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Kerry Group PLC Class A KYGA

Morningstar Rating
€79.42 −0.13 (0.16%)
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Company Report

Kerry Group: North America and Retail Return to Growth; New Share Buyback Program Announced

Kerry Group reported first-quarter results, with volumes up 1.9% and a negative pricing contribution (negative 5.3%) reflecting a deflationary environment. For the first quarter, volume growth for the group's largest segment, taste and nutrition, was up 3.1%, primarily driven by the food service channel (up strongly by 8.6%) with volumes in the retail channel returning to growth. Within this, emerging-market volumes were up 5.2%, while the Americas region rebounded nicely with volumes up 3.6%, driven by North America's return to growth. The dairy business continues to underperform, down 16.7%, with lower dairy market prices hitting pricing (down 13.7%).

Price vs Fair Value

KYGA is trading at a 398% premium.
Price
€79.55
Fair Value
€683.00
Uncertainty
Medium
1-Star Price
€549.40
5-Star Price
€53.10
Economic Moat
Kttl
Capital Allocation
Vdqkwkvmn

Bulls Say, Bears Say

Bulls

Kerry’s integrated solutions model is hard to replicate due to its high service component (based on decades of experience) and wide range of solutions offered.

Bears

Kerry’s status as one of the leaders of the consolidation trend in the still fragmented food ingredient and flavor markets may lead to expensive, value-destroying deals, especially in the case of large acquisitions.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
€79.55
Day Range
€79.2079.60
52-Week Range
€71.0598.95
Bid/Ask
€0.00 / €0.00
Market Cap
€13.77 Bil
Volume/Avg
6,789 / 144,911

Key Statistics

Price/Earnings (Normalized)
18.90
Price/Sales
1.77
Dividend Yield (Trailing)
1.44%
Dividend Yield (Forward)
1.44%
Total Yield
2.20%

Company Profile

Kerry Group is a global leader in taste and ingredient technology servicing the food, beverage, and pharmaceutical sectors. The company has more than 200 locations that supply clients in more than 50 countries. It gets around 80% of its revenue from developed countries and 20% from the developing world, servicing a wide range of end-use sectors, such as meat, meals, snacks, dairy, drinks, and pharmaceuticals. Kerry has expanded through a combination of organic development and multiple tuck-in acquisitions.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Large Core
Total Number of Employees
21,000

Competitors

Valuation

Metric
KYGA
IFF
SY1
Price/Earnings (Normalized)
18.9037.2740.09
Price/Book Value
2.211.723.93
Price/Sales
1.772.173.02
Price/Cash Flow
16.6823.7121.49
Price/Earnings
KYGA
IFF
SY1

Financial Strength

Metric
KYGA
IFF
SY1
Quick Ratio
1.100.751.54
Current Ratio
1.661.682.89
Interest Coverage
11.58−5.875.75
Quick Ratio
KYGA
IFF
SY1

Profitability

Metric
KYGA
IFF
SY1
Return on Assets (Normalized)
6.46%1.21%4.34%
Return on Equity (Normalized)
12.26%2.46%9.53%
Return on Invested Capital (Normalized)
8.88%2.46%6.39%
Return on Assets
KYGA
IFF
SY1
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