XTRA:KSC

Stock Analysis Report

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Executive Summary

KPS AG provides management consulting services in the areas of business transformation and process optimization in retail and consumer goods sectors in Germany and Europe. More Details


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KSC is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: KSC's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

2.8%

KSC

4.6%

DE IT

0.4%

DE Market


1 Year Return

-25.7%

KSC

23.0%

DE IT

4.9%

DE Market

Return vs Industry: KSC underperformed the German IT industry which returned 21.1% over the past year.

Return vs Market: KSC underperformed the German Market which returned 3.6% over the past year.


Shareholder returns

KSCIndustryMarket
7 Day2.8%4.6%0.4%
30 Day17.2%5.4%4.8%
90 Day18.6%-9.3%12.2%
1 Year-20.8%-25.7%27.7%23.0%8.2%4.9%
3 Year-49.2%-56.1%82.7%69.7%6.5%-2.8%
5 Year17.7%-3.2%57.5%51.1%45.0%24.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

49.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KSC (€5.86) is trading below our estimate of fair value (€11.49)

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


Price To Earnings Ratio

PE vs Industry: KSC is good value based on its PE Ratio (23.7x) compared to the DE IT industry average (30x).

PE vs Market: KSC is good value based on its PE Ratio (23.7x) compared to the German market (24.4x).


Price to Earnings Growth Ratio

PEG Ratio: KSC is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: KSC is good value based on its PB Ratio (3.1x) compared to the DE IT industry average (3.5x).


Next Steps

Future Growth

How is KPS forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KSC's forecast earnings growth (20.1% per year) is above the savings rate (0.07%).

Earnings vs Market: KSC's earnings (20.1% per year) are forecast to grow slower than the German market (25% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KSC's revenue (6.8% per year) is forecast to grow faster than the German market (6% per year).

High Growth Revenue: KSC's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KSC's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has KPS performed over the past 5 years?

-14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KSC has a large one-off gain of €3.8M impacting its June 30 2020 financial results.

Growing Profit Margin: KSC's current net profit margins (5.4%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: KSC's earnings have declined by 14.2% per year over the past 5 years.

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

Earnings vs Industry: KSC had negative earnings growth (-23.6%) over the past year, making it difficult to compare to the IT industry average (9.1%).


Return on Equity

High ROE: KSC's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is KPS's financial position?


Financial Position Analysis

Short Term Liabilities: KSC's short term assets (€60.0M) exceed its short term liabilities (€59.3M).

Long Term Liabilities: KSC's short term assets (€60.0M) exceed its long term liabilities (€42.6M).


Debt to Equity History and Analysis

Debt Level: KSC's debt to equity ratio (30.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if KSC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: KSC's debt is well covered by operating cash flow (82.2%).

Interest Coverage: KSC's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Next Steps

Dividend

What is KPS current dividend yield, its reliability and sustainability?

2.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KSC's dividend (2.9%) is higher than the bottom 25% of dividend payers in the German market (0.97%).

High Dividend: KSC's dividend (2.9%) is low compared to the top 25% of dividend payers in the German market (3.5%).


Stability and Growth of Payments

Stable Dividend: KSC's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.6%), KSC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KSC's dividends in 3 years are forecast to be covered by earnings (75.2% payout ratio).


Next Steps

Management

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

12.7yrs

Average board tenure


CEO

Leonardo Musso

no data

Tenure

Mr. Leonardo Musso has been Member of Executive Board at KPS AG since October 1, 2015. Mr. Musso has been Founder, Chief Executive Officer and Managing Director of KPS AG. Mr. Musso began his career at BMW...


Board Members

NamePositionTenureCompensationOwnership
Michael Tsifidaris
Founder & Chairman of Supervisory Board13yrsno data24.3%
€ 56.9m
Hans-Werner Hartmann
Independent Vice Chairman of Supervisory Board1.83yrsno datano data
Uwe Grünewald
Supervisory Board Member12.67yrsno data10.8%
€ 25.3m

12.7yrs

Average Tenure

Experienced Board: KSC's board of directors are seasoned and experienced ( 12.7 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

KPS AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KPS AG
  • Ticker: KSC
  • Exchange: XTRA
  • Founded: 1998
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €234.200m
  • Shares outstanding: 37.41m
  • Website: https://www.kps.com

Number of Employees


Location

  • KPS AG
  • Beta-Str. 10 H
  • Unterföhring
  • Bavaria
  • 85774
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KSCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999
KSCXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJul 1999
0M2TLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1999
KSCdBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1999

Biography

KPS AG provides management consulting services in the areas of business transformation and process optimization in retail and consumer goods sectors in Germany and Europe. It offers advisory services on st...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 18:47
End of Day Share Price2021/01/21 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.