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Kingfisher Plc Sponsored ADR (KGFHY)
:KGFHY
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Kingfisher
(OTC:KGFHY)
Select Model
Select Model
Rating:69Neutral
Price Target:
$8.50
▲(5.99% Upside)
Kingfisher's strong earnings call and financial stability are key strengths, but technical indicators suggest caution due to overbought conditions. High valuation further tempers the outlook despite a positive earnings call.
Positive Factors
Strong Cash Flow Generation
Strong cash flow generation enhances financial flexibility, enabling Kingfisher to invest in growth opportunities and return capital to shareholders.
Growth in E-commerce and Trade Sales
Significant growth in e-commerce and trade sales indicates successful adaptation to digital trends and increased market penetration among professional customers.
Operational Efficiency
Improved operational efficiency through cost initiatives strengthens margins, supporting sustainable profitability and competitive pricing.
Negative Factors
Subdued Market in France
The subdued market in France presents a challenge, potentially impacting revenue and requiring strategic adjustments to maintain market share.
Challenges in Poland
Economic challenges in Poland may hinder growth, necessitating strategic focus to mitigate risks and adapt to changing consumer behavior.
Stagnant Revenue Growth
Stagnant revenue growth suggests potential market saturation or competitive pressures, requiring innovation and market expansion strategies.
Kingfisher (KGFHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.93B
Dividend Yield3.9%
Average Volume (3M)1.18K
Price to Earnings (P/E)29.1
Beta (1Y)0.52
Revenue Growth3.13%
EPS Growth-40.82%
CountryUS
Employees73,178
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)0.41
Shares Outstanding861,854,200
10 Day Avg. Volume3,554
30 Day Avg. Volume1,184
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)0.72
Price to Sales (P/S)0.36
P/FCF Ratio4.65
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit1.83
Enterprise Value/Ebitda7.96
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.6
Revenue Forecast (FY)$16.98B
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 generates revenue through the sale of a diverse array of home improvement products across its retail chains. The company's primary revenue streams include in-store sales, online sales, and trade sales to professional customers. Kingfisher has developed a strong e-commerce platform that complements its physical stores, allowing customers to shop online and pick up in-store or have products delivered. Additionally, strategic partnerships with suppliers and manufacturers enable Kingfisher to offer competitive pricing and exclusive products, enhancing its market position. Seasonal promotions, loyalty programs, and value-added services like installation and delivery further contribute to the company's earnings.
Kingfisher Earnings Call Summary
Earnings Call Date:Sep 23, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 24, 2026
Earnings Call Sentiment Positive
The earnings call demonstrated strong first-half results with significant growth in key segments and improved profitability. Despite challenges in specific markets like France and Poland, the overall performance and raised guidance indicate a positive outlook.Q2-2026 Updates
Positive Updates
Strong First Half Results
Total sales for the group were GBP 6.8 billion, with like-for-like sales up 1.9%. Adjusted profit before tax increased by 10.2% to GBP 368 million, and adjusted EPS rose by 16.5%.
Growth in Key Segments
Double-digit growth in both trade and e-commerce sales during the half. Trade sales grew by 11.9%, and e-commerce growth was 23.8%.
Increased Profit and Cash Flow Guidance
The company has raised its profit and free cash flow guidance for the full year, expecting to achieve the upper end of the adjusted profit before tax range of GBP 480 million to GBP 540 million.
Operational Efficiency
Gross margin expanded by 100 basis points, driven by buying efficiencies and operational cost initiatives. Free cash flow generation in the half was GBP 478 million, an increase of 13.5%.
Expansion in Digital and Trade Segments
Continued investment in digital platforms and trade customer propositions, with trade now representing 28% of group sales.
Negative Updates
Subdued Market in France
The market in France remained subdued with low consumer confidence and increased promotional activity affecting performance.
Challenges in Poland
The economic backdrop in Poland was challenging in the first half due to high interest rates and political uncertainty, impacting discretionary spending.
Impact of Seasonal Sales
Record warm weather in the UK led to an early pull-forward of seasonal sales, which might affect future comparatives.
