Kingfisher (KGFHY)
OTHER OTC:KGFHY
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Kingfisher
(OTC:KGFHY)
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Rating:61Neutral
Price Target:
$8.00
▼(-8.68% Downside)
Action:ReiteratedDate:03/26/26
The score reflects solid financial stability and cash generation plus a supportive earnings update (improving profits, margin expansion, and continued buybacks/dividend). These positives are tempered by a weak technical setup (below major moving averages with negative MACD) and only middling valuation given the P/E, despite a ~4% dividend yield.
Positive Factors
Strong cash generation
Kingfisher generates sizable absolute cash flow (operating ~£1.41bn, FCF ~£1.02bn), which provides durable capacity to fund capex, dividends and buybacks. Even with a recent ~25% FCF decline, the scale of cash generation supports strategic investment and shareholder returns over the medium term.
Negative Factors
Eroding revenue and compressed margins
Revenue has trended down and margins have materially compressed versus the 2021–22 peak (net margin ~1.9% now vs ~6.4% previously). This weaker earnings power and lower ROE reduce reinvestment capacity and constrain long‑term return generation unless structural growth or margin recovery is sustained.
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Positive Factors
Negative Factors
Strong cash generation
Kingfisher generates sizable absolute cash flow (operating ~£1.41bn, FCF ~£1.02bn), which provides durable capacity to fund capex, dividends and buybacks. Even with a recent ~25% FCF decline, the scale of cash generation supports strategic investment and shareholder returns over the medium term.
Read all positive factors
Kingfisher (KGFHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.28B
Dividend Yield3.76%
Average Volume (3M)2.73K
Price to Earnings (P/E)24.7
Beta (1Y)0.61
Revenue Growth3.13%
EPS Growth-40.82%
CountryUS
Employees73,178
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)0.22
Shares Outstanding845,016,900
10 Day Avg. Volume0
30 Day Avg. Volume2,731
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)0.95
Price to Sales (P/S)0.47
P/FCF Ratio5.73
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit1.16
Enterprise Value/Ebitda4.35
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.69
Revenue Forecast (FY)$17.56B
Kingfisher Business Overview & Revenue Model
Company Description
Kingfisher 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 fran...
How the Company Makes Money
Kingfisher makes money primarily by selling home improvement and DIY products through its retail banners across physical stores and online channels. Its core revenue stream is merchandise sales (e.g., building materials, tools, hardware, kitchens,...
Kingfisher Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 22, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture: strong top‑line growth in key banners (B&Q, Screwfix), significant marketplace/e‑commerce momentum (GMV +58%, e‑commerce gains), gross margin improvement (+80bps), robust free cash flow (GBP 512m) and continued capital returns (buybacks/dividend). Strategic progress on trade, marketplace scale‑up, AI/tech and retail media underpins medium‑term optionality. Offsets include weakness in France (Castorama restructuring), some declines in Brico Dépôt and Poland for the full year, one‑off charges (GBP 5m Poland impairment), higher CapEx, and macro/geopolitical risks (energy/freight/tax lapping) that could pressure near‑term comparatives and margins. On balance, the positive execution, margin expansion and cash generation materially outweigh the lowlights, though management remains cautious on cost and market uncertainty.Positive Updates
Group Sales and Like-for-Like Growth
Total group sales of GBP 12.9 billion with like‑for‑like sales up +1.4% (ex‑calendar impact of -0.3%).
Negative Updates
France Market Weakness and Castorama Challenges
French home improvement market declined ~‑3% with Castorama like‑for‑like sales down ‑2.2% amid major restructuring and store change. French banners delivered modest retail operating profit GBP 97 million (margin 2.5%). Castorama required extensive people changes (50% store manager refresh) and ongoing store/network work.
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Q4-2026 Updates
Positive
Negative
Group Sales and Like-for-Like Growth
Total group sales of GBP 12.9 billion with like‑for‑like sales up +1.4% (ex‑calendar impact of -0.3%).
