WBAG:SDF

Stock Analysis Report

Executive Summary

K+S Aktiengesellschaft, together with its subsidiaries, produces and sells potash, magnesium, and salt products worldwide.

Rewards

Trading at 69.7% below its fair value

Earnings are forecast to grow 33.25% per year

Earnings grew by 887.6% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has K+S's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SDF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.5%

SDF

0.4%

AT Chemicals

0.5%

AT Market


1 Year Return

-29.6%

SDF

13.6%

AT Chemicals

6.8%

AT Market

Return vs Industry: SDF underperformed the Austrian Chemicals industry which returned 13.6% over the past year.

Return vs Market: SDF underperformed the Austrian Market which returned 6.8% over the past year.


Shareholder returns

SDFIndustryMarket
7 Day7.5%0.4%0.5%
30 Day-15.6%-0.7%-2.1%
90 Day-28.7%2.9%1.2%
1 Year-28.5%-29.6%18.1%13.6%10.7%6.8%
3 Yearn/a20.4%9.6%37.4%25.0%
5 Yearn/a50.4%28.0%76.7%52.1%

Price Volatility Vs. Market

How volatile is K+S's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is K+S undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SDF (€10.93) is trading below our estimate of fair value (€36.01)

Significantly Below Fair Value: SDF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SDF is good value based on its PE Ratio (16.4x) compared to the Chemicals industry average (17.5x).

PE vs Market: SDF is poor value based on its PE Ratio (16.4x) compared to the Austrian market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: SDF is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SDF is good value based on its PB Ratio (0.5x) compared to the XE Chemicals industry average (1.5x).


Next Steps

Future Growth

How is K+S forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

33.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDF's forecast earnings growth (33.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: SDF's earnings (33.3% per year) are forecast to grow faster than the Austrian market (9.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SDF's revenue (3.6% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: SDF's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SDF's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has K+S performed over the past 5 years?

-37.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDF has high quality earnings.

Growing Profit Margin: SDF's current net profit margins (3%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: SDF's earnings have declined by -37.4% per year over the past 5 years.

Accelerating Growth: SDF's earnings growth over the past year (887.6%) exceeds its 5-year average (-37.4% per year).

Earnings vs Industry: SDF earnings growth over the past year (887.6%) exceeded the Chemicals industry 1.8%.


Return on Equity

High ROE: SDF's Return on Equity (2.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is K+S's financial position?


Financial Position Analysis

Short Term Liabilities: SDF's short term assets (€2.0B) exceed its short term liabilities (€1.2B).

Long Term Liabilities: SDF's short term assets (€2.0B) do not cover its long term liabilities (€4.9B).


Debt to Equity History and Analysis

Debt Level: SDF's debt to equity ratio (71.1%) is considered high.

Reducing Debt: SDF's debt to equity ratio has increased from 39.1% to 71.1% over the past 5 years.

Debt Coverage: SDF's debt is not well covered by operating cash flow (16.7%).

Interest Coverage: SDF's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: SDF has a high level of physical assets or inventory.

Debt Coverage by Assets: SDF's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is K+S's current dividend yield, its reliability and sustainability?

2.29%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.7%markettop25%4.3%industryaverage3.0%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: SDF's dividend (2.29%) is higher than the bottom 25% of dividend payers in the Austrian market (1.7%).

High Dividend: SDF's dividend (2.29%) is low compared to the top 25% of dividend payers in the Austrian market (4.33%).


Stability and Growth of Payments

Stable Dividend: SDF's dividend payments have been volatile in the past 10 years.

Growing Dividend: SDF's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.6%), SDF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SDF's dividends in 3 years are forecast to be well covered by earnings (44.4% payout ratio).


Next Steps

Management

What is the CEO of K+S's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Burkhard Lohr (56yo)

2.6yrs

Tenure

€3,019,500

Compensation

Dr. Burkhard Lohr has been Chairman of the Board of Executive Directors at K+S Aktiengesellschaft since May 12, 2017 and has been its Member of Board of Executive Directors since June 01, 2012. Dr. Lohr i ...


CEO Compensation Analysis

Compensation vs Market: Burkhard's total compensation ($USD3.35M) is above average for companies of similar size in the Austrian market ($USD1.71M).

