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

Topps Tiles Plc

Kingfisher 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

Poor long term growth as Operating profit has grown by an annual rate -7.14% of over the last 5 years

Flat results in Jan 26

OPERATING PROFIT MARGIN(Q) Lowest at 9.19 %
NET PROFIT(Q) Lowest at GBP 78.02 MM

With ROE of 5.12%, it has a expensive valuation with a 0.77 Price to Book Value

Over the past year, while the stock has generated a return of 2.98%, its profits have fallen by -21.5%

Underperformed the market in the last 1 year

The stock has generated a return of 2.98% in the last 1 year, much lower than market (FTSE 100) returns of 17.87%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kingfisher plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kingfisher plc

2.98%

0.11

30.33%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.96%

EBIT Growth (5y)

-7.14%

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)

1.86

Tax Ratio

37.89%

Dividend Payout Ratio

88.45%

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

0.77

EV to EBIT

7.42

EV to EBITDA

3.62

EV to Capital Employed

0.77

EV to Sales

0.36

PEG Ratio

Dividend Yield

4.68%

ROCE (Latest)

10.35%

ROE (Latest)

5.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 1,829.79%

RAW MATERIAL COST(Y)

Fallen by -3.02% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.92 times

DEBTORS TURNOVER RATIO(HY)

Highest at 45.26 times

-5What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at 9.19 %

NET PROFIT(Q)

Lowest at GBP 78.02 MM

Here's what is working for Kingfisher plc

Inventory Turnover Ratio

Highest at 2.92 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 45.26 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 1,829.79%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.02% (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

Depreciation

Highest at GBP 339 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Kingfisher plc

Net Profit

At GBP 78.02 MM has Fallen at -50.93%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Operating Profit Margin

Lowest at 9.19 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at GBP 78.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)