BST:KD2

Stock Analysis Report

Kathmandu Holdings

Executive Summary

Kathmandu Holdings Limited, together with its subsidiaries, designs, markets, wholesales, and retails clothing, footwear, and equipment for travel and adventure in New Zealand, Australia, the United States, and the United Kingdom.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Kathmandu Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.5%

KD2

-1.1%

DE Specialty Retail

2.4%

DE Market


1 Year Return

17.6%

KD2

13.7%

DE Specialty Retail

4.9%

DE Market

Return vs Industry: KD2 exceeded the German Specialty Retail industry which returned 13.7% over the past year.

Return vs Market: KD2 exceeded the German Market which returned 4.9% over the past year.


Shareholder returns

KD2IndustryMarket
7 Day6.5%-1.1%2.4%
30 Day8.4%1.8%2.3%
90 Day38.5%-0.1%2.7%
1 Year38.2%17.6%16.4%13.7%8.2%4.9%
3 Year103.6%50.1%-13.8%-50.4%18.3%8.0%
5 Year49.6%-3.2%8.3%-44.3%44.2%24.6%

Price Volatility Vs. Market

How volatile is Kathmandu Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Kathmandu Holdings undervalued compared to its fair value and its price relative to the market?

12.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KD2 (€1.8) is trading above our estimate of fair value (€1.77)

Significantly Below Fair Value: KD2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KD2 is poor value based on its PE Ratio (12.4x) compared to the Specialty Retail industry average (10.5x).

PE vs Market: KD2 is good value based on its PE Ratio (12.4x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: KD2 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: KD2 is overvalued based on its PB Ratio (1.6x) compared to the DE Specialty Retail industry average (0.9x).


Next Steps

Future Growth

How is Kathmandu Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KD2's forecast earnings growth (15.8% per year) is above the savings rate (0.2%).

Earnings vs Market: KD2's earnings (15.8% per year) are forecast to grow faster than the German market (12.8% per year).

High Growth Earnings: KD2's earnings are forecast to grow, but not significantly.

Revenue vs Market: KD2's revenue (22.6% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: KD2's revenue (22.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KD2's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Kathmandu Holdings performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KD2's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: KD2's earnings growth over the past year (13.7%) is below its 5-year average (14.1% per year).

Earnings vs Industry: KD2 earnings growth over the past year (13.7%) exceeded the Specialty Retail industry 9.2%.


Return on Equity

High ROE: KD2's Return on Equity (13%) is considered low.


Return on Assets

ROA vs Industry: KD2 has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: KD2 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Kathmandu Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KD2's short term assets (NZ$148.2M) exceeds its short term liabilities (NZ$81.1M)

Long Term Liabilities: KD2's short term assets (148.2M) exceeds its long term liabilities (71.4M)


Debt to Equity History and Analysis

Debt Level: KD2's debt to equity ratio (5.8%) is considered satisfactory

Reducing Debt: KD2's debt to equity ratio has reduced from 21% to 5.8% over the past 5 years.

Debt Coverage: KD2's debt is well covered by operating cash flow (240.8%).

Interest Coverage: KD2's interest payments on its debt are well covered by EBIT (45.2x coverage).


Balance Sheet

Inventory Level: KD2 has a high level of physical assets or inventory.

Debt Coverage by Assets: KD2's debt is covered by short term assets (assets are 5.785520x debt).


Next Steps

Dividend

What is Kathmandu Holdings's current dividend yield, its reliability and sustainability?

5.05%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.5%markettop25%3.8%industryaverage3.3%forecastin3Years6.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KD2's dividend (5.05%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: KD2's dividend (5.05%) is in the top 25% of dividend payers in the German market (3.79%)

Stable Dividend: KD2 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KD2's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.7%), KD2's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KD2's dividends in 3 years are forecast to be covered by earnings (62.7% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Xavier Simonet 0

4.3yrs

Tenure

NZ$1,806,952

Compensation

Mr. Xavier Simonet has been the Chief Executive Officer, Managing Director and Executive Director at Kathmandu Holdings Limited since June 29, 2015. Mr. Simonet has wide experience in retailing and brand d ...


