XTRA:KSC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

KSC

-14.4%

DE IT

1.4%

DE Market


1 Year Return

-2.5%

KSC

-22.6%

DE IT

3.8%

DE Market

Return vs Industry: KSC exceeded the German IT industry which returned -22.6% over the past year.

Return vs Market: KSC underperformed the German Market which returned 3.8% over the past year.


Shareholder returns

KSCIndustryMarket
7 Day0.1%-14.4%1.4%
30 Day-0.3%-16.8%1.3%
90 Day-0.6%-18.5%3.1%
1 Year1.8%-2.5%-22.3%-22.6%7.0%3.8%
3 Year-44.5%-49.8%112.8%107.2%18.5%8.3%
5 Year88.5%58.9%255.4%240.2%42.2%22.9%

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?

44.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KSC (€6.92) is trading below our estimate of fair value (€12.54)

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 (20.9x) compared to the IT industry average (26.1x).

PE vs Market: KSC is poor value based on its PE Ratio (20.9x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: KSC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: KSC is good value based on its PB Ratio (3.6x) compared to the DE IT industry average (3.7x).


Next Steps

Future Growth

How is KPS forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KSC's forecast earnings growth (19.8% per year) is above the savings rate (0.2%).

Earnings vs Market: KSC's earnings (19.8% per year) are forecast to grow faster than the German market (12.6% per year).

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

Revenue vs Market: KSC's revenue (7.9% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: KSC's revenue (7.9% 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 high in 3 years time (25.9%)


Next Steps

Past Performance

How has KPS performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KSC's earnings have declined by -6.3% 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 (-8.4%) over the past year, making it difficult to compare to the IT industry average (22.7%).


Return on Equity

High ROE: KSC's Return on Equity (17.1%) is considered low.


Return on Assets

ROA vs Industry: KSC has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: KSC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is KPS's financial position?


Financial Position Analysis

Short Term Liabilities: KSC's short term assets (€55.6M) exceeds its short term liabilities (€38.8M)

Long Term Liabilities: KSC's short term assets (55.6M) exceeds its long term liabilities (28.5M)


Debt to Equity History and Analysis

Debt Level: KSC's debt to equity ratio (23.7%) is considered satisfactory

Reducing Debt: KSC's debt to equity ratio has increased from 9.6% to 23.7% over the past 5 years.

Debt Coverage: KSC's debt is well covered by operating cash flow (153.7%).

Interest Coverage: KSC's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet

Inventory Level: KSC has a low level of unsold assets or inventory.

Debt Coverage by Assets: KSC's debt is covered by short term assets (assets are 3.231510x debt).


Next Steps

Dividend

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

5.06%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%1.5%markettop25%3.8%industryaverage0.7%forecastin3Years5.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KSC's dividend (5.06%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: KSC's dividend (5.06%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: Whilst dividend payments have been stable, KSC has been paying a dividend for less than 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (105.5%), KSC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KSC's dividends in 3 years are forecast to be covered by earnings (59.8% payout ratio).


Next Steps

Management

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


CEO

Leonardo Musso 0

0yrs

Tenure

0

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 ...


Insider Trading

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


Ownership Breakdown


Management Team

  • Michael Tsifidaris (50yo)

    Founder & Chairman of Supervisory Board

    • Tenure: 11.8yrs
  • Leonardo Musso

    Founder

    • Tenure: 0yrs
  • Steffen Sattler

    Managing Partner & VP

    • Tenure: 0yrs
  • Josef Richter

    Managing Partner & VP

    • Tenure: 0yrs
  • Matthias Nollenberger

    Managing Partner & VP

    • Tenure: 0yrs
  • Michael Mirz

    Managing Partner & VP

    • Tenure: 0yrs
  • Guido Simonis

    Managing Partner - Munich

    • Tenure: 0yrs
  • Martin Pedersen

    Head of SAP Concur Competence Center - Copenhagen

    • Tenure: 0yrs

Board Members

  • Michael Tsifidaris (50yo)

    Founder & Chairman of Supervisory Board

    • Tenure: 11.8yrs
  • Hans-Werner Hartmann

    Member of the Supervisory Board

    • Tenure: 0yrs
  • Uwe Grünewald

    Vice Chairman of Supervisory Board

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: KPS AG
  • Ticker: KSC
  • Exchange: XTRA
  • Founded: 2000
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €258.892m
  • Shares outstanding: 37.41m
  • Website: https://www.kps.com

Number of Employees


Location

  • KPS AG
  • Betastrasse 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 Europe. It offers strategy, process, application, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 20:51
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.