LSE:KLR

Stock Analysis Report

Executive Summary

Keller Group plc provides geotechnical solutions in North America, Europe, the Middle East, Africa, and the Asia-Pacific.


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.6%

KLR

-2.3%

GB Construction

0.3%

GB Market


1 Year Return

60.2%

KLR

-10.1%

GB Construction

6.5%

GB Market

Return vs Industry: KLR exceeded the UK Construction industry which returned -10% over the past year.

Return vs Market: KLR exceeded the UK Market which returned 6.5% over the past year.


Shareholder returns

KLRIndustryMarket
7 Day-3.6%-2.3%0.3%
30 Day-5.8%8.0%-1.4%
90 Day32.6%10.8%2.9%
1 Year68.9%60.2%5.3%-10.1%12.0%6.5%
3 Year8.0%-4.3%-15.5%-38.2%18.7%3.8%
5 Year-6.5%-21.7%-3.1%-38.6%35.0%4.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Keller Group 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: KLR (£8.25) is trading below our estimate of fair value (£16.17)

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


Price To Earnings Ratio

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

PE vs Market: KLR 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 KLR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KLR is good value based on its PB Ratio (1.4x) compared to the GB Construction industry average (1.6x).


Next Steps

Future Growth

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

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KLR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

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

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

Revenue vs Market: KLR's revenue (1.5% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: KLR's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KLR's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has Keller Group performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KLR is currently unprofitable.

Growing Profit Margin: KLR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KLR is unprofitable, but has reduced losses over the past 5 years at a rate of 4.9% per year.

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

Earnings vs Industry: KLR is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-13.7%).


Return on Equity

High ROE: KLR has a negative Return on Equity (-8.14%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Keller Group's financial position?


Financial Position Analysis

Short Term Liabilities: KLR's short term assets (£841.4M) exceed its short term liabilities (£543.2M).

Long Term Liabilities: KLR's short term assets (£841.4M) exceed its long term liabilities (£549.9M).


Debt to Equity History and Analysis

Debt Level: KLR's debt to equity ratio (91.9%) is considered high.

Reducing Debt: KLR's debt to equity ratio has increased from 60.4% to 91.9% over the past 5 years.


Balance Sheet

Inventory Level: KLR has a high level of physical assets or inventory.

Debt Coverage by Assets: KLR's debt is covered by short term assets (assets are 2.1x debt).


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: KLR has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: KLR has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

4.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KLR's dividend (4.35%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: KLR's dividend (4.35%) is low compared to the top 25% of dividend payers in the UK market (5.07%).


Stability and Growth of Payments

Stable Dividend: KLR's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: KLR is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: KLR's dividends in 3 years are forecast to be well covered by earnings (41.5% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Mike Speakman (55yo)

0.3yrs

Tenure

UK£448,800

Compensation

Mr. Michael J. Speakman, also known as Mike, is Chief Executive Officer at Keller Group plc since December 12, 2019. Mr. Speakman had been Interim Chief Executive Officer at Keller Group plc since October  ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD581.91K) is below average for companies of similar size in the UK market ($USD1.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Speakman
CEO & Director0.3yrsUK£448.80k0.056% £330.0k
Venu Raju
Engineering & Operations Director and Executive Director3.1yrsUK£443.00k0.18% £1.1m
James W. Hind
President of North America & Executive Director16.6yrsUK£565.00k0.24% £1.4m
Mark Hooper
Group Financial Controller & Interim CFO0.3yrsno datano data
Caroline Crampton
Interim Head of Investor Relations1.1yrsno datano data
Kerry Porritt
Group Company Secretary & Legal Advisor0yrsno datano data
Katie Deeble
Head of Communication0yrsno datano data
Graeme Cook
Human Resources Director3.1yrsno datano data
Thorsten Holl
President of Europe4.3yrsno datano data
Peter Wyton
President of APAC1.8yrsno datano data

1.7yrs

Average Tenure

51.5yo

Average Age

Experienced Management: KLR's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Speakman
CEO & Director0.3yrsUK£448.80k0.056% £330.0k
Venu Raju
Engineering & Operations Director and Executive Director3.1yrsUK£443.00k0.18% £1.1m
James W. Hind
President of North America & Executive Director16.6yrsUK£565.00k0.24% £1.4m
Eva Lindqvist
Independent Non-Executive Director2.7yrsno datano data
Nancy R. Moore
Independent Non-Executive Director5.7yrsno data0.0042% £24.7k
Peter Hill
Non-Executive Chairman of the Board3.6yrsno data0.060% £354.7k
Paul Withers
Director7.2yrsno data0.062% £371.3k
Paula Bell
Independent Non-Executive Director1.4yrsno datano data
Kate Rock
Senior Independent Director0.08yrsno data0.0035% £20.6k

3.1yrs

Average Tenure

58yo

Average Age

Experienced Board: KLR's board of directors are considered experienced (3.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Keller Group plc
  • Ticker: KLR
  • Exchange: LSE
  • Founded: 1860
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£594.580m
  • Shares outstanding: 72.07m
  • Website: https://www.keller.com

Number of Employees


Location

  • Keller Group plc
  • 1 Sheldon Square
  • 5th Floor
  • London
  • Greater London
  • W2 6TT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KLRG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1994
KLRLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 1994
01KDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1994
KLRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 1994

Biography

Keller Group plc provides geotechnical solutions in North America, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers ground improvement services to prepare the ground for new construction projects and to reduce the risk of liquefaction in the areas of seismic activity; and grouting services, which enhance target areas in the ground, and controls ground water flow through rocks and soils by reducing their permeability. It also provides heavy foundation solutions, including bored, CFA, driven piling, marine, and near shore structures, as well as underpin solutions; and earth retention systems that are used to solve a range of geotechnical solutions comprising slope stabilization and excavation support. In addition, the company offers post-tension cable systems, which are used to reinforce concrete foundations and structural spans; and instrumentation and monitoring solutions for various applications. It provides its services to the construction sector in infrastructure, industrial, commercial residential, and environmental projects. The company was founded in 1860 and is headquartered in London, United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 20:43
End of Day Share Price2020/02/24 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.