Klöckner & Co (XTRA:KCO) - Share price, News & Analysis

KCO fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	3/6
Financial Health	3/6
Dividends	3/6

KCO Stock Overview

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

Rewards

Trading at 37% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 53.1% per year for the next 3 years

Debt is not well covered by operating cash flow

High level of non-cash earnings

Dividend of 13.21% is not well covered by earnings

Klöckner & Co Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Klöckner & Co
Historical stock prices
Current Share Price	€7.57
52 Week High	€13.50
52 Week Low	€7.11
Beta	2.07
1 Month Change	-34.23%
3 Month Change	-43.08%
1 Year Change	-34.46%
3 Year Change	43.78%
5 Year Change	-17.90%
Change since IPO	-49.02%

Recent News & Updates

May 06

Bullish: Analysts Just Made A Decent Upgrade To Their Klöckner & Co SE (ETR:KCO) Forecasts

Klöckner & Co SE ( ETR:KCO ) shareholders will have a reason to smile today, with the analysts making substantial...

Shareholder Returns

	KCO	DE Trade Distributors	DE Market
7D	-6.4%	-8.6%	-0.1%
1Y	-34.5%	-20.5%	-22.0%

Return vs Industry: KCO underperformed the German Trade Distributors industry which returned -21.3% over the past year.

Return vs Market: KCO underperformed the German Market which returned -23% over the past year.

Price Volatility

Is KCO's price volatile compared to industry and market?
KCO volatility
KCO Average Weekly Movement	6.4%
Trade Distributors Industry Average Movement	4.8%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	10.0%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: KCO is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KCO's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1906	7,180	Bonn Kerkhoff	https://www.kloeckner.com

Klöckner & Co SE, through its subsidiaries, distributes steel and metal products. It operates through three segments: Kloeckner Metals US, Kloeckner Metals EU, and Kloeckner Metals Non-EU. The company’s product portfolio includes flat steel products; long steel products; tubes and hollow sections; stainless steel and high-grade steel; aluminum products; and special products for building installations, roof and wall construction, and water supply.

Klöckner & Co Fundamentals Summary

How do Klöckner & Co's earnings and revenue compare to its market cap?
KCO fundamental statistics
Market Cap	€755.11m
Earnings (TTM)	€701.94m
Revenue (TTM)	€8.35b

1.1x

P/E Ratio

0.1x

P/S Ratio

Is KCO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KCO income statement (TTM)
Revenue	€8.35b
Cost of Revenue	€6.37b
Gross Profit	€1.99b
Other Expenses	€1.29b
Earnings	€701.94m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 03, 2022

Earnings per share (EPS)	7.04
Gross Margin	23.80%
Net Profit Margin	8.40%
Debt/Equity Ratio	54.9%

How did KCO perform over the long term?

See historical performance and comparison

Dividends

13.2%

Current Dividend Yield

14%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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 KCO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KCO. This is calculated by dividing KCO's market cap by their current preferred multiple.
What is KCO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€755.11m

KCO 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	0.2x
Enterprise Value/EBITDA	2.1x
PEG Ratio	-0.02x

Price to Earnings Ratio vs Peers

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

KCO PE Ratio vs Peers

The above table shows the PE ratio for KCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.8x

Forward PE

Price-To-Earnings vs Peers: KCO is good value based on its Price-To-Earnings Ratio (1.1x) compared to the peer average (18.8x).

Price to Earnings Ratio vs Industry

How does KCO's PE Ratio compare vs other companies in the Trade Distributors Industry?

Price-To-Earnings vs Industry: KCO is good value based on its Price-To-Earnings Ratio (1.1x) compared to the German Trade Distributors industry average (15.2x)

Price to Earnings Ratio vs Fair Ratio

What is KCO'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.

KCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	1.1x
Fair PE Ratio	5.2x

Price-To-Earnings vs Fair Ratio: KCO is good value based on its Price-To-Earnings Ratio (1.1x) compared to the estimated Fair Price-To-Earnings Ratio (5.2x).

Share Price vs Fair Value

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

Below Fair Value: KCO (€7.57) is trading below our estimate of fair value (€12.02)

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

Price to Earnings Growth Ratio

PEG Ratio: KCO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Klöckner & Co forecast to perform in the next 1 to 3 years based on estimates from 6 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

-53.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KCO's earnings are forecast to decline over the next 3 years (-53.1% per year).

Earnings vs Market: KCO's earnings are forecast to decline over the next 3 years (-53.1% per year).

High Growth Earnings: KCO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KCO's revenue is expected to decline over the next 3 years (-4.2% per year).

High Growth Revenue: KCO's revenue is forecast to decline over the next 3 years (-4.2% 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 (3.3%).

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Past Performance

How has Klöckner & Co 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

37.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KCO has a high level of non-cash earnings.

Growing Profit Margin: KCO became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: KCO's earnings have grown significantly by 37.4% per year over the past 5 years.

Accelerating Growth: KCO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: KCO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (66%).

Return on Equity

High ROE: KCO's Return on Equity (36.4%) is considered high.

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Financial Health

How is Klöckner & Co's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: KCO's short term assets (€3.4B) exceed its short term liabilities (€1.6B).

Long Term Liabilities: KCO's short term assets (€3.4B) exceed its long term liabilities (€867.5M).

Debt to Equity History and Analysis

Debt Level: KCO's net debt to equity ratio (50.7%) is considered high.

Reducing Debt: KCO's debt to equity ratio has increased from 51.3% to 54.9% over the past 5 years.

Debt Coverage: KCO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: KCO's interest payments on its debt are well covered by EBIT (125.2x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

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

13.21%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KCO's dividend (13.21%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: KCO's dividend (13.21%) is in the top 25% of dividend payers in the German market (4.57%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.2%), KCO's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: KCO is paying a dividend but the company has no free cash flows.

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Management

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

1.8yrs

Average management tenure

CEO

Bonn Kerkhoff (54 yo)

1.75yrs

Tenure

€2,469,000

Compensation

Mr. Guido Kerkhoff, also known as Bonn, serves as the Chief Executive Officer at Klöckner & Co SE since May 13, 2021. He has been Chairman of the Management Board at Klöckner & Co SE since May 12, 2021. He...

CEO Compensation Analysis

Compensation vs Market: Bonn's total compensation ($USD2.60M) is above average for companies of similar size in the German market ($USD1.34M).

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

Leadership Team

Experienced Management: KCO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: KCO's board of directors are considered experienced (5.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31