KERRY GROUP PLC-A (KRZ.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:KRZ - IE0004906560 - Common Stock
72.5 EUR
+0.15 (+0.21%)
We assign a fundamental rating of 6 out of 10 to KRZ. KRZ was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- KRZ had positive earnings in the past year.
- In the past year KRZ had a positive cash flow from operations.
- Each year in the past 5 years KRZ has 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.
- KRZ has a better Return On Equity (12.62%) than 74.19% of its industry peers.
- KRZ has a Return On Invested Capital of 8.73%. This is in the better half 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
- 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.
- With an excellent Operating Margin value of 13.73%, KRZ belongs to the best of the industry, outperforming 83.87% 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 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KRZ is creating some value.
- Compared to 1 year ago, KRZ has less shares outstanding
- 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.
- Looking at the Altman-Z score, with a value of 2.86, KRZ is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
- 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.
- With a decent Debt to FCF ratio value of 4.95, KRZ is doing good in 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.
- KRZ has a Debt to Equity ratio of 0.43. This is in the better half of the industry: KRZ outperforms 66.13% of its industry peers.
| 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 Quick ratio of 0.99. This is in the better half 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
- 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%.
- 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
- 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.
- 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
- The Price/Earnings ratio is 15.01, which indicates a correct valuation of KRZ.
- KRZ's Price/Earnings ratio is a bit cheaper when compared to the industry. KRZ is cheaper than 64.52% of the companies in the same industry.
- KRZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 13.71, KRZ is valued correctly.
- 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 25.83, KRZ is valued a bit cheaper.
| 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 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.44 | ||
| EV/EBITDA | 11.26 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KRZ does not grow enough to justify the current Price/Earnings ratio.
- 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.
- 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.
- 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 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 15.01 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.