Read all positive updates
Company Guidance
Kingfisher guided to adjusted profit before tax of GBP 565–625m for FY26‑27 and free cash flow of GBP 450–510m (midpoint c.£480m), with CapEx around c.£400m; the board proposed a 12.4p dividend and launched a new GBP 300m share buyback (after completing the prior GBP 300m program), while net leverage sits at 1.4x. Contextual metrics cited were last year’s sales of GBP 12.9bn (like‑for‑like +1.4%), adjusted PBT £560m (up 6% or +13% ex prior B&Q rates refund), adjusted EPS 23.8p (+15%), free cash flow £512m, adjusted EBITDA £1.3bn and retail operating margin 5.7%; strategic targets driving the outlook include growing trade (today £1 in £3 of sales, now targeting GBP 5bn), raising e‑commerce penetration to 30% (one‑third from marketplaces), marketplace GMV £518m (up 58% YoY, cumulative B&Q GMV c.£1bn since launch), a medium‑term French margin target of c.5–7%, and a medium‑term store‑space ambition delivering 1.5–2.5% of sales per annum (27 new store openings planned).Kingfisher Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.56B | 12.78B | 12.98B | 13.06B | 13.18B |
| Gross Profit | 4.78B | 4.76B | 4.78B | 4.71B | 4.85B |
| EBITDA | 1.26B | 1.09B | 1.25B | 1.32B | 1.71B |
| Net Income | 237.74M | 185.00M | 345.00M | 471.00M | 843.00M |
Balance Sheet | |||||
| Total Assets | 11.43B | 11.44B | 11.90B | 12.10B | 12.35B |
| Cash, Cash Equivalents and Short-Term Investments | 466.39M | 297.00M | 360.00M | 286.00M | 823.00M |
| Total Debt | 2.35B | 2.32B | 2.48B | 2.56B | 2.39B |
| Total Liabilities | 5.26B | 5.10B | 5.30B | 5.44B | 5.57B |
| Stockholders Equity | 6.18B | 6.34B | 6.60B | 6.66B | 6.78B |
Cash Flow | |||||
| Free Cash Flow | 1.02B | 980.00M | 954.00M | 368.00M | 752.00M |
| Operating Cash Flow | 1.41B | 1.30B | 1.32B | 824.00M | 1.16B |
| Investing Cash Flow | -351.28M | -316.00M | -339.00M | -441.00M | -389.00M |
| Financing Cash Flow | -958.74M | -997.00M | -898.00M | -938.00M | -1.01B |
Kingfisher Technical Analysis
Negative
8.76
Price Trends
8.83
Negative
8.55
Negative
8.03
Negative
Market Momentum
-0.41
Positive
34.29
Neutral
44.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KGFHY, the sentiment is Negative. The current price of 8.76 is above the 20-day moving average (MA) of 7.90, below the 50-day MA of 8.83, and above the 200-day MA of 8.03, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 34.29 is Neutral, neither overbought nor oversold. The STOCH value of 44.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KGFHY.
Kingfisher Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $325.35B | 26.52 | 130.02% | 2.67% | 7.50% | -0.38% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $6.28B | 24.66 | 3.91% | 3.76% | 3.13% | -40.82% | |
58 Neutral | $340.59M | 18.64 | 2.79% | 5.44% | -1.05% | -24.24% | |
58 Neutral | $131.73B | 22.44 | -59.21% | 1.94% | 0.64% | 0.58% | |
56 Neutral | $5.33B | 43.30 | 8.99% | ― | 6.04% | 10.26% | |
40 Underperform | $121.85M | -34.23 | -3.93% | ― | -3.77% | -146.47% |
* Consumer Cyclical Sector Average
KGFHY
Kingfisher
7.49
1.39
22.85%
HVT
Haverty
21.03
3.80
22.04%
HD
Home Depot
326.65
-6.44
-1.93%
LOW
Lowe's
235.20
22.55
10.60%
TTSH
Tile Shop
3.06
-2.82
-47.96%
FND
Floor & Decor Holdings
49.38
-23.58
-32.32%
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.