WSE:KER

Stock Analysis Report

Executive Summary

Kernel Holding S.A. operates as a diversified agricultural company in the Black Sea region in Ukraine and Russia.

Snowflake

Fundamentals

Undervalued with excellent 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


Market Performance


7 Day Return

1.7%

KER

0.2%

PL Food

1.1%

PL Market


1 Year Return

-15.9%

KER

-14.8%

PL Food

-2.5%

PL Market

Return vs Industry: KER matched the Polish Food industry which returned -14.8% over the past year.

Return vs Market: KER underperformed the Polish Market which returned -2.5% over the past year.


Shareholder returns

KERIndustryMarket
7 Day1.7%0.2%1.1%
30 Day-6.2%-5.5%-0.5%
90 Day-15.3%-12.3%-6.7%
1 Year-14.4%-15.9%-12.4%-14.8%0.5%-2.5%
3 Year-27.5%-31.0%-22.5%-28.1%11.1%3.1%
5 Year83.8%67.6%29.0%13.3%-0.5%-12.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KER (PLN42.15) is trading below our estimate of fair value (PLN98.44)

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


Price To Earnings Ratio

PE vs Industry: KER is good value based on its PE Ratio (4.7x) compared to the Food industry average (8.1x).

PE vs Market: KER is good value based on its PE Ratio (4.7x) compared to the Polish market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: KER's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KER is good value based on its PB Ratio (0.7x) compared to the PL Food industry average (0.8x).


Next Steps

Future Growth

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

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KER's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: KER's earnings are forecast to decline over the next 3 years (-1.4% per year).

High Growth Earnings: KER's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KER's revenue (5.9% per year) is forecast to grow faster than the Polish market (5.8% per year).

High Growth Revenue: KER's revenue (5.9% 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 (11.5%).


Next Steps

Past Performance

How has Kernel Holding performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KER has become profitable over the past 5 years, growing earnings by 13.7% per year.

Accelerating Growth: KER's earnings growth over the past year (263.4%) exceeds its 5-year average (13.7% per year).

Earnings vs Industry: KER earnings growth over the past year (263.4%) exceeded the Food industry 50.2%.


Return on Equity

High ROE: KER's Return on Equity (13.3%) is considered low.


Return on Assets

ROA vs Industry: KER has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: KER's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Kernel Holding's financial position?


Financial Position Analysis

Short Term Liabilities: KER's short term assets ($1.3B) exceeds its short term liabilities ($479.8M)

Long Term Liabilities: KER's short term assets (1.3B) exceeds its long term liabilities (637.8M)


Debt to Equity History and Analysis

Debt Level: KER's debt to equity ratio (55.3%) is considered high

Reducing Debt: KER's debt to equity ratio has reduced from 72.2% to 55.3% over the past 5 years.

Debt Coverage: KER's debt is well covered by operating cash flow (26.7%).

Interest Coverage: KER's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: KER's debt is covered by short term assets (assets are 1.687260x debt).


Next Steps

Dividend

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

2.28%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.7%markettop25%7.4%industryaverage4.1%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KER's dividend (2.28%) isn’t notable compared to the bottom 25% of dividend payers in the Polish market (2.67%).

High Dividend: KER's dividend (2.28%) is low compared to the top 25% of dividend payers in the Polish market (7.37%).

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 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.8%), KER's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KER's dividends in 3 years are forecast to be covered by earnings (58.4% payout ratio).


Next Steps

Management

What is the CEO of Kernel Holding's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average board tenure


CEO

Yevgen Osypov (43yo)

0yrs

Tenure

0

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 Age and Tenure

7.8yrs

Average Tenure

45yo

Average Age

Experienced Board: KER's board of directors are considered experienced (7.8 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.


Ownership Breakdown


Management Team

  • Andrii Verevskyi (45yo)

    Founder & Chairman of the Board

    • Tenure: 0yrs
  • Viktoriia Lukianenko (44yo)

    Chief Legal Officer & Executive Director

    • Tenure: 12.1yrs
    • Compensation: US$96.00k
  • Anastasiia Ivanovna (48yo)

    CFO & Executive Director

    • Tenure: 12.1yrs
    • Compensation: US$150.00k
  • Yuriy Kovalchuk (38yo)

    Corporate Investment Director

    • Tenure: 7.8yrs
  • Yevgen Osypov (43yo)

    CEO & Executive Director

    • Tenure: 0yrs

Board Members

  • Andrii Verevskyi (45yo)

    Founder & Chairman of the Board

    • Tenure: 0yrs
  • Viktoriia Lukianenko (44yo)

    Chief Legal Officer & Executive Director

    • Tenure: 12.1yrs
    • Compensation: US$96.00k
  • Anastasiia Ivanovna (48yo)

    CFO & Executive Director

    • Tenure: 12.1yrs
    • Compensation: US$150.00k
  • Andrzej Danilczuk (56yo)

    Non-Executive Independent Director

    • Tenure: 12yrs
    • Compensation: US$45.00k
  • Sergei Shibaev (60yo)

    Non-Executive Independent Director

    • Tenure: 6.9yrs
  • Yuriy Kovalchuk (38yo)

    Corporate Investment Director

    • Tenure: 7.8yrs
  • Yevgen Osypov (43yo)

    CEO & Executive Director

    • Tenure: 0yrs
  • Nathalie Bachich (45yo)

    Non-Executive Independent Director

    • Tenure: 2.8yrs

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: zł3.454b
  • Shares outstanding: 81.94m
  • Website: https://www.kernel.ua

Number of Employees


Location

  • Kernel Holding S.A.
  • 3 Tarasa Shevchenka Lane
  • Kyiv
  • 1001
  • Ukraine

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KERWSE (Warsaw Stock Exchange)YesOrdinary Bearer SharesPLPLNNov 2007
0Q9YLSE (London Stock Exchange)YesOrdinary Bearer SharesGBPLNNov 2007

Biography

Kernel Holding S.A. operates as a diversified agricultural company in the Black Sea region in Ukraine and Russia. The company operates through three segments: Oilseed Processing, Infrastructure and Trading ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:04
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.