Kingfisher plc (KGF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Victorian Plumbing Group Plc

Kingfisher plc

Topps Tiles Plc

Travis Perkins Plc

Why is Kingfisher plc ?

Poor Management Efficiency with a low ROE of 8.39%

The company has been able to generate a Return on Equity (avg) of 8.39% signifying low profitability per unit of shareholders funds

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -2.91% of over the last 5 years

With a growth in Operating Profit of 25.55%, the company declared Very Positive results in Jul 25

INTEREST COVERAGE RATIO(Q) Highest at 1,191.94
RAW MATERIAL COST(Y) Fallen by -4.14% (YoY)
CASH AND EQV(HY) Highest at GBP 640 MM

With ROE of 6.21%, it has a expensive valuation with a 0.92 Price to Book Value

Over the past year, while the stock has generated a return of 11.42%, its profits have fallen by -1% ; the PEG ratio of the company is 5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kingfisher plc should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kingfisher plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kingfisher plc

8.93%

0.30

31.42%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.34%

EBIT Growth (5y)

-2.91%

EBIT to Interest (avg)

5.68

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.84

Tax Ratio

37.89%

Dividend Payout Ratio

123.26%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

12.81%

ROE (avg)

8.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.92

EV to EBIT

8.82

EV to EBITDA

4.39

EV to Capital Employed

0.92

EV to Sales

0.44

PEG Ratio

5.04

Dividend Yield

3.77%

ROCE (Latest)

10.43%

ROE (Latest)

6.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,191.94

RAW MATERIAL COST(Y)

Fallen by -4.14% (YoY

CASH AND EQV(HY)

Highest at GBP 640 MM

DEBT-EQUITY RATIO (HY)

Lowest at 27.1 %

OPERATING PROFIT(Q)

Highest at GBP 739 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.85 %

PRE-TAX PROFIT(Q)

Highest at GBP 347 MM

EPS(Q)

Highest at GBP 0.13

-2What is not working for the Company

ROCE(HY)

Lowest at 2.86%

Here's what is working for Kingfisher plc

Interest Coverage Ratio

Highest at 1,191.94

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at GBP 739 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 10.85 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 347 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

EPS

Highest at GBP 0.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Cash and Eqv

Highest at GBP 640 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 27.1 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -4.14% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales