ISE:KRX

Stock Analysis Report

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Market Cap

€16.2b

Last Updated

2021/07/28 21:29 UTC

Data Sources

Company Financials +

Executive Summary

Kingspan Group plc, together with its subsidiaries, provides insulation and building envelope solutions in the Republic of Ireland, the United Kingdom, rest of Europe, the Americas, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with acceptable 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 is not significantly more volatile than the rest of Irish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KRX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

KRX

1.7%

IE Building

4.5%

IE Market


1 Year Return

41.4%

KRX

53.5%

IE Building

33.6%

IE Market

Return vs Industry: KRX underperformed the Irish Building industry which returned 53.5% over the past year.

Return vs Market: KRX exceeded the Irish Market which returned 33.6% over the past year.


Shareholder returns

KRXIndustryMarket
7 Day3.7%1.7%4.5%
30 Day10.7%6.2%-0.3%
90 Day18.8%15.2%1.1%
1 Year41.8%41.4%56.1%53.5%35.3%33.6%
3 Year127.9%124.2%84.1%74.1%29.0%23.3%
5 Year352.2%334.5%116.3%95.2%69.3%57.1%

Long-Term 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?

43.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KRX (€89.66) is trading above our estimate of fair value (€65.58)

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 (43.5x) compared to the European Building industry average (24x).

PE vs Market: KRX is poor value based on its PE Ratio (43.5x) compared to the Irish market (28.7x).


Price to Earnings Growth Ratio

PEG Ratio: KRX is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: KRX is overvalued based on its PB Ratio (6.9x) compared to the XE Building industry average (2.9x).


Future Growth

How is Kingspan Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRX's forecast earnings growth (10.8% per year) is above the savings rate (0.5%).

Earnings vs Market: KRX's earnings (10.8% per year) are forecast to grow slower than the Irish market (33.1% per year).

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

Revenue vs Market: KRX's revenue (9.8% per year) is forecast to grow slower than the Irish market (10.8% per year).

High Growth Revenue: KRX's revenue (9.8% 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 (16.4%).


Past Performance

How has Kingspan Group performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRX has high quality earnings.

Growing Profit Margin: KRX's current net profit margins (8.2%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: KRX's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: KRX's earnings growth over the past year (1.2%) is below its 5-year average (11.7% per year).

Earnings vs Industry: KRX earnings growth over the past year (1.2%) underperformed the Building industry 28.9%.


Return on Equity

High ROE: KRX's Return on Equity (16%) is considered low.


Financial Health

How is Kingspan Group's financial position?


Financial Position Analysis

Short Term Liabilities: KRX's short term assets (€2.7B) exceed its short term liabilities (€1.2B).

Long Term Liabilities: KRX's short term assets (€2.7B) exceed its long term liabilities (€1.7B).


Debt to Equity History and Analysis

Debt Level: KRX's debt to equity ratio (66%) is considered high.

Reducing Debt: KRX's debt to equity ratio has increased from 43.8% to 66% over the past 5 years.

Debt Coverage: KRX's debt is well covered by operating cash flow (40.3%).

Interest Coverage: KRX's interest payments on its debt are well covered by EBIT (21.4x coverage).


Balance Sheet


Dividend

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

0.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KRX's dividend (0.23%) isn’t notable compared to the bottom 25% of dividend payers in the Irish market (1.36%).

High Dividend: KRX's dividend (0.23%) is low compared to the top 25% of dividend payers in the Irish market (4.14%).


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

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

4.9yrs

Average management tenure


CEO

Gene Murtagh (49 yo)

16.5yrs

Tenure

€3,190,000

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 2005. He served as th...


CEO Compensation Analysis

Compensation vs Market: Gene's total compensation ($USD3.77M) is about average for companies of similar size in the Irish market ($USD5.17M).

Compensation vs Earnings: Gene's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KRX's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: KRX's board of directors are considered experienced (7.2 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.


Ownership Breakdown

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


Top Shareholders

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: €16.229b
  • Shares outstanding: 181.21m
  • Website: https://www.kingspan.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 21:29
End of Day Share Price2021/07/28 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.