Keller Share Discussion Threads

[gswredland] 12/1/2016 18:58

Rubs note sounds scary! Not read about that one.

[market sniper3] 12/1/2016 16:48

Well done.

[jeffian] 12/1/2016 16:43

Yikes! That was a nasty dip just after I bought, but seem to have ended the day OK.

[jeffian] 12/1/2016 14:57

Well I hope I'm not catching a falling knife, but just plunged in here. Read about it over the Christmas/New Year break but chickened out of buying when it shot up after a couple of tips in the New Year press. Watched it settle back and hope this is the bottom. Looks good on fundamentals, but it may be overtaken by macro-events (RBS note saying "sell everything" won't help sentiment!). Fingers x-ed.

[thorpematt] 11/1/2016 19:37

Not so sure, I see the chart as a bit of a bowl forming and in essence higher lows and higher highs.

Certainly we have a change of trend if we consider the previous downtrend as broken.

I really like KLR at this price and so the price momentum would tend not to put me off too much (particular in the present market).

[rhatton] 11/1/2016 14:25

Seems to struggle to keep any gains at the moment!

[market sniper3] 05/1/2016 14:03

KLR Keller getting a clip on again.

[quemaster] 05/1/2016 01:21

Nice rise today against the market trend, people thinking of flood defence contracts or may be tipped somewhere? either way good to see.

[thorpematt] 04/1/2016 16:40

Chart is suddenly looking a bit tidy!

[thorpematt] 03/12/2015 13:15

Good timing I'd say.

[rogue trader3] 03/12/2015 11:18

Added here - looks cheap and charts turning

[market sniper1] 30/11/2015 14:07

Yes looks a solid investment. MT

[thorpematt] 30/11/2015 12:55

Yes, a double bottom on the chart I think makes this a sensible point to consider building a position.

There's a good quality company here with an increrasing portfolio of expertise on a increasingly global scale.

Forward PE is just over 8 so I think a fair chance of 50% upside once there is a little momentum.

[market sniper1] 30/11/2015 11:47

KLR Keller Group PLC

Fundies showing......

1.Forward P/E of just 8.5 to 2016, which is far lower than the sector average.
2.Forward EPS estimate for 2016 of 11.56% which i think is very conservative given that the US is recovering and I expect at least a figure of 15% or more.
3.PEG of 0.74 to 2016 which shows the company as still healthy growth.


Keller Group PLC

FORECASTS

2015 2016
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Peel Hunt LLP
26-11-15 BUY 96.04 91.07 26.50 107.04 99.61 28.50
Investec Securities
17-11-15 BUY 95.70 83.65 26.47 104.00 91.13 27.78
Numis Securities Ltd
04-08-15 ADD 95.00 85.60 27.70 106.10 95.50 29.90
Westhouse Securities
09-10-14 BUY


2015 2016
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Consensus 95.87 85.60 26.48 106.10 95.50 28.15
1 Month Change 0.17 1.12 -1.10 -2.30 0.22 -1.75
3 Month Change 0.48 1.09 -1.10 -2.30 0.22 -1.75

GROWTH
2014 (A) 2015 (E) 2016 (E)
Norm. EPS 34.08% 9.01% 11.56%
DPS 5.17% 8.54% 6.28%

INVESTMENT RATIOS
2014 (A) 2015 (E) 2016 (E)
EBITDA £148.90m £156.17m £171.96m
EBIT £92.40m £98.30m £108.30m
Dividend Yield 2.99% 3.24% 3.44%
Dividend Cover 3.22x 3.23x 3.39x
PER 10.40x 9.54x 8.56x
PEG 0.30f 1.06f 0.74f
Net Asset Value PS 223.28p p p

[market sniper1] 30/11/2015 10:10

KLR Keller Group PLC

SP looks to have bottomed out, recentish trading update suggest US business is now doing well, and company in line to meet company and market expectations. Brokers (below)VERY bullish.



