K+S Aktiengesellschaft (SDF) AI Stock Analysis

• Market Cap: €2.14B
• Dividend Yield: 1.28%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 91.5
• Beta (1Y): 0.56
• Revenue Growth: -2.41%
• EPS Growth: -26533.42%
• Country: DE
• Employees: 11,382
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Agricultural Inputs
• EPS (TTM): -9.68
• Shares Outstanding: 179,100,000
• 10 Day Avg. Volume: 1,132,604
• 30 Day Avg. Volume: 1,171,317
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €15.05
• Price Target Upside: 28.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 45 Neutral
• Price Target: €12.00 ▲(2.30% Upside)

The overall stock score of 45 reflects significant challenges in financial performance and technical analysis. The company's profitability and cash flow issues are major concerns, compounded by bearish technical indicators. The valuation suggests potential overvaluation given the negative P/E ratio and low dividend yield.

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 (SDF) is a leading global provider of mineral-based products and services, primarily focusing on the production and marketing of potash and salt. The company operates through two main segments: Potash and Magnesium Products, and Salt. K+S supplies essential nutrients to agricultural sectors worldwide, enhancing crop yield and sustainability, while also providing industrial salt solutions for various applications, including de-icing, chemical process, and food production.

How the Company Makes Money

K+S Aktiengesellschaft generates revenue primarily through the sale of potash and magnesium products, which are crucial for agricultural fertilizers. The company's revenue model is driven by the demand for potash in the farming sector, where it is used to improve crop quality and yields. Additionally, K+S earns significant income from its salt segment, which supplies industrial salt for de-icing roads, as well as for chemical production and food processing. Key revenue streams include direct sales to farmers, distribution agreements with agricultural cooperatives, and contracts with industrial clients. The company also benefits from strategic partnerships with agricultural and chemical companies, which enhance its market reach and product offerings. Overall, K+S's earnings are influenced by global agricultural trends, market prices for potash and salt, and operational efficiencies in production.

K+S Aktiengesellschaft Financial Statement Overview

Summary

K+S Aktiengesellschaft faces challenges in profitability and cash flow generation, as reflected in the income statement and cash flow metrics. While the balance sheet remains stable, the company needs to enhance its operational efficiency and revenue growth to improve overall financial health.

Income Statement

The income statement shows significant volatility. The TTM data indicates a negative gross profit and net income, reflecting operational challenges. Revenue has declined over the past year, and margins have contracted significantly compared to previous years. The company needs to address its cost structure and revenue generation to improve profitability.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity has been negative recently, highlighting profitability issues. The equity ratio remains healthy, suggesting a strong capital base.

Cash Flow

Cash flow analysis reveals a decline in free cash flow, with negative growth in recent periods. The operating cash flow to net income ratio is below 1, indicating potential cash generation issues. The company must focus on improving cash flow efficiency to support operations.

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	-1.71B	307.60M	563.80M	2.46B	2.48B	-1.73B
EBITDA	602.60M	423.20M	807.50M	2.73B	2.85B	-1.56B
Net Income	-1.73B	-66.80M	210.20M	1.51B	2.17B	-1.89B
Balance Sheet
Total Assets	7.14B	9.35B	9.80B	9.89B	8.74B	8.39B
Cash, Cash Equivalents and Short-Term Investments	593.50M	524.10M	506.30M	1.09B	709.00M	353.00M
Total Debt	494.50M	745.90M	574.50M	948.80M	1.46B	3.63B
Total Liabilities	2.84B	3.14B	3.30B	3.17B	3.44B	6.16B
Stockholders Equity	4.30B	6.21B	6.50B	6.72B	5.30B	2.22B
Cash Flow
Free Cash Flow	8.40M	68.70M	338.80M	917.60M	-31.80M	-107.90M
Operating Cash Flow	537.10M	590.80M	821.00M	1.39B	326.90M	428.50M
Investing Cash Flow	-734.20M	-390.30M	-189.80M	-908.60M	2.10B	-465.70M
Financing Cash Flow	-374.50M	-65.70M	-795.90M	-559.60M	-2.25B	-79.90M

K+S Aktiengesellschaft Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SDF, the sentiment is Negative. The current price of 11.73 is below the 20-day moving average (MA) of 12.56, below the 50-day MA of 14.17, and below the 200-day MA of 13.36, indicating a bearish trend. The MACD of -0.69 indicates Negative momentum. The RSI at 18.72 is Positive, neither overbought nor oversold. The STOCH value of 27.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SDF.

K+S Aktiengesellschaft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.31B	6.29	0.74%	2.95%	3.36%	-36.41%
SDF	45 Neutral	€2.14B	91.49	-32.36%	1.28%	-2.41%	-26533.42%
0K7F	―	€4.30B	6.98	13.06%	―	―	―
0BFA	―	€42.28B	109.28	1.15%	―	―	―
LNXSF	―	$2.51B	―	-3.72%	0.74%	―	―
WKCMF	―	$3.86B	14.94	5.37%	3.66%	―	―
ACT	66 Neutral	€1.51B	26.01	29.12%	1.24%	1.03%	25.48%