Kingfisher Share Discussion Threads

[dreno2] 01/10/2021 10:14

Not the first time they have spent millions on buy back it did nothing then, only the pandemic pushed the share price up. It will do nothing this time money needs to be spent on company infrastructure.

[sun1950] 01/10/2021 09:36

Well the buyback is going well BOD could of paid a special dividend now selling on 9 times this year’s earnings with energy prices going up less money in people’s pockets less to spend in B & Q not good

[sun1950] 24/9/2021 20:49

Price Sept 2018 250p today 340p increase of 36% profit increase from 300m to 910m earnings per share 19p expected 33p let’s see if next week the share buyback makes a difference

[essentialinvestor] 24/9/2021 11:49

UK Fuel shortage won't help.

[m_kerr] 23/9/2021 22:41

EI, i believe KGF is a very viable takeover candidate at these levels. it's now a more focused, profitable business than it was 2-3 years ago, and operates in a booming subsector. it would be very straightforward to spinoff screwfix as there's no overlap, and get back minimum £4bn (likely much higher) from that, which leaves a rump of very cash generative businesses with £2.6bn of property. in addition, compared to supermarkets getting 15-20% gross margins, KGF makes 37%+ gross margins, and is a clear market leader.

[essentialinvestor] 23/9/2021 18:09

There is imv a residual credibility gap from the last management team and CEO's
One Kingfisher programme, which promised the moon on a stick and arguably
delivered sh1t on a stick instead.

[essentialinvestor] 23/9/2021 18:07

gsw, who would buy Morrisons?, could just as easily been asked.

Cash generation and current multiple might, stress on might,
be attractive to private equity.

But would not suggest considering Kingfisher just on that basis.

[sun1950] 23/9/2021 13:16

Very bullish article in the Investors Chronicle with buy recommendation we’ll worth a read. Potential buyers could be those stocks that are more aimed at the builders or overseas DIY suppliers who could move into the UK market at a cheap price

[gswredland] 23/9/2021 11:37

Who would buy Kgf though?

[essentialinvestor] 22/9/2021 16:18

mk, possible PE bid territory?.

[m_kerr] 22/9/2021 16:10

travis perkins trades at 16 x ebit(property worth about 8-9% of enterprise value), grafton 12.5 (with property worth 8% of enterprise value), now compare with kingfisher at 7 x ebit, with property worth 31% of enterprise value. even wickes trades at 16 x ebit (no property).

[essentialinvestor] 22/9/2021 15:38

Got a point there, there is some comment around margins and whether these are
sustainable in to 2022 - what may be overlooked is the number of ongoing efficiency
measures. The company is far from standing still, but then again don't have a crystal
Ball obvs so my view may be incorrect.

[sun1950] 22/9/2021 12:20

Judging by the share price the market (analysts and brokers) doesn’t value companies that are performing well so they shouldn’t complain when uk companies are taken over by foreign companies.

[essentialinvestor] 22/9/2021 10:21

Added a small amount.

THey have launched Screwfix Sprint which will deliver in 60 mins

for a £5 delivery fee, but with no minimum spend.

THat seems very generous!, need to watch margins carefully on that type of delivery.

[reval] 21/9/2021 19:47

Guys -- Slightly different I know; prices on all commodity products are going up so you've got stock appreciation, I " think " the market is factoring in that prices will fall at some stage,so the share " fall " might be justified?

[m_kerr] 21/9/2021 15:59

the market is expecting a significant fall in revenue going forwards as the tailwinds of covid ease off. doesnt mean it will happen and i don't think it will, at least not to the extent that it justifies the current share price.

it's quite a stunning set of figures. the UK PBT for screwfix and b&q will likely be in the in the region of £1bn for the full year if you double the half year results. for a business with very low capital intensity and an online beneficiary, then screwfix would clearly be a very, very highly valued business on it's own. at the moment, pretty much all the money earnt during lockdown has piled up onto the balance sheet as cash (now £1.4bn). so it's generating about £500- 600m of cash each year, with IMO the ability to grow profits at a reasonable pace over the long run.

[essentialinvestor] 21/9/2021 13:29

Because the One KIngfisher plan ended with the departure of the CEO and about
the entire top management team, the market perhaps remains a little sceptical on
longer term prospects, If KGF can demonstrate continued strong profitability
in to 2022, then some of that caution may no longer be a factor.

[sun1950] 21/9/2021 13:13

From the figures given this morning eps will be between 33-35 so the present pe is 10.5 compare this to wicks or howden. If diy is slowing down then it must affect other companies in the sector I don’t see any slowdown around me if anything more homes are having extensions I can’t drive out of the estate without passing skips and vans sorry for the moan the drop today is over the top

[izztre] 21/9/2021 13:01

Completely agree. I am at a total loss. The only thing I can put it down to is the mention of certain materials being below target. However even with that being known they are raising expectations.... So it shouldn't have been a factor. But in this market anything slightly less than 100% is being hit hard

[essentialinvestor] 21/9/2021 12:34

Bear case is that we are past peak KIngfisher.

That view may underestimate the structural recovery here under new leadership.

Still looks a lot of work to do in France, but the shares do not look expensive to me, just fwiw.

[sun1950] 21/9/2021 12:25

Can someone explain to me the share movement today I can see nothing bad about the results yet the share price drops 6% I thought investing was all about companies increasing profits, cash flow and dividends obviously I’m doing it all wrong need to rethink my investing strategy

[essentialinvestor] 21/9/2021 08:52

Had a small amount.

[izztre] 21/9/2021 07:14

Great update let's hope the market thinks so as it has been a tough few weeks difficult to predict!

[gswredland] 17/9/2021 13:40

Looking good ahead of results on Tuesday

[m_kerr] 01/9/2021 21:49

i've done some digging into the property estate of screwfix, and i think they enjoy broadly similar profits to howdens, but screwfix does so on about 1/3 to 1/2 of the rental cost. this obviously means their return on capital is likely to be much, much higher than howdens. howdens enjoys a premium valuation. what price for a high growth, high return business (that's benefitting from digital) like screwfix then? my guess is that in a bull market for construction and materials, in the region of £5bn + minimum. to put it starkly it generates profits in the same ballpark to b&q on about 2% of the selling space, i.e. profit per square foot 50x higher.

reminder that enterprise value excluding leases for kingfisher is currently £6.4bn, including property of £2.6bn.