Kingspan Group plc (KRX.IR) | Investment Case

1. Company Snapshot

1.a. Company Description

Kingspan Group plc, together with its subsidiaries, provides insulation and building envelope solutions in the Republic of Ireland, the United Kingdom, rest of Europe, the Americas, and internationally.It operates through five segments: Insulated Panels, Insulation, Light & Air, Water & Energy, and Data & Flooring.The Insulated Panels segment manufactures insulated panels, structural framing, and metal facades components.

The Insulation segment provides rigid insulation boards, technical insulation, and engineered timber systems.The Light & Air segment manufactures daylighting, smoke management, and ventilation systems.The Water & Energy segment provides energy and water solutions, and related services.

The Data & Flooring segment offers data centre storage solutions, as well as raised access floors.It also engages in the trustee and finance businesses.The company was founded in 1965 and is headquartered in Kingscourt, Ireland.

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1.b. Last Insights on KRX

Have nothing to say about that one ...

1.c. Company Highlights

Last Price	75
Change Percentage	2.04%
Open	74
Previous Close	73.5
Market Cap ( Millions)	13644
Volume	359785
Year High	86.5
Year Low	62.6
M A 50	69.31
M A 200	72.34

FCF Yield	2.98%
Dividend Yield	0.68%
ROE	11.92%
Debt / Equity	61.70%
Net Debt / EBIDTA	228.00%
Price To Book	3.11
Price Earnings Ratio	26.48
Price To FCF	33.53
Price To sales	2.04
EV / EBITDA	16.84

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.52%)

6. Segments

Insulated Panels

Expected Growth: 5.5%

Kingspan Group plc's Insulated Panels segment growth of 5.5% is driven by increasing demand for energy-efficient buildings, stringent building codes, and rising adoption of off-site construction. Additionally, growing investments in infrastructure development, particularly in emerging markets, and the company's strategic expansion into new regions also contribute to the segment's growth.

Insulation

Expected Growth: 5.8%

Kingspan Group plc's insulation segment growth of 5.8% is driven by increasing demand for energy-efficient buildings, stringent government regulations on energy consumption, and rising adoption of sustainable construction practices. Additionally, the company's strategic acquisitions and expansion into emerging markets have contributed to its growth momentum.

Light, Air and Water

Expected Growth: 5.2%

Kingspan Group plc's 5.2% growth is driven by its Light segment's increasing demand for energy-efficient solutions, Air segment's growth in ventilation systems, and Water segment's expansion in wastewater management. These drivers are fueled by government regulations, increasing environmental awareness, and infrastructure development.

Roofing and Waterproofing

Expected Growth: 5.6%

Kingspan Group plc's Roofing and Waterproofing segment growth of 5.6% is driven by increasing demand for energy-efficient buildings, stringent building regulations, and growing adoption of waterproofing solutions in emerging markets. Additionally, the segment benefits from Kingspan's innovative product offerings, strategic acquisitions, and expanding distribution network.

Data and Flooring

Expected Growth: 5.4%

Kingspan Group plc's Data and Flooring segment growth of 5.4% is driven by increasing demand for energy-efficient and sustainable building solutions, coupled with the company's strategic acquisitions and investments in digitalization, expanding its product offerings and geographic reach.

7. Detailed Products

Insulated Panels

Kingspan's insulated panels are designed for building envelopes, providing thermal insulation, weather-tightness, and fire safety. They are used in walls, roofs, and facades of commercial and industrial buildings.

Insulation Boards

Kingspan's insulation boards are designed for thermal insulation in buildings, providing energy efficiency and reducing carbon emissions. They are used in walls, floors, and roofs of residential and commercial buildings.

Water Storage Solutions

Kingspan's water storage solutions provide rainwater harvesting systems, grey water reuse systems, and potable water storage tanks for commercial and residential applications.

Tanking and Waterproofing

Kingspan's tanking and waterproofing solutions provide protection against water ingress and structural damage in basements, tunnels, and other underground structures.

Daylighting Systems

Kingspan's daylighting systems provide natural lighting solutions for buildings, reducing the need for artificial lighting and improving energy efficiency.

Access Panels and Doors

Kingspan's access panels and doors provide secure and convenient access to hidden services, such as pipes, ducts, and electrical installations, in buildings.

Facade Systems

Kingspan's facade systems provide exterior cladding solutions for buildings, combining aesthetics, weather-tightness, and thermal performance.

8. Kingspan Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Kingspan Group plc operates in the building materials industry, where substitutes are available, but they are not a significant threat. The company's products are highly specialized, and customers are loyal to the brand.

Bargaining Power Of Customers

Kingspan Group plc has a diverse customer base, and no single customer has significant bargaining power. The company's products are essential to the construction industry, and customers rely on Kingspan for their building needs.

Bargaining Power Of Suppliers

Kingspan Group plc relies on a network of suppliers for raw materials, but the company has a strong bargaining position due to its large scale of operations. However, suppliers can still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The building materials industry has high barriers to entry, including significant capital requirements and regulatory hurdles. New entrants would struggle to compete with established players like Kingspan Group plc.

Intensity Of Rivalry

The building materials industry is highly competitive, with several established players competing for market share. Kingspan Group plc faces intense competition from rivals, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	35.72%
Debt Cost	4.24%
Equity Weight	64.28%
Equity Cost	9.07%
WACC	7.35%
Leverage	55.56%

11. Quality Control: Kingspan Group plc passed 6 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Poste Italiane

A-Score: 7.5/10

Value: 6.2

Growth: 4.7

Quality: 6.2

Yield: 8.8

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

BELIMO

A-Score: 5.6/10

Value: 0.0

Growth: 5.4

Quality: 8.2

Yield: 5.6

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

Rockwool

A-Score: 4.9/10

Value: 5.6

Growth: 7.0

Quality: 7.2

Yield: 5.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

Kingspan

A-Score: 4.0/10

Value: 2.8

Growth: 7.6

Quality: 5.2

Yield: 0.6

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

Travis Perkins

A-Score: 3.9/10

Value: 8.2

Growth: 1.3

Quality: 2.6

Yield: 5.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

NIBE Industrier

A-Score: 2.9/10

Value: 2.6

Growth: 5.0

Quality: 4.1

Yield: 1.9

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

8.34%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.35%

Kingspan Group plc - IE0004927939

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on KRX

Have nothing to say about that one ...

1.c. Company Highlights

Higher Growth

Lower Yield

Expensive

Fairly Valued

Weak Momentum

Revenues Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.52%)

6. Segments

Insulated Panels

Expected Growth: 5.5%

Insulation

Expected Growth: 5.8%

Light, Air and Water

Expected Growth: 5.2%

Roofing and Waterproofing

Expected Growth: 5.6%

Data and Flooring

Expected Growth: 5.4%

7. Detailed Products

Insulated Panels

Insulation Boards

Water Storage Solutions

Tanking and Waterproofing

Daylighting Systems

Access Panels and Doors

Facade Systems

8. Kingspan Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Kingspan Group plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

75.0$

Current Price

75$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA