this is not a good time to bid for a few Homebase stores
WHY the buybacks ???
dyor |
They were making more on pre tax (annually) well over a decade ago.
Add in inflation since and that's arguably ugly.
Every update appears to bring a new set of excuses for performance in one country or another. |
I've always found TP to be much dearer than B&Q even with my TP trade discount. |
My local B&Q (smaller branch in a smallish town), has 3 competitors within wheelbarrow range (a good well established local builders merchant, a Travis Perkins, and a Jewsons). Plus a 7-days branch of regional hardware J-Mart. And a full-size B&Q 11 miles away. This summer they dug up and relaid their carpark, which might suggest they hadn't planned on quitting anytime soon - but footfall is dire. If this is at all typical of their second-tier branches, I don't see them pulling in enough trade to survive the increased energy and labour costs. (Like so many big-shed outlets they haven't utilised the solar panels option; is that usually due to short-term lease arrangements countering the outlay?) |
"AJ Bell investment director Russ Mould observed that Kingfisher has a growth problem and until the backdrop radically improves, the company is ‘stuck in quicksand, slowing sinking. The home improvement retailer continues to keep its chin up and offer reasons to be optimistic, but in reality, there is always something holding it back.’
Mould added: ‘Consumers have tightened their belts amid uncertainties around policy changes from new governments in the UK and France – two of its major operating regions. That’s caused a wobble to sales.
‘It also faces significant headwinds from various tax changes and there is only so much these can be offset by finding new cost efficiencies. Consumer sentiment remains patchy and economic growth lacklustre, which suggests darker days ahead for Kingfisher.’" |
Yes.
Watching from the sidelines but definitely not buying yet |
I think what wealthoracle is missing is that Kingfisher goes into 2025 with sales declining in real terms, costs rising and increasing tax burden in France. The forward PE of 12.4 which it had on Friday was way too high. |
3*
Kingfisher posted a fairly average Q3 trading update for the period to 31st October this morning and the share price has sold off sharply by over 12%. The numbers were nothing special, but the share price reaction also looks a little overdone. Q3 sales were £3.2bn with total sales flat (in constant currency) and down -0.6% (reported). LFL sales were down -1.1% which was in line or ahead of the market for all key banners. So underwhelming performance, but this was more or less expected given the ongoing struggles of the housing market. The company also reported that October performance was impacted by the weak market...from WealthOracle
wealthoracle.co.uk/detailed-result-full/KGF/1009 |
This does not surprise me, K's after sales service is rubbish. If you have an issue with a kitchen. Buyers only get as far as a manager. K's firewall prevents you getting through to the CEO. Outlets are tatty, (Streatham) staff are as helpful as a wet fish. This fall has been coming, I would wait another quarter before investing. |
Results less bad than expected imo.Supports divi levels and value 300-350 range |
The results were good; worth c.350p imo |
A nice rise today, but why? |
Ed, they've been trying to fix France for about 8 years under different management teams.
France was once their most profitable country, a long time ago now. |
Yes, point taken re CNA EssentialInvestor- bad example (but I timed my buys and sells there very well FWIW, buying at 33p in early lockdown and selling a bit too early at 140p last September).
Point also taken re KGF not being a utility RB1206- but I did say that it isn't and faces stiff competition, but I'm also aware that Screwfix, B&Q and Brico Depot and Castorama in France are often 'default' options for so many people for all the bits and pieces we need in life to keep our homes OK. They also do well in the bad times as DIY goes up - and are OK in the good times as bigger ticket items get sold (as reflected by very steady sales over the years).
So whilst I bow to your undoubted sector expertise, I still stand by my estimate of valuation of c.350p of not being overly demanding - but that's what makes a market.
For the record, I bought in at 204p in October. |
Boystown, Centrica is in a large net cash position. |
If this was some kind of utility, it would be carrying huge levels of debt and no-one would care too much (ref National Grid, Centrica et al). Of course, it isn't a utility, and has very direct competition in its major markets (UK and France) but not all THAT much - which is why I think it's worth a higher rating - specifically c.350p or a mkt cap of c.£6.5bn, which is exactly where it was at the start of 2022.
Of course I may be wrong - and often am! :-( |
Surprised to see the recent share price rebound. |
Up she goes, luvverley |
KGF, with 3rd profit warning...I would expect to retest 200p minimum for now. |
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