KWS SAAT SE & CO KGAA (KWS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:KWS - DE0007074007 - Common Stock
75.3 EUR
-0.7 (-0.92%)
Overall KWS gets a fundamental rating of 6 out of 10. We evaluated KWS against 62 industry peers in the Food Products industry. Both the health and profitability get an excellent rating, making KWS a very profitable company, without any liquidiy or solvency issues. KWS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- KWS had positive earnings in the past year.
- KWS had a positive operating cash flow in the past year.
- KWS had positive earnings in each of the past 5 years.
- Each year in the past 5 years KWS had a positive operating cash flow.
1.2 Ratios
- KWS has a better Return On Assets (5.73%) than 77.42% of its industry peers.
- KWS has a Return On Equity (9.94%) which is comparable to the rest of the industry.
- KWS has a Return On Invested Capital of 9.12%. This is amongst the best in the industry. KWS outperforms 80.65% of its industry peers.
- KWS had an Average Return On Invested Capital over the past 3 years of 7.87%. This is in line with the industry average of 7.38%.
- The 3 year average ROIC (7.87%) for KWS is below the current ROIC(9.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 9.94% | ||
| ROIC | 9.12% |
ROA(3y)5.96%
ROA(5y)5.32%
ROE(3y)11.31%
ROE(5y)10.62%
ROIC(3y)7.87%
ROIC(5y)6.77%
1.3 Margins
- KWS has a Profit Margin of 9.48%. This is amongst the best in the industry. KWS outperforms 83.87% of its industry peers.
- In the last couple of years the Profit Margin of KWS has grown nicely.
- Looking at the Operating Margin, with a value of 15.95%, KWS belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
- In the last couple of years the Operating Margin of KWS has grown nicely.
- KWS has a better Gross Margin (63.84%) than 93.55% of its industry peers.
- In the last couple of years the Gross Margin of KWS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.95% | ||
| PM (TTM) | 9.48% | ||
| GM | 63.84% |
OM growth 3Y14.06%
OM growth 5Y6.89%
PM growth 3Y26.28%
PM growth 5Y13.66%
GM growth 3Y4.73%
GM growth 5Y2%
2. Health
2.1 Basic Checks
- KWS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for KWS remains at a similar level compared to 1 year ago.
- KWS has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for KWS has been reduced compared to a year ago.
2.2 Solvency
- KWS has an Altman-Z score of 3.34. This indicates that KWS is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of KWS (3.34) is better than 75.81% of its industry peers.
- The Debt to FCF ratio of KWS is 2.54, which is a good value as it means it would take KWS, 2.54 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of KWS (2.54) is better than 90.32% of its industry peers.
- A Debt/Equity ratio of 0.20 indicates that KWS is not too dependend on debt financing.
- KWS's Debt to Equity ratio of 0.20 is amongst the best of the industry. KWS outperforms 85.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.42
WACC6.4%
2.3 Liquidity
- KWS has a Current Ratio of 2.14. This indicates that KWS is financially healthy and has no problem in meeting its short term obligations.
- KWS has a better Current ratio (2.14) than 82.26% of its industry peers.
- A Quick Ratio of 1.38 indicates that KWS should not have too much problems paying its short term obligations.
- With an excellent Quick ratio value of 1.38, KWS belongs to the best of the industry, outperforming 82.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
- The earnings per share for KWS have decreased strongly by -21.25% in the last year.
- KWS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.91% yearly.
- Looking at the last year, KWS shows a very negative growth in Revenue. The Revenue has decreased by -14.03% in the last year.
- KWS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.50% yearly.
EPS 1Y (TTM)-21.25%
EPS 3Y29.91%
EPS 5Y19.91%
EPS Q2Q%-114.15%
Revenue 1Y (TTM)-14.03%
Revenue growth 3Y2.88%
Revenue growth 5Y5.5%
Sales Q2Q%-8.21%
3.2 Future
- KWS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.67% yearly.
- The Revenue is expected to grow by 3.80% on average over the next years.
EPS Next Y17.27%
EPS Next 2Y7.81%
EPS Next 3Y7.18%
EPS Next 5Y5.67%
Revenue Next Year2.86%
Revenue Next 2Y3.14%
Revenue Next 3Y3.25%
Revenue Next 5Y3.8%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.75, the valuation of KWS can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of KWS is on the same level as its industry peers.
- KWS'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 12.80, KWS is valued correctly.
- 61.29% of the companies in the same industry are more expensive than KWS, based on the Price/Forward Earnings ratio.
- KWS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
- 69.35% of the companies in the same industry are more expensive than KWS, based on the Enterprise Value to EBITDA ratio.
- 74.19% of the companies in the same industry are more expensive than KWS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.34 | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- KWS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)0.79
EPS Next 2Y7.81%
EPS Next 3Y7.18%
5. Dividend
5.1 Amount
- KWS has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
- KWS'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, KWS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
- On average, the dividend of KWS grows each year by 8.34%, which is quite nice.
Dividend Growth(5Y)8.34%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
- KWS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y7.81%
EPS Next 3Y7.18%
KWS SAAT SE & CO KGAA / KWS.DE FAQ
Can you provide the ChartMill fundamental rating for KWS SAAT SE & CO KGAA?
ChartMill assigns a fundamental rating of 6 / 10 to KWS.DE.
What is the valuation status of KWS SAAT SE & CO KGAA (KWS.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to KWS SAAT SE & CO KGAA (KWS.DE). This can be considered as Fairly Valued.
What is the profitability of KWS stock?
KWS SAAT SE & CO KGAA (KWS.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of KWS SAAT SE & CO KGAA (KWS.DE) stock?
The Price/Earnings (PE) ratio for KWS SAAT SE & CO KGAA (KWS.DE) is 15.75 and the Price/Book (PB) ratio is 1.57.