Kingfisher (KGFHY) AI Stock Analysis

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Kingfisher

(OTC:KGFHY)

66Neutral

Kingfisher's overall stock score is driven by its financial stability and strong cash flow, despite challenges in profitability and sales growth. The company has a solid balance sheet, but valuation concerns and mixed earnings call results, with notable market challenges, weigh on the score.

Kingfisher (KGFHY) vs. S&P 500 (SPY)

Market Cap

$7.32B

Dividend Yield3.42%

Average Volume (3M)55.25K

Price to Earnings (P/E)32.1

Beta (1Y)0.64

Revenue Growth0.67%

EPS Growth-44.71%

CountryUS

Employees73,178

SectorConsumer Cyclical

Sector Strength75

IndustryHome Improvement

Share Statistics

EPS (TTM)0.20

Shares Outstanding891,578,900

10 Day Avg. Volume48,250

30 Day Avg. Volume55,254

Financial Highlights & Ratios

PEG Ratio2.80

Price to Book (P/B)0.85

Price to Sales (P/S)0.00

P/FCF Ratio4.81

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Kingfisher Business Overview & Revenue Model

Company DescriptionKingfisher plc, together with its subsidiaries, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally. The company also offers property investment, finance, digital, sourcing and franchising, and IT services. It operates approximately 1,470 stores in eight countries across Europe under the B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint, and Koctas brands. The company provides its products through various channels, such as home improvement specialist stores and e-commerce. Kingfisher plc was incorporated in 1982 and is headquartered in London, the United Kingdom.

How the Company Makes MoneyKingfisher makes money primarily through the sale of home improvement and DIY products across its retail brands. The company's revenue model is centered around both physical retail stores and online sales platforms, providing a comprehensive shopping experience for consumers. Key revenue streams include the direct sale of products in categories like building materials, tools, plumbing and electrical supplies, as well as home and garden furnishings. Additionally, Kingfisher benefits from strategic sourcing and private label products that offer higher margins. Significant factors contributing to earnings include the company's expansive store network, e-commerce capabilities, and its focus on cost efficiency through supply chain optimization and operational improvements.

Kingfisher Financial Statement Overview

Summary

Kingfisher displays financial stability with a strong balance sheet and cash flow. However, there are challenges in profitability and revenue growth, as indicated by the declining net profit margin and stagnating revenue.

Income Statement

Positive

Kingfisher's income statement shows a mixed performance. The gross profit margin is stable, indicating good cost management. However, the net profit margin has been declining, with revenue growth stagnating over the past years. Despite a decent EBIT margin, the company needs to address declining profitability to boost overall performance.

Balance Sheet

Positive

Kingfisher maintains a strong balance sheet with a solid equity ratio, indicating financial stability. The debt-to-equity ratio is manageable, reflecting prudent leverage. Return on equity has seen a decline, pointing to challenges in utilizing equity efficiently to generate profits.

Cash Flow

Positive

The cash flow statement reveals a strong operating cash flow, consistently exceeding net income. Free cash flow has shown resilience, though growth has been minimal. The operating cash flow to net income ratio is robust, highlighting efficient cash generation from operations.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
12.86B	12.78B	12.98B	13.06B	13.18B	12.34B
	Gross Profit
4.76B	4.76B	4.78B	4.71B	4.85B	4.50B
	EBIT
587.00M	407.00M	580.00M	840.00M	1.06B	918.00M
	EBITDA
919.00M	1.09B	1.25B	1.32B	1.71B	1.47B
	Net Income Common Stockholders
345.00M	185.00M	345.00M	471.00M	843.00M	592.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
229.00M	297.00M	360.00M	286.00M	823.00M	1.14B
	Total Assets
11.85B	11.44B	11.90B	12.10B	12.35B	12.27B
	Total Debt
176.00M	2.32B	2.48B	2.56B	2.39B	2.52B
	Net Debt
-53.00M	2.02B	2.16B	2.28B	1.57B	1.38B
	Total Liabilities
5.70B	5.10B	5.30B	5.44B	5.57B	5.70B
	Stockholders Equity
6.15B	6.34B	6.60B	6.66B	6.78B	6.57B
Cash Flow		Free Cash Flow
1.05B	980.00M	954.00M	368.00M	752.00M	1.35B
	Operating Cash Flow
1.40B	1.30B	1.32B	824.00M	1.16B	1.63B
	Investing Cash Flow
-332.00M	-316.00M	-339.00M	-441.00M	-389.00M	-213.00M
	Financing Cash Flow
-914.00M	-997.00M	-898.00M	-938.00M	-1.01B	-536.00M

Kingfisher Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.38

Price Trends

50DMA

7.11

Positive

100DMA

6.62

Positive

200DMA

7.02

Positive

Market Momentum

MACD

0.37

Negative

RSI

69.37

Neutral

STOCH

91.97

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KGFHY, the sentiment is Positive. The current price of 8.38 is above the 20-day moving average (MA) of 7.73, above the 50-day MA of 7.11, and above the 200-day MA of 7.02, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 69.37 is Neutral, neither overbought nor oversold. The STOCH value of 91.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KGFHY.

