LSE:KIE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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

Stable Share Price: KIE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-20.8%

KIE

-0.7%

GB Construction

-3.0%

GB Market


1 Year Return

-54.1%

KIE

-19.6%

GB Construction

-16.0%

GB Market

Return vs Industry: KIE underperformed the UK Construction industry which returned -19.6% over the past year.

Return vs Market: KIE underperformed the UK Market which returned -16% over the past year.


Shareholder returns

KIEIndustryMarket
7 Day-20.8%-0.7%-3.0%
30 Day-18.9%-1.0%-2.7%
90 Day-46.7%-13.1%-2.6%
1 Year-54.1%-54.1%-8.7%-19.6%-12.6%-16.0%
3 Year-95.4%-95.9%-34.2%-48.8%-7.2%-18.5%
5 Year-95.6%-96.4%-22.5%-45.3%20.3%-6.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KIE (£0.48) is trading below our estimate of fair value (£2.4)

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


Price To Earnings Ratio

PE vs Industry: KIE is unprofitable, so we can't compare its PE Ratio to the GB 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

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 (0.3x) compared to the GB Construction industry average (1x).


Next Steps

Future Growth

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

127.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KIE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: KIE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KIE's is expected to become profitable in the next 3 years.

Revenue vs Market: KIE's revenue (5.7% per year) is forecast to grow slower than the UK market (6.3% per year).

High Growth Revenue: KIE's revenue (5.7% 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


Next Steps

Past Performance

How has Kier Group performed over the past 5 years?

-59.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KIE is currently unprofitable.

Growing Profit Margin: KIE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KIE is unprofitable, and losses have increased over the past 5 years at a rate of 59.4% 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 (-4.8%).


Return on Equity

High ROE: KIE has a negative Return on Equity (-71.39%), as it is currently unprofitable.


Next Steps

Financial Health

How is Kier Group's financial position?


Financial Position Analysis

Short Term Liabilities: KIE's short term assets (£1.2B) do not cover its short term liabilities (£1.3B).

Long Term Liabilities: KIE's short term assets (£1.2B) exceed its long term liabilities (£988.3M).


Debt to Equity History and Analysis

Debt Level: KIE's debt to equity ratio (312%) is considered high.

Reducing Debt: KIE's debt to equity ratio has increased from 67.3% to 312% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: KIE has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if KIE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


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

Management

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

1.8yrs

Average management tenure


CEO

Andrew O. Davies (56 yo)

1.42yrs

Tenure

UK£610,862

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 ($USD777.47K) is above average for companies of similar size in the UK market ($USD350.52K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew O. Davies
CEO & Executive Director1.42yrsUK£610.86k0.018%
£ 14.1k
Simon Kesterton
CFO & Executive Director1.08yrsno data0.018%
£ 14.0k
Duncan Stott
Chief Information Officerno datano datano data
Louise Turner-Smith
Head of Investor Relationsno datano datano data
Hugh Raven
General Counsel & Company Secretary10.42yrsno data0.016%
£ 12.5k
Helen Redfern
Group HR Directorno datano datano data
Simon Bullen
Regional Managing Directorno datano datano data
Sean Jeffery
Managing Directorno datano datano data
Steve Davies
Managing Director of Kier Workplace Services5.58yrsno datano data
Clare Ball
Group Head of Risk & Internal Auditno datano datano data
James Hindes
Managing Director of UK wide Aviation & Defense Business2.17yrsno datano data
Nicola Hindle
Managing Director of Highways Business0.33yrno datano data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: KIE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew O. Davies
CEO & Executive Director1.42yrsUK£610.86k0.018%
£ 14.1k
Simon Kesterton
CFO & Executive Director1.08yrsno data0.018%
£ 14.0k
Justin Atkinson
Senior Independent Non-Executive Director4.5yrsUK£62.00k0.0030%
£ 2.4k
M. Wright
Chairman of Wallisno dataUK£150.00kno data
Clive Watson
Non-Executive Director0.50yrno datano data
Heather Rabbatts
Non-Executive Director0.50yrno datano data
Matthew Lester
Chairman0.67yrno data0.018%
£ 14.1k
A. Bashforth
Independent Non-Executive Director6yrsUK£58.00k0.0021%
£ 1.6k

1.1yrs

Average Tenure

57yo

Average Age

Experienced Board: KIE's board of directors are not considered experienced ( 1.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£77.641m
  • Shares outstanding: 161.75m
  • 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 Analysis2020/09/25 03:26
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.