LSE:KIE

Stock Analysis Report

Executive Summary

Kier Group plc primarily engages in construction business in the United Kingdom and internationally.The company operates in four divisions: Property, Residential, Construction, and Services.

Snowflake

Fundamentals

Slightly overvalued with worrying balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

KIE

3.6%

GB Construction

-0.3%

GB Market


1 Year Return

-86.8%

KIE

-28.8%

GB Construction

3.0%

GB Market

Return vs Industry: KIE underperformed the UK Construction industry which returned -28.8% over the past year.

Return vs Market: KIE underperformed the UK Market which returned 3% over the past year.


Shareholder returns

KIEIndustryMarket
7 Day-1.0%3.6%-0.3%
30 Day-10.7%0.1%-0.9%
90 Day50.6%6.2%-2.0%
1 Year-86.4%-86.8%-26.0%-28.8%8.0%3.0%
3 Year-89.8%-91.3%-30.1%-39.4%18.0%3.6%
5 Year-87.7%-92.3%-11.5%-33.3%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: KIE (£1.18) is trading below our estimate of fair value (£1.58)

Significantly Undervalued: KIE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KIE is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: KIE is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

Low 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 (0.4x) compared to the GB Construction industry average (1.3x).


Next Steps

Future Growth

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

122.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KIE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: KIE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: KIE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: KIE's revenue (2.7% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: KIE's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Kier Group performed over the past 5 years?

-37.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KIE is unprofitable, and losses have increased over the past 5 years at a rate of -37.8% per year.

Accelerating Growth: Unable to compare KIE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KIE is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-9.7%).


Return on Equity

High ROE: KIE has a negative Return on Equity (-40.26%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: KIE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: KIE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Kier Group's financial position?


Financial Position Analysis

Short Term Liabilities: KIE's short term assets (£1.4B) do not cover its short term liabilities (£1.5B)

Long Term Liabilities: KIE's short term assets (1.4B) exceeds its long term liabilities (619.3M)


Debt to Equity History and Analysis

Debt Level: KIE's debt to equity ratio (97%) is considered high

Reducing Debt: KIE's debt to equity ratio has increased from 76.3% to 97% over the past 5 years.

Debt Coverage: KIE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: KIE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: KIE's debt is covered by short term assets (assets are 2.766810x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.4%industryaverage4.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Management

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

0.8yrs

Average management tenure


CEO

Andrew O. Davies (55yo)

0.5yrs

Tenure

UK£173,138

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. has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Andrew O.'s compensation with company performance.


Management Age and Tenure

0.8yrs

Average Tenure

47yo

Average Age

Experienced Management: KIE's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

50yo

Average Age

Experienced Board: KIE's board of directors are considered experienced (3.4 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

BuyUK£5,25412 Dec 18
Constance Baroudel
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,320
Max PriceUK£3.98

Ownership Breakdown


Management Team

  • Andrew O. Davies (55yo)

    CEO & Executive Director

    • Tenure: 0.5yrs
    • Compensation: UK£173.14k
  • Simon Bullen

    Regional Managing Director

    • Tenure: 0yrs
  • Claudio Veritiero (45yo)

    COO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£493.00k
  • Simon Kesterton (45yo)

    CFO & Executive Director

    • Tenure: 0.2yrs
  • Hugh Raven (47yo)

    General Counsel & Company Secretary

    • Tenure: 9.5yrs
  • Duncan Stott

    Chief Information Officer

    • Tenure: 0yrs
  • Sean Jeffery

    Managing Director

    • Tenure: 0yrs
  • Bev Dew (47yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: UK£495.00k
  • Louise Turner-Smith

    Head of Investor Relations

    • Tenure: 0yrs
  • Helen Redfern

    Group HR Director

    • Tenure: 0yrs

Board Members

  • Adam Walker (51yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£62.00k
  • Justin Atkinson (59yo)

    Senior Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: UK£62.00k
  • Phil Cox (67yo)

    Independent Non-Executive Chairman

    • Tenure: 2.2yrs
    • Compensation: UK£235.00k
  • Andrew O. Davies (55yo)

    CEO & Executive Director

    • Tenure: 0.5yrs
    • Compensation: UK£173.14k
  • M. Wright

    Chairman of Wallis

    • Tenure: 0yrs
    • Compensation: UK£150.00k
  • Claudio Veritiero (45yo)

    COO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£493.00k
  • Simon Kesterton (45yo)

    CFO & Executive Director

    • Tenure: 0.2yrs
  • Constance Baroudel (45yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£62.00k
  • A. Bashforth (49yo)

    Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£58.00k

Company Information

Kier Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kier Group plc
  • Ticker: KIE
  • Exchange: LSE
  • Founded: 1992
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£192.068m
  • Shares outstanding: 161.81m
  • Website: https://www.kier.co.uk

Number of Employees


Location

  • Kier Group plc
  • Tempsford Hall
  • Sandy
  • Bedfordshire
  • SG19 2BD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KIELSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 1996
KIER.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1996
KIELBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 1996
10IDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1996

Biography

Kier Group plc primarily engages in construction business in the United Kingdom and internationally.The company operates in four divisions: Property, Residential, Construction, and Services. It constructs  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:37
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.