This week, I'm looking for the fourth industrials representative of eight for my Ivy portfolio. That sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.
Today I'm reviewing another large-cap diversified industrials organization named KONE Oyj. Its trading ticker symbol is KNYJY
Kone, whose name means "machine" in Finnish, is the world's fourth- largest supplier of elevators and escalators. The company began producing elevators in Finland in 1918, and today generates revenue in three ways: selling new elevators and escalators, overhauling or modernizing old equipment, and servicing its installed base. Most of Kone's profit comes from the service activity, where contracts are rolled over annually with built-in price increases. The bulk of its business is in elevators, which are more numerous globally than escalators.
It serves architects, consultants, builders, developers, housing corporations, building owners, and facility managers worldwide.
KONE Oyj was founded in 1910 and is headquartered in Helsinki, Finland.
I use three key data points to gauge the value of any dividend equity-like Atlas KONE Oyj:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest. Those first three primary keys, however, best tell whether a company has made, is making, and will make money.
KNYJY Price
KONE's price per share closed at $27.62 yesterday. A year ago its price was $24.80. Price increased $2.82 or 11.4% in the past year.
Assuming KONE's stock trades in the range of $22.00 to $30.00 this year, KONE's recent $27.62 price could rise by $1.38 and go to $29.00 by late-April, 2020.
KNYJY Dividends
KONE's most recent declared annual dividend was $0.927 declared January 25th, 2018 and paid, March 22nd; a $0.927 dividend equates to an annual yield of 3.36% at yesterday's $27.62 closing price.
Gains For KNYJY?
Adding a $0.927 annual estimated dividend to my $1.38 estimate of KONE's price upside shows a $2.31 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
If we pay a little under $1,000.00 today at the $27.62 recent stock price would buy us 36 KONE Oy shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.28 per share.
Subtract that $0.28 brokerage cost from the estimated $2.31 gross annual gain leaves a net gain of $2.03 X 33 shares
= $66.99 or a 6.7% net gain on a $994.32 investment.
Therefore, KONE Oyj now shows a possible net gain of6.7% including a 3.36% dividend yield.
No brokers cover this stock.
No consensus score is available.
[Ed. note: OTC and ADR liquidity in the US for this stock is very limited. For better trading, you may want to consider the stock on its home exchange in Finland (KNEBV.HE).
However, you can look at KONE Oyj and see it has made money, is making money, and could net 6.7% gains including a 3.36% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to determine if KONE Oyj is worth your time and money.
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