KERRY GROUP PLC-A (KRZ.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:KRZ - IE0004906560 - Common Stock
72.5 EUR
-0.05 (-0.07%)
Taking everything into account, KRZ scores 6 out of 10 in our fundamental rating. KRZ was compared to 62 industry peers in the Food Products industry. KRZ scores excellent on profitability, but there are some minor concerns on its financial health. KRZ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year KRZ was profitable.
- In the past year KRZ had a positive cash flow from operations.
- In the past 5 years KRZ has always been profitable.
- Each year in the past 5 years KRZ had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 6.41%, KRZ belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
- With a decent Return On Equity value of 12.62%, KRZ is doing good in the industry, outperforming 74.19% of the companies in the same industry.
- KRZ has a better Return On Invested Capital (8.73%) than 79.03% of its industry peers.
- KRZ had an Average Return On Invested Capital over the past 3 years of 8.05%. This 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
- KRZ has a better Profit Margin (11.45%) 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 better Gross Margin (54.67%) than 90.32% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KRZ is 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.
- Compared to 1 year ago, KRZ has a worse debt to assets ratio.
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.
- The Altman-Z score of KRZ (2.86) is better than 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.
- KRZ's Debt to FCF ratio of 4.95 is fine compared to the rest of the industry. KRZ outperforms 74.19% of its industry peers.
- A Debt/Equity ratio of 0.43 indicates that KRZ is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.43, KRZ is in the better half of 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 | 2.86 |
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.
- With a decent Current ratio value of 1.36, KRZ is doing good in the industry, outperforming 62.90% of the companies in the same industry.
- A Quick Ratio of 0.99 indicates that KRZ may have some problems paying its short term obligations.
- KRZ has a better Quick ratio (0.99) than 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- KRZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.64%, which is quite good.
- 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%.
- 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
- The Earnings Per Share is expected to grow by 9.15% on average over the next years. This is quite good.
- The Revenue is expected to grow by 1.33% on average over the next years.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.01, the valuation of KRZ can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of KRZ indicates a somewhat cheap valuation: KRZ is cheaper than 62.90% of the companies listed 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.
- Based on the Price/Forward Earnings ratio of 13.71, the valuation of KRZ can be described as correct.
- KRZ's Price/Forward Earnings is on the same level as the industry average.
- KRZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as KRZ.
- 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 | 16.44 | ||
| 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)4.31
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.
- Compared to an average industry Dividend Yield of 2.38, KRZ has a dividend in line with its industry peers.
- 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.
- KRZ's earnings are growing slower than its dividend. 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 15.01 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.