OB:KID

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Kid ASA, together with its subsidiaries, operates as a home textile retailer in Norway.


Snowflake Analysis

Proven track record and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KID's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

KID

9.2%

NO Specialty Retail

1.7%

NO Market


1 Year Return

55.3%

KID

-2.9%

NO Specialty Retail

-13.3%

NO Market

Return vs Industry: KID exceeded the Norwegian Specialty Retail industry which returned -2.8% over the past year.

Return vs Market: KID exceeded the Norwegian Market which returned -13.3% over the past year.


Shareholder returns

KIDIndustryMarket
7 Day0%9.2%1.7%
30 Day25.5%6.6%2.4%
90 Day19.6%-12.6%-7.2%
1 Year62.2%55.3%-1.1%-2.9%-10.5%-13.3%
3 Year83.7%54.2%-27.0%-34.8%-8.1%-1.8%
5 Yearn/a-21.5%-33.6%-3.3%2.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KID (NOK66) is trading below our estimate of fair value (NOK188.69)

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


Price To Earnings Ratio

PE vs Industry: KID is poor value based on its PE Ratio (13.5x) compared to the Specialty Retail industry average (11.6x).

PE vs Market: KID is poor value based on its PE Ratio (13.5x) compared to the Norwegian market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: KID is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: KID is overvalued based on its PB Ratio (2.3x) compared to the XE Specialty Retail industry average (1x).


Next Steps

Future Growth

How is Kid forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KID's forecast earnings growth (16.1% per year) is above the savings rate (1.6%).

Earnings vs Market: KID's earnings (16.1% per year) are forecast to grow slower than the Norwegian market (35.3% per year).

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

Revenue vs Market: KID's revenue (8.4% per year) is forecast to grow faster than the Norwegian market (5% per year).

High Growth Revenue: KID's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KID's Return on Equity is forecast to be high in 3 years time (20.9%)


Next Steps

Past Performance

How has Kid performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KID has high quality earnings.

Growing Profit Margin: KID's current net profit margins (7.8%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: KID's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: KID's earnings growth over the past year (16.5%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: KID earnings growth over the past year (16.5%) exceeded the Specialty Retail industry -0.01%.


Return on Equity

High ROE: KID's Return on Equity (17.1%) is considered low.


Next Steps

Financial Health

How is Kid's financial position?


Financial Position Analysis

Short Term Liabilities: KID's short term assets (NOK677.6M) do not cover its short term liabilities (NOK732.5M).

Long Term Liabilities: KID's short term assets (NOK677.6M) do not cover its long term liabilities (NOK1.4B).


Debt to Equity History and Analysis

Debt Level: KID's debt to equity ratio (53.5%) is considered high.

Reducing Debt: KID's debt to equity ratio has reduced from 97.5% to 53.5% over the past 5 years.

Debt Coverage: KID's debt is well covered by operating cash flow (63.8%).

Interest Coverage: KID's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

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

3.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KID's dividend (3.64%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.84%).

High Dividend: KID's dividend (3.64%) is low compared to the top 25% of dividend payers in the Norwegian market (7%).


Stability and Growth of Payments

Stable Dividend: KID has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KID's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.2%), KID's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KID's dividends in 3 years are forecast to be covered by earnings (66.9% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Anders Fjeld

1.42yrs

Tenure

kr2,976,000

Compensation

Mr. Anders Fjeld has been Chief Operating Officer of Kid ASA since November 01, 2018. Mr. Anders Fjeld was the Chief Operating Officer at XXL ASA since February 2016 and served as its Acting Managing Direc ...


CEO Compensation Analysis

Compensation vs Market: Anders's total compensation ($USD306.07K) is below average for companies of similar size in the Norwegian market ($USD481.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anders Fjeld
Chief Executive Officer1.42yrskr2.98m0.22% NOK5.9m
Henrik Frisell
Chief Financial Officer (Leave of Absence)0.17yrkr1.81mno data
Eystein Lund
Interim Chief Financial Officer0.17yrno data0.14% NOK3.8m
Marianne Fulford
Head of Sourcing4yrsno datano data
Svein Faksvåg
Head of Store Operations Kid4.33yrsno datano data
Anders Lorentzson
Managing Director of Hemtex0.33yrno datano data
Cathrine Abrahamsen
Head of Business Development1.58yrsno datano data

1.4yrs

Average Tenure

Experienced Management: KID's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Karin Orgland
Director4.75yrskr249.00k0.080% NOK2.2m
Petter Schouw-Hansen
Chairman1yrkr1.04m0.11% NOK2.9m
Rune Marsdal
Director1yrno data0.024% NOK638.7k
Vilde Falck-Ytter
Director4.75yrskr191.00k0.016% NOK425.7k
Egil Stenshagen
Director2yrskr191.00k3.6% NOK96.7m

2.0yrs

Average Tenure

56yo

Average Age

Experienced Board: KID's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KID insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Kid ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kid ASA
  • Ticker: KID
  • Exchange: OB
  • Founded: 1937
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: kr2.683b
  • Shares outstanding: 40.65m
  • Website: https://www.kid.no

Number of Employees


Location

  • Kid ASA
  • Gilhusveien 1
  • Gullaug
  • Lier
  • Buskerud
  • 3426
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KIDOB (Oslo Bors)YesOrdinary SharesNONOKNov 2015
0RCWLSE (London Stock Exchange)YesOrdinary SharesGBNOKNov 2015
KIDOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKNov 2015

Biography

Kid ASA, together with its subsidiaries, operates as a home textile retailer in Norway. It designs, sources, markets, and sells a range of home and interior products, including textiles, curtains, bed linens, and other interior products. The company provides its products under the Kid, Dekosol, and Nordun brands. As of December 31, 2019, it operated 144 stores, as well as an online sales platform. Kid ASA also offers logistics services. The company was formerly known as Nordisk Tekstil Holding AS. Kid ASA was founded in 1937 and is headquartered in Lier, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 02:10
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
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.