KERRY GROUP PLC-A (KRZ.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:KRZ - IE0004906560 - Common Stock
72.55 EUR
-0.95 (-1.29%)
We assign a fundamental rating of 6 out of 10 to KRZ. KRZ was compared to 64 industry peers in the Food Products industry. KRZ scores excellent on profitability, but 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.
- Each year in the past 5 years KRZ has been profitable.
- KRZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of KRZ (6.41%) is better than 76.56% of its industry peers.
- With a decent Return On Equity value of 12.62%, KRZ is doing good in the industry, outperforming 70.31% of the companies in the same industry.
- KRZ has a better Return On Invested Capital (8.73%) than 73.44% 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 7.95%.
- 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
- KRZ has a better Profit Margin (11.45%) than 84.38% of its industry peers.
- KRZ's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 13.73%, KRZ is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
- KRZ's Operating Margin has improved in the last couple of years.
- KRZ has a Gross Margin of 54.67%. This is amongst the best in the industry. KRZ outperforms 92.19% of its industry peers.
- In the last couple of years the Gross Margin of KRZ has grown nicely.
| 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.
- KRZ has less shares outstanding than it did 1 year ago.
- KRZ has less shares outstanding than it did 5 years ago.
- 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 has a better Altman-Z score (2.87) than 73.44% 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.
- KRZ has a better Debt to FCF ratio (4.95) than 71.88% of its industry peers.
- KRZ has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
- KRZ's Debt to Equity ratio of 0.43 is fine compared to the rest of the industry. KRZ outperforms 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.35
WACC6.48%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that KRZ should not have too much problems paying its short term obligations.
- The Current ratio of KRZ (1.36) is better than 62.50% 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 65.63% 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.
- Measured over the past 5 years, KRZ shows a small growth in Earnings Per Share. The EPS has been growing by 3.48% on average per year.
- Looking at the last year, KRZ shows a small growth in Revenue. The Revenue has grown by 3.82% in the last year.
- 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
- KRZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.15% yearly.
- KRZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.33% yearly.
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 15.02.
- 64.06% of the companies in the same industry are more expensive than KRZ, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. KRZ is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 13.72, KRZ is valued correctly.
- KRZ's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. KRZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
- KRZ's Enterprise Value to EBITDA ratio is in line with the industry average.
- KRZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KRZ is cheaper than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.45 | ||
| EV/EBITDA | 11.41 |
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)3.79
PEG (5Y)4.32
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 slightly below the industry average, which is at 2.42.
- KRZ's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| 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 8 / 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 15.02 and the Price/Book (PB) ratio is 1.98.
Can you provide the financial health for KRZ stock?
The financial health rating of KERRY GROUP PLC-A (KRZ.I) is 5 / 10.