Re: KFP.N0000(Keels Food Products PLC)

[කිත්සිරි ද සිල්වාTop contributor]

Keells Food Products

KFP.N0000

Share Price 7 Day 1 Year 165.5 -0.6% 55.4% Second-quarter 2022 earnings released: EPS LK₨1.85 (vs LK₨3.01 in 2Q 2021) The company reported a soft second-quarter result with weaker earnings and profit margins, although revenues improved. Second-quarter 2022 results: ·   Revenue: LK₨1.06b (up 11% from 2Q 2021). ·   Net income: LK₨47.1m (down 39% from 2Q 2021). ·   Profit margin: 4.4% (down from 8.0% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 6% per year, which means it is well ahead of earnings.

[කිත්සිරි ද සිල්වාTop contributor]

Keells Food Products
KFP.N0000

Share Price 7 Day 1 Year  
172.25 19.6% 14.1%  

 
Investor sentiment improved over the past week

After last week's 20% share price gain to LK₨172, the stock trades at a trailing P/E ratio of 13.4x.

The average forward P/E is 18x in the Food industry in Sri Lanka.

Total returns to shareholders of 42% over the past three years.
estimates the intrinsic value at LK₨90.37 per share.

[කිත්සිරි ද සිල්වාTop contributor]

Keells Food Products
KFP.N0000

Share Price 7 Day 1 Year  
173.75 8.6%         12.1%  

 
The price target decreased to LK₨145

Down from LK₨164, the current price target is an average from 2 analysts.

The new target price is 17% below the last closing price of LK₨174.
Stock is up 12% over the past year.

The company posted earnings per share of LK₨12.59 last year.

[කිත්සිරි ද සිල්වාTop contributor]

Keells Food Products
KFP.N0000

Share Price 7 Day 1 Year  
172.5          6.0% 1.3%  

 
Upcoming dividend of LK₨7.00 per share.

Eligible shareholders must have bought the stock before 10 March 2022.
Payment date: 31 March 2022.

The payout ratio is a comfortable 19% but the company is paying out more than the cash it is generating.

Trailing yield: 5.5%.

Lower than the top quartile of Sri Lankan dividend payers (5.6%).
Higher than average of industry peers (2.8%).

[කිත්සිරි ද සිල්වාTop contributor]

Keells Food Products
KFP.N0000

Share Price 7 Day 1 Year  
195.00 19.6% 22.1%  

 
Investor sentiment improved over the past week.

After last week's 20% share price gain to LK₨195, the stock trades at a trailing P/E ratio of 15.2x.

The average forward P/E is 17x in the Food industry in Sri Lanka.

Total returns to shareholders of 90% over the past three years.

Simply Wall St's valuation model estimates the intrinsic value at LK₨231 per share.

[කිත්සිරි ද සිල්වාTop contributor]

KFP.N0000
Share Price 7 Day 1 Year  
200.00         0.0% 21.6%  

 
Second quarter 2023 earnings released: EPS: LK₨2.39 (vs LK₨1.85 in 2Q 2022).

Second quarter 2023 results:

EPS: LK₨2.39 (up from LK₨1.85 in 2Q 2022).
Revenue: LK₨1.77b (up 67% from 2Q 2022).
Net income: LK₨61.0m (up 30% from 2Q 2022).
Profit margin: 3.5% (down from 4.4% in 2Q 2022). The decrease in margin was driven by higher expenses.
Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Food industry in Asia.

Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth.