K+S Aktiengesellschaft (SDF) AI Stock Analysis

• Market Cap: €2.96B
• Dividend Yield: 0.9%
• Average Volume (3M): 849.89K
• Price to Earnings (P/E): 91.5
• Beta (1Y): 0.45
• Revenue Growth: -1.06%
• EPS Growth: N/A
• Country: DE
• Employees: 11,382
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Agricultural Inputs
• EPS (TTM): 0.41
• Shares Outstanding: 179,100,000
• 10 Day Avg. Volume: 710,995
• 30 Day Avg. Volume: 849,895
• PEG Ratio: 0.00
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -286.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €14.38
• Price Target Upside: -13.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 61 Neutral
• Price Target: €17.50 ▲(5.87%Upside)

The overall stock score is heavily influenced by the company's financial performance challenges, which are offset to some extent by strong technical momentum. The stock's valuation remains uncertain due to the lack of a P/E ratio, and the dividend yield is relatively low. No earnings call or corporate events data were available to further impact the score.

Positive Factors

Cost Management

Unit costs came down from EUR 302/t last year to EUR 272/t this year, largely due to lower energy costs.

Financial Performance

K+S managed to achieve a positive FCF of EUR 24m in Q3 and is EUR 110m YTD.

Market Environment

The potash market environment stays positive, indicating a favorable business climate for the company.

Negative Factors

Earnings Guidance

EBITDA guidance is at c.EUR 540m, therefore more towards the lower end of EUR 530-620m range and slightly below consensus of EUR 550m.

Energy Costs

Higher gas prices may have a negative impact of €-10m, affecting the company's costs.

K+S Aktiengesellschaft Business Overview & Revenue Model

Company Description

K+S Aktiengesellschaft, commonly referred to as K+S, is a German-based company primarily engaged in the production and supply of mineral products. The company operates in sectors such as agriculture, industry, consumer goods, and communities, with a strong emphasis on its potash and salt businesses. K+S is one of the world's leading suppliers of fertilizer products and salt solutions, catering to various markets globally.

How the Company Makes Money

K+S generates revenue primarily through the production and sale of potash and salt products. The company mines potash, which is a key ingredient in fertilizers, and sells it to the agricultural sector. This segment is a major revenue driver due to the constant demand for fertilizers to enhance crop yields. Additionally, K+S is a significant supplier of salt, which is used in various industries, including food processing, chemical production, and road safety during winter. The company's operations are supported by a network of mines and production facilities, and it leverages logistics and distribution partnerships to deliver its products efficiently. Key revenue streams include the sale of potash fertilizers, industrial salts, and consumer-oriented salt products. Factors such as global agricultural trends, commodity prices, and seasonal demand impact K+S's earnings.

K+S Aktiengesellschaft Financial Statement Overview

Summary

K+S Aktiengesellschaft is experiencing profitability and revenue growth challenges, highlighted by negative net income and declining revenue. The balance sheet remains stable with a solid equity position, but operational inefficiencies and substantial capital expenditures pose concerns. Improving cost management and revenue streams is essential for financial stabilization.

Income Statement

K+S Aktiengesellschaft shows a volatile income performance, with a recent negative net income and declining revenue growth. The gross profit margin has decreased significantly, indicating inefficiencies in cost management. Despite a strong EBITDA margin, the recent EBIT margin is negative, highlighting operational challenges.

Balance Sheet

The company has a solid equity base with a moderate debt-to-equity ratio, suggesting reasonable leverage. However, the return on equity has turned negative due to recent losses, impacting profitability. The equity ratio remains strong, indicating financial stability.

Cash Flow

K+S Aktiengesellschaft's cash flow from operations remains positive, but free cash flow has declined significantly. The operating cash flow to net income ratio is misleading due to recent negative net income, while capital expenditures remain substantial, affecting free cash flow growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.63B	3.65B	3.87B	5.68B	3.21B	2.43B
	Gross Profit
339.00M	307.60M	563.80M	2.46B	2.48B	-1.73B
	EBIT
-26.90M	-103.10M	325.00M	2.29B	3.85B	-1.95B
	EBITDA
536.80M	480.20M	807.50M	2.73B	2.85B	-1.56B
	Net Income Common Stockholders
0.00	-66.80M	210.20M	1.51B	2.17B	-1.89B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
714.50M	524.10M	506.30M	1.09B	709.00M	353.00M
	Total Assets
9.45B	9.35B	9.80B	9.89B	8.74B	8.39B
	Total Debt
552.80M	745.90M	574.50M	948.80M	1.46B	3.63B
	Net Debt
146.20M	428.30M	422.30M	628.80M	1.06B	3.49B
	Total Liabilities
2.94B	3.14B	3.30B	3.17B	3.44B	6.16B
	Stockholders Equity
6.51B	6.21B	6.50B	6.72B	5.30B	2.22B
Cash Flow		Free Cash Flow
-9.60M	68.70M	338.80M	917.60M	-31.80M	-107.90M
	Operating Cash Flow
528.10M	590.80M	821.00M	1.39B	326.90M	428.50M
	Investing Cash Flow
-576.10M	-390.30M	-189.80M	-908.60M	2.10B	-465.70M
	Financing Cash Flow
-25.00M	-65.70M	-795.90M	-559.60M	-2.25B	-79.90M

K+S Aktiengesellschaft Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SDF, the sentiment is Positive. The current price of 16.53 is above the 20-day moving average (MA) of 15.83, above the 50-day MA of 14.43, and above the 200-day MA of 12.26, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 70.18 is Negative, neither overbought nor oversold. The STOCH value of 82.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SDF.

K+S Aktiengesellschaft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACT	75 Outperform	€1.35B	25.36	29.46%	1.33%	2.51%	56.13%
NDA	74 Outperform	€3.57B	5.15	14.97%	1.83%	9.35%	489.33%
WCH	66 Neutral	$3.18B	12.95	5.37%	3.69%	-10.63%	-23.15%
SDF	61 Neutral	€2.96B	91.49	0.00%	0.90%	-1.06%	―
BAS	60 Neutral	€37.57B	50.72	2.02%	5.36%	-2.04%	2258.97%
LXS	55 Neutral	$2.27B	―	-3.92%	0.36%	-5.18%	-139.96%
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%