OTCPK:KGDE.Y

Stock Analysis Report

Kingdee International Software Group

Executive Summary

Kingdee International Software Group Company Limited, an investment holding company, engages in enterprise resource planning business.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

KGDE.Y

2.6%

US Software

5.3%

US Market


1 Year Return

n/a

KGDE.Y

9.5%

US Software

-10.7%

US Market

Return vs Industry: Insufficient data to determine how KGDE.Y performed against the US Software industry.

Return vs Market: Insufficient data to determine how KGDE.Y performed against the US Market.


Shareholder returns

KGDE.YIndustryMarket
7 Day0%2.6%5.3%
30 Day0%-7.9%-13.6%
90 Dayn/a-3.2%-19.8%
1 Yearn/a10.6%9.5%-8.9%-10.7%
3 Yearn/a106.4%97.6%15.5%8.0%
5 Year138.6%137.2%173.9%154.7%35.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Kingdee International Software Group undervalued compared to its fair value and its price relative to the market?

0.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KGDE.Y ($135) is trading below our estimate of fair value ($135.28)

Significantly Below Fair Value: KGDE.Y is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KGDE.Y is poor value based on its PE Ratio (82x) compared to the Software industry average (40x).

PE vs Market: KGDE.Y is poor value based on its PE Ratio (82x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: KGDE.Y is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: KGDE.Y is overvalued based on its PB Ratio (5.2x) compared to the US Software industry average (4.3x).


Next Steps

Future Growth

How is Kingdee International Software Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KGDE.Y's forecast earnings growth (15% per year) is above the savings rate (1.7%).

Earnings vs Market: KGDE.Y's earnings (15% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: KGDE.Y's revenue (17.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: KGDE.Y's revenue (17.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KGDE.Y's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Kingdee International Software Group performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KGDE.Y has high quality earnings.

Growing Profit Margin: KGDE.Y's current net profit margins (11.2%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: KGDE.Y's earnings have grown by 16.3% per year over the past 5 years.

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

Earnings vs Industry: KGDE.Y had negative earnings growth (-9.6%) over the past year, making it difficult to compare to the Software industry average (18.7%).


Return on Equity

High ROE: KGDE.Y's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is Kingdee International Software Group's financial position?


Financial Position Analysis

Short Term Liabilities: KGDE.Y's short term assets (CN¥4.2B) exceed its short term liabilities (CN¥2.0B).

Long Term Liabilities: KGDE.Y's short term assets (CN¥4.2B) exceed its long term liabilities (CN¥276.4M).


Debt to Equity History and Analysis

Debt Level: KGDE.Y's debt to equity ratio (3.2%) is considered satisfactory.

Reducing Debt: KGDE.Y's debt to equity ratio has reduced from 91.4% to 3.2% over the past 5 years.

Debt Coverage: KGDE.Y's debt is well covered by operating cash flow (482.4%).

Interest Coverage: KGDE.Y earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: KGDE.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: KGDE.Y's debt is covered by short term assets (assets are 21.2x debt).


Next Steps

Dividend

What is Kingdee International Software Group's current dividend yield, its reliability and sustainability?

0.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KGDE.Y's dividend (0.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: KGDE.Y's dividend (0.12%) is low compared to the top 25% of dividend payers in the US market (5.37%).


Stability and Growth of Payments

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

Growing Dividend: KGDE.Y is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: KGDE.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KGDE.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Robert Xu (56yo)

11.33s

Tenure

CN¥12,591,000

Compensation

Mr. Shao Chun Xu, also known as Robert, has been Chief Executive Officer of Kingdee Software (China) Company Limited since February 02, 2012. Mr. Xu founded Kingdee International Software Group Co. Ltd in  ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD1.78M) is below average for companies of similar size in the US market ($USD5.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Shao Xu
Founder11.33yrsCN¥12.59m22.01% CN¥976.0m
Bo Lin
CFO, Senior VP & Executive Director4.08yrsCN¥6.61m0.10% CN¥4.6m
Yong Zhang
Senior Vice President of Kingdee Software (China) Co Ltdno datano datano data
Guang Li
President of Kingdee Deekingno datano datano data
Yan Sun
President of Kingdee Software (China) Co Ltdno datano datano data
Man Ho Siu
Company Secretary0.67yrno datano data

4.3yrs

Average Tenure

45.5yo

Average Age

Experienced Management: KGDE.Y's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shao Xu
Founder11.33yrsCN¥12.59m22.01% CN¥976.0m
Bo Lin
CFO, Senior VP & Executive Director4.08yrsCN¥6.61m0.10% CN¥4.6m
Gary Clark Biddle
Independent Non-Executive Director15.58yrsCN¥225.00k0.036% CN¥1.6m
Ming Dong
Non-Executive Director7.67yrsCN¥175.00kno data
Po-Shun Wu
Board Observer11.58yrsno datano data
Chia Liu
Independent Non-Executive Director6.08yrsCN¥175.00k0.0060% CN¥267.0k
Yang Cao
Independent Non-Executive Director2.08yrsCN¥150.00kno data
Bo Wen Zhou
Non-Executive Director0.083yrno datano data

6.1yrs

Average Tenure

58yo

Average Age

Experienced Board: KGDE.Y's board of directors are considered experienced (6.1 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 3.5%.


Top Shareholders

Company Information

Kingdee International Software Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kingdee International Software Group Company Limited
  • Ticker: KGDE.Y
  • Exchange: OTCPK
  • Founded: 1991
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$34.378b
  • Listing Market Cap: HK$4.435b
  • Shares outstanding: 3.32b
  • Website: https://www.kingdee.com

Number of Employees


Location

  • Kingdee International Software Group Company Limited
  • Kingdee Software Park
  • No.2 Kejinan 12 Road
  • Shenzhen
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KGDE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2001
268SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2001
KDICDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2001
268SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2001
268SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2001
KGDE.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2009

Biography

Kingdee International Software Group Company Limited, an investment holding company, engages in enterprise resource planning business. The company operates through ERP Business, Cloud Services Business, and Investment Properties Operating Business segments. The ERP Business segment is involved in the sale and implementation of enterprise management software; provision of other related services; sale of hardware related services to enterprise management software arrangements; and sale of middleware software. The Cloud Services Business segment provides online services related to cloud service; and e-commerce and other online management services. The Investment Properties Operating Business segment operates investment properties. The company also develops, designs, manufactures, and sells hardware products; provides software-related and online financial services; and develops Internet and online pay technology. It serves enterprises, government agencies, and other organizations worldwide. Kingdee International Software Group Company Limited was founded in 1991 and is headquartered in Shenzhen, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:39
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.