Kier Group (LSE:KIE) - Stock price, News & Analysis

KIE fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	3/6
Financial Health	2/6
Dividends	0/6

KIE Stock Overview

Kier Group plc primarily engages in the construction business in the United Kingdom and internationally.

Rewards

Trading at 89% below our estimate of its fair value

Revenue is forecast to grow 6.37% per year

Became profitable this year

Risk Analysis

Shareholders have been substantially diluted in the past year

Kier Group Competitors

Balfour Beatty

LSE:BBY

UK£1.6b

Morgan Sindall Group

LSE:MGNS

UK£991.2m

Galliford Try Holdings

LSE:GFRD

UK£188.9m

Costain Group

LSE:COST

UK£133.4m

Price History & Performance

Summary of all time highs, changes and price drops for Kier Group
Historical stock prices
Current Share Price	UK£1.00
52 Week High	UK£1.37
52 Week Low	UK£0.71
Beta	1.1
1 Month Change	-7.75%
3 Month Change	-7.75%
1 Year Change	27.88%
3 Year Change	-80.75%
5 Year Change	-92.75%
Change since IPO	-45.80%

Recent News & Updates

Dec 13

Kier Group (LON:KIE) Has A Somewhat Strained Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Nov 18

What Does Kier Group plc's (LON:KIE) Share Price Indicate?

Kier Group plc ( LON:KIE ), might not be a large cap stock, but it received a lot of attention from a substantial price...

Sep 24

Kier Group's (LON:KIE) Profits Appear To Have Quality Issues

Kier Group plc's ( LON:KIE ) robust recent earnings didn't do much to move the stock. However the statutory profit...

Shareholder Returns

	KIE	GB Construction	GB Market
7D	-8.8%	-7.5%	-3.0%
1Y	27.9%	10.5%	2.8%

Return vs Industry: KIE exceeded the UK Construction industry which returned 11.1% over the past year.

Return vs Market: KIE exceeded the UK Market which returned 5.1% over the past year.

Price Volatility

Is KIE's price volatile compared to industry and market?
KIE volatility
KIE Average Weekly Movement	4.9%
Construction Industry Average Movement	4.4%
Market Average Movement	5.2%
10% most volatile stocks in GB Market	10.9%
10% least volatile stocks in GB Market	2.6%

Stable Share Price: KIE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KIE's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	11,302	Andrew O. Davies	https://www.kier.co.uk

Kier Group plc primarily engages in the construction business in the United Kingdom and internationally. The company operates through three segments: Construction, Infrastructure Services, and Property. It constructs power stations, roads, bridges, tunnels, and buildings; and provides maintenance services for the U.K. road, rail, and utilities infrastructure, as well as reactive repairs.

Kier Group Fundamentals Summary

How do Kier Group's earnings and revenue compare to its market cap?
KIE fundamental statistics
Market Cap	UK£445.65m
Earnings (TTM)	UK£24.30m
Revenue (TTM)	UK£3.26b

18.3x

P/E Ratio

0.1x

P/S Ratio

Is KIE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KIE income statement (TTM)
Revenue	UK£3.26b
Cost of Revenue	UK£2.98b
Gross Profit	UK£284.10m
Expenses	UK£259.80m
Earnings	UK£24.30m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 09, 2022

Earnings per share (EPS)	0.055
Gross Margin	8.71%
Net Profit Margin	0.75%
Debt/Equity Ratio	92.1%

How did KIE perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: KIE (£1) is trading below our estimate of fair value (£9.09)

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

Price To Earnings Ratio

PE vs Industry: KIE is poor value based on its PE Ratio (18.3x) compared to the UK Construction industry average (17.6x).

PE vs Market: KIE is poor value based on its PE Ratio (18.3x) compared to the UK market (18x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KIE's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: KIE is good value based on its PB Ratio (1x) compared to the GB Construction industry average (1.2x).

Future Growth

How is Kier Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.4%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if KIE's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if KIE's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: KIE's revenue (6.4% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: KIE's revenue (6.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if KIE's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Kier Group performed over the past 5 years?

-35.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KIE has high quality earnings.

Growing Profit Margin: KIE became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: KIE has become profitable over the past 5 years, growing earnings by -35.6% per year.

Accelerating Growth: KIE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: KIE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (7.1%).

Return on Equity

High ROE: KIE's Return on Equity (5.3%) is considered low.

Financial Health

How is Kier Group's financial position?

Financial Position Analysis

Short Term Liabilities: KIE's short term assets (£1.0B) do not cover its short term liabilities (£1.2B).

Long Term Liabilities: KIE's short term assets (£1.0B) exceed its long term liabilities (£612.5M).

Debt to Equity History and Analysis

Debt Level: KIE's net debt to equity ratio (2.1%) is considered satisfactory.

Reducing Debt: KIE's debt to equity ratio has increased from 53.2% to 92.1% over the past 5 years.

Debt Coverage: KIE's debt is not well covered by operating cash flow (12%).

Interest Coverage: KIE's interest payments on its debt are not well covered by EBIT (1.2x coverage).

Balance Sheet

Dividend

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

2.42%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate KIE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KIE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KIE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KIE's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: KIE is not paying a notable dividend for the UK market.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KIE's dividend in 3 years as they are not forecast to pay a notable one for the UK market.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

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

2.5yrs

Average management tenure

CEO

Andrew O. Davies (57 yo)

2.75yrs

Tenure

UK£1,323,000

Compensation

Mr. Andrew O. B. Davies is the Chief Executive Officer of Kier Group plc since April 15, 2019 and its Executive Director since April 15, 2019. He was the Chief Executive Officer of Carillion plc until Janu...

CEO Compensation Analysis

Compensation vs Market: Andrew O.'s total compensation ($USD1.78M) is above average for companies of similar size in the UK market ($USD1.07M).

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

Leadership Team

Experienced Management: KIE's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: KIE's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.

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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 175.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/01/25 21:31
End of Day Share Price	2022/01/25 00:00
Earnings	2021/06/30
Annual Earnings	2021/06/30