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Kingfisher (KGFHY)
OTHER OTC:KGFHY
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Kingfisher
(OTC:KGFHY)
Rating:65Neutral
Price Target:
$8.00
▲(18.17% Upside)
Kingfisher (KGFHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.98B
Dividend Yield4.53%
Average Volume (3M)5.12K
Price to Earnings (P/E)26.8
Beta (1Y)0.63
Revenue Growth0.67%
EPS Growth-44.71%
CountryUS
Employees73,178
SectorConsumer Cyclical
Sector Strength81
IndustryHome Improvement
Share Statistics
EPS (TTM)0.20
Shares Outstanding873,831,540
10 Day Avg. Volume4,721
30 Day Avg. Volume5,120
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit1.66
Enterprise Value/Ebitda7.23
Forecast
1Y Price Target
$8.00Price Target Upside18.17% Upside
Rating ConsensusHold
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 products and services via its extensive network of retail outlets and online platforms. The company generates revenue by offering a broad assortment of products, including building materials, plumbing and electrical supplies, kitchen and bathroom fixtures, and garden tools. Kingfisher's revenue streams are significantly bolstered by its well-known retail brands like B&Q and Screwfix, which attract a diverse customer base ranging from DIY enthusiasts to professional contractors. The company also leverages its economies of scale, global sourcing capabilities, and private label products to maximize profitability. Additionally, Kingfisher engages in strategic partnerships with suppliers and leverages digital technology to enhance its supply chain efficiency and customer experience, contributing to its overall earnings.
Kingfisher Earnings Call Summary
Earnings Call Date:Mar 25, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. Despite strong cash flow and shareholder returns, alongside improvements in gross margin and market share gains in key regions, the company faced challenges with declining sales and profits, particularly in France and international segments.Q4-2025 Updates
Positive Updates
Strong Cash Flow and Shareholder Returns
Free cash flow was strong at £511 million. 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.
Improvements in Gross Margin
Gross margin increased by 50 basis points to 37.3% compared to the previous year, driven by structural actions and better negotiations with suppliers.
Market Share Gains in Key Regions
The UK & Ireland businesses delivered market share gains with B&Q, TradePoint, and Screwfix all contributing. Poland also saw market share gains with a 3.2% increase in total sales.
Successful Trade and E-commerce Initiatives
TradePoint sales now represent 23.4% of B&Q sales, and e-commerce sales across B&Q and Screwfix were up significantly. The group plans to reach 30% e-commerce penetration.
Cost Management and Structural Savings
The company delivered £120 million in structural cost savings, with additional programs underway to unlock further savings.
Negative Updates
Decline in Total and Like-for-Like Sales
Total sales for the group in constant currency were 0.8% lower with like-for-like sales declining 1.7%.
Decrease in Profit Before Tax
Adjusted profit before tax decreased by 7% to £528 million compared to the previous year.
Challenges in France
In France, there was a like-for-like sales decline of 6.2% amidst a weak home improvement market. Retail profit margin in France decreased by 80 basis points to 2.4%.
Losses in International Segments
Screwfix France and other international segments recorded an overall loss of £35 million. The Turkish joint venture Koçtas also contributed an overall loss of £15 million.
Company Guidance
In the recent call, Kingfisher provided detailed guidance for the upcoming fiscal year, emphasizing financial discipline and strategic growth initiatives. The company reported a slight decline in total sales by 0.8% in constant currency, with like-for-like sales down by 1.7%. Despite this, gross margin improved by 50 basis points to 37.3%, and free cash flow remained strong at £511 million. The company returned £453 million to shareholders through dividends and share buybacks, a 14% increase from the previous year. Kingfisher also announced a new £300 million share buyback program, reflecting confidence in future cash generation. The outlook for the next fiscal year includes an expected adjusted profit before tax between £480 million and £540 million, with free cash flow projected between £420 million and £480 million. The company plans to continue focusing on cost discipline, cash generation, and leveraging growth opportunities in trade and e-commerce across its markets.Kingfisher Financial Statement Overview
Summary
Kingfisher displays solid financial strength with a strong balance sheet and cash flow. Despite stable gross profit margins, challenges in profitability and stagnant revenue growth reduce the score.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 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.78B | 12.98B | 13.06B | 13.18B | 12.34B |
| Gross Profit | 4.76B | 4.78B | 4.71B | 4.85B | 4.50B |
| EBITDA | 1.09B | 1.25B | 1.32B | 1.71B | 1.47B |
| Net Income | 185.00M | 345.00M | 471.00M | 843.00M | 592.00M |
Balance Sheet | |||||
| Total Assets | 11.44B | 11.90B | 12.10B | 12.35B | 12.27B |
| Cash, Cash Equivalents and Short-Term Investments | 297.00M | 360.00M | 286.00M | 823.00M | 1.14B |
| Total Debt | 2.32B | 2.48B | 2.56B | 2.39B | 2.52B |
| Total Liabilities | 5.10B | 5.30B | 5.44B | 5.57B | 5.70B |
| Stockholders Equity | 6.34B | 6.60B | 6.66B | 6.78B | 6.57B |
Cash Flow | |||||
| Free Cash Flow | 980.00M | 954.00M | 368.00M | 752.00M | 1.35B |
| Operating Cash Flow | 1.30B | 1.32B | 824.00M | 1.16B | 1.63B |
| Investing Cash Flow | -316.00M | -339.00M | -441.00M | -389.00M | -213.00M |
| Financing Cash Flow | -997.00M | -898.00M | -938.00M | -1.01B | -536.00M |
Kingfisher Technical Analysis
Negative
6.77
Price Trends
7.36
Negative
7.46
Negative
6.84
Negative
Market Momentum
-0.17
Positive
35.07
Neutral
26.78
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 6.77 is below the 20-day moving average (MA) of 7.18, below the 50-day MA of 7.36, and below the 200-day MA of 6.84, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 35.07 is Neutral, neither overbought nor oversold. The STOCH value of 26.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $418.00B | 28.53 | 193.95% | 2.20% | 8.52% | -0.97% | |
71 Outperform | $385.14M | 20.12 | 6.40% | 5.44% | -8.93% | -50.32% | |
69 Neutral | $153.12B | 22.43 | -51.07% | 1.73% | -0.49% | 0.83% | |
68 Neutral | $9.45B | 44.54 | 9.73% | ― | 4.88% | 0.05% | |
65 Neutral | $5.98B | 26.85 | 2.87% | 4.53% | 0.67% | -44.71% | |
61 Neutral | $18.02B | 12.77 | -0.74% | 3.01% | 1.30% | -13.03% | |
48 Neutral | $282.44M | 346.20 | -0.02% | ― | -5.41% | -100.49% |
* Consumer Cyclical Sector Average
Performance Comparison
KGFHY
Kingfisher
6.77
-0.16
-2.31%
HVT
Haverty
23.54
-0.56
-2.32%
HD
Home Depot
415.34
53.43
14.76%
LOW
Lowe's
269.03
26.35
10.86%
TTSH
Tile Shop
6.21
0.00
0.00%
FND
Floor & Decor Holdings
86.81
-19.80
-18.57%
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.