German engineering meets US Big Tech

German mid-cap KION is a global leader in supply chain automation solutions, boasting a market cap of around €4.6 billion, which we own in our European Value Fund. Yesterday, the stock price jumped 9.6%, spurred by Jensen Huang’s NVIDIA keynote, where he showcased his new AI partnership with KION. The stock is still down 42% over five years and has been treading water since we added it to our portfolio, despite what we believe are strong fundamentals. The growing company currently trades at a forward P/E (price-to-earnings) ratio of around 10.6 times, with a return on equity (ROE) near 7% and a solid balance sheet, underscoring its robust profitability. With strategic partnerships involving NVIDIA and Accenture, KION harnesses AI-driven insights, advanced robotics, and real-time analytics to enhance automation, streamline operations, and bolster overall supply chain efficiency in warehouses. This is a prime example of German engineering meeting US Big Tech.