ISE:KRZ

Stock Analysis Report

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Executive Summary

Kerry Group plc, together with its subsidiaries, develops, manufactures, and delivers taste and nutrition solutions for the food, beverage, and pharmaceutical industries in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. More Details


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.5%

KRZ

-1.5%

IE Food

-1.0%

IE Market


1 Year Return

-0.5%

KRZ

-3.6%

IE Food

4.1%

IE Market

Return vs Industry: KRZ exceeded the Irish Food industry which returned -3.6% over the past year.

Return vs Market: KRZ underperformed the Irish Market which returned 4.1% over the past year.


Shareholder returns

KRZIndustryMarket
7 Day-0.5%-1.5%-1.0%
30 Day-3.1%-3.2%4.7%
90 Day-0.3%-3.3%5.2%
1 Year0.2%-0.5%-1.3%-3.6%5.4%4.1%
3 Year29.4%26.5%16.2%2.6%12.3%7.1%
5 Year52.0%46.6%33.8%20.4%22.1%13.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KRZ (€108.4) is trading above our estimate of fair value (€86.14)

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


Price To Earnings Ratio

PE vs Industry: KRZ is poor value based on its PE Ratio (35.5x) compared to the XE Food industry average (16.2x).

PE vs Market: KRZ is poor value based on its PE Ratio (35.5x) compared to the Irish market (21.7x).


Price to Earnings Growth Ratio

PEG Ratio: KRZ is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: KRZ is overvalued based on its PB Ratio (4.2x) compared to the XE Food industry average (1.1x).


Next Steps

Future Growth

How is Kerry Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRZ's forecast earnings growth (11.4% per year) is above the savings rate (0.7%).

Earnings vs Market: KRZ's earnings (11.4% per year) are forecast to grow slower than the Irish market (39.3% per year).

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

Revenue vs Market: KRZ's revenue (3.9% per year) is forecast to grow slower than the Irish market (9.9% per year).

High Growth Revenue: KRZ's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KRZ's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has Kerry Group performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRZ has high quality earnings.

Growing Profit Margin: KRZ's current net profit margins (7.6%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: KRZ's earnings have grown by 1.6% per year over the past 5 years.

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

Earnings vs Industry: KRZ had negative earnings growth (-2.4%) over the past year, making it difficult to compare to the Food industry average (5.8%).


Return on Equity

High ROE: KRZ's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is Kerry Group's financial position?


Financial Position Analysis

Short Term Liabilities: KRZ's short term assets (€3.0B) exceed its short term liabilities (€1.8B).

Long Term Liabilities: KRZ's short term assets (€3.0B) do not cover its long term liabilities (€3.5B).


Debt to Equity History and Analysis

Debt Level: KRZ's debt to equity ratio (62.2%) is considered high.

Reducing Debt: KRZ's debt to equity ratio has reduced from 64.2% to 62.2% over the past 5 years.

Debt Coverage: KRZ's debt is well covered by operating cash flow (23.3%).

Interest Coverage: KRZ's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Next Steps

Dividend

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

0.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KRZ's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the Irish market (2.37%).

High Dividend: KRZ's dividend (0.73%) is low compared to the top 25% of dividend payers in the Irish market (4.39%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.5%), KRZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KRZ's dividends in 3 years are forecast to be well covered by earnings (24.8% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Edmond Scanlon (47 yo)

3yrs

Tenure

€3,991,000

Compensation

Mr. Edmond Scanlon has been Group Chief Executive Officer and Executive Director of Kerry Group plc since October 1, 2017. Mr. Scanlon has been the Chief Executive Officer and President of Asia-Pacific at ...


CEO Compensation Analysis

Compensation vs Market: Edmond's total compensation ($USD4.72M) is about average for companies of similar size in the Irish market ($USD4.31M).

Compensation vs Earnings: Edmond's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Edmond Scanlon
Group CEO & Executive Director3yrs€3.99m0.012%
€ 2.4m
Marguerite Larkin
CFO & Director2.08yrs€1.56m0.00085%
€ 162.8k
Gerry Behan
Executive Director12.42yrs€3.73m0.031%
€ 6.0m
Ronan Deasy
Company Secretary & Group Financial Controllerno datano data0.0018%
€ 350.5k
William Lynch
Head of Investor Relationsno datano datano data
Catherine Keogh
Vice President of Corporate Affairs & Communicationsno datano datano data
Michelle Healy
Chief HR Officer1.92yrsno datano data
Nick Robinson
Chief Executive Officer of Kerry Foods0.083yrno datano data

2.1yrs

Average Tenure

50yo

Average Age

Experienced Management: KRZ's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edmond Scanlon
Group CEO & Executive Director3yrs€3.99m0.012%
€ 2.4m
Marguerite Larkin
CFO & Director2.08yrs€1.56m0.00085%
€ 162.8k
Gerry Behan
Executive Director12.42yrs€3.73m0.031%
€ 6.0m
Christopher Charles Rogers
Independent Non-Executive Director2.42yrs€103.00k0.00036%
€ 69.0k
Karin Louise Dorrepaal
Independent Non-Executive Director5.75yrs€98.00kno data
Philip Toomey
Independent Chairman2.42yrs€357.50k0.0034%
€ 651.2k
Joan Garahy
Senior Independent Director2.42yrs€128.00k0.00059%
€ 113.0k
Hugh Brady
Independent Non-Executive Director6.67yrs€98.00k0.00071%
€ 136.0k
Tom Moran
Independent Non-Executive Director5.08yrs€105.00k0.00031%
€ 59.4k
Gerard Culligan
Independent Non-Executive Director3.33yrs€78.00kno data
Con Murphy
Independent Non-Executive Director3.33yrs€78.00k0.0044%
€ 837.0k

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: KRZ's board of directors are considered experienced (3.3 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

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


Key Information

  • Name: Kerry Group plc
  • Ticker: KRZ
  • Exchange: ISE
  • Founded: 1972
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €19.154b
  • Shares outstanding: 176.70m
  • Website: https://www.kerrygroup.com

Number of Employees


Location

  • Kerry Group plc
  • Prince's Street
  • Tralee
  • Co. Kerry
  • V92 EH11
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KRZDB (Deutsche Boerse AG)YesA Ordinary SharesDEEURJan 1992
KRZISE (Irish Stock Exchange)YesA Ordinary SharesIEEURJan 1992
KYGALSE (London Stock Exchange)YesA Ordinary SharesGBEURJan 1992
KRYA.FOTCPK (Pink Sheets LLC)YesA Ordinary SharesUSUSDJan 1992
KRZIBATS-CHIXE (BATS 'Chi-X Europe')YesA Ordinary SharesGBEURJan 1992
KYGALBATS-CHIXE (BATS 'Chi-X Europe')YesA Ordinary SharesGBEURJan 1992
KYGA NBMV (Bolsa Mexicana de Valores)YesA Ordinary SharesMXMXNJan 1992
KRYA.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 2005

Biography

Kerry Group plc, together with its subsidiaries, develops, manufactures, and delivers taste and nutrition solutions for the food, beverage, and pharmaceutical industries in Europe, the Middle East, Africa, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 20:32
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.