF 6.15B, +1,7% YoY; Operating income −14,9% YoY.

• ▍Revenue CHF 6.15B, +1,7% YoY
• ▍Operating income −14,9% YoY
• ▍Net income −16,7% YoY
• ▍Free cash flow −5,6% YoY
• ▍Net margin 3.9%

Revenue CHF 6.33B; Operating income CHF 402.0M.

• ▍Revenue CHF 6.33B
• ▍Operating income CHF 402.0M
• ▍Net margin 4.6%

Revenue CHF 6.76B; Operating income CHF 421.0M.

• ▍Revenue CHF 6.76B
• ▍Operating income CHF 421.0M
• ▍Net margin 4.4%

Revenue CHF 6.49B; Operating income CHF 455.0M.

• ▍Revenue CHF 6.49B
• ▍Operating income CHF 455.0M
• ▍Net margin 5.0%

Revenue CHF 6.05B; Operating income CHF 402.0M.

• ▍Revenue CHF 6.05B
• ▍Operating income CHF 402.0M
• ▍Net margin 4.8%

Revenue CHF 24.48B, −1,3% YoY; Operating income −24,9% YoY.

• ▍Revenue CHF 24.48B, −1,3% YoY
• ▍Operating income −24,9% YoY
• ▍Net income −25,3% YoY
• ▍Free cash flow +8,4% YoY
• ▍Net margin 3.6%

Revenue CHF 24.80B, +4,0% YoY; Operating income −13,1% YoY.

• ▍Revenue CHF 24.80B, +4,0% YoY
• ▍Operating income −13,1% YoY
• ▍Net income −17,5% YoY
• ▍Free cash flow +111,9% YoY
• ▍Net margin 4.8%

Revenue CHF 23.85B, −39,5% YoY; Operating income −49,4% YoY.

• ▍Revenue CHF 23.85B, −39,5% YoY
• ▍Operating income −49,4% YoY
• ▍Net income −45,9% YoY
• ▍Free cash flow −87,5% YoY
• ▍Net margin 6.0%

Revenue CHF 39.40B, +20,1% YoY; Operating income +27,7% YoY.

• ▍Revenue CHF 39.40B, +20,1% YoY
• ▍Operating income +27,7% YoY
• ▍Net income +30,1% YoY
• ▍Free cash flow 0,0% YoY
• ▍Net margin 6.7%