Quick Facts
- KSB is a leading German manufacturer of pumps, valves, and related systems and services.
- Latest addition to the Obermatt Europe Value Wikifolio.
Pros
- Strong financials: good Obermatt ranks indicate that it performs well on key financial metrics compared with its peers. ✔
- Attractive dividends: High dividend yield of cca 4.09% as of September 2024. ✔
- Strong return on capital: With its growing returns on capital, it is able to reinvest in itself. ✔
Cons
- Non-operating profits: Some of KSB's strong profits have weak fundamentals, as they come from non-operating sources. ❌
- Market competition: Pressure on profits is a risk. ❌
- Economic sensitivity: Downturns in the energy and process engineering sectors could affect the company's performance. ❌
Obermatt Ranks
 360° View | 98 |  | |
 Sentiment Rank | 70 |  | |
 Value Rank | 97 | | |
 Growth Rank | 49 |  | |
 Safety Rank | 99 | | |
 Combined Rank | 97 | |
KSB, a leading German manufacturer of pumps, valves, and related systems, has been added to the Obermatt Europe Value Wikifolio. This inclusion is based on KSB's market position and its potential as a value investment.
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KSB's inclusion in this Wikifolio is based on Obermatt's systematic approach to identifying undervalued stocks with solid fundamentals. The company's strong Obermatt ranks are a key factor in its selection, indicating that it outperforms its peers in important financial metrics. These strong ranks, coupled with KSB's long-standing expertise since 1871, global presence, and diversified industry applications, make it an attractive option for value investors.
KSB's growing returns on capital demonstrate its ability to reinvest and achieve organic growth, further enhancing its appeal. This, along with solid fundamentals and a recent dividend yield of approximately 4.09%, positions KSB as a compelling choice for investors seeking value in the European market.
As a leader in its field, KSB serves crucial sectors such as water management, energy, and process engineering. This diversification not only showcases the company's versatility but also potentially provides stability through varying market conditions. KSB has been modernizing its production: recently they have introduced 3D-printed cases for some of their valves and pumps, allowing for faster molding and assembly, as well as the use of recycled materials.
On the other hand, some of KSB's record profits have been coming from non-operating sources, making us somewhat wary of the future growth, which is also reflected in their Obermatt Growth Rank of 49. While KSB does face challenges such as market competition and economic sensitivity, its other quite strong Obermatt ranks, solid fundamentals and long corporate tradition indicate that these potential drawbacks are outweighed by the company's strengths and value creation potential. The inclusion in the Obermatt Europe Value Wikifolio is a result of these positive factors.
Investors interested in European value stocks may want to keep an eye on KSB and its performance within the Obermatt Europe Value Wikifolio. As always, conduct your own research and consider your investment goals before making any decisions.