ISE:KRZ

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with limited growth.


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

2.3%

KRZ

-0.2%

IE Food

1.6%

IE Market


1 Year Return

25.3%

KRZ

14.8%

IE Food

12.7%

IE Market

Return vs Industry: KRZ exceeded the Irish Food industry which returned 14.8% over the past year.

Return vs Market: KRZ exceeded the Irish Market which returned 12.7% over the past year.


Shareholder returns

KRZIndustryMarket
7 Day2.3%-0.2%1.6%
30 Day12.8%2.1%7.3%
90 Day9.1%-2.2%19.4%
1 Year26.2%25.3%17.7%14.8%15.0%12.7%
3 Year83.6%79.6%43.0%22.2%24.6%18.7%
5 Year114.9%107.3%52.9%40.4%81.3%65.7%

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?

37.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KRZ (€117.3) is trading above our estimate of fair value (€70.62)

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 (37.5x) compared to the Food industry average (16.8x).

PE vs Market: KRZ is poor value based on its PE Ratio (37.5x) compared to the Irish market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: KRZ is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: KRZ is overvalued based on its PB Ratio (4.9x) compared to the XE Food industry average (1.2x).


Next Steps

Future Growth

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

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRZ's forecast earnings growth (12.3% per year) is above the savings rate (0.9%).

Earnings vs Market: KRZ's earnings (12.3% per year) are forecast to grow slower than the Irish market (12.6% per year).

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

Revenue vs Market: KRZ's revenue (5.1% per year) is forecast to grow faster than the Irish market (4% per year).

High Growth Revenue: KRZ's revenue (5.1% 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 (14.6%).


Next Steps

Past Performance

How has Kerry Group performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRZ has high quality earnings.

Growing Profit Margin: KRZ's current net profit margins (8%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: KRZ's earnings have grown by 8.2% 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 (-6.3%) over the past year, making it difficult to compare to the Food industry average (0.5%).


Return on Equity

High ROE: KRZ's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kerry Group's financial position?


Financial Position Analysis

Short Term Liabilities: KRZ's short term assets (€2.5B) exceeds its short term liabilities (€2.0B)

Long Term Liabilities: KRZ's short term assets (€2.5B) do not cover its long term liabilities (2.7B)


Debt to Equity History and Analysis

Debt Level: KRZ's debt to equity ratio (55.2%) is considered high.

Reducing Debt: KRZ's debt to equity ratio has reduced from 67.6% to 55.2% over the past 5 years.

Debt Coverage: KRZ's debt is well covered by operating cash flow (27.5%).

Interest Coverage: KRZ's interest payments on its debt are well covered by EBIT (14.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: KRZ's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

0.62%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%2.3%markettop25%4.2%industryaverage2.4%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: KRZ's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the Irish market (2.29%).

High Dividend: KRZ's dividend (0.62%) is low compared to the top 25% of dividend payers in the Irish market (4.24%).


Stability and Growth of Payments

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

Growing Dividend: KRZ 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: KRZ is not paying a notable dividend for the Irish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KRZ'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 Kerry Group's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Edmond Scanlon (46yo)

2.1yrs

Tenure

€2,577,000

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 ($USD2.85M) is about average for companies of similar size in the Irish market ($USD2.62M).

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


Management Age and Tenure

1.7yrs

Average Tenure

49yo

Average Age

Experienced Management: KRZ's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

58.5yo

Average Age

Experienced Board: KRZ's board of directors are considered experienced (3.1 years average tenure).


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

Sell€1,039,39408 Mar 19
Gerry Behan
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares11,009
Max Price€94.41

Ownership Breakdown

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


Management Team

  • Gerry Behan (54yo)

    Executive Director

    • Tenure: 11.5yrs
    • Compensation: €2.64m
  • Edmond Scanlon (46yo)

    Group CEO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: €2.58m
  • Catherine Keogh

    Director of Corporate Affairs & Communications

    • Tenure: 0yrs
  • Ronan Deasy

    Company Secretary & Group Financial Controller

    • Tenure: 1.7yrs
  • William Lynch

    Head of Investor Relations

    • Tenure: 0yrs
  • Michelle Healy (51yo)

    Chief HR Officer

    • Tenure: 1yrs
  • Duncan Everett

    Chief Executive Officer of Kerry Foods

    • Tenure: 0yrs
  • Marguerite Larkin (47yo)

    CFO & Director

    • Tenure: 1.2yrs
    • Compensation: €875.21k

Board Members

  • James Kenny (65yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: €117.00k
  • Chris Rogers (59yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: €68.67k
  • Karin Louise Dorrepaal (58yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: €98.00k
  • Philip Toomey (65yo)

    Independent Chairman

    • Tenure: 1.5yrs
    • Compensation: €277.67k
  • Gerry Behan (54yo)

    Executive Director

    • Tenure: 11.5yrs
    • Compensation: €2.64m
  • Joan Garahy (56yo)

    Senior Independent Director

    • Tenure: 1.5yrs
    • Compensation: €123.00k
  • Edmond Scanlon (46yo)

    Group CEO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: €2.58m
  • Hugh Brady (59yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: €98.00k
  • Tom Moran (63yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: €98.00k
  • Marguerite Larkin (47yo)

    CFO & Director

    • Tenure: 1.2yrs
    • Compensation: €875.21k

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: €20.704b
  • Shares outstanding: 176.50m
  • 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 technology based taste and nutrition solutions for the food, beverage, and pharmaceutical industries in Europe, the Mid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 20:35
End of Day Share Price2019/11/15 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.