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Kier Group

DB:10I
Snowflake Description

Very undervalued average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
10I
DB
£509M
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Kier Group plc primarily engages in construction business in the United Kingdom, the Americas, the Middle East, the Far East, and Australia. The last earnings update was 61 days ago. More info.


Add to Portfolio Compare Print
  • Kier Group has significant price volatility in the past 3 months.
10I Share Price and Events
7 Day Returns
-6%
DB:10I
-2.3%
DE Construction
-0.2%
DE Market
1 Year Returns
-
DB:10I
-24%
DE Construction
-10.3%
DE Market
10I Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kier Group (10I) -6% -10.2% -36.5% - - -
DE Construction -2.3% -12.5% -13% -24% 4.1% 69%
DE Market -0.2% -2.4% 4% -10.3% 11.2% 10.8%
1 Year Return vs Industry and Market
  • No trading data on 10I.
  • No trading data on 10I.
Price Volatility
10I
Industry
5yr Volatility vs Market

Value

 Is Kier Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kier Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kier Group.

DB:10I Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:10I
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Construction Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.983 (1 + (1- 19%) (126.45%))
1.664
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.66
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.664 * 6.65%)
11.29%

Discounted Cash Flow Calculation for DB:10I using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kier Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:10I DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 11.29%)
2019 22.70 Analyst x2 20.40
2020 99.20 Analyst x3 80.09
2021 121.60 Analyst x2 88.21
2022 138.97 Est @ 14.28% 90.58
2023 152.95 Est @ 10.06% 89.58
2024 163.83 Est @ 7.11% 86.22
2025 172.10 Est @ 5.05% 81.38
2026 178.30 Est @ 3.6% 75.76
2027 182.92 Est @ 2.59% 69.84
2028 186.36 Est @ 1.88% 63.93
Present value of next 10 years cash flows £746.00
DB:10I DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £186.36 × (1 + 0.23%) ÷ (11.29% – 0.23%)
£1,688.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,688.21 ÷ (1 + 11.29%)10
£579.13
DB:10I Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £746.00 + £579.13
£1,325.13
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,325.13 / 161.86
£8.19
DB:10I Discount to Share Price
Calculation Result
Value per share (EUR) From above. €9.25
Current discount Discount to share price of €3.55
= -1 x (€3.55 - €9.25) / €9.25
61.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Kier Group is available for.
Intrinsic value
>50%
Share price is €3.55 vs Future cash flow value of €9.25
Current Discount Checks
For Kier Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Kier Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Kier Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kier Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kier Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:10I PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.30
LSE:KIE Share Price ** LSE (2019-05-20) in GBP £3.14
Europe Construction Industry PE Ratio Median Figure of 97 Publicly-Listed Construction Companies 10.69x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 20.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kier Group.

DB:10I PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:KIE Share Price ÷ EPS (both in GBP)

= 3.14 ÷ 0.30

10.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kier Group is good value based on earnings compared to the Europe Construction industry average.
  • Kier Group is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Kier Group's expected growth come at a high price?
Raw Data
DB:10I PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
45.7%per year
Europe Construction Industry PEG Ratio Median Figure of 46 Publicly-Listed Construction Companies 1.12x
Germany Market PEG Ratio Median Figure of 273 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

DB:10I PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.47x ÷ 45.7%

0.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kier Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Kier Group's assets?
Raw Data
DB:10I PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £6.92
LSE:KIE Share Price * LSE (2019-05-20) in GBP £3.14
Europe Construction Industry PB Ratio Median Figure of 132 Publicly-Listed Construction Companies 1.13x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.78x
DB:10I PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:KIE Share Price ÷ Book Value per Share (both in GBP)

