KAUFMAN & BROAD SA (KOF.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:KOF - FR0004007813 - Common Stock
29.5 EUR
-0.15 (-0.51%)
Overall KOF gets a fundamental rating of 6 out of 10. We evaluated KOF against 32 industry peers in the Household Durables industry. KOF scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on KOF. Finally KOF also has an excellent dividend rating. These ratings would make KOF suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- KOF had positive earnings in the past year.
- KOF had a positive operating cash flow in the past year.
- In the past 5 years KOF has always been profitable.
- Each year in the past 5 years KOF had a positive operating cash flow.
1.2 Ratios
- KOF has a better Return On Assets (4.25%) than 78.13% of its industry peers.
- Looking at the Return On Equity, with a value of 34.18%, KOF belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 27.66%, KOF belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for KOF is significantly above the industry average of 9.71%.
- The 3 year average ROIC (16.67%) for KOF is below the current ROIC(27.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 34.18% | ||
| ROIC | 27.66% |
ROA(3y)3.09%
ROA(5y)3.01%
ROE(3y)22.65%
ROE(5y)20.04%
ROIC(3y)16.67%
ROIC(5y)15.55%
1.3 Margins
- KOF has a Profit Margin of 4.24%. This is in the better half of the industry: KOF outperforms 71.88% of its industry peers.
- In the last couple of years the Profit Margin of KOF has declined.
- The Operating Margin of KOF (7.58%) is better than 65.63% of its industry peers.
- In the last couple of years the Operating Margin of KOF has declined.
- Looking at the Gross Margin, with a value of 19.30%, KOF is doing worse than 90.63% of the companies in the same industry.
- In the last couple of years the Gross Margin of KOF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.58% | ||
| PM (TTM) | 4.24% | ||
| GM | 19.3% |
OM growth 3Y-0.76%
OM growth 5Y-5.09%
PM growth 3Y6.86%
PM growth 5Y-4.62%
GM growth 3Y3.61%
GM growth 5Y-0.68%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KOF is creating value.
- The number of shares outstanding for KOF has been increased compared to 1 year ago.
- The number of shares outstanding for KOF has been reduced compared to 5 years ago.
- Compared to 1 year ago, KOF has an improved debt to assets ratio.
2.2 Solvency
- KOF has an Altman-Z score of 1.73. This is a bad value and indicates that KOF is not financially healthy and even has some risk of bankruptcy.
- KOF has a Altman-Z score of 1.73. This is comparable to the rest of the industry: KOF outperforms 40.63% of its industry peers.
- KOF has a debt to FCF ratio of 0.22. This is a very positive value and a sign of high solvency as it would only need 0.22 years to pay back of all of its debts.
- The Debt to FCF ratio of KOF (0.22) is better than 100.00% of its industry peers.
- KOF has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
- KOF has a better Debt to Equity ratio (0.20) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 1.73 |
ROIC/WACC3.84
WACC7.21%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that KOF should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.06, KOF is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- A Quick Ratio of 0.74 indicates that KOF may have some problems paying its short term obligations.
- KOF has a Quick ratio of 0.74. This is comparable to the rest of the industry: KOF outperforms 40.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.79% over the past year.
- Measured over the past years, KOF shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.61% on average per year.
- Looking at the last year, KOF shows a quite strong growth in Revenue. The Revenue has grown by 8.70% in the last year.
- The Revenue has been decreasing by -6.06% on average over the past years.
EPS 1Y (TTM)7.79%
EPS 3Y3.82%
EPS 5Y-8.61%
EPS Q2Q%2%
Revenue 1Y (TTM)8.7%
Revenue growth 3Y-5.64%
Revenue growth 5Y-6.06%
Sales Q2Q%-1.39%
3.2 Future
- Based on estimates for the next years, KOF will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.94% on average per year.
- The Revenue is expected to grow by 6.04% on average over the next years.
EPS Next Y21.18%
EPS Next 2Y18.88%
EPS Next 3Y15.94%
EPS Next 5YN/A
Revenue Next Year2.86%
Revenue Next 2Y5.96%
Revenue Next 3Y6.04%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.43, which indicates a very decent valuation of KOF.
- Based on the Price/Earnings ratio, KOF is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of KOF to the average of the S&P500 Index (27.21), we can say KOF is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.15, which indicates a very decent valuation of KOF.
- KOF's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, KOF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.43 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
- 96.88% of the companies in the same industry are more expensive than KOF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.44 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- KOF has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as KOF's earnings are expected to grow with 15.94% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y18.88%
EPS Next 3Y15.94%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.28%, KOF is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.87, KOF pays a better dividend. On top of this KOF pays more dividend than 90.63% of the companies listed in the same industry.
- KOF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.28% |
5.2 History
- The dividend of KOF has a limited annual growth rate of 1.35%.
Dividend Growth(5Y)1.35%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- 62.69% of the earnings are spent on dividend by KOF. This is not a sustainable payout ratio.
- The dividend of KOF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.69%
EPS Next 2Y18.88%
EPS Next 3Y15.94%
KAUFMAN & BROAD SA / KOF.PA FAQ
What is the fundamental rating for KOF stock?
ChartMill assigns a fundamental rating of 6 / 10 to KOF.PA.
What is the valuation status for KOF stock?
ChartMill assigns a valuation rating of 7 / 10 to KAUFMAN & BROAD SA (KOF.PA). This can be considered as Undervalued.
Can you provide the profitability details for KAUFMAN & BROAD SA?
KAUFMAN & BROAD SA (KOF.PA) has a profitability rating of 7 / 10.
How financially healthy is KAUFMAN & BROAD SA?
The financial health rating of KAUFMAN & BROAD SA (KOF.PA) is 6 / 10.
Can you provide the dividend sustainability for KOF stock?
The dividend rating of KAUFMAN & BROAD SA (KOF.PA) is 7 / 10 and the dividend payout ratio is 62.69%.