CEO Compensation Analysis

Compensation vs. Market: Xavier's total compensation ($USD1.15M) is about average for companies of similar size in the German market ($USD810.60K).

Compensation vs Earnings: Xavier's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.3yrs

Average Tenure

Experienced Management: KD2's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

58yo

Average Age

Experienced Board: KD2's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyNZ$14,952,95323 Sep 19
First NZ Capital Ltd., Asset Management Arm
EntityCompany
Shares8,658,619
Max PriceNZ$1.73
BuyNZ$157,36323 Sep 19
Harbour Asset Management Limited
EntityCompany
Shares105,000
Max PriceNZ$1.50
SellNZ$14,915,55423 Sep 19
First NZ Capital Ltd., Asset Management Arm
EntityCompany
Shares8,640,321
Max PriceNZ$1.73
SellNZ$6,018,99423 Sep 19
Harbour Asset Management Limited
EntityCompany
Shares3,471,180
Max PriceNZ$1.73
BuyNZ$1,073,59531 Jul 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares846,858
Max PriceNZ$1.30
SellNZ$129,23131 Jul 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares100,000
Max PriceNZ$1.29

Ownership Breakdown


Management Team

  • Caleb Nicolson

    General Manager of Supply Chain

    • Tenure: 0yrs
    • Compensation: NZ$262.43k
  • Paul Stern

    General Manager of Marketing & Online

    • Tenure: 4.8yrs
    • Compensation: NZ$360.08k
  • Reuben Casey

    Chief Operating Officer

    • Tenure: 2.1yrs
    • Compensation: NZ$712.00k
  • Rebecca Edwards

    General Manager of Group Human Resources

    • Tenure: 5.4yrs
  • Xavier Simonet

    MD, CEO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: NZ$1.81m
  • Jolann van Dyk

    Chief Information Officer

    • Tenure: 4.5yrs
  • Amy Beck

    President of Oboz/Kathmandu North America

    • Tenure: 0.5yrs
  • John Connelly

    Founder

    • Tenure: 0yrs
  • Chris Kinraid

    CFO & Company Secretary

    • Tenure: 0.4yrs

Board Members

  • Philip Bowman (66yo)

    Non-Executive Independent Director

    • Tenure: 2yrs
    • Compensation: NZ$105.20k
  • David Kirk (58yo)

    Independent Non-Executive Chairman

    • Tenure: 5.7yrs
    • Compensation: NZ$241.30k
  • Brent Scrimshaw (51yo)

    Non-Executive Independent Director

    • Tenure: 2yrs
    • Compensation: NZ$105.20k
  • Edward Harvey

    Non-Executive Director

    • Tenure: 10yrs
    • Compensation: NZ$126.24k
  • Xavier Simonet

    MD, CEO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: NZ$1.81m
  • Andrea Martens

    Non Executive Director

    • Tenure: 0.2yrs

Company Information

Kathmandu Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kathmandu Holdings Limited
  • Ticker: KD2
  • Exchange: BST
  • Founded: 1987
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: NZ$859.433m
  • Listing Market Cap: NZ$492.924m
  • Shares outstanding: 271.11m
  • Website: https://www.kathmanduholdings.com

Number of Employees


Location

  • Kathmandu Holdings Limited
  • 223 Tuam Street
  • Christchurch Central
  • Christchurch
  • 8011
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KMDAIASX (Australian Securities Exchange)NPV DFD 29/10/19 (EX-RIGHTS)AUNZDNo data
KMDNZSE (New Zealand Stock Exchange)YesNew Ordinary SharesNZNZDNov 2009
KMDASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDNov 2009
KD2BST (Boerse-Stuttgart)YesNew Ordinary SharesDEEURNov 2009
KMDCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDNov 2009
KTHU.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDNov 2009

Biography

Kathmandu Holdings Limited, together with its subsidiaries, designs, markets, wholesales, and retails clothing, footwear, and equipment for travel and adventure in New Zealand, Australia, the United States ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:26
End of Day Share Price2019/10/21 00:00
Earnings2019/07/31
Annual Earnings2019/07/31


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.