= 3.14 ÷ 6.92

0.45x

* Primary Listing of Kier Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kier Group is good value based on assets compared to the Europe Construction industry average.
X
Value checks
We assess Kier Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Kier Group has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Kier Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
45.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kier Group expected to grow at an attractive rate?
  • Kier Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Kier Group's earnings growth is expected to exceed the Germany market average.
  • Kier Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:10I Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:10I Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 45.7%
DB:10I Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 4.6%
Europe Construction Industry Earnings Growth Rate Market Cap Weighted Average 12.4%
Europe Construction Industry Revenue Growth Rate Market Cap Weighted Average 2.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:10I Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:10I Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 4,890 173 151 5
2020-06-30 4,705 153 149 5
2019-06-30 4,493 64 89 5
DB:10I Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 4,297 -34 30
2018-09-30 4,268 48 59
2018-06-30 4,240 130 88
2017-12-31 4,141 114 -37
2017-09-30 4,135 95 -32
2017-06-30 4,129 76 -26
2017-03-31 4,071 94 -10
2016-12-31 4,014 113 7
2016-09-30 4,003 140 -9
2016-06-30 3,991 166 -25
2016-03-31 3,839 -5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kier Group's earnings are expected to grow significantly at over 20% yearly.
  • Kier Group's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:10I Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Kier Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:10I Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.93 0.93 0.93 1.00
2020-06-30 0.92 0.97 0.87 2.00
2019-06-30 0.68 0.95 0.41 2.00
DB:10I Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.30
2018-09-30 0.57
2018-06-30 0.91
2017-12-31 -0.38
2017-09-30
2017-06-30 -0.27
2017-03-31 -0.10
2016-12-31 0.07
2016-09-30 -0.09
2016-06-30 -0.26
2016-03-31 -0.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kier Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kier Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kier Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Kier Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kier Group's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kier Group's year on year earnings growth rate has been positive over the past 5 years.
  • Kier Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Kier Group has become profitable in the last year making it difficult to compare the Europe Construction industry average.
Earnings and Revenue History
Kier Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kier Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:10I Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 4,297.00 30.10 367.80
2018-09-30 4,268.30 59.20 341.85
2018-06-30 4,239.60 88.30 315.90
2017-12-31 4,140.50 -37.00 309.30
2017-09-30 4,134.65 -31.65 300.90
2017-06-30 4,128.80 -26.30 292.50
2017-03-31 4,071.40 -9.60 281.75
2016-12-31 4,014.00 7.10 271.00
2016-09-30 4,002.70 -8.70 267.20
2016-06-30 3,991.40 -24.50 263.40
2016-03-31 3,839.30 -5.30 253.80
2015-12-31 3,687.20 13.90 244.20
2015-09-30 3,481.55 21.15 229.75
2015-06-30 3,275.90 28.40 215.30
2014-12-31 3,054.20 28.90 188.80
2014-09-30 2,980.55 19.95 182.45
2014-06-30 2,906.90 11.00 176.10
2014-03-31 2,695.85 14.45 201.55
2013-12-31 2,437.40 18.90 177.30
2013-09-30 2,190.20 21.75 174.80
2013-06-30 1,943.00 24.60 172.30
2013-03-31 1,931.55 31.65 165.05
2012-12-31 1,920.10 38.70 157.80
2012-09-30 1,975.30 46.45 155.30
2012-06-30 2,030.50 54.20 152.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kier Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kier Group used its assets less efficiently than the Europe Construction industry average last year based on Return on Assets.
  • Kier Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kier Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kier Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Kier Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kier Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kier Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kier Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kier Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kier Group Company Filings, last reported 4 months ago.

