Korado-Bulgaria AD (BUL:KBG) - Share price, News & Analysis

Q: What is the Fair Price of KBG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

KBG (BGN7.1) is trading above our estimate of [[fair value]] (BGN3.9)

KBG fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	2/6

KBG Stock Overview

Korado-Bulgaria AD manufactures and sells steel panel water heating radiators in Bulgaria, the Czech Republic, Romania, Hungary, Ukraine, Russia, Greece, Tunisia, Cyprus, and France.

Risk Analysis

Earnings have declined by 0.06% per year over past 5 years

Dividend of 4.08% is not well covered by earnings

Does not have a meaningful market cap (BGN93M)

Korado-Bulgaria AD Competitors

Hydraulic Elements and Systems AD

BUL:HES

лв121.0m

Agria Group Holding AD

BUL:AGH

лв215.6m

Stara Planina Hold

BUL:SPH

лв199.4m

Monbat AD

BUL:MONB

лв214.4m

Price History & Performance

Summary of all time highs, changes and price drops for Korado-Bulgaria AD
Historical stock prices
Current Share Price	лв7.10
52 Week High	лв8.75
52 Week Low	лв6.10
Beta	0.48
1 Month Change	2.16%
3 Month Change	-2.74%
1 Year Change	-11.25%
3 Year Change	4.41%
5 Year Change	20.34%
Change since IPO	35,401.77%

Recent News & Updates

May 21

Korado-Bulgaria AD (BUL:KBG) Is Due To Pay A Dividend Of лв0.19

The board of Korado-Bulgaria AD ( BUL:KBG ) has announced that it will pay a dividend of лв0.19 per share on the 16th...

Shareholder Returns

	KBG	BG Building	BG Market
7D	-1.4%	0.09%	0.6%
1Y	-11.3%	-24.1%	12.4%

Return vs Industry: KBG exceeded the BG Building industry which returned -23.9% over the past year.

Return vs Market: KBG underperformed the BG Market which returned 12.4% over the past year.

Price Volatility

Is KBG's price volatile compared to industry and market?
KBG volatility
KBG Average Weekly Movement	4.7%
Building Industry Average Movement	5.6%
Market Average Movement	5.6%
10% most volatile stocks in BG Market	10.2%
10% least volatile stocks in BG Market	2.8%

Stable Share Price: KBG is not significantly more volatile than the rest of BG stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KBG's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1968	250	n/a	https://www.korado.bg

Korado-Bulgaria AD manufactures and sells steel panel water heating radiators in Bulgaria, the Czech Republic, Romania, Hungary, Ukraine, Russia, Greece, Tunisia, Cyprus, and France. It also offers tubular radiators, towel rail and design radiators, designer heating units, ventilation units, mounting accessories, and convectors. The company was formerly known as Gorivna tekhnika and changed its name to Korado Bulgaria AD in 1998.

Korado-Bulgaria AD Fundamentals Summary

How do Korado-Bulgaria AD's earnings and revenue compare to its market cap?
KBG fundamental statistics
Market Cap	лв93.50m
Earnings (TTM)	лв5.80m
Revenue (TTM)	лв65.02m

16.1x

P/E Ratio

1.4x

P/S Ratio

Is KBG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KBG income statement (TTM)
Revenue	лв65.02m
Cost of Revenue	лв46.80m
Gross Profit	лв18.22m
Other Expenses	лв12.42m
Earnings	лв5.80m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.44
Gross Margin	28.02%
Net Profit Margin	8.92%
Debt/Equity Ratio	15.4%

How did KBG perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

65%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is KBG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KBG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KBG. This is calculated by dividing KBG's market cap by their current preferred multiple.
What is KBG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	лв93.50m

KBG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	14x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does KBG's PE Ratio compare to its peers?

KBG PE Ratio vs Peers

The above table shows the PE ratio for KBG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	31.4x
HES Hydraulic Elements and Systems AD	14.4x	n/a	лв121.0m
AGH Agria Group Holding AD	5.3x	-6.7%	лв215.6m
SPH Stara Planina Hold	15x	n/a	лв199.4m
MONB Monbat AD	90.8x	n/a	лв214.4m
KBG Korado-Bulgaria AD	16.1x	n/a	лв93.5m

Forward PE

Price-To-Earnings vs Peers: KBG is good value based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (31.4x).

Price to Earnings Ratio vs Industry

How does KBG's PE Ratio compare vs other companies in the European Building Industry?

Price-To-Earnings vs Industry: KBG is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the European Building industry average (14.9x)

Price to Earnings Ratio vs Fair Ratio

What is KBG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KBG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KBG's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of KBG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KBG (BGN7.1) is trading above our estimate of fair value (BGN3.9)

Significantly Below Fair Value: KBG is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KBG's PEG Ratio to determine if it is good value.

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Future Growth

How is Korado-Bulgaria AD forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.2%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Korado-Bulgaria AD has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Korado-Bulgaria AD's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Korado-Bulgaria AD performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-0.06%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KBG has high quality earnings.

Growing Profit Margin: KBG's current net profit margins (8.9%) are lower than last year (10.3%).

Past Earnings Growth Analysis

Earnings Trend: KBG's earnings have declined by 0.06% per year over the past 5 years.

Accelerating Growth: KBG's earnings growth over the past year (33.7%) exceeds its 5-year average (-0.06% per year).

Earnings vs Industry: KBG earnings growth over the past year (33.7%) underperformed the Building industry 44.3%.

Return on Equity

High ROE: KBG's Return on Equity (24%) is considered high.

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Financial Health

How is Korado-Bulgaria AD's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KBG's short term assets (BGN20.1M) exceed its short term liabilities (BGN6.1M).

Long Term Liabilities: KBG's short term assets (BGN20.1M) exceed its long term liabilities (BGN4.5M).

Debt to Equity History and Analysis

Debt Level: KBG's net debt to equity ratio (11.6%) is considered satisfactory.

Reducing Debt: KBG's debt to equity ratio has reduced from 19.6% to 15.4% over the past 5 years.

Debt Coverage: KBG's debt is well covered by operating cash flow (68.9%).

Interest Coverage: KBG earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Korado-Bulgaria AD current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.08%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KBG's dividend (4.08%) is higher than the bottom 25% of dividend payers in the BG market (2.59%).

High Dividend: KBG's dividend (4.08%) is low compared to the top 25% of dividend payers in the BG market (6.94%).

Stability and Growth of Payments

Stable Dividend: KBG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KBG's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (64.9%), KBG's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (198.2%), KBG's dividend payments are not well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

CEO

Korado-Bulgaria AD has no CEO, or we have no data on them.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31