Kingfisher (LSE:KGF) - Share price, News & Analysis

KGF fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	4/6

KGF Stock Overview

Kingfisher plc, together with its subsidiaries, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally.

Rewards

Trading at 64.5% below our estimate of its fair value

Earnings have grown 7.2% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 7.3% per year for the next 3 years

Unstable dividend track record

Kingfisher Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kingfisher
Historical stock prices
Current Share Price	UK£2.43
52 Week High	UK£3.78
52 Week Low	UK£2.32
Beta	1.02
1 Month Change	-6.92%
3 Month Change	-7.95%
1 Year Change	-33.21%
3 Year Change	13.22%
5 Year Change	-19.09%
Change since IPO	27.74%

Recent News & Updates

Jun 13

Here's Why I Think Kingfisher (LON:KGF) Is An Interesting Stock

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

May 28

Returns At Kingfisher (LON:KGF) Appear To Be Weighed Down

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two...

May 12

Kingfisher (LON:KGF) Has A Pretty Healthy Balance Sheet

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	KGF	GB Specialty Retail	GB Market
7D	1.0%	4.2%	2.3%
1Y	-33.2%	-25.6%	-8.6%

Return vs Industry: KGF underperformed the UK Specialty Retail industry which returned -26.3% over the past year.

Return vs Market: KGF underperformed the UK Market which returned -10.4% over the past year.

Price Volatility

Is KGF's price volatile compared to industry and market?
KGF volatility
KGF Average Weekly Movement	4.7%
Specialty Retail Industry Average Movement	6.5%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

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

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

About the Company

Founded	Employees	CEO	Website
1982	81,710	Thierry Dominique Garnier	https://www.kingfisher.com

Kingfisher plc, together with its subsidiaries, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally. The company also offers property investment, finance, digital, sourcing and franchising, and IT services. It operates approximately 1,470 stores in eight countries across Europe under the B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint, and Koctas brands.

Kingfisher Fundamentals Summary

How do Kingfisher's earnings and revenue compare to its market cap?
KGF fundamental statistics
Market Cap	UK£4.83b
Earnings (TTM)	UK£843.00m
Revenue (TTM)	UK£13.18b

5.7x

P/E Ratio

0.4x

P/S Ratio

Is KGF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KGF income statement (TTM)
Revenue	UK£13.18b
Cost of Revenue	UK£8.25b
Gross Profit	UK£4.94b
Other Expenses	UK£4.09b
Earnings	UK£843.00m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

Sep 20, 2022

Earnings per share (EPS)	0.42
Gross Margin	37.43%
Net Profit Margin	6.39%
Debt/Equity Ratio	0.2%

How did KGF perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

31%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is KGF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KGF?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KGF. This is calculated by dividing KGF's market cap by their current preferred multiple.
What is KGF's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£4.83b

KGF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	5x
PEG Ratio	-0.8x

Price to Earnings Ratio vs Peers

How does KGF's PE Ratio compare to its peers?

KGF PE Ratio vs Peers

The above table shows the PE ratio for KGF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.4x

Forward PE

Price-To-Earnings vs Peers: KGF is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (14.4x).

Price to Earnings Ratio vs Industry

How does KGF's PE Ratio compare vs other companies in the U.K. Specialty Retail Industry?

Price-To-Earnings vs Industry: KGF is good value based on its Price-To-Earnings Ratio (5.7x) compared to the UK Specialty Retail industry average (8x)

Price to Earnings Ratio vs Fair Ratio

What is KGF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KGF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.7x
Fair PE Ratio	13.4x

Price-To-Earnings vs Fair Ratio: KGF is good value based on its Price-To-Earnings Ratio (5.7x) compared to the estimated Fair Price-To-Earnings Ratio (13.4x).

Share Price vs Fair Value

What is the Fair Price of KGF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KGF (£2.43) is trading below our estimate of fair value (£6.86)

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

Price to Earnings Growth Ratio

PEG Ratio: KGF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Kingfisher forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-7.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KGF's earnings are forecast to decline over the next 3 years (-7.3% per year).

Earnings vs Market: KGF's earnings are forecast to decline over the next 3 years (-7.3% per year).

High Growth Earnings: KGF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KGF's revenue (1% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: KGF's revenue (1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: KGF's Return on Equity is forecast to be low in 3 years time (8.9%).

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Past Performance

How has Kingfisher performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KGF has high quality earnings.

Growing Profit Margin: KGF's current net profit margins (6.4%) are higher than last year (4.8%).

Past Earnings Growth Analysis

Earnings Trend: KGF's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: KGF's earnings growth over the past year (42.4%) exceeds its 5-year average (7.2% per year).

Earnings vs Industry: KGF earnings growth over the past year (42.4%) underperformed the Specialty Retail industry 46.2%.

Return on Equity

High ROE: KGF's Return on Equity (12.4%) is considered low.

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Financial Health

How is Kingfisher's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KGF's short term assets (£3.9B) exceed its short term liabilities (£3.1B).

Long Term Liabilities: KGF's short term assets (£3.9B) exceed its long term liabilities (£2.5B).

Debt to Equity History and Analysis

Debt Level: KGF has more cash than its total debt.

Reducing Debt: KGF's debt to equity ratio has reduced from 2.3% to 0.2% over the past 5 years.

Debt Coverage: KGF's debt is well covered by operating cash flow (7362.5%).

Interest Coverage: KGF's interest payments on its debt are well covered by EBIT (7.6x coverage).

Balance Sheet

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Dividend

What is Kingfisher current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.10%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KGF's dividend (5.1%) is higher than the bottom 25% of dividend payers in the UK market (1.92%).

High Dividend: KGF's dividend (5.1%) is low compared to the top 25% of dividend payers in the UK market (5.23%).

Stability and Growth of Payments

Stable Dividend: KGF's dividend payments have been volatile in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.8%), KGF's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.5%), KGF's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure

CEO

Thierry Dominique Garnier (55 yo)

2.75yrs

Tenure

UK£2,615,200

Compensation

Mr. Thierry Dominique Gerard Garnier serves as Independent Non-Executive Director at Tesco PLC since April 30. 2021. He serves as Vice Chairman of the Board at Koctas Yapi Marketleri Ticaret A.S. since Jul...

CEO Compensation Analysis

Compensation vs Market: Thierry Dominique's total compensation ($USD3.21M) is about average for companies of similar size in the UK market ($USD3.25M).

Compensation vs Earnings: Thierry Dominique's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: KGF's management team is considered experienced (2.7 years average tenure).

Board Members

Experienced Board: KGF's board of directors are considered experienced (3.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: KGF 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/01/31
Annual Earnings	2022/01/31