Compensation vs Earnings: Burkhard's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SDF's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

Experienced Board: SDF's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Burkhard Lohr (56yo)

    Chairman of the Board of Executive Directors

    • Tenure: 2.6yrs
    • Compensation: €3.02m
  • Mark Roberts (56yo)

    COO & Member of Board of Executive Directors

    • Tenure: 7.2yrs
    • Compensation: €2.22m
  • Michael Wudonig

    Head of Public Relations

    • Tenure: 0yrs
  • Frauke Riva

    Head of Corporate Communications

    • Tenure: 1.8yrs
  • Thorsten Boeckers (44yo)

    CFO & Member of Board of Executive Directors

    • Tenure: 2.6yrs
    • Compensation: €2.22m
  • Oliver Morgenthal

    Head of Public Affairs

    • Tenure: 0yrs
  • Katja Seeger

    Head of Online & Project Communications

    • Tenure: 0yrs
  • Hans-Jürgen Müller

    Head of Representative Office Berlin

    • Tenure: 0yrs
  • Dirk Neumann (49yo)

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Gerd Grimmig (66yo)

    Independent Supervisory Board Member

    • Tenure: 1.6yrs
    • Compensation: €68.92k
  • Andreas Kreimeyer (64yo)

    Independent Chairman of Supervisory Board

    • Tenure: 2.6yrs
    • Compensation: €248.25k
  • George Cardona (68yo)

    Independent Member of Supervisory Board

    • Tenure: 10.2yrs
    • Compensation: €112.75k
  • Jella Benner-Heinacher (59yo)

    Independent Member of Supervisory Board

    • Tenure: 16.6yrs
    • Compensation: €128.88k
  • Axel Hartmann (61yo)

    Employee representative Supervisory Board Member

    • Tenure: 6.6yrs
    • Compensation: €121.00k
  • Ralf Becker (54yo)

    Employee Representative Deputy Chairman of Supervisory Board

    • Tenure: 1.6yrs
    • Compensation: €160.08k
  • Philip von dem Bussche (69yo)

    Independent Supervisory Board Member

    • Tenure: 4.6yrs
    • Compensation: €113.50k
  • Thomas Kölbl (57yo)

    Independent Member of Supervisory Board

    • Tenure: 2.6yrs
    • Compensation: €130.25k
  • Michael Knackmuß (44yo)

    Employee Representative Supervisory Board Member

    • Tenure: 5.4yrs
    • Compensation: €109.50k
  • Gerd Kübler (52yo)

    Employee Representative Supervisory Board Member

    • Tenure: 3.9yrs
    • Compensation: €103.75k

Company Information

K+S Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: K+S Aktiengesellschaft
  • Ticker: SDF
  • Exchange: WBAG
  • Founded: 1889
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: €2.089b
  • Shares outstanding: 191.40m
  • Website: https://www.k-plus-s.com

Number of Employees


Location

  • K+S Aktiengesellschaft
  • Bertha-von-Suttner Strasse 7
  • Kassel
  • Hessen
  • 34131
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDFDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992
SDFBIT (Borsa Italiana)YesBearer SharesITEURJan 1992
0Q2NLSE (London Stock Exchange)YesBearer SharesGBEURJan 1992
KPLU.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 1992
13421328SWX (SIX Swiss Exchange)YesBearer SharesCHEURJan 1992
SDFDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 1992
SDFXTRA (XETRA Trading Platform)YesBearer SharesDEEURJan 1992
SDFWBAG (Wiener Boerse AG)YesBearer SharesATEURJan 1992
SDFSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 1992
SDF1XTRA (XETRA Trading Platform)ADR EACH 2 REP 1 ORDDEEURFeb 2009
KPLU.YOTCPK (Pink Sheets LLC)ADR EACH 2 REP 1 ORDUSUSDFeb 2009
SDF1BST (Boerse-Stuttgart)ADR EACH 2 REP 1 ORDDEEURFeb 2009

Biography

K+S Aktiengesellschaft, together with its subsidiaries, produces and sells potash, magnesium, and salt products worldwide. Its Potash and Magnesium Products segment produces and markets mineral fertilizers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 21:50
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.