LSE:KGF

Stock Analysis Report

Executive Summary

Kingfisher plc, together with its subsidiaries, supplies DIY and home improvement products and services primarily in the United Kingdom and continental Europe.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

KGF

2.7%

GB Specialty Retail

-0.4%

GB Market


1 Year Return

-11.5%

KGF

15.5%

GB Specialty Retail

2.9%

GB Market

Return vs Industry: KGF underperformed the UK Specialty Retail industry which returned 15.5% over the past year.

Return vs Market: KGF underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

KGFIndustryMarket
7 Day0.6%2.7%-0.4%
30 Day6.6%6.7%-1.4%
90 Day-3.5%8.1%-2.1%
1 Year-6.7%-11.5%19.6%15.5%8.0%2.9%
3 Year-31.9%-39.8%3.6%-6.8%18.0%3.6%
5 Year-12.2%-26.6%11.5%-5.0%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KGF (£2.15) is trading below our estimate of fair value (£3.86)

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


Price To Earnings Ratio

PE vs Industry: KGF is poor value based on its PE Ratio (24.8x) compared to the Specialty Retail industry average (14.6x).

PE vs Market: KGF is poor value based on its PE Ratio (24.8x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: KGF is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: KGF is good value based on its PB Ratio (0.7x) compared to the GB Specialty Retail industry average (1x).


Next Steps

Future Growth

How is Kingfisher forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KGF's forecast earnings growth (17.2% per year) is above the savings rate (1.2%).

Earnings vs Market: KGF's earnings (17.2% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: KGF's earnings are forecast to grow, but not significantly.

Revenue vs Market: KGF's revenue (0.9% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: KGF's revenue (0.9% 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 (7.1%).


Next Steps

Past Performance

How has Kingfisher performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KGF's earnings have declined by -13.9% per year over the past 5 years.

Accelerating Growth: KGF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KGF had negative earnings growth (-53.8%) over the past year, making it difficult to compare to the Specialty Retail industry average (-1.9%).


Return on Equity

High ROE: KGF's Return on Equity (2.9%) is considered low.


Return on Assets

ROA vs Industry: KGF's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: KGF's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Kingfisher's financial position?


Financial Position Analysis

Short Term Liabilities: KGF's short term assets (£3.7B) exceeds its short term liabilities (£3.2B)

Long Term Liabilities: KGF's short term assets (3.7B) exceeds its long term liabilities (2.8B)


Debt to Equity History and Analysis

Debt Level: KGF's debt to equity ratio (2.3%) is considered satisfactory

Reducing Debt: KGF's debt to equity ratio has reduced from 4.4% to 2.3% over the past 5 years.

Debt Coverage: KGF's debt is well covered by operating cash flow (409%).

Interest Coverage: KGF's interest payments on its debt are well covered by EBIT (24.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: KGF's debt is covered by short term assets (assets are 25.611110x debt).


Next Steps

Dividend

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

5.02%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%2.0%markettop25%5.4%industryaverage2.9%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KGF's dividend (5.02%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: KGF's dividend (5.02%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (124.7%), KGF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KGF's dividends in 3 years are forecast to be well covered by earnings (48.5% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Thierry Garnier (53yo)

0.08yrs

Tenure

0

Mr. Thierry Garnier serves as Chief Executive Officer and Executive Director at Kingfisher plc since September 30, 2019. He had been Executive Director of Asia (China & Taiwan) at Carrefour SA since Octobe ...


Management Age and Tenure

1.1yrs

Average Tenure

Experienced Management: KGF's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: KGF's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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£19,79420 May 19
John Wartig
EntityIndividual
Role
Chief Financial Officer
Interim Chief Financial Officer
Shares8,418
Max PriceUK£2.35
BuyUK£39,59730 Apr 19
John Wartig
EntityIndividual
Role
Chief Financial Officer
Interim Chief Financial Officer
Shares14,914
Max PriceUK£2.66
BuyUK£159,82322 Mar 19
Andrew Cosslett
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares70,718
Max PriceUK£2.26

Ownership Breakdown


Management Team

  • Thierry Garnier (53yo)

    CEO & Executive Director

    • Tenure: 0.08yrs
  • Nigel Cope

    Head of Media Relations

    • Tenure: 0yrs
  • Alastair Robertson (59yo)

    Chief People Officer

    • Tenure: 3yrs
  • Yi Liu

    Head of B&Q Taiwan Operations

    • Tenure: 0yrs
  • Christian Cowley

    Head of Investor Relations

    • Tenure: 0yrs
  • Alp Özpamukçu

    Chief Executive Officer of Koçtas - Turkey

    • Tenure: 0yrs
  • Tanguy Dewavrin

    Chief Executive Officer of Castorama Poland

    • Tenure: 0yrs
  • John Colley

    Chief Trading Officer

    • Tenure: 1.8yrs
  • Henri Solère

    Chief Offer & Sourcing Officer

    • Tenure: 1.1yrs
  • John Wartig

    Interim Chief Financial Officer

    • Tenure: 0.5yrs

Board Members

  • Mark Seligman (63yo)

    Senior Independent Director

    • Tenure: 7.8yrs
    • Compensation: UK£85.00k
  • Clare Chapman (59yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: UK£85.00k
  • Jeff Carr (58yo)

    Non-executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£56.70k
  • Andy Cosslett (64yo)

    Independent Chairman

    • Tenure: 2.3yrs
    • Compensation: UK£496.10k
  • Thierry Garnier (53yo)

    CEO & Executive Director

    • Tenure: 0.08yrs
  • Pascal Cagni (58yo)

    Non-Executive Director

    • Tenure: 8.9yrs
    • Compensation: UK£65.00k
  • Sophie Gasperment (55yo)

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£10.80k
  • Claudia Arney (48yo)

    Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£16.30k
  • Parekh Goss-Custard (45yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£65.00k
  • Sally Uren

    Chair of Advisory Council

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Kingfisher plc
  • Ticker: KGF
  • Exchange: LSE
  • Founded: 1982
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: UK£4.527b
  • Shares outstanding: 2.10b
  • Website: https://www.kingfisher.com

Number of Employees


Location

  • Kingfisher plc
  • 3 Sheldon Square
  • Paddington
  • London
  • Greater London
  • W2 6PX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KGFLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 1982
KFI1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1982
KGFH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1982
KGFLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 1982
KGF NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNDec 1982
KGFH.YOTCPK (Pink Sheets LLC)SPON ADR PARUSUSDSep 1995

Biography

Kingfisher plc, together with its subsidiaries, supplies DIY and home improvement products and services primarily in the United Kingdom and continental Europe. The company operates approximately 1,300 stor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:39
End of Day Share Price2019/10/21 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.