WSE:KER

Stock Analysis Report

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Executive Summary

Kernel Holding S.A. operates as a diversified agricultural company in Ukraine, Europe, and North America. More Details


Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.9%

KER

-0.9%

PL Food

-3.1%

PL Market


1 Year Return

-5.1%

KER

-1.2%

PL Food

-16.3%

PL Market

Return vs Industry: KER underperformed the Polish Food industry which returned -1.2% over the past year.

Return vs Market: KER exceeded the Polish Market which returned -16.3% over the past year.


Shareholder returns

KERIndustryMarket
7 Day1.9%-0.9%-3.1%
30 Day1.8%0.4%-4.6%
90 Day-1.4%-2.0%-10.5%
1 Year-2.6%-5.1%1.8%-1.2%-15.5%-16.3%
3 Year-14.3%-19.3%-21.0%-27.0%-26.1%-30.5%
5 Year-16.5%-23.9%-14.9%-25.1%-15.6%-24.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KER (PLN39.95) is trading above our estimate of fair value (PLN38.06)

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


Price To Earnings Ratio

PE vs Industry: KER is good value based on its PE Ratio (7.3x) compared to the PL Food industry average (12.6x).

PE vs Market: KER is good value based on its PE Ratio (7.3x) compared to the Polish market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: KER is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: KER is good value based on its PB Ratio (0.6x) compared to the PL Food industry average (0.7x).


Next Steps

Future Growth

How is Kernel Holding forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KER's forecast earnings growth (19.7% per year) is above the savings rate (2.9%).

Earnings vs Market: KER's earnings (19.7% per year) are forecast to grow faster than the Polish market (14.7% per year).

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

Revenue vs Market: KER's revenue (2.6% per year) is forecast to grow slower than the Polish market (4.8% per year).

High Growth Revenue: KER's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KER's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Kernel Holding performed over the past 5 years?

-13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KER has a large one-off loss of $38.5M impacting its June 30 2020 financial results.

Growing Profit Margin: KER's current net profit margins (2.9%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: KER's earnings have declined by 13% per year over the past 5 years.

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

Earnings vs Industry: KER had negative earnings growth (-37.7%) over the past year, making it difficult to compare to the Food industry average (-29.4%).


Return on Equity

High ROE: KER's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Kernel Holding's financial position?


Financial Position Analysis

Short Term Liabilities: KER's short term assets ($1.5B) exceed its short term liabilities ($412.6M).

Long Term Liabilities: KER's short term assets ($1.5B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: KER's debt to equity ratio (68.1%) is considered high.

Reducing Debt: KER's debt to equity ratio has increased from 51.2% to 68.1% over the past 5 years.

Debt Coverage: KER's debt is well covered by operating cash flow (26.5%).

Interest Coverage: KER's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Kernel Holding current dividend yield, its reliability and sustainability?

2.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KER's dividend (2.42%) is higher than the bottom 25% of dividend payers in the Polish market (1.79%).

High Dividend: KER's dividend (2.42%) is low compared to the top 25% of dividend payers in the Polish market (5.85%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KER has been paying a dividend for less than 10 years.

Growing Dividend: KER has only been paying a dividend for 7 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.6%), KER's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KER's dividends in 3 years are forecast to be well covered by earnings (39.4% payout ratio).


Next Steps

Management

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

8.8yrs

Average board tenure


CEO

Yevgen Osypov (44 yo)

no data

Tenure

Mr. Yevgen Osypov serves as an Executive Director at Kernel Holding S.A. since December 11, 2017. He serves as Chief Executive Officer at Kernel Holding S.A. and served as its General Manager of Farming. M ...


Board Members

NamePositionTenureCompensationOwnership
Andrii Verevskyi
Founder & Chairman of the Boardno datano datano data
Anastasiia Ivanovna
CFO & Executive Director13.08yrsUS$150.00kno data
Viktoriia Lukianenko
Chief Legal Officer & Executive Director13.08yrsUS$96.00kno data
Yevgen Osypov
CEO & Executive Directorno datano datano data
Yuriy Kovalchuk
Corporate Investment Director8.83yrsno datano data
Andrzej Danilczuk
Non-Executive Independent Director13yrsUS$45.00kno data
Sergei Shibaev
Non-Executive Independent Director7.92yrsno datano data
Nathalie Bachich
Non-Executive Independent Director3.83yrsno datano data

8.8yrs

Average Tenure

46yo

Average Age

Experienced Board: KER's board of directors are considered experienced (8.8 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 been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

Kernel Holding S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kernel Holding S.A.
  • Ticker: KER
  • Exchange: WSE
  • Founded: 1995
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: zł3.340b
  • Shares outstanding: 84.03m
  • Website: https://www.kernel.ua

Number of Employees


Location

  • Kernel Holding S.A.
  • 3 Tarasa Shevchenka Lane
  • Kiev
  • Kyyivska obl.
  • 1001
  • Ukraine

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KERWSE (Warsaw Stock Exchange)YesOrdinary Bearer SharesPLPLNNov 2007
0Q9YLSE (London Stock Exchange)YesOrdinary Bearer SharesGBPLNNov 2007
0KEDB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURNov 2007

Biography

Kernel Holding S.A. operates as a diversified agricultural company in Ukraine, Europe, and North America. The company operates through three segments: Oilseed Processing, Infrastructure and Trading, and Fa ...


Company Analysis and Financial Data Status

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


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.