XTRA:KWS

Stock Analysis Report

Executive Summary

KWS SAAT SE & Co. KGaA, together with its subsidiaries, engages in the development, production, and distribution of seeds for farmers worldwide.

Rewards

PE ratio (19.7x) is below the German market (20.9x)

Earnings are forecast to grow 7.93% per year

Pays a reliable dividend of 1.15%

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings



Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

BASF

XTRA:BAS

Share Price & News

How has KWS SAAT SE KGaA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KWS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

KWS

0.5%

DE Food

0.2%

DE Market


1 Year Return

5.8%

KWS

12.0%

DE Food

14.4%

DE Market

Return vs Industry: KWS underperformed the German Food industry which returned 11.3% over the past year.

Return vs Market: KWS underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

KWSIndustryMarket
7 Day1.6%0.5%0.2%
30 Day1.9%8.0%0.9%
90 Day-3.6%13.4%4.6%
1 Year7.0%5.8%13.9%12.0%17.9%14.4%
3 Year4.4%0.9%-13.5%-19.0%15.7%5.6%
5 Year12.0%6.0%34.3%22.5%23.4%6.5%

Price Volatility Vs. Market

How volatile is KWS SAAT SE KGaA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KWS SAAT SE KGaA undervalued compared to its fair value and its price relative to the market?

19.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KWS (€58.5) is trading above our estimate of fair value (€53.14)

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


Price To Earnings Ratio

PE vs Industry: KWS is good value based on its PE Ratio (19.7x) compared to the Food industry average (22.6x).

PE vs Market: KWS is good value based on its PE Ratio (19.7x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: KWS is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: KWS is overvalued based on its PB Ratio (2.1x) compared to the DE Food industry average (2x).


Next Steps

Future Growth

How is KWS SAAT SE KGaA forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KWS's forecast earnings growth (7.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: KWS's earnings (7.9% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: KWS's earnings are forecast to grow, but not significantly.

Revenue vs Market: KWS's revenue (3.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: KWS's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KWS's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has KWS SAAT SE KGaA performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: KWS's current net profit margins (8.4%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: KWS's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: KWS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KWS had negative earnings growth (-0.8%) over the past year, making it difficult to compare to the Food industry average (8.3%).


Return on Equity

High ROE: KWS's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KWS SAAT SE KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: KWS's short term assets (€1.1B) exceed its short term liabilities (€537.6M).

Long Term Liabilities: KWS's short term assets (€1.1B) exceed its long term liabilities (€810.1M).


Debt to Equity History and Analysis

Debt Level: KWS's debt to equity ratio (80.1%) is considered high.

Reducing Debt: KWS's debt to equity ratio has increased from 40.2% to 80.1% over the past 5 years.

Debt Coverage: KWS's debt is not well covered by operating cash flow (7.5%).

Interest Coverage: KWS's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: KWS's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is KWS SAAT SE KGaA's current dividend yield, its reliability and sustainability?

1.15%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.3%markettop25%3.6%industryaverage1.4%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: KWS's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: KWS's dividend (1.15%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

Stable Dividend: KWS's dividends per share have been stable in the past 10 years.

Growing Dividend: KWS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.5%), KWS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KWS's dividends in 3 years are forecast to be well covered by earnings (20.1% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Hagen Duenbostel (49yo)

5.1yrs

Tenure

€1,156,588

Compensation

Dr. Hagen Duenbostel has been the Chief Executive Officer of KWS Saat SE since January 01, 2015 and has been its Member of the Executive Board since July 1, 2003. Dr. Duenbostel is Spokesman of the Executi ...


CEO Compensation Analysis

Compensation vs Market: Hagen's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD1.47M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hagen Duenbostel
CEO & Member of the Executive Board5.1yrs€1.16mno data
Eva Kienle
Member of the Executive Board & CFO0yrs€953.99kno data
Léon Broers
Member of the Executive Board13.1yrs€1.04mno data
Peter Hofmann
Member of the Executive Board5.3yrs€931.66kno data
Felix Büchting
Head of Cereals Segment & Member of the Executive Board1.1yrsno datano data
Wolf-Gebhard Von Der Wense
Head of Investor Relations0yrsno datano data
Andreas Rommert
Head of Logistics0yrsno datano data

5.2yrs

Average Tenure

55.5yo

Average Age

Experienced Management: KWS's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arend Oetker
Honorary Member of the Supervisory Board3.1yrs€42.00k54.49% 1.1b
Andreas Büchting
Chairman of the Supervisory Board12.2yrs€168.00kno data
Cathrina Claas-Mühlhäuser
Member of the Supervisory Board12.2yrs€61.00kno data
Victor Balli
Member of the Supervisory Board2.2yrsno datano data
Jürgen Bolduan
Member of the Supervisory Board12.2yrs€66.00kno data
Marie Schnell
Deputy Chairwoman of the Supervisory Board0yrs€28.00kno data
Christine Coenen
Member of the Supervisory Board2.7yrsno datano data

7.6yrs

Average Tenure

Experienced Board: KWS's board of directors are considered experienced (7.6 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.


Top Shareholders

Company Information

KWS SAAT SE & Co. KGaA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KWS SAAT SE & Co. KGaA
  • Ticker: KWS
  • Exchange: XTRA
  • Founded: 1856
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €1.927b
  • Shares outstanding: 32.95m
  • Website: https://www.kws.com

Number of Employees


Location

  • KWS SAAT SE & Co. KGaA
  • Grimsehlstr. 31
  • Postfach 1463
  • Einbeck
  • Lower Saxony
  • 37555
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KWSDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992
KWSXTRA (XETRA Trading Platform)YesBearer SharesDEEURJan 1992
0F1NLSE (London Stock Exchange)YesBearer SharesGBEURJan 1992
KNKZ.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 1992
KWSDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 1992
KWSSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 1992
KWSWBAG (Wiener Boerse AG)YesBearer SharesATEURJan 1992

Biography

KWS SAAT SE & Co. KGaA, together with its subsidiaries, engages in the development, production, and distribution of seeds for farmers worldwide. The company operates in three segments: Corn, Sugarbeet, and Cereals. The Corn segment offers corn, rapeseed, sunflower, sorghum, millet, and field crop seeds. The Sugarbeet segment provides sugar beet, and energy beet seeds, as well as animal feed. The Cereals segment offers wheat, rye, hybrid rye, winter barley, spring barley, oil and field crop, and organic seeds. The company also provides seeds for fodder beets, soybeans, grain peas, and catch crops. KWS SAAT SE & Co. KGaA was founded in 1856 and is headquartered in Einbeck, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 21:23
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.