Kerry Group plc
Kerry Group plc Fundamental Analysis
Kerry Group plc (KRYAY) shows weak financial fundamentals with a PE ratio of 17.77, profit margin of 9.75%, and ROE of 11.07%. The company generates $6.7B in annual revenue with weak year-over-year growth of -13.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KRYAY's fundamental strength across five key dimensions:
Efficiency Score
WeakKRYAY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKRYAY trades at attractive valuation levels.
Growth Score
WeakKRYAY faces weak or negative growth trends.
Financial Health Score
ExcellentKRYAY maintains a strong and stable balance sheet.
Profitability Score
WeakKRYAY struggles to sustain strong margins.
Key Financial Metrics
Is KRYAY Expensive or Cheap?
P/E Ratio
KRYAY trades at 17.77 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KRYAY's PEG of -2.43 indicates potential undervaluation.
Price to Book
The market values Kerry Group plc at 1.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.03 times EBITDA. This is generally considered low.
How Well Does KRYAY Make Money?
Net Profit Margin
For every $100 in sales, Kerry Group plc keeps $9.75 as profit after all expenses.
Operating Margin
Core operations generate 13.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.07 in profit for every $100 of shareholder equity.
ROA
Kerry Group plc generates $6.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kerry Group plc produces operating cash flow of $778.64M, showing steady but balanced cash generation.
Free Cash Flow
Kerry Group plc produces free cash flow of $511.64M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.17 in free cash annually.
FCF Yield
KRYAY converts 4.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How KRYAY Stacks Against Its Sector Peers
| Metric | KRYAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.77 | 23.01 | Better (Cheaper) |
| ROE | 11.07% | 1228.00% | Weak |
| Net Margin | 9.75% | -4008.00% (disorted) | Weak |
| Debt/Equity | 0.42 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.68 | 2.35 | Neutral |
| ROA | 6.15% | -157547.00% (disorted) | Weak |
KRYAY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kerry Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-3.37%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
30.92%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
30.70%
Industry Style: Defensive, Dividend, Low Volatility
High Growth