Kingfisher plc
Kingfisher plc Fundamental Analysis
Kingfisher plc (KGFHF) shows weak financial fundamentals with a PE ratio of 19.87, profit margin of 1.89%, and ROE of 3.91%. The company generates $12.8B in annual revenue with weak year-over-year growth of -1.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KGFHF's fundamental strength across five key dimensions:
Efficiency Score
WeakKGFHF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKGFHF trades at attractive valuation levels.
Growth Score
WeakKGFHF faces weak or negative growth trends.
Financial Health Score
ExcellentKGFHF maintains a strong and stable balance sheet.
Profitability Score
WeakKGFHF struggles to sustain strong margins.
Key Financial Metrics
Is KGFHF Expensive or Cheap?
P/E Ratio
KGFHF trades at 19.87 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KGFHF's PEG of 0.89 indicates potential undervaluation.
Price to Book
The market values Kingfisher plc at 0.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.09 times EBITDA. This is generally considered low.
How Well Does KGFHF Make Money?
Net Profit Margin
For every $100 in sales, Kingfisher plc keeps $1.89 as profit after all expenses.
Operating Margin
Core operations generate 4.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.91 in profit for every $100 of shareholder equity.
ROA
Kingfisher plc generates $2.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kingfisher plc produces operating cash flow of $1.42B, showing steady but balanced cash generation.
Free Cash Flow
Kingfisher plc produces free cash flow of $1.03B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.62 in free cash annually.
FCF Yield
KGFHF converts 21.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How KGFHF Stacks Against Its Sector Peers
| Metric | KGFHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.87 | 24.23 | Better (Cheaper) |
| ROE | 3.91% | 1121.00% | Weak |
| Net Margin | 1.89% | -640.00% (disorted) | Weak |
| Debt/Equity | 0.36 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 1.21 | 2.62 | Neutral |
| ROA | 2.15% | -8056.00% (disorted) | Weak |
KGFHF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kingfisher plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.93%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
2543.40%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
65.92%
Industry Style: Cyclical, Growth, Discretionary
High Growth