ISE:KRX

Stock Analysis Report

Executive Summary

Kingspan Group plc, together with its subsidiaries, provides building solutions for the construction sector in the Republic of Ireland, the United Kingdom, rest of Europe, the Americas, and internationally.


Snowflake Analysis

Adequate balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KRX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.1%

KRX

0.3%

IE Building

-0.07%

IE Market


1 Year Return

49.2%

KRX

30.8%

IE Building

18.7%

IE Market

Return vs Industry: KRX exceeded the Irish Building industry which returned 34.5% over the past year.

Return vs Market: KRX exceeded the Irish Market which returned 25.3% over the past year.


Shareholder returns

KRXIndustryMarket
7 Day6.1%0.3%-0.07%
30 Day5.8%0.09%-0.3%
90 Day21.4%7.8%10.1%
1 Year50.8%49.2%34.0%30.8%21.3%18.7%
3 Year113.0%106.1%25.3%16.6%24.5%18.5%
5 Year262.5%243.6%72.6%52.6%65.8%51.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KRX (€54) is trading above our estimate of fair value (€36.67)

Significantly Below Fair Value: KRX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KRX is poor value based on its PE Ratio (27.4x) compared to the Building industry average (19.9x).

PE vs Market: KRX is poor value based on its PE Ratio (27.4x) compared to the Irish market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: KRX is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: KRX is overvalued based on its PB Ratio (5.2x) compared to the XE Building industry average (1.7x).


Next Steps

Future Growth

How is Kingspan Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRX's forecast earnings growth (6.2% per year) is above the savings rate (0.06%).

Earnings vs Market: KRX's earnings (6.2% per year) are forecast to grow slower than the Irish market (12.2% per year).

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

Revenue vs Market: KRX's revenue (4.9% per year) is forecast to grow faster than the Irish market (4.2% per year).

High Growth Revenue: KRX's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KRX's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Kingspan Group performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRX has high quality earnings.

Growing Profit Margin: KRX's current net profit margins (7.7%) are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: KRX's earnings have grown significantly by 22.6% per year over the past 5 years.

Accelerating Growth: KRX's earnings growth over the past year (19.9%) is below its 5-year average (22.6% per year).

Earnings vs Industry: KRX earnings growth over the past year (19.9%) exceeded the Building industry 3%.


Return on Equity

High ROE: KRX's Return on Equity (18.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kingspan Group's financial position?


Financial Position Analysis

Short Term Liabilities: KRX's short term assets (€1.7B) exceed its short term liabilities (€1.1B).

Long Term Liabilities: KRX's short term assets (€1.7B) exceed its long term liabilities (€1.2B).


Debt to Equity History and Analysis

Debt Level: KRX's debt to equity ratio (47.9%) is considered high.

Reducing Debt: KRX's debt to equity ratio has increased from 32.6% to 47.9% over the past 5 years.

Debt Coverage: KRX's debt is well covered by operating cash flow (53.8%).

Interest Coverage: KRX's interest payments on its debt are well covered by EBIT (23.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: KRX's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

0.73%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%2.3%markettop25%4.4%industryaverage2.1%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: KRX's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the Irish market (2.29%).

High Dividend: KRX's dividend (0.78%) is low compared to the top 25% of dividend payers in the Irish market (4.42%).


Stability and Growth of Payments

Stable Dividend: KRX is not paying a notable dividend for the Irish market, therefore no need to check if payments are stable.

Growing Dividend: KRX is not paying a notable dividend for the Irish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: KRX is not paying a notable dividend for the Irish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KRX's dividend in 3 years as they are not forecast to pay a notable one for the Irish market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Gene Murtagh (47yo)

15yrs

Tenure

€1,998,000

Compensation

Mr. Gene M. Murtagh has been the Chief Executive Officer of Kingspan Group PLC since January 2005. Mr. Murtagh served as the Chief Operating Officer of Kingspan Group plc from 2003 to 2004. He served as th ...


CEO Compensation Analysis

Compensation vs Market: Gene's total compensation ($USD2.23M) is about average for companies of similar size in the Irish market ($USD2.64M).

