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Kingfisher PLC ADR KGFHY

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Kingfisher Benefits From Increased Spending on DIY Activities; Outlook Is Trending Downward

Matthew Donen, CFA Equity Analyst

Analyst Note

| Matthew Donen, CFA |

No-moat Kingfisher’s third-quarter trading update continued to reveal the favorable trend toward do-it-yourself, or DIY, activities as more time is being spent indoors. Year-to-date sales numbers are better than we had initially forecast, although our fair value estimate remains unchanged at GBP 2.92 ($7.3 for ADR) per share, as we don’t expect this growth to be extrapolated going forward. Kingfisher’s share price has been on a ride this year, having almost tripled from its March lows before today’s results, because DIY spending has been a major beneficiary of lockdowns. Shares are currently fairly valued.

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Company Profile

Business Description

Kingfisher plc is a home improvement company with over 1,360 stores in nine countries across Europe. The company operates several retail banners that are focused on trade customers and general DIY needs. Kingfisher’s main retail brands include B&Q, Screwfix, and Trade Point in the United Kingdom and Castorama and Brico Depot in France. The U.K. and France are Kingfisher’s largest markets, accounting for 79% of sales. The company is the second-largest DIY retailer in Europe, with a leading position in the U.K. and a number-two position in France.

Contact
3 Sheldon Square, Paddington
London, W2 6PX, United Kingdom
T +44 2073728008
Sector Consumer Cyclical
Industry Home Improvement Retail
Most Recent Earnings
Fiscal Year End Jan 31, 2021
Stock Type
Employees 64,605

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