KERRY GROUP PLC-A (KRZ.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:KRZ - IE0004906560 - Common Stock
72.55 EUR
-0.95 (-1.29%)
KRZ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 62 industry peers in the Food Products industry. While KRZ has a great profitability rating, 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
- KRZ had positive earnings in the past year.
- KRZ had a positive operating cash flow in the past year.
- KRZ had positive earnings in each of the past 5 years.
- In the past 5 years KRZ always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of KRZ (6.41%) is better than 76.92% of its industry peers.
- Looking at the Return On Equity, with a value of 12.62%, KRZ is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- KRZ has a Return On Invested Capital of 8.73%. This is in the better half of the industry: KRZ outperforms 73.85% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for KRZ is in line with the industry average of 7.38%.
- The last Return On Invested Capital (8.73%) for KRZ is above the 3 year average (8.05%), which is a sign of increasing profitability.
| 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
- With an excellent Profit Margin value of 11.45%, KRZ belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- KRZ's Profit Margin has improved in the last couple of years.
- KRZ's Operating Margin of 13.73% is fine compared to the rest of the industry. KRZ outperforms 80.00% of its industry peers.
- KRZ's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 54.67%, KRZ belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KRZ is 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 2.86. 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 Altman-Z score of 2.86. This is in the better half of the industry: KRZ outperforms 72.31% 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 72.31% of its industry peers.
- 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 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.35
WACC6.48%
2.3 Liquidity
- KRZ has a Current Ratio of 1.36. This is a normal value and indicates that KRZ is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.36, KRZ is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
- KRZ has a Quick Ratio of 1.36. This is a bad value and indicates that KRZ is not financially healthy enough and could expect problems in meeting its short term obligations.
- KRZ's Quick ratio of 0.99 is fine compared to the rest of the industry. KRZ outperforms 66.15% 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.
- The Earnings Per Share has been growing slightly by 3.48% on average over the past years.
- KRZ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.82%.
- The Revenue has been decreasing by -0.88% on average over the past years.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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.
- KRZ's Price/Earnings ratio is a bit cheaper when compared to the industry. KRZ is cheaper than 63.08% of the companies in the same industry.
- When comparing the Price/Earnings ratio of KRZ to the average of the S&P500 Index (27.21), we can say KRZ is valued slightly cheaper.
- KRZ is valuated correctly with a Price/Forward Earnings ratio of 13.72.
- KRZ's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of KRZ to the average of the S&P500 Index (25.98), we can say KRZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as KRZ.
- KRZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KRZ is cheaper than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.45 | ||
| EV/EBITDA | 11.28 |
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
- KRZ has a Yearly Dividend Yield of 1.45%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.38, KRZ is paying slightly less dividend.
- KRZ's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| 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
- 28.40% of the earnings are spent on dividend by KRZ. This is a low number and 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.