Kingfisher (KGFHY) AI Stock Analysis

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Kingfisher

(OTC:KGFHY)

Rating:68Neutral

Price Target:

$8.50

▲(14.09%Upside)

Kingfisher's overall score is driven by its strong financial stability and cash flow. However, profitability challenges, market issues in France, and high valuation relative to peers weigh on the score. Strong shareholder returns and market share gains in key regions provide some positive offset.

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

Market Cap

$6.39B

Dividend Yield6.1%

Average Volume (3M)4.09K

Price to Earnings (P/E)29.0

Beta (1Y)0.63

Revenue Growth0.67%

EPS Growth-44.71%

CountryUS

Employees73,178

SectorConsumer Cyclical

Sector Strength65

IndustryHome Improvement

Share Statistics

EPS (TTM)0.20

Shares Outstanding875,925,960

10 Day Avg. Volume6,333

30 Day Avg. Volume4,087

Financial Highlights & Ratios

PEG Ratio-0.56

Price to Book (P/B)0.77

Price to Sales (P/S)0.00

P/FCF Ratio4.95

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$8.50

Price Target Upside14.09% Upside

Rating ConsensusHold

Number of Analyst Covering0

Kingfisher Business Overview & Revenue Model

Company DescriptionKingfisher plc (KGFHY) is a prominent multinational home improvement company based in the United Kingdom. It operates various retail brands, including B&Q, Screwfix, Castorama, and Brico Dépôt, across several European countries. Kingfisher provides a wide range of home improvement products, including DIY supplies, home improvement tools, garden equipment, and building materials, catering to both individual customers and professional tradespeople.

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: 5.82%|

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.

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

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.

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

Technical Analysis Sentiment

Positive

Last Price7.45

Price Trends

50DMA

7.69

Negative

100DMA

7.17

Positive

200DMA

6.92

Positive

Market Momentum

MACD

-0.04

Positive

RSI

49.10

Neutral

STOCH

30.96

Neutral

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 7.45 is below the 20-day moving average (MA) of 7.64, below the 50-day MA of 7.69, and above the 200-day MA of 6.92, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 30.96 is Neutral, 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HD	70 Outperform	$355.59B	24.36	299.52%	2.57%	7.33%	-1.19%
LOW	70 Outperform	$121.39B	18.11	-51.07%	2.10%	-2.52%	-2.98%
KGFHY	68 Neutral	$6.39B	29.05	2.87%	6.10%	0.67%	-44.71%
MHK	66 Neutral	$6.81B	14.55	6.26%	―	-2.95%	―
FND	66 Neutral	$8.45B	42.36	9.74%	―	2.96%	-9.49%
TTSH	65 Neutral	$298.80M	374.73	0.66%	―	-6.41%	-91.36%
Sector *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%

* Consumer Cyclical Sector Average

Performance Comparison

KGFHY

Kingfisher

7.45

0.62

9.08%

Home Depot

359.04

4.24

1.20%

LOW

Lowe's

219.16

-14.94

-6.38%

MHK

Mohawk

111.17

-17.87

-13.85%

TTSH

Tile Shop

6.90

-0.08

-1.15%

FND

Floor & Decor Holdings

78.63

-14.01

-15.12%

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.Date of analysis: Jun 05, 2025