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KONE Oyj (HLSE:KNEBV) Could Be 19% Undervalued After Mixed Earnings

Simply Wall St · 4d ago

Why KONE Oyj’s latest earnings matter for HLSE:KNEBV investors

KONE Oyj (HLSE:KNEBV) has released second quarter and half year 2026 results, showing higher sales alongside lower net income and earnings per share compared with the same periods a year earlier.

This mix of revenue growth and profit pressure gives investors fresh information on how the elevator and escalator group is balancing business activity, margins and cash generation as they reassess the stock.

See our latest analysis for KONE Oyj.

KONE Oyj’s latest results land at a time when the stock’s short term momentum has been weak, with the share price down 19.76% year to date and 13.14% over 90 days. However, the 3 year total shareholder return of 16.30% points to a stronger longer term record than recent trading suggests.

If these earnings have you rethinking where growth and resilience might come from next, this could be a good moment to look at companies in related infrastructure and automation themes via our 34 robotics and automation stocks

The mix of weaker recent share performance and ongoing earnings pressure at KONE Oyj raises a straightforward issue for anyone looking at the stock now: does today’s valuation still offer a clear upside in the risk reward trade off?

Most Popular Narrative: 19.1% Undervalued

The most followed narrative currently points to a fair value for KONE Oyj of €60.43 per share compared with the latest close of €48.90, framing the recent earnings in the context of longer term cash flow expectations.

Strong growth in modernization and service segments, driven by aging infrastructure upgrades and rising energy-efficiency requirements in both developed and emerging markets, is rapidly shifting KONE's sales mix toward higher-margin, recurring maintenance and modernization revenue, expected to drive improved net margins and more predictable earnings.

Read the complete narrative.

Want to see what is behind that projected earnings path and recurring revenue mix? The narrative leans on specific growth, margin and valuation assumptions that are not obvious from the headline numbers. The details show how analysts connect those inputs to the €60.43 fair value and the gap to today’s share price.

Result: Fair Value of €60.43 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the KONE Oyj narrative could be knocked off course if prolonged weakness in the Chinese construction market or rising localization and compliance costs squeeze margins more than expected.

Find out about the key risks to this KONE Oyj narrative.

Another view on KONE Oyj’s valuation

While the narrative and target price of €60.43 suggest KONE Oyj is undervalued, its current P/E of 26.8x looks demanding compared with the European Machinery average of 21.4x and a fair ratio of 25.3x. That premium hints at less room for disappointment if growth or margins slip.

To see how this P/E premium could evolve as expectations change, take a look at our valuation breakdown via the See what the numbers say about this price — find out in our valuation breakdown.

HLSE:KNEBV P/E Ratio as at Jul 2026
HLSE:KNEBV P/E Ratio as at Jul 2026

Next Steps

Given the mixed signals around KONE Oyj, it makes sense to move quickly and look through the underlying data yourself before forming a view. To weigh up what investors see as the main concerns and potential upsides, start with the 2 key rewards and 1 important warning sign

Looking for more investment ideas beyond KONE Oyj?

If KONE Oyj’s story has sharpened your focus, do not stop here. Use these focused stock lists to pressure test your ideas and uncover fresh opportunities.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.