| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 38.50 | 157 |
| Intrinsic value (DCF) | 4.08 | -73 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Kendrion N.V. is a Netherlands-based company specializing in the development, manufacturing, and marketing of electromagnetic systems and components for industrial and automotive applications. With a history dating back to 1859, Kendrion operates in two key segments: Industrial and Automotive. The company provides a diverse range of products, including solenoids, electromagnetic brakes, microvalves, and control units, serving industries such as automotive safety, industrial automation, elevators, and renewable energy. Kendrion’s solutions are critical in applications like active suspension systems, thermal management, and sensor cleaning, positioning it as a key player in the global automotive and industrial components market. Headquartered in Amsterdam, Kendrion serves customers across Europe, the Americas, and Asia, leveraging its engineering expertise to deliver high-performance electromagnetic solutions. Despite recent financial challenges, the company maintains a strong market presence in niche segments, supported by its long-standing industry experience and technological innovation.
Kendrion N.V. presents a mixed investment profile. The company operates in specialized segments of the automotive and industrial components market, offering critical electromagnetic solutions with applications in safety, automation, and energy efficiency. However, its recent financial performance has been weak, with a net loss of €4.5 million in the latest fiscal year and negative diluted EPS of -€0.29. While the company maintains a modest market cap of €173.9 million and a beta of 0.767, indicating lower volatility than the broader market, its high debt (€111.9 million) and limited cash reserves (€8.3 million) raise liquidity concerns. The dividend yield of €0.45 per share may appeal to income-focused investors, but sustainability remains uncertain given operational challenges. Kendrion’s long-term viability hinges on improving profitability, reducing leverage, and capitalizing on growth in electric vehicles and industrial automation.
Kendrion N.V. competes in the highly fragmented automotive and industrial components sector, where differentiation is driven by technological innovation, cost efficiency, and customer relationships. The company’s competitive advantage lies in its specialized electromagnetic solutions, particularly in niche applications like elevator brakes, wind turbines, and automotive control systems. However, Kendrion faces intense competition from larger multinational players with stronger R&D budgets and global supply chains. Its relatively small scale limits pricing power and margin resilience compared to industry leaders. While Kendrion’s long-standing expertise in solenoids and electromagnetic systems provides some differentiation, it must continuously invest in innovation to maintain relevance, especially as automotive electrification and automation reshape demand. The company’s geographic footprint in Europe and selective Asian markets offers regional diversification but lacks the dominance of competitors with broader global reach. Financial constraints further hinder its ability to aggressively expand or acquire cutting-edge technologies, making organic growth and operational efficiency critical for sustaining competitiveness.