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


Management Age and Tenure

3.4yrs

Average Tenure

47yo

Average Age

Experienced Management: KRX's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

57yo

Average Age

Experienced Board: KRX's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

Insider Buying: KRX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€2,728,00017 Dec 19
Russell Shiels
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares50,000
Max Price€54.56
Sell€967,80719 Jun 19
Peter Wilson
EntityIndividual
Role
Member of the Board of Directors
Managing Director of Insulation Business & Executive Director
Shares20,912
Max Price€46.28
Sell€2,356,00005 Jun 19
Russell Shiels
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares50,000
Max Price€47.12
Sell€904,88621 May 19
Geoff Doherty
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares20,000
Max Price€45.27
Sell€44,500,00017 May 19
Eugene Murtagh
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,000,000
Max Price€44.50

Ownership Breakdown

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


Management Team

  • Peter Wilson (62yo)

    Managing Director of Insulation Business & Executive Director

    • Tenure: 16.9yrs
    • Compensation: €805.00k
  • Gene Murtagh (47yo)

    CEO & Executive Director

    • Tenure: 15yrs
    • Compensation: €2.00m
  • Geoff Doherty (47yo)

    CFO & Executive Director

    • Tenure: 9yrs
    • Compensation: €1.36m
  • David McMahon

    Managing Director of Group's Insulated Panel Activities - Central & Eastern Europe and Russia

    • Tenure: 2.1yrs
  • Gilbert McCarthy (47yo)

    MD - Insulated Panel Activities-UK

    • Tenure: 8.3yrs
    • Compensation: €1.23m
  • Paul O’Gorman

    Managing Director of Joris Ide Insulated Panels

    • Tenure: 3.4yrs
  • Pat Freeman

    Managing Director of Water & Energy Division

    • Liam McDaniel

      Divisional Managing Director of Light & Air

      • Siobhan O’Dwyer

        Global Head of Marketing

        • Tenure: 0.8yrs
      • Marie Maguire

        Group People & Leadership Development Manager

        • Tenure: 0.6yrs

      Board Members

      • Gene Murtagh (76yo)

        Non-Executive Chairman

        • Michael Cawley (65yo)

          Independent Non-Executive Director

          • Tenure: 5.7yrs
        • Peter Wilson (62yo)

          Managing Director of Insulation Business & Executive Director

          • Tenure: 16.9yrs
          • Compensation: €805.00k
        • Russell Shiels (57yo)

          Executive Director

          • Tenure: 23.1yrs
          • Compensation: €1.50m
        • Gene Murtagh (47yo)

          CEO & Executive Director

          • Tenure: 15yrs
          • Compensation: €2.00m
        • Geoff Doherty (47yo)

          CFO & Executive Director

          • Tenure: 9yrs
          • Compensation: €1.36m
        • Bruce McLennan (54yo)

          Independent Non-Executive Director

          • Tenure: 4.6yrs
        • Gilbert McCarthy (47yo)

          MD - Insulated Panel Activities-UK

          • Tenure: 8.3yrs
          • Compensation: €1.23m
        • Linda Hickey (57yo)

          Independent Non-Executive Director

          • Tenure: 6.6yrs
        • John Cronin (59yo)

          Independent Non-Executive Director

          • Tenure: 5.7yrs

        Company Information

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


        Key Information

        • Name: Kingspan Group plc
        • Ticker: KRX
        • Exchange: ISE
        • Founded: 1965
        • Industry: Building Products
        • Sector: Capital Goods
        • Market Cap: €10.353b
        • Shares outstanding: 181.00m
        • Website: https://www.kingspan.com

        Number of Employees


        Location

        • Kingspan Group plc
        • Dublin Road
        • Kingscourt
        • Co. Cavan
        • A82 XY31
        • Ireland

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        KGPLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
        KRXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
        KRXISE (Irish Stock Exchange)YesOrdinary SharesIEEURJan 1992
        KGSP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
        KGPIBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
        KGSP.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

        Biography

        Kingspan Group plc, together with its subsidiaries, provides building solutions for the construction sector in the Republic of Ireland, the United Kingdom, rest of Europe, the Americas, and internationally. It operates through five segments: Insulated Panels, Insulation Boards, Light & Air, Water & Energy, and Data & Flooring Technology. The Insulated Panels segment offers insulated panel systems, controlled environments, architectural façade systems, architectural roofing products, structural steel solutions, rooftop solar PV solutions, and door components. The Insulation Boards segment provides rigid insulation products for building fabric and building services applications; pre-insulated ductworks; engineered timber systems; protective packaging solutions; moisture management structures; self-build homes; and home energy efficiency upgrades for various applications in the domestic, non-domestic, new build, and refurbishment sectors. The Light & Air segment provides a suite of day lighting and energy efficient lighting products, as well as natural ventilation and smoke management solutions. The Water & Energy segment offers solutions for rainwater harvesting and wastewater management, renewable technologies, hot water systems, and environmental fuel storage solutions, as well as telemetry and smart monitoring for various building projects. The Data & Flooring Technology segment engages in the research, development, and manufacture of commercial building and data center interior infrastructure solutions comprising access floor systems, architectural finishes, airflow panels and controls, data center containment systems, and structural data center ceilings. The company also engages in trustee and finance businesses. Kingspan Group plc was founded in 1965 and is headquartered in Kingscourt, Ireland. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/22 20:54
        End of Day Share Price2020/01/22 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.