KWS SAAT SE & CO KGAA (KWS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:KWS - DE0007074007 - Common Stock
74.2 EUR
+0.4 (+0.54%)
KWS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 62 industry peers in the Food Products industry. KWS gets an excellent profitability rating and is at the same time showing great financial health properties. KWS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year KWS was profitable.
- KWS had a positive operating cash flow in the past year.
- KWS had positive earnings in each of the past 5 years.
- KWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- KWS has a better Return On Assets (5.73%) than 73.85% of its industry peers.
- Looking at the Return On Equity, with a value of 9.94%, KWS is in line with its industry, outperforming 55.38% of the companies in the same industry.
- KWS's Return On Invested Capital of 9.12% is fine compared to the rest of the industry. KWS outperforms 75.38% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for KWS is in line with the industry average of 7.38%.
- The 3 year average ROIC (7.87%) for KWS is below the current ROIC(9.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 9.94% | ||
| ROIC | 9.12% |
ROA(3y)5.96%
ROA(5y)5.32%
ROE(3y)11.31%
ROE(5y)10.62%
ROIC(3y)7.87%
ROIC(5y)6.77%
1.3 Margins
- Looking at the Profit Margin, with a value of 9.48%, KWS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of KWS has grown nicely.
- KWS has a better Operating Margin (15.95%) than 83.08% of its industry peers.
- KWS's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 63.84%, KWS belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
- KWS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.95% | ||
| PM (TTM) | 9.48% | ||
| GM | 63.84% |
OM growth 3Y14.06%
OM growth 5Y6.89%
PM growth 3Y26.28%
PM growth 5Y13.66%
GM growth 3Y4.73%
GM growth 5Y2%
2. Health
2.1 Basic Checks
- KWS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- KWS has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, KWS has about the same amount of shares outstanding.
- The debt/assets ratio for KWS has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.31 indicates that KWS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.31, KWS is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
- The Debt to FCF ratio of KWS is 2.54, which is a good value as it means it would take KWS, 2.54 years of fcf income to pay off all of its debts.
- KWS's Debt to FCF ratio of 2.54 is amongst the best of the industry. KWS outperforms 89.23% of its industry peers.
- KWS has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
- KWS has a better Debt to Equity ratio (0.20) than 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 3.31 |
ROIC/WACC1.43
WACC6.38%
2.3 Liquidity
- KWS has a Current Ratio of 2.14. This indicates that KWS is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of KWS (2.14) is better than 83.08% of its industry peers.
- KWS has a Quick Ratio of 1.38. This is a normal value and indicates that KWS is financially healthy and should not expect problems in meeting its short term obligations.
- KWS's Quick ratio of 1.38 is amongst the best of the industry. KWS outperforms 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
- The earnings per share for KWS have decreased strongly by -21.25% in the last year.
- Measured over the past years, KWS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.91% on average per year.
- Looking at the last year, KWS shows a very negative growth in Revenue. The Revenue has decreased by -14.03% in the last year.
- The Revenue has been growing slightly by 5.50% on average over the past years.
EPS 1Y (TTM)-21.25%
EPS 3Y29.91%
EPS 5Y19.91%
EPS Q2Q%-114.15%
Revenue 1Y (TTM)-14.03%
Revenue growth 3Y2.88%
Revenue growth 5Y5.5%
Sales Q2Q%-8.21%
3.2 Future
- KWS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.67% yearly.
- Based on estimates for the next years, KWS will show a small growth in Revenue. The Revenue will grow by 3.80% on average per year.
EPS Next Y17.27%
EPS Next 2Y7.81%
EPS Next 3Y7.18%
EPS Next 5Y5.67%
Revenue Next Year2.86%
Revenue Next 2Y3.14%
Revenue Next 3Y3.25%
Revenue Next 5Y3.8%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.52, KWS is valued correctly.
- 61.54% of the companies in the same industry are more expensive than KWS, based on the Price/Earnings ratio.
- KWS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 12.61 indicates a correct valuation of KWS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KWS indicates a somewhat cheap valuation: KWS is cheaper than 63.08% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of KWS to the average of the S&P500 Index (25.98), we can say KWS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KWS indicates a somewhat cheap valuation: KWS is cheaper than 69.23% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KWS indicates a somewhat cheap valuation: KWS is cheaper than 75.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.15 | ||
| EV/EBITDA | 6.87 |
4.3 Compensation for Growth
- KWS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- KWS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.9
PEG (5Y)0.78
EPS Next 2Y7.81%
EPS Next 3Y7.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.69%, KWS has a reasonable but not impressive dividend return.
- KWS's Dividend Yield is comparable with the industry average which is at 2.38.
- Compared to an average S&P500 Dividend Yield of 1.81, KWS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
- On average, the dividend of KWS grows each year by 8.34%, which is quite nice.
Dividend Growth(5Y)8.34%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
- KWS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y7.81%
EPS Next 3Y7.18%
KWS SAAT SE & CO KGAA / KWS.DE FAQ
Can you provide the ChartMill fundamental rating for KWS SAAT SE & CO KGAA?
ChartMill assigns a fundamental rating of 6 / 10 to KWS.DE.
What is the valuation status of KWS SAAT SE & CO KGAA (KWS.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to KWS SAAT SE & CO KGAA (KWS.DE). This can be considered as Fairly Valued.
What is the profitability of KWS stock?
KWS SAAT SE & CO KGAA (KWS.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of KWS SAAT SE & CO KGAA (KWS.DE) stock?
The Price/Earnings (PE) ratio for KWS SAAT SE & CO KGAA (KWS.DE) is 15.52 and the Price/Book (PB) ratio is 1.55.