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Kingfisher PLC (GB:KGF)
LSE:KGF
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Kingfisher
(LSE:KGF)70Outperform
Positive Factors
Profit Expectations
KGF shares rose +11% post a H1 profit beat, +2% FY PBT guidance upgrade, and a sizable increase in FY FCF expectations.
Strategic Focus
Kingfisher announced the sale of its Romania business, Brico Dépôt Romania for £58m, which will allow the business to have greater strategic focus on markets where it is most strongly positioned to deliver returns.
Negative Factors
Sales Performance
Kingfisher plc released a trading update showing lower-than-expected sales performance, with Group like-for-likes at -1.1% compared to the consensus of -0.2%.
Kingfisher (KGF) vs. S&P 500 (SPY)
Market Cap
£4.32B
Dividend Yield5%
Average Volume (3M)5.67M
Price to Earnings (P/E)13.1
Beta (1Y)1.23
Revenue Growth-2.09%
EPS Growth6.71%
CountryUK
Employees59,604
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)0.19
Shares Outstanding1,784,801,000
10 Day Avg. Volume5,449,987
30 Day Avg. Volume5,670,369
Financial Highlights & Ratios
PEG Ratio1.95
Price to Book (P/B)N/A
Price to Sales (P/S)0.35
Price to Cash Flow (P/CF)2.80
P/FCF Ratio3.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
283.25pPrice Target Upside16.37% Upside
Rating ConsensusHold
Number of Analyst Covering4
Kingfisher Business Overview & Revenue Model
Company DescriptionKingfisher plc is a home improvement company with over 1,360 stores in nine countries across Europe. The company operates several retail banners that are focused on trade customers and general DIY needs. Kingfisher's main retail brands include B&Q, Screwfix, and Trade Point in the United Kingdom and Castorama and Brico Depot in France. The U.K. and France are Kingfisher's largest markets, accounting for 79% of sales. The company is the second-largest DIY retailer in Europe, with a leading position in the U.K. and a number-two position in France.
How the Company Makes Money
Kingfisher Financial Statement Overview
Summary
Overall, Kingfisher presents a stable financial position with strong cash flow and low leverage, despite facing revenue challenges. The company demonstrates efficient capital management and operational stability, but must address revenue and income growth to enhance profitability and shareholder returns.Income Statement
Kingfisher's income statement reflects a mixed performance with a modest gross profit margin of 36.79% and a net profit margin of 2.66% for the latest annual period. The company experienced a revenue decline of 0.61% from the previous year, indicating challenges in maintaining sales growth. The EBIT margin of 4.47% shows a decent operational efficiency. However, the drop in revenue and net income from the previous year points to potential market or operational challenges.65
Positive
Balance Sheet
The balance sheet of Kingfisher shows a strong equity position with an equity ratio of 55.50%, indicating good financial stability. The debt-to-equity ratio stands at 0.37, which is relatively low, suggesting limited leverage and lower financial risk. The return on equity is 5.22%, reflecting moderate profitability on shareholder investment. Overall, the balance sheet appears solid with a healthy equity buffer.75
Positive
Cash Flow
Kingfisher's cash flow statement reveals a robust operating cash flow to net income ratio of 3.83, demonstrating strong cash generation relative to earnings. The free cash flow grew by 159.24%, showcasing effective capital management and investment efficiency. However, the free cash flow to net income ratio of 2.77 indicates reliance on operational cash flow to support net income, suggesting room for improving profit conversion.70
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 12.86B | 12.98B | 13.06B | 13.18B | 12.34B | 11.51B | Gross Profit |
| 4.76B | 4.78B | 4.71B | 4.85B | 4.50B | 4.18B | EBIT |
| 659.00M | 580.00M | 840.00M | 1.06B | 918.00M | 665.00M | EBITDA |
| 907.00M | 1.25B | 1.32B | 1.71B | 1.47B | 835.00M | Net Income Common Stockholders |
| 345.00M | 345.00M | 471.00M | 843.00M | 592.00M | 8.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 229.00M | 360.00M | 286.00M | 823.00M | 1.14B | 790.00M | Total Assets |
| 11.85B | 11.90B | 12.10B | 12.35B | 12.27B | 11.91B | Total Debt |
| 176.00M | 2.48B | 2.56B | 2.39B | 2.52B | 3.26B | Net Debt |
| -53.00M | 2.12B | 2.28B | 1.57B | 1.38B | 2.47B | Total Liabilities |
| 5.70B | 5.30B | 5.44B | 5.57B | 5.70B | 6.11B | Stockholders Equity |
| 6.15B | 6.60B | 6.66B | 6.78B | 6.57B | 5.80B |
| Cash Flow | Free Cash Flow | ||||
| 1.06B | 954.00M | 368.00M | 752.00M | 1.35B | 531.00M | Operating Cash Flow |
| 1.41B | 1.32B | 824.00M | 1.16B | 1.63B | 876.00M | Investing Cash Flow |
| -344.00M | -356.00M | -441.00M | -389.00M | -213.00M | -152.00M | Financing Cash Flow |
| -910.00M | -898.00M | -938.00M | -1.01B | -536.00M | -722.00M |
Kingfisher Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £4.32B | 13.09 | 5.22% | 5.00% | -2.09% | 6.71% | |
67 Neutral | £1.38B | 20.85 | 16.11% | 3.10% | 6.97% | -14.59% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
47 Neutral | £390.49M | ― | -14.20% | 8.22% | -5.98% | -677.54% |
* Consumer Cyclical Sector Average
Performance Comparison
GB:KGF
Kingfisher
243.40
25.73
11.82%
GB:CRST
Crest Nicholson Holdings
148.80
-56.93
-27.67%
GB:PSN
Persimmon
1,160.50
-139.50
-10.73%
GB:SMWH
WH Smith
1,083.00
-124.09
-10.28%
GB:TW
Taylor Wimpey
111.70
-19.18
-14.65%
GB:HOME
Home REIT PLC
11.00
-27.05
-71.09%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.