Company Guidance
During the Kingfisher plc half-year results call for the fiscal year 2025-2026, the company reported a strong financial performance with several key metrics. Total group sales reached GBP 6.8 billion, with like-for-like sales growth of 1.9%, excluding a negative calendar impact of 0.6%. The adjusted profit before tax increased by 10.2% to GBP 368 million, while adjusted EPS rose by 16.5% to 15.3p. The gross margin improved by 100 basis points, and retail operating margin expanded by 40 basis points. Free cash flow generation was GBP 478 million, marking a 13.5% increase, with net leverage standing at 1.3x. The company raised its profit and free cash flow guidance for the full year, expecting to deliver at the upper end of its adjusted profit range of GBP 480 million to GBP 540 million and increasing its free cash flow guidance to GBP 480 million to GBP 520 million. Additionally, the company plans to accelerate its GBP 300 million share buyback program, targeting completion by March 2026.Kingfisher Financial Statement Overview
Summary
Kingfisher demonstrates financial stability with a strong balance sheet and robust cash flow. However, challenges in profitability and stagnant revenue growth need addressing to enhance future performance.Income Statement
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.65
Positive
Balance Sheet
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.78
Positive
Cash Flow
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.72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.78B | 12.78B | 12.98B | 13.06B | 13.18B | 12.34B |
| Gross Profit | 4.76B | 4.76B | 4.78B | 4.71B | 4.85B | 4.50B |
| EBITDA | 1.09B | 1.09B | 1.25B | 1.32B | 1.71B | 1.47B |
| Net Income | 185.00M | 185.00M | 345.00M | 471.00M | 843.00M | 592.00M |
Balance Sheet | ||||||
| Total Assets | 11.44B | 11.44B | 11.90B | 12.10B | 12.35B | 12.27B |
| Cash, Cash Equivalents and Short-Term Investments | 297.00M | 297.00M | 360.00M | 286.00M | 823.00M | 1.14B |
| Total Debt | 2.32B | 2.32B | 2.48B | 2.56B | 2.39B | 2.52B |
| Total Liabilities | 5.10B | 5.10B | 5.30B | 5.44B | 5.57B | 5.70B |
| Stockholders Equity | 6.34B | 6.34B | 6.60B | 6.66B | 6.78B | 6.57B |
Cash Flow | ||||||
| Free Cash Flow | 980.00M | 980.00M | 954.00M | 368.00M | 752.00M | 1.35B |
| Operating Cash Flow | 1.30B | 1.30B | 1.32B | 824.00M | 1.16B | 1.63B |
| Investing Cash Flow | -316.00M | -316.00M | -339.00M | -441.00M | -389.00M | -213.00M |
| Financing Cash Flow | -997.00M | -997.00M | -898.00M | -938.00M | -1.01B | -536.00M |
Kingfisher Technical Analysis
Positive
8.02
Price Trends
7.97
Positive
7.54
Positive
7.27
Positive
Market Momentum
-0.02
Negative
55.93
Neutral
88.55
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 8.02 is above the 20-day moving average (MA) of 7.95, above the 50-day MA of 7.97, and above the 200-day MA of 7.27, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 88.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KGFHY.
Kingfisher Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $387.57M | 20.40 | 6.32% | 5.42% | -1.05% | -24.24% | |
69 Neutral | $6.93B | 29.14 | 2.91% | 3.90% | 3.13% | -40.82% | |
66 Neutral | $355.32B | 24.34 | 162.91% | 2.67% | 7.50% | -0.38% | |
63 Neutral | $136.02B | 20.10 | ― | 2.09% | 0.64% | 0.58% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $6.86B | 31.81 | 9.69% | ― | 6.04% | 10.26% | |
50 Neutral | $285.73M | ― | -1.37% | ― | -3.77% | -146.47% |
* Consumer Cyclical Sector Average
KGFHY
Kingfisher
8.10
2.04
33.66%
HVT
Haverty
23.80
1.32
5.87%
HD
Home Depot
356.92
-62.35
-14.87%
LOW
Lowe's
242.48
-24.23
-9.08%
TTSH
Tile Shop
6.49
-0.18
-2.70%
FND
Floor & Decor Holdings
63.62
-48.36
-43.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.