DB:10I Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 713.60 643.50 434.20
2018-09-30 713.60 643.50 434.20
2018-06-30 601.10 544.00 331.10
2017-12-31 544.80 680.30 415.00
2017-09-30 544.80 680.30 415.00
2017-06-30 511.40 646.40 499.80
2017-03-31 511.40 646.40 499.80
2016-12-31 580.30 514.20 287.80
2016-09-30 580.30 514.20 287.80
2016-06-30 576.10 330.60 186.70
2016-03-31 576.10 330.60 186.70
2015-12-31 585.80 328.70 127.30
2015-09-30 585.80 328.70 127.30
2015-06-30 585.40 436.90 254.00
2014-12-31 285.40 383.30 150.40
2014-09-30 285.40 383.30 150.40
2014-06-30 309.70 322.20 112.40
2014-03-31 309.70 323.90 112.40
2013-12-31 317.80 288.50 68.90
2013-09-30 317.80 288.50 68.90
2013-06-30 158.30 106.20 152.30
2013-03-31 158.30 106.20 152.30
2012-12-31 142.60 101.30 105.20
2012-09-30 142.60 101.30 105.20
2012-06-30 154.20 38.90 159.10
  • Kier Group's level of debt (90.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (90.9% vs 90.2% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Kier Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kier Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Kier Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
21.95%
Current annual income from Kier Group dividends. Estimated to be 9.3% next year.
If you bought €2,000 of Kier Group shares you are expected to receive €439 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kier Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.45%).
  • Kier Group's dividend is above the markets top 25% of dividend payers in Germany (3.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:10I Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Europe Construction Industry Average Dividend Yield Market Cap Weighted Average of 73 Stocks 3.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:10I Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.38 5.00
2020-06-30 0.36 6.00
2019-06-30 0.16 6.00
DB:10I Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-10-10 0.690 14.345
2018-09-20 0.690 7.331
2017-10-11 0.675 6.654
2017-09-21 0.675 5.836
2016-11-18 0.645 4.936
2015-11-13 0.552 4.459
2014-09-18 0.720 4.817
2014-09-17 0.720 4.246
2013-09-13 0.680 3.889
2013-03-05 0.660 5.108
2012-10-15 0.660 5.118
2012-09-13 0.660 4.990
2011-09-15 0.640 4.997
2011-09-14 0.640 5.538
2010-09-16 0.580 4.519
2010-09-15 0.580 5.304
2009-09-17 0.550 5.326
2009-09-16 0.550 4.362

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Kier Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Kier Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kier Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kier Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Kier Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew O. Davies
AGE 54
TENURE AS CEO 0.1 years
CEO Bio

Mr. Andrew O. B. Davies is the Chief Executive Officer of Kier Group plc since April 15, 2019 and its Executive Director since April 2019. He was the Chief Executive Officer of Carillion plc until January 22, 2018 and serves as its Director. Mr. Davies served as the Chief Executive Officer at Wates Group Limited since January 6, 2014 until November 16, 2017. Mr. Davies served as Interim Group Finance Director at Chemring Group plc since September 30, 2016 until January 9, 2017 and served as its Deputy Group Finance Director until September 30, 2016. Mr. Davies He has a wealth of relevant sector experience, having served in senior roles at BAE Systems Plc for more than fourteen years. Prior to joining Wates Group in January 2014, Mr. Davies served as Group Strategy Director at BAE Systems plc since 2008. Mr. Davies served as Group Strategic Development Director of BAE Systems plc since July 2003 and Managing Director of Land Systems and Training Solutions since October 2004. He served as Managing Director of Training Solutions at BAE Systems plc. He served as Managing Director of BAE Systems' Maritime business, a major division of BAE Systems, managing a turnover in excess of £2 billion and with over 14,000 employees. He joined British Aerospace Civil Aircraft Division in 1985. From 1985 to 1997, he spent time in various commercial roles, culminating in his appointment as General Manager of the Asset Management Jets business in 1996. In 1997, he worked in Abu Dhabi, setting up Oasis Leasing JSC and becoming its first General Manager, after which he returned to Military Aircraft at Warton working in various strategic and commercial roles. He has been an Independent Non-Executive Director at Chemring Group plc since May 17, 2016. Mr. Davies served as a Director of Wates Group Limited since January 2014 until November 16, 2017. He graduated from Sheffield University.

