K+S Aktiengesellschaft (SDF) AI Stock Analysis

• Market Cap: €2.61B
• Dividend Yield: 1.02%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 91.5
• Beta (1Y): 0.44
• Revenue Growth: -1.06%
• EPS Growth: N/A
• Country: DE
• Employees: 11,382
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Agricultural Inputs
• EPS (TTM): 0.40
• Shares Outstanding: 179,100,000
• 10 Day Avg. Volume: 928,736
• 30 Day Avg. Volume: 1,407,395
• PEG Ratio: 0.00
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -280.22
• 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: €16.21
• Price Target Upside: 9.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 54 Neutral
• Price Target: €15.00 ▲(1.28%Upside)

The overall stock score for K+S Aktiengesellschaft is primarily influenced by its financial performance challenges, which include declining revenue growth and operational inefficiencies. Technical indicators further highlight bearish momentum, adding downside risk. However, the stock's valuation offers some appeal with a decent dividend yield, although the absence of a P/E ratio raises concerns about profitability.

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, together with its subsidiaries, operates as a supplier of mineral products for the agricultural, industrial, consumer, and community segments worldwide. It operates through Agriculture, and Industry+ segments. The Agriculture segment offers potassium chloride for important crops, such as cereals, corn, rice, and soybeans; and fertilizer specialties that are used for crops for magnesium and sulfur, including rapeseed or potatoes, as well as for chloride-sensitive crops consisting of citrus fruits, grapes, or vegetables. The segment markets under the product brands, including KALISOP, KORN-KALI, PATENTKALI, ESTA KIESERIT, MAGNESIA-KAINIT, SOLUMOP, SOLUSOP, SOLUNOP, SOLUMAP, SOLUMKP, EPSO TOP, EPSO MICROTOP, EPSO COMBITOP, EPSO PROFITOP, and EPSO BORTOP. The Industry+ segment provides potash, magnesium, and salt products for industrial applications that are available in different degrees of purity and in specific grain sizes under the brands comprising APISAL, AXAL, BÄCKERSTOLZ, KASA, k-DRILL, NUTRIKS, and SOLSEL. The company was founded in 1889 and is based in Kassel, Germany.

How the Company Makes Money

K+S Aktiengesellschaft generates revenue through its two main business units: Agriculture and Communities & Industry. In the Agriculture sector, the company primarily earns income from the sale of potash and magnesium products used as fertilizers, which are essential for crop production. This segment serves farmers and agricultural businesses globally. In the Communities & Industry sector, K+S makes money by providing salt products for various applications, including de-icing for roads, food processing, water softening, and industrial uses. The company benefits from long-term contracts and seasonal demand, especially in the de-icing segment during winter. Key factors contributing to K+S's earnings include its extensive distribution network, strategic global presence, and continuous investment in production efficiency and innovation.

K+S Aktiengesellschaft Financial Statement Overview

Summary

K+S Aktiengesellschaft faces challenges with profitability and revenue growth, as evidenced by recent financial results. While the balance sheet remains stable with a good equity position, operational inefficiencies and substantial capital expenditures are concerns. The company needs to focus on improving cost management and enhancing revenue streams to stabilize its financial performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.65B	3.87B	5.68B	3.21B	2.43B
Gross Profit	307.60M	563.80M	2.46B	2.48B	-1.73B
EBITDA	480.20M	807.50M	2.73B	2.85B	-1.56B
Net Income	-66.80M	210.20M	1.51B	2.17B	-1.89B
Balance Sheet
Total Assets	9.35B	9.80B	9.89B	8.74B	8.39B
Cash, Cash Equivalents and Short-Term Investments	524.10M	506.30M	1.09B	709.00M	353.00M
Total Debt	745.90M	574.50M	948.80M	1.46B	3.63B
Total Liabilities	3.14B	3.30B	3.17B	3.44B	6.16B
Stockholders Equity	6.21B	6.50B	6.72B	5.30B	2.22B
Cash Flow
Free Cash Flow	68.70M	338.80M	917.60M	-31.80M	-107.90M
Operating Cash Flow	590.80M	821.00M	1.39B	326.90M	428.50M
Investing Cash Flow	-390.30M	-189.80M	-908.60M	2.10B	-465.70M
Financing Cash Flow	-65.70M	-795.90M	-559.60M	-2.25B	-79.90M

K+S Aktiengesellschaft Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.81 is below the 20-day moving average (MA) of 15.76, below the 50-day MA of 15.86, and above the 200-day MA of 13.02, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 31.18 is Neutral, neither overbought nor oversold. The STOCH value of 14.41 is Positive, 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
SDF	54 Neutral	€2.61B	91.49	0.00%	1.02%	-1.06%	―
Sector *	44 Neutral	AU$1.42B	-6.06	-40.74%	3.89%	-3.45%	-41.76%
0K7F	―	€3.95B	5.77	14.97%	1.66%	―	―
0BFA	―	€37.50B	97.76	2.02%	5.35%	―	―
LNXSF	―	$2.46B	―	-3.92%	0.40%	―	―
WKCMF	―	$3.84B	14.71	5.37%	3.66%	―	―
ACT	78 Outperform	€1.59B	29.84	29.46%	1.15%	2.51%	56.13%