Kuehne + Nagel International AG
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CHF 286.00 | Btxdbf | Rgfvvkps |
Kuehne Kuehne + Nagel Feeling the Pinch in 2023, but Resilience Will Shine Through
Business Strategy and Outlook
Kuehne + Nagel is the second-largest third-party logistics provider, or 3PL, globally, with an estimated 5% share of a highly fragmented market. As a freight forwarder, KN contracts with airlines and ocean carriers for cargo space and then fills that capacity with customers' freight. KN’s strong suit lies in sea freight, where it is the largest operator globally and where its margins are the highest across the four divisions in the group. The company has indicated its willingness to reduce its reliance on the sea freight division by expanding the other businesses in the group, which we believe will strengthen the client offering and ultimately KN's network. Restructuring of the overland and contract logistics businesses has resulted in improved margins and increasing EBIT contributions. We believe there is further room for improvement in these businesses.