Keller Group share price information

Name Keller Group Epic KLR
Sector Construction & Materials ISIN GB0004866223

Activites Keller Group plc is an international ground engineering specialist. It is renowned for providing innovative and cost effective solutions. Keller has unrivalled coverage in Europe, North America and Australia, where its services are used in infrastructure, commercial, industrial and residential projects. Index FTSE 250

Latest share price (p) 828.75 Net gearing (%) 59.10
Market cap (£m) 586.40 Gross gearing (%) 67.20
Shares in issue (m) 71.77 Debt ratio 45.56
P/E ratio -194.52 Debt to equity ratio 0.41
Divs per share (p) 25.20 Assets / equity ratio 3.05
Dividend yield (%) 3.13 Price to book value 1.69
Dividend cover 2.01 ROCE 4.43
Earning per share (p) -4.20 EPS growth (%) -109.72
52-week high / low (p) 1,105.00 / 786.00 DPS growth (%) 5.00

Keller Group broker views

Date Broker Recommendation Price Old target price New target price Notes
16 Nov Investec Buy 828.75 1,420.00 1,420.00 Reiterates
16 Nov Peel Hunt Buy 828.75 1,340.00 1,340.00 Reiterates
04 Aug Numis Add 828.75 1,220.00 1,220.00 Reiterates

[rhatton] 25/11/2015 12:21

Just added a position here. nice 70k trade just posted from yesterday afternoon at 15:39. slots in as a buy.

[tudes100] 17/11/2015 01:03

Questor in the Telegraph says buy...
It was steady as she goes at construction group Keller [LON:KLR] which said yesterday that there has been no real change to trading in the past three months and that it was still on target to hit full-year expectations.

Keller generates the majority of its revenues from installing foundations and drilling pilings for buildings such as the Olympic Stadium, flood defences in the UK and major onshore oil and gas projects.
The company’s largest market is in the US and Canada, and steady growth in this region underpins the overall performance. North America is responsible for more than half of group revenues and three-quarters of profit. Keller said that the strength in the US construction market which generated a 37pc jump in first-half profits in the region, continued during the three months to November 15.
The company has felt some pain from its exposure to work on commodity-related building projects. The worst trading has come from Australia where profits have more than halved, and Keller said there has been no signs of improvement. In Asia, profits have also fallen sharply, with revenues down 15pc.
Market consensus is for the strong US trading to lift full-year revenue to £1.7bn, giving pre-tax profits of £96.6m, and 88p in earnings per share. Keller management are still confident they can hit those targets with six weeks left in the year.
Shares in the FTSE 250 company have fallen sharply from highs of £11 reached in early June, despite little change to the trading performance.

Investors are paid to be patient with Keller shares as they offer a prospective dividend income of 3.4pc, and the dividend is expected to increase by more than 5pc and the end of the year. The company has an unbroken 29-year record of increasing or, at the very least, maintaining the payout.
Keller’s shares are trading on 9 times forecast adjusted earnings, falling to 8 times next year.
We think the selloff has been slightly overdone at Keller and would be happy to buy for the long term at these levels.

[petewy] 16/11/2015 13:06

Is this a recovery or what?

[tudes100] 03/11/2015 23:44

strong couple of days, update 2 weeks away.

[tudes100] 02/11/2015 01:42

to my knowledge they've not segmented their results by industry in recent years but their Canadian & Australian businesses were heavily exposed to O&G. Australian numbers are split out but Canada is mixed in with the US so its impossible to calculate.

[martinthebrave] 30/10/2015 09:03

Tudes, what proportion of the business in within O&G?

[tudes100] 28/10/2015 04:20

Posted this on the value growth thread..

I still see the value given their infrastructure focus & the proportion of revenues generated from N-America. They seem to be getting unduly punished for their O&G business but as you can see in their H1 results it has not to date hampered their overall profit delivery due to strength of US business & its growing margin. The US business made up 75% of their Op profit at H1 and margin was up from 5.5% to 6.8%. Latest US construction spend figs vs yr ago were +7% public & +16.5% private (includes virtually all residential housing) which they should be seeing real benefit from. Worth pointing out that their H1 was impacted by some very poor Feb/March winter weather as well.
They have made 2 acquisitions in the last year and should get the benefit of their Australian purchase in H2 plus a few large contract wins (Singapore airport & a Caspian O&G project).
Business is always strongly second half weighted.
Forecast PE now 9.9 FY15, 8.8x FY16 which is only 6 months away. Next IMS due November 16th. Decent divi, well covered if you have the patience to wait for the sector to be loved again !

[tudes100] 28/10/2015 03:14

shocking chart now, still holding for my sins.
Update November 16th, need some good news badly.

[meijiman] 06/10/2015 13:31

Big exposure to LNG via civils which is out of favour with alt fuel/energy sources so cheap eg oil/gas.But agree it looks a bit cheap.

[grosvenor] 06/10/2015 12:27

This stock looks exceedingly cheap in my opinion.

This stock is valued at 1388 vs 871 as I write (valuation from VectorVest)

PE is only 9.46 -lowest in Sector

EPS is growing

Earnings growth rate is 15%

So why is it stuck at this low price - is it just out of fashion at the moment? any answers?