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Kingspan Group (OTC) (KGSPY)
:KGSPY
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Kingspan Group
(OTC:KGSPY)
Rating:76Outperform
Price Target:
$92.00
▲(13.12% Upside)
Positive Factors
Revenue Growth
The 8% revenue growth indicates strong demand for Kingspan's products, reflecting its robust market position and ability to capture growth opportunities in the construction industry.
Segment Expansion
The introduction and growth of new segments like Advanced Building Systems highlight Kingspan's strategic focus on innovation and diversification, enhancing its competitive edge and market adaptability.
Cash Generation Ability
Strong cash generation and liquidity position provide Kingspan with financial flexibility to invest in growth initiatives and withstand economic fluctuations, supporting long-term stability.
Negative Factors
Reported Margin Decline
The decline in reported margins, despite underlying growth, suggests potential challenges in cost management or integration of acquisitions, which could impact profitability.
Currency Headwinds
Ongoing currency headwinds could affect Kingspan's financial performance, particularly in international markets, posing a risk to profit margins and earnings stability.
Tough Trading Environment
A challenging trading environment, especially in key markets, may hinder growth prospects and put pressure on Kingspan's operational performance in the near to medium term.
Kingspan Group (KGSPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.75B
Dividend Yield0.82%
Average Volume (3M)20.44K
Price to Earnings (P/E)20.1
Beta (1Y)0.80
Revenue Growth10.21%
EPS Growth8.80%
CountryUS
Employees24,802
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)1.88
Shares Outstanding181,088,650
10 Day Avg. Volume13,836
30 Day Avg. Volume20,436
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue2.12
Enterprise Value/Gross Profit7.17
Enterprise Value/Ebitda15.53
Forecast
1Y Price Target
$92.00Price Target Upside13.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Kingspan Group Business Overview & Revenue Model
Company DescriptionKingspan 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 MoneyKingspan Group generates revenue through several key streams, primarily from the sale of its insulation products, including insulated panels and insulation boards, which are essential for energy-efficient building construction. The company also offers a range of complementary products such as roof and wall systems, as well as energy management solutions that help clients optimize building performance. Significant partnerships with construction firms and architects enhance Kingspan's market reach and product integration in new projects. Additionally, Kingspan benefits from increasing global demand for sustainable building materials and energy-efficient solutions, which aligns with regulatory trends that favor environmentally friendly construction practices.
Kingspan Group Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 13, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a resilient performance with notable revenue and profit growth amid a challenging environment. Strategic investments and segment expansions are promising, but currency headwinds and a tough trading landscape present ongoing challenges.Q2-2025 Updates
Positive Updates
Revenue and Profit Growth
Revenue increased by 8% to EUR 4.5 billion, and trading profit rose by 5%, showcasing resilience in a challenging market environment.
EPS and Emission Reductions
Earnings per share (EPS) increased by 4% to EUR 1.72, and greenhouse gas emissions were reduced by 63% compared to 2020.
Insulated Building Envelopes and Advanced Building Systems
Revenue for Insulated Building Envelopes increased by 8%, largely due to acquisitions, while Advanced Building Systems saw a 12% revenue growth, driven by organic growth in the data segment.
Share Buyback Announcement
A share buyback of up to EUR 650 million was announced, indicating confidence in the company's future prospects without disrupting development agendas.
Healthy Balance Sheet and Cash Generation
Net debt to EBITDA is at 1.74x with available liquidity of EUR 1.4 billion, ensuring development headroom.
Negative Updates
Reported Margin Decline
Reported trading margin down by 30 basis points, primarily due to the initial consolidation of Nordic Waterproofing.
Currency Headwinds
Currency fluctuations presented a headwind for the first half, and this is expected to continue as a challenge in the second half, with an estimated EUR 20 million impact on full-year profits.
Free Cash Outflow
There was a modest free cash outflow in the first half, with a significant working capital outflow of EUR 288 million, expected to reverse in the second half.
Tough Trading Environment
The overall trading environment remains challenging, particularly in regions like the U.K., and exchange rate volatility continues to pose difficulties.
Company Guidance
During the Kingspan H1 2025 results call, CEO Gene Murtagh announced an 8% increase in revenue to EUR 4.5 billion, with trading profit up 5% and EPS rising by 4% to EUR 1.72. The company reported a slight decline in reported margins to 9.8%, primarily due to the consolidation of Nordic Waterproofing, although the underlying margin increased by 20 basis points. Kingspan introduced two new segments, Insulated Building Envelopes and Advanced Building Systems, replacing the previous five, with the latter seeing a 12% revenue growth driven by the data segment. The company has committed to a share buyback of up to EUR 650 million over the next 18-24 months, emphasizing that this will not affect its development agenda. Investments totaling EUR 400 million were made in acquisitions and organic CapEx in the first half. CFO Geoff Doherty noted that group revenues were up 8% at a headline level and 9% at constant exchange rates. Despite a modest free cash outflow, Kingspan anticipates generating significant cash in the second half, aiming for a net debt figure of EUR 1.5 billion by year-end. The company maintained its investment-grade credit rating, with net debt to EBITDA at 1.74x, and guided a trading profit of approximately EUR 950 million for the full year 2025, signaling a 5% improvement over 2024.Kingspan Group Financial Statement Overview
Summary
Kingspan Group shows 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.85
Very Positive
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.78
Positive
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.79
Positive
| 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 |
| EBITDA | 1.18B | 1.09B | 983.50M | 893.10M | 629.30M |
| Net Income | 665.50M | 640.30M | 598.00M | 554.10M | 373.60M |
Balance Sheet | |||||
| Total Assets | 9.82B | 8.00B | 7.68B | 6.39B | 5.34B |
| Cash, Cash Equivalents and Short-Term Investments | 1.01B | 938.70M | 649.30M | 641.40M | 1.33B |
| Total Debt | 2.82B | 2.14B | 2.39B | 1.56B | 1.70B |
| 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
Positive
81.33
Price Trends
82.19
Negative
83.73
Negative
80.01
Positive
Market Momentum
-0.47
Negative
50.39
Neutral
74.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KGSPY, the sentiment is Positive. The current price of 81.33 is above the 20-day moving average (MA) of 80.26, below the 50-day MA of 82.19, and above the 200-day MA of 80.01, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 50.39 is Neutral, neither overbought nor oversold. The STOCH value of 74.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KGSPY.
Kingspan Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $14.75B | 20.06 | 15.47% | 0.82% | 10.21% | 8.80% | |
75 Outperform | $11.41B | 25.45 | 27.68% | 0.46% | 0.24% | -12.68% | |
74 Outperform | $13.19B | 40.37 | 12.26% | 1.75% | 13.08% | -67.65% | |
73 Outperform | $15.75B | 19.43 | -118.61% | 1.62% | -2.73% | -8.31% | |
67 Neutral | $16.20B | 22.25 | 17.83% | ― | -6.39% | -42.36% | |
66 Neutral | $16.76B | 20.99 | 31.34% | 1.12% | 1.37% | 5.96% | |
63 Neutral | $10.84B | 15.52 | 7.40% | 2.00% | 2.86% | -14.57% |
* Industrials Sector Average
Performance Comparison
KGSPY
Kingspan Group
81.33
-5.89
-6.75%
BLDR
Builders Firstsource
142.73
-40.57
-22.13%
CSL
Carlisle Companies
365.66
-41.39
-10.17%
MAS
Masco
73.63
-5.22
-6.62%
OC
Owens Corning
152.28
-10.54
-6.47%
WMS
Advanced Drainage Systems
141.49
-5.29
-3.60%
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.