CEO Compensation
  • Insufficient data for Andrew O. to compare compensation growth.
  • Insufficient data for Andrew O. to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Kier Group management team in years:

4.3
Average Tenure
46
Average Age
  • The tenure for the Kier Group management team is about average.
Management Team

Bev Dew

TITLE
Finance Director & Executive Director
COMPENSATION
£943K
AGE
46
TENURE
4.3 yrs

Claudio Veritiero

TITLE
COO & Executive Director
COMPENSATION
£884K
AGE
44
TENURE
0.8 yrs

Andrew O. Davies

TITLE
CEO & Executive Director
AGE
54
TENURE
0.1 yrs

Duncan Stott

TITLE
Chief Information Officer

Louise Turner-Smith

TITLE
Head of Investor Relations

Hugh Raven

TITLE
General Counsel & Company Secretary
AGE
46
TENURE
9.1 yrs

Chris Last

TITLE
Group HR Director

Simon Bullen

TITLE
Regional Managing Director

Sean Jeffery

TITLE
Managing Director

Steve Davies

TITLE
Managing Director of Kier Workplace Services
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the Kier Group board of directors in years:

3.3
Average Tenure
49
Average Age
  • The tenure for the Kier Group board of directors is about average.
Board of Directors

Phil Cox

TITLE
Non-Executive Chairman
COMPENSATION
£204K
AGE
66
TENURE
1.7 yrs

Bev Dew

TITLE
Finance Director & Executive Director
COMPENSATION
£943K
AGE
46
TENURE
4.3 yrs

Claudio Veritiero

TITLE
COO & Executive Director
COMPENSATION
£884K
AGE
44
TENURE
4.2 yrs

Andrew O. Davies

TITLE
CEO & Executive Director
AGE
54
TENURE
0.1 yrs

M. Wright

TITLE
Chairman of Wallis
COMPENSATION
£150K

Adam Walker

TITLE
Non-Executive Director
COMPENSATION
£62K
AGE
50
TENURE
3.3 yrs

Constance Baroudel

TITLE
Non-Executive Director
COMPENSATION
£62K
AGE
44
TENURE
2.8 yrs

Justin Atkinson

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£62K
AGE
58
TENURE
3.2 yrs

A. Bashforth

TITLE
Non-Executive Director
COMPENSATION
£52K
AGE
48
TENURE
4.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
12. Dec 18 Buy Constance Baroudel Individual 07. Dec 18 07. Dec 18 1,320 €4.45 €5,875
21. Sep 18 Sell Hugh Raven Individual 20. Sep 18 20. Sep 18 -1,963 €12.01 €-23,573
21. Sep 18 Buy Hugh Raven Individual 20. Sep 18 20. Sep 18 1,963 €12.03 €23,618
X
Management checks
We assess Kier Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kier Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Kier Group plc primarily engages in construction business in the United Kingdom, the Americas, the Middle East, the Far East, and Australia. The company operates in four divisions: Property, Residential, Construction, and Services. It offers construction services, including civil engineering, construction management, engineering design, mechanical and electrical design, interiors and refurbishments, and construction related technical services, as well as infrastructure support services for rail network. The company also provides range of services, such as strategic asset management, planned and reactive housing maintenance, and facilities management services; and environmental services comprising street and grounds maintenance, refuse collection and recycling to highways maintenance, street lighting, fleet, and waterway services, as well as energy solutions. In addition, it invests in, develops, and manages offices, industrial, retail leisure, and mixed-use properties; and develops housing schemes; and offers a range of property maintenance services to social housing providers. It serves clients in various markets, such as public sector, commercial, defense and justice, education, energy and waste, healthcare, residential, industrial, infrastructure, leisure and hotels, retail, science and pharmaceuticals, transport, and utilities. Kier Group plc was founded in 1992 and is headquartered in Sandy, the United Kingdom.

Details
Name: Kier Group plc
10I
Exchange: DB
Founded: 1992
£579,944,284
161,864,169
Website: http://www.kier.co.uk
Address: Kier Group plc
Tempsford Hall,
Sandy,
Bedfordshire, SG19 2BD,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE KIE Ordinary Shares London Stock Exchange GB GBP 12. Dec 1996
DB 10I Ordinary Shares Deutsche Boerse AG DE EUR 12. Dec 1996
BATS-CHIXE KIEL Ordinary Shares BATS 'Chi-X Europe' GB GBP 12. Dec 1996
Number of employees
Current staff
Staff numbers
16,630
Kier Group employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 21:53
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/05/07
Last earnings filing: 2019/03/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.