XTRA:KCO

Stock Analysis Report

Executive Summary

Klöckner & Co SE, through its subsidiaries, distributes steel and metal products.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Klöckner & Co's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.5%

KCO

3.6%

DE Trade Distributors

2.2%

DE Market


1 Year Return

-53.0%

KCO

-27.4%

DE Trade Distributors

-17.2%

DE Market

Return vs Industry: KCO underperformed the German Trade Distributors industry which returned -27.4% over the past year.

Return vs Market: KCO underperformed the German Market which returned -17.2% over the past year.


Shareholder returns

KCOIndustryMarket
7 Day0.5%3.6%2.2%
30 Day-32.2%-15.8%-15.7%
90 Day-47.1%-28.3%-24.0%
1 Year-50.3%-53.0%-25.2%-27.4%-14.9%-17.2%
3 Year-63.0%-66.7%-31.0%-36.0%-16.4%-23.3%
5 Year-60.1%-65.0%-33.3%-40.5%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is Klöckner & Co's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Klöckner & Co undervalued compared to its fair value and its price relative to the market?

0.28x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: KCO (€3.35) is trading above our estimate of fair value (€2.63)

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


Price To Earnings Ratio

PE vs Industry: KCO is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: KCO is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KCO is good value based on its PB Ratio (0.3x) compared to the DE Trade Distributors industry average (1x).


Next Steps

Future Growth

How is Klöckner & Co forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

84.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KCO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: KCO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KCO's is expected to become profitable in the next 3 years.

Revenue vs Market: KCO's revenue (0.6% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: KCO's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KCO's Return on Equity is forecast to be low in 3 years time (2.9%).


Next Steps

Past Performance

How has Klöckner & Co performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KCO is currently unprofitable.

Growing Profit Margin: KCO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KCO is unprofitable, but has reduced losses over the past 5 years at a rate of 39.1% per year.

Accelerating Growth: Unable to compare KCO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KCO is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (22.6%).


Return on Equity

High ROE: KCO has a negative Return on Equity (-4.64%), as it is currently unprofitable.


Next Steps

Financial Health

How is Klöckner & Co's financial position?


Financial Position Analysis

Short Term Liabilities: KCO's short term assets (€1.9B) exceed its short term liabilities (€825.6M).

Long Term Liabilities: KCO's short term assets (€1.9B) exceed its long term liabilities (€908.1M).


Debt to Equity History and Analysis

Debt Level: KCO's debt to equity ratio (35.5%) is considered satisfactory.

Reducing Debt: KCO's debt to equity ratio has reduced from 54.5% to 35.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: KCO's debt is covered by short term assets (assets are 4.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable KCO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: KCO is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -10.8% per year.


Next Steps

Dividend

What is Klöckner & Co's current dividend yield, its reliability and sustainability?

4.04%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KCO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KCO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KCO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KCO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KCO is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KCO's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Gisbert Rühl (60yo)

10.33s

Tenure

€3,350,000

Compensation

Mr. Gisbert Rühl serves as the Chairman of Management Board and Chief Executive Officer at Klöckner & Co SE since May 2019 and its Member of of Management Board since July 2005 also served as Chief Executi ...


CEO Compensation Analysis

Compensation vs Market: Gisbert's total compensation ($USD3.70M) is above average for companies of similar size in the German market ($USD1.12M).

Compensation vs Earnings: Gisbert's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Gisbert Rühl
Former Chairman of Management Board10.33yrs€3.35mno data
Oliver Falk
CFO & Member of Management Board0.58yr€917.00kno data
George Ganem
CEO of Americas0.58yr€3.13mno data
Felix Schmitz
Head of Investor Relationsno datano datano data
Christian Pokropp
Head of Corporate Communicationsno datano datano data
Ricardo de Sousa
CEO of kloeckner.ino datano datano data

0.6yrs

Average Tenure

57yo

Average Age

Experienced Management: KCO's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Dieter Vogel
Independent Chairman of the Supervisory Board13.83yrs€172.00kno data
Karl-Ulrich Köhler
Independent Member of Supervisory Board3.83yrs€64.00kno data
Friedhelm Loh
Independent Member of Supervisory Board3.83yrs€60.00kno data
Tobias Kollmann
Independent Member of Supervisory Board4.67yrs€52.00kno data
Ute Wolf
Independent Member of Supervisory Board2.83yrs€90.00kno data
Ralph Heck
Independent Deputy Chairman of the Supervisory Board1.83yrs€85.00kno data

3.8yrs

Average Tenure

63yo

Average Age

Experienced Board: KCO's board of directors are considered experienced (3.8 years average tenure).


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.


Top Shareholders

Company Information

Klöckner & Co SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Klöckner & Co SE
  • Ticker: KCO
  • Exchange: XTRA
  • Founded: 1906
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: €333.764m
  • Shares outstanding: 99.75m
  • Website: https://www.kloeckner.com

Number of Employees


Location

  • Klöckner & Co SE
  • Am Silberpalais 1
  • Duisburg
  • North Rhine-Westphalia
  • 47057
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KCODB (Deutsche Boerse AG)YesBearer SharesDEEURJun 2006
KCOXTRA (XETRA Trading Platform)YesBearer SharesDEEURJun 2006
0KVRLSE (London Stock Exchange)YesBearer SharesGBEURJun 2006
KLKN.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJun 2006
KCODBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJun 2006
KCOSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJun 2006
KCOWBAG (Wiener Boerse AG)YesBearer SharesATEURJun 2006
KCOETLX (Eurotlx)YesBearer SharesITEURJun 2006

Biography

Klöckner & Co SE, through its subsidiaries, distributes steel and metal products. It operates through Kloeckner Metals US, Kloeckner Metals Services Europe, Kloeckner Metals Switzerland, and Kloeckner Metals Distribution Europe segments. The company’s product portfolio includes flat steel products, such as thin sheet and strips, as well as thick sheets; long steel products comprising merchant bars, sectional steel, and beams; tubes and hollow sections that include structural hollow sections, precision tubes, and seamless heavy-wall pipes; stainless steel and high-grade steel, including sheet, profiles, and tubes; aluminum profiles, sheets, strips, and plates; and special products for building installations, roof and wall construction, and water supply. It also provides various services, including cutting and splitting of steel strips; forming and manufacturing of pressed parts; CNC turning/milling; 2D/3D tube laser cutting; laser and water jet cutting; processing of structural steel; plasma and oxy-fuel cutting; shot blasting and primer painting; and sawing/drilling/rounding off. In addition, the company offers warehousing, logistics, and materials management services. It serves small to medium-sized steel and metal consumers, primarily from the construction industry, as well as machinery and mechanical engineering industries; and supplies intermediate products for the automotive, shipbuilding, and consumer goods industries. The company was founded in 1906 and is headquartered in Duisburg, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:01
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.