News / Kuehne + Nagel: flawless strategy, but is financial engineering an opportunity?

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Let’s set the record straight: Kuehne + Nagel’s strategy is flawless.

Its managers should be praised – the Swiss freight forwarder aims to preserve returns by chasing higher-paying clients, while ditching less-profitable accounts.

Financially, however, the group should consider a more efficient capital structure in order to boost returns. Its share count could shrink further via debt-financed stock buybacks, with obvious benefits for its core shareholders, including Kuehne Holding AG, which controls the business with a 53.3% stake. Its free float currently ...