Kingspan Share Discussion Threads

[ukinvestor220] 13/2/2013 14:10

Cheers Wex

Company: Kingspan Group

Prior Post: Here (valuation, no commentary)

Ticker: KSP:ID

Price: EUR 8.698

Kingspan's insulation & related businesses are in a marvelous niche, attracting both green customers & green investors. However, there's no escape from the economic & construction cycle – while it continues to increase revenues, based on acquisitions & market share wins, operating profit margins remain under pressure.

I tagged Kingspan as marginally over-valued last year. Fortunately, its balance sheet remains in good shape, so the share price has responded pretty positively to two new acquisitions. The purchase of ThyssenKrupp's insulated panel business, with EUR 315 mio in Mainland Europe sales, and Rigidal, another panels & roofing business operating in the Gulf region (with $39 mio in sales), adds significantly to future sales.

However, the price rally may be based more on hope at this point, rather than any immediate earnings enhancement – as ThyssenKrupp currently operates at a loss, which likely matches/exceeds Rigidal's current profit. But we can expect to see extensive restructuring here, and I'm confident margins will eventually converge to group levels. Meanwhile, the operating profit margin is likely to fall from 6.6% to 5.4%, albeit on higher revenues.

However, Kingspan's long-term growth story remains intact. With a rather absurd EUR 141 mio of cash on hand (vs. EUR 338 mio of debt), the total acquisition consideration presents no financial drag. The company may even have some scope for further acquisitions. With a genuine improvement in the economy, and/or the bombed-out construction sector (who knows when?!), it's obvious Kingspan's margins could rocket higher. Meanwhile, it's reasonable to price KSP somewhere between its prospective 5.4% & its historic 13.3% peak operating margin, which would equate to something like a 0.75 Price/Sales ratio. This confirms the company is fairly priced.

Price Target: EUR 8.51

Upside: (2)%

[wexboy] 13/2/2013 05:05

2013 – The Great Irish Share Valuation Project (Part IV)

I take a look at Kingspan Group, plus a batch of other Irish stocks:



Cheers,

Wexboy

[mveseyx] 10/8/2012 13:33

Nice rise today on the back of two acquisition announcements;

[luderitz] 02/3/2012 22:10

Irish? does that mean it's 1% stamp duty on these to buy?

[mveseyx] 22/2/2012 16:41

Looking good, broke the Jan 11 high, Aug 08 is the next one to beat.

[ukinvestor220] 17/2/2012 11:06

construction and materials, housebuilding seem to be all the rage atm ... KGP about to breakout nicely here.

[wexboy] 30/1/2012 09:14

Hi folks,

Just posted Part III of The Great Irish Share Valuation Project on my blog. I'm setting a Fair Value Price Target for every listed Irish company. So far I've valued almost 3 dozen companies, including Kingspan:



I hope you'll take a look (plse don't hesitate to comment/email me), and perhaps become a regular reader.

Cheers,

Wexboy

[huttonr] 22/8/2011 07:15

Half year figures look better than I was expecting

[a0148009] 13/1/2011 09:44

mveseyx

I am looking for info on this one too,do you have any brokers forecasts.
Many thanks.

AO

[mveseyx] 06/1/2011 10:28

Anyone got an opinion on this. Highest since Aug 08. Good result due?

[ukinvestor220] 16/12/2010 09:31

well the share price keeps rising so i dont know what to think. Next guidance is results early March.

[lbo] 16/11/2010 18:05

Kingspan warns order intake in key markets is on the wane

[lbo] 19/10/2010 10:39

BANK of Ireland has secured a €22.5m summary judgment order on consent against Dublin businessman Frank Gormley over unpaid property loans.

The bank told the court yesterday that it intends to seek similar orders shortly over the same loans against Smart Telecom purchaser Brendan Murtagh and two Cork businessmen

[lbo] 24/9/2010 16:53

my banker friends -- yes, I still have a few -- whisper to me that even firms they previously reckoned were rock solid are now coming to them with serious problems.

[ukinvestor220] 14/9/2010 12:06

Has this been overlooked ?

Full listing, returned to profit, divi, strong growth in orderbook. All this after a terrible first 2 months of bad weather related problems.

[ukinvestor220] 14/9/2010 12:05

2010 HALF-YEARLY REPORT

Six months ended 30 June 2010

Highlights:

� Operating profit growth for the first time in three years, up 9% to EUR33.1mn;
� Continued steady reduction in debt, down from EUR230.8mn at June 2009 to
EUR135.1mn;
� Resumption of growth in UK Insulated Panel markets, order intake up 14% on
half one 2009;
� Strong growth in US & Central Europe Panels intake and orderbook, which will
help deliver a solid second half;
� Insulation sales growth of 12% including the acquisition of the Australian
business, and encouraging growth in the Mainland Europe business;
� Access Floors sales decline, although margins and profitability both remain
robust;
� Capital expenditure curtailed to EUR9.6mn;
� Resumption of an interim dividend of 4c per share.

[lbo] 24/8/2010 14:42

Still overvalued versus peers who struggle to trade at 10x eps. So even if Kingspan hit eps of 30c for 2010 it should only trade at circa €3 per share.

[djderry] 23/8/2010 22:01

Kingspan returns to profit! The market seems pleased!

[lbo] 17/8/2010 17:18

Readymix say things have gotten worse



Building materials group Readymix has said that the exceptionally challenging trading conditions experienced since 2007 have deteriorated even further during this year. In line with the exceptional weakness across the construction sector, the firm said that demand for products continues to decline, and revenues from operations are down 3pc from last year.

[lbo] 13/5/2010 08:21

Kingspan sees 10pc fall in H1 profits

[lbo] 22/4/2010 08:27

KINGSPAN GROUP founder Eugene Murtagh has settled his legal action against a leading international bank over its alleged failure to disclose the "utterly unsuitable" nature of a €24.8 million investment which resulted in a loss of €3.8 million for him.