Kingfisher Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HD	74 Outperform	$378.47B	25.54	385.37%	2.38%	4.48%	-1.27%
LOW	70 Neutral	$131.10B	19.17	-51.07%	1.96%	-3.13%	-7.21%
KGFHY	66 Neutral	$7.32B	32.14	2.87%	3.42%	0.67%	-44.71%
MHK	66 Neutral	$6.73B	14.07	6.26%	―	-2.95%	―
FND	63 Neutral	$8.56B	42.10	9.74%	―	2.96%	-9.49%
Sector *	61 Neutral	$6.97B	11.38	2.88%	3.90%	2.64%	-22.07%
TTSH	59 Neutral	$267.93M	325.54	0.66%	―	-6.41%	-91.36%

* Consumer Cyclical Sector Average

Performance Comparison

KGFHY

Kingfisher

8.38

1.74

26.20%

Home Depot

379.38

49.76

15.10%

LOW

Lowe's

234.43

9.51

4.23%

MHK

Mohawk

107.56

-11.36

-9.55%

TTSH

Tile Shop

5.99

-0.30

-4.77%

FND

Floor & Decor Holdings

79.16

-38.63

-32.80%

Kingfisher Earnings Call Summary

Earnings Call Date:Mar 25, 2025

(Q4-2025)

% Change Since: 16.07%|

Next Earnings Date:Sep 23, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong cash flow and shareholder returns, as well as market share gains in key regions and growth in e-commerce. However, these were offset by a decline in overall sales, profit decline, challenges in the French market, and losses in international segments.

Q4-2025 Updates

Positive Updates

Strong Cash Flow and Shareholder Returns

Free cash flow was strong at £511 million, reflecting good progress in reducing inventory levels. The company returned £453 million to shareholders via dividends and share buybacks, up 14% on the previous year. A new £300 million share buyback program was announced.

Market Share Gains in Key Regions

U.K. & Ireland businesses delivered total sales of £6.5 million, up 1.2%, with B&Q, TradePoint, and Screwfix all gaining market share. In Poland, total sales increased by 3.2%, supported by new store openings and market share gains.

Improving Trends in Big-Ticket Categories

In Q4, encouraging trends in big-ticket categories like kitchens and bathrooms were noted, with like-for-like sales up 1.3%.

E-commerce Growth

E-commerce sales in the U.K. & Ireland increased by 8.7%, and the company launched an e-commerce marketplace in Poland with positive early results.

Negative Updates

Decline in Overall Sales

Total sales for the group in constant currency were 0.8% lower, with like-for-like sales declining 1.7%.

Profit Decline

Adjusted profit before tax was £528 million, decreasing 7% versus the previous year. Group statutory profit before tax was £307 million, reflecting noncash impairments.

Challenges in the French Market

In France, total sales were £3.9 billion, with a like-for-like decline of 6.2% amidst a weak home improvement market.

Losses in International Segments

Screwfix France & Other recorded an overall loss of £35 million, and the Turkish joint venture contributed an overall loss of £15 million.

Company Guidance

In the recent call, Kingfisher's CFO Bhavesh Mistry provided comprehensive guidance and financial highlights for the fiscal year. The company reported total sales in constant currency that were 0.8% lower, with like-for-like sales declining by 1.7%. The adjusted profit before tax stood at £528 million, a decrease of 7% from the previous year, while statutory profit before tax was £307 million. Gross margin improved by 50 basis points to 37.3%. The company generated a strong free cash flow of £511 million and returned £453 million to shareholders through dividends and share buybacks, marking a 14% increase from the previous year. Net debt was slightly over £2 billion, with a net leverage ratio of 1.6x EBITDA. Looking forward, Kingfisher expects adjusted PBT for the upcoming fiscal year to range between £480 million and £540 million, with an anticipated free cash flow between £420 million and £480 million. The Board announced a new £300 million share buyback program, reflecting confidence in the company's cash generation capabilities. In terms of market outlook, the company anticipates varied growth scenarios across its key regions, with the UK and Ireland seeing modest growth, France facing potential declines, and Poland experiencing mixed conditions due to geopolitical uncertainties.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.