KERRY GROUP PLC-A (KRZ.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:KRZ - IE0004906560 - Common Stock
72.85 EUR
-0.3 (-0.41%)
Overall KRZ gets a fundamental rating of 6 out of 10. We evaluated KRZ against 62 industry peers in the Food Products industry. While KRZ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KRZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year KRZ was profitable.
- KRZ had a positive operating cash flow in the past year.
- KRZ had positive earnings in each of the past 5 years.
- KRZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.41%, KRZ belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
- KRZ's Return On Equity of 12.62% is fine compared to the rest of the industry. KRZ outperforms 74.19% of its industry peers.
- KRZ's Return On Invested Capital of 8.73% is fine compared to the rest of the industry. KRZ outperforms 79.03% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for KRZ is in line with the industry average of 7.38%.
- The 3 year average ROIC (8.05%) for KRZ is below the current ROIC(8.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 12.62% | ||
| ROIC | 8.73% |
ROA(3y)5.69%
ROA(5y)5.93%
ROE(3y)10.75%
ROE(5y)11.55%
ROIC(3y)8.05%
ROIC(5y)7.92%
1.3 Margins
- The Profit Margin of KRZ (11.45%) is better than 88.71% of its industry peers.
- KRZ's Profit Margin has improved in the last couple of years.
- The Operating Margin of KRZ (13.73%) is better than 83.87% of its industry peers.
- In the last couple of years the Operating Margin of KRZ has grown nicely.
- KRZ has a Gross Margin of 54.67%. This is amongst the best in the industry. KRZ outperforms 90.32% of its industry peers.
- KRZ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.73% | ||
| PM (TTM) | 11.45% | ||
| GM | 54.67% |
OM growth 3Y6.68%
OM growth 5Y2.26%
PM growth 3Y0.7%
PM growth 5Y6.26%
GM growth 3Y3.32%
GM growth 5Y1.95%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KRZ is still creating some value.
- The number of shares outstanding for KRZ has been reduced compared to 1 year ago.
- Compared to 5 years ago, KRZ has less shares outstanding
- KRZ has a worse debt/assets ratio than last year.
2.2 Solvency
- KRZ has an Altman-Z score of 2.87. This is not the best score and indicates that KRZ is in the grey zone with still only limited risk for bankruptcy at the moment.
- KRZ's Altman-Z score of 2.87 is fine compared to the rest of the industry. KRZ outperforms 72.58% of its industry peers.
- KRZ has a debt to FCF ratio of 4.95. This is a neutral value as KRZ would need 4.95 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.95, KRZ is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
- A Debt/Equity ratio of 0.43 indicates that KRZ is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.43, KRZ is doing good in the industry, outperforming 66.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.34
WACC6.49%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that KRZ should not have too much problems paying its short term obligations.
- KRZ has a Current ratio of 1.36. This is in the better half of the industry: KRZ outperforms 62.90% of its industry peers.
- A Quick Ratio of 0.99 indicates that KRZ may have some problems paying its short term obligations.
- KRZ's Quick ratio of 0.99 is fine compared to the rest of the industry. KRZ outperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.64% over the past year.
- KRZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.48% yearly.
- KRZ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.82%.
- Measured over the past years, KRZ shows a decrease in Revenue. The Revenue has been decreasing by -0.88% on average per year.
EPS 1Y (TTM)17.64%
EPS 3Y7.15%
EPS 5Y3.48%
EPS Q2Q%7.78%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y-1.95%
Revenue growth 5Y-0.88%
Sales Q2Q%-10.75%
3.2 Future
- The Earnings Per Share is expected to grow by 9.15% on average over the next years. This is quite good.
- Based on estimates for the next years, KRZ will show a small growth in Revenue. The Revenue will grow by 1.33% on average per year.
EPS Next Y3.96%
EPS Next 2Y6.37%
EPS Next 3Y7.58%
EPS Next 5Y9.15%
Revenue Next Year-13.71%
Revenue Next 2Y-5.92%
Revenue Next 3Y-2.51%
Revenue Next 5Y1.33%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- KRZ is valuated correctly with a Price/Earnings ratio of 15.08.
- Compared to the rest of the industry, the Price/Earnings ratio of KRZ indicates a somewhat cheap valuation: KRZ is cheaper than 64.52% of the companies listed in the same industry.
- KRZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 13.77 indicates a correct valuation of KRZ.
- KRZ's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, KRZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.77 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRZ is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, KRZ is valued a bit cheaper than the industry average as 66.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.52 | ||
| EV/EBITDA | 11.36 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- KRZ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.81
PEG (5Y)4.33
EPS Next 2Y6.37%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.45%, KRZ has a reasonable but not impressive dividend return.
- KRZ's Dividend Yield is comparable with the industry average which is at 2.38.
- Compared to an average S&P500 Dividend Yield of 1.82, KRZ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
- On average, the dividend of KRZ grows each year by 10.52%, which is quite nice.
Dividend Growth(5Y)10.52%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- KRZ pays out 28.40% of its income as dividend. This is a sustainable payout ratio.
- The dividend of KRZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.4%
EPS Next 2Y6.37%
EPS Next 3Y7.58%
KERRY GROUP PLC-A / KRZ.I FAQ
What is the fundamental rating for KRZ stock?
ChartMill assigns a fundamental rating of 6 / 10 to KRZ.I.
What is the valuation status of KERRY GROUP PLC-A (KRZ.I) stock?
ChartMill assigns a valuation rating of 5 / 10 to KERRY GROUP PLC-A (KRZ.I). This can be considered as Fairly Valued.
Can you provide the profitability details for KERRY GROUP PLC-A?
KERRY GROUP PLC-A (KRZ.I) has a profitability rating of 9 / 10.
What are the PE and PB ratios of KERRY GROUP PLC-A (KRZ.I) stock?
The Price/Earnings (PE) ratio for KERRY GROUP PLC-A (KRZ.I) is 15.08 and the Price/Book (PB) ratio is 1.99.
Can you provide the financial health for KRZ stock?
The financial health rating of KERRY GROUP PLC-A (KRZ.I) is 5 / 10.