Kingspan Group (KGSPY) AI Stock Analysis

• Market Cap: $15.12B
• Dividend Yield: 0.74%
• Average Volume (3M): 285.00
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.93
• Revenue Growth: 6.45%
• EPS Growth: 3.66%
• Country: US
• Employees: 24,802
• Sector: Industrials
• Sector Strength: 84
• Industry: Construction
• EPS (TTM): 2.15
• Shares Outstanding: 182,061,230
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 285
• PEG Ratio: 6.19
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $96.00 ▲(14.52%Upside)

Kingspan Group's stock is supported by strong financial performance and stable technical indicators, despite a high valuation. The robust financial foundation and positive operating trends are the primary strengths, while valuation metrics suggest a cautious approach.

Kingspan Group Business Overview & Revenue Model

Company Description

Kingspan Group plc, together with its subsidiaries, provides insulation and building envelope solutions in the Republic of Ireland, the United Kingdom, rest of Europe, the Americas, and internationally. It operates through five segments: Insulated Panels, Insulation, Light & Air, Water & Energy, and Data & Flooring. The Insulated Panels segment manufactures insulated panels, structural framing, and metal facades components. The Insulation segment provides rigid insulation boards, technical insulation, and engineered timber systems. The Light & Air segment manufactures daylighting, smoke management, and ventilation systems. The Water & Energy segment provides energy and water solutions, and related services. The Data & Flooring segment offers data centre storage solutions, as well as raised access floors. It also engages in the trustee and finance businesses. The company was founded in 1965 and is headquartered in Kingscourt, Ireland.

How the Company Makes Money

Kingspan Group generates revenue primarily through the manufacture and sale of its high-performance building products and solutions. The company's key revenue streams include sales of insulation panels, structural products, and integrated building systems to industrial, commercial, and residential sectors. Kingspan's earnings are bolstered by its commitment to innovation and sustainability, driving demand for products that improve energy efficiency and reduce carbon footprints. The company also benefits from strategic acquisitions and partnerships that expand its market reach and product offerings, as well as its strong presence in various international markets, which mitigates regional economic fluctuations and enhances revenue stability.

Kingspan Group Financial Statement Overview

Summary

Kingspan Group exhibits strong financial performance with consistent revenue and profit growth. The income statement reflects efficient operations and profitability, while the balance sheet shows a solid financial foundation with stable leverage and strong ROE. Despite a slight dip in operating cash flow, the company's cash flow position remains healthy, supporting ongoing investments and financial flexibility.

Income Statement

Kingspan Group has demonstrated strong revenue growth with a notable increase from €4,576M in 2020 to €8,608M in 2024. Gross profit margin is healthy at 29.6% for 2024, indicating efficient cost management. Net profit margin has improved to 7.7% in 2024 from 8.1% in 2023, showing enhanced profitability. EBIT and EBITDA margins are stable, reflecting robust operating performance.

Balance Sheet

The balance sheet exhibits a solid equity position with an equity ratio of 43.7% in 2024. The debt-to-equity ratio is manageable at 0.66, indicating a balanced approach to leverage. ROE is strong at 15.5%, showcasing effective utilization of equity for generating profits. The increased total assets and shareholder equity reflect growth and financial stability.

Cash Flow

Operating cash flow remains strong at €894.5M in 2024, albeit a decrease from €1,162M in 2023. Free cash flow is €527.8M, reflecting the company's ability to generate cash after capital expenditures. The operating cash flow to net income ratio is robust at 1.34, indicating efficient cash generation relative to earnings. However, free cash flow growth rate has declined compared to previous years.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.61B	8.09B	8.34B	6.50B	4.58B
	Gross Profit
2.55B	2.34B	2.22B	1.86B	1.39B
	EBIT
862.10M	835.20M	784.30M	725.30M	484.70M
	EBITDA
1.18B	1.09B	983.50M	893.10M	629.30M
	Net Income Common Stockholders
665.50M	640.30M	598.00M	554.10M	373.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.01B	938.70M	649.30M	641.40M	1.33B
	Total Assets
9.82B	8.00B	7.68B	6.39B	5.34B
	Total Debt
2.82B	2.14B	2.39B	1.56B	1.70B
	Net Debt
1.82B	1.20B	1.74B	914.10M	370.80M
	Total Liabilities
5.23B	4.05B	4.29B	3.43B	2.94B
	Stockholders Equity
4.29B	3.85B	3.32B	2.89B	2.35B
Cash Flow		Free Cash Flow
527.80M	924.50M	422.80M	160.40M	506.70M
	Operating Cash Flow
894.50M	1.16B	692.00M	329.20M	638.50M
	Investing Cash Flow
-1.11B	-458.30M	-1.30B	-708.70M	-171.20M
	Financing Cash Flow
254.60M	-416.30M	630.80M	-351.70M	712.90M

Kingspan Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 83.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KGSPY, the sentiment is Neutral. The current price of 83.83 is below the 20-day moving average (MA) of 86.39, below the 50-day MA of 85.12, and above the 200-day MA of 81.55, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 0.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KGSPY.

Kingspan Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSL	78 Outperform	$15.38B	9.71	33.11%	1.13%	-0.14%	135.52%
KGSPY	77 Outperform	$15.12B	21.49	16.56%	0.74%	6.45%	3.66%
LII	74 Outperform	$19.52B	24.52	131.48%	0.84%	7.78%	30.10%
BLDR	71 Outperform	$12.69B	14.74	19.62%	―	-5.49%	-33.51%
OC	67 Neutral	$11.11B	46.88	11.93%	2.11%	16.16%	-77.11%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
MAS	65 Neutral	$12.91B	16.73	-118.61%	2.03%	-2.67%	-10.72%