Kingfisher PLC

KGF: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Kingfisher: Disappointing Profits; Regulatory Headwinds Expected in 2025; Reducing Fair Value by 8%

Matthew Donen

Nov 26, 2024

No-moat Kingfisher reported a disappointing third-quarter trading update. Organic revenue declined 1.1% year over year, missing company-compiled consensus. To make matters worse, proposed regulations in the UK and France are expected to hit profitability in 2025 due to higher wage costs and taxes. The combination of bad news sent shares 15% lower on Nov. 25. We’ve lowered our fair value estimate by 8% to GBX 267 per share to reflect lower profitability in the short- and medium term. Shares appear fairly valued.

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Kingfisher PLC

Kingfisher: Disappointing Profits; Regulatory Headwinds Expected in 2025; Reducing Fair Value by 8%

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