Kingfisher (KGFHY) AI Stock Analysis

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Kingfisher

(Other OTC:KGFHY)

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Rating:62Neutral

Price Target:$10.50▲(5.71% Upside)

Action:reiterated

Date:09/22/26

Mixed financial performance with declining profitability is the largest factor, tempered by strongly positive earnings call with upgraded guidance and solid dividend yield; technicals remain neutral to weak.

Positive Factors

Trade customer growth and market share gainsTrade is becoming a larger and more defensible part of Kingfisher’s mix, supported by share gains, dedicated propositions and partner coverage. Higher trade penetration can improve customer frequency and provide a steadier demand base than discretionary consumer-led DIY spending.

Negative Factors

Multi-year revenue softness and compressed profitabilityPersistent revenue softness and materially lower operating and net margins show that earnings power remains well below prior peaks. Even with some recent improvement, weaker profitability reduces reinvestment capacity and leaves results more sensitive to demand and cost pressures.

Kingfisher (KGFHY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $8.16B
Dividend Yield: 3.31%
Average Volume (3M): 197.04K
Price to Earnings (P/E): 21.2
Beta (1Y): 0.49
Revenue Growth: 4.42%
EPS Growth: 71.71%
Country: US
Employees: 69,720
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Home Improvement

Kingfisher Business Overview & Revenue Model

Company Description

Kingfisher plc, alongside its various subsidiary companies, operates as a prominent international retailer, primarily delivering products and services related to home improvement. While its core business is concentrated in the United Kingdom, Ireland...

How the Company Makes Money

Kingfisher primarily makes money by retailing home improvement products to both consumers and trade customers through its store networks and e-commerce channels. The company’s main revenue stream is the sale of goods across its banners (notably B&Q a...

Kingfisher Earnings Call Summary

Earnings Call Date:Sep 22, 2026(Q2-2027)|% Change Since:22.77%|Next Earnings Date:Mar 23, 2027

Earnings Call SentimentPositive

The call was strongly constructive, with broad-based profit, cash flow, trade, digital, Marketplace and international growth, alongside upgraded full-year guidance and continued shareholder returns. Challenges included a mixed market, weather-related demand disruption, bathroom and Brico Depot underperformance, operating cost inflation and the still-developing profitability of Screwfix France, but management described these issues as being actively addressed and emphasized confidence in the outlook.

Positive Updates

Sales and Profit Growth

H1 sales, including marketplace GMS, grew 1.6% in a mixed market environment. Adjusted profit before tax increased 9.9% to GBP 404 million, while adjusted earnings per share grew 16%, supported by profit performance and the share buyback program.

Negative Updates

Mixed Consumer and Market Environment

Management described the market environment as mixed, with the UK market remaining soft and DIY demand softer than trade demand. The company also noted that big-ticket categories were weaker.

Company Guidance

Kingfisher upgraded adjusted profit before tax guidance to a range of GBP 595 million to GBP 635 million, an increase of GBP 20 million at the midpoint, and upgraded free cash flow guidance by GBP 20 million, now expecting free cash flow between GBP 480 million and GBP 520 million; second-half assumptions remain largely unchanged, including a mixed consumer environment, a limited impact from events in the Middle East on energy and freight costs, rational pricing behavior across markets, and maintaining competitive prices while managing gross margin and cost effectively.

Kingfisher Financial Statement Overview

Summary

Mixed performance: declining revenue and net margins in income statement, offset by stable gross margins, low debt-to-equity, and positive though volatile cash flows.

Income Statement

45Neutral

Balance Sheet

60Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	12.79B	12.56B	12.78B	12.98B	13.06B	13.18B
Gross Profit	4.92B	4.78B	4.76B	4.78B	4.71B	4.85B
EBITDA	1.32B	1.28B	1.09B	1.25B	1.32B	1.71B
Net Income	294.52M	237.74M	185.00M	345.00M	471.00M	843.00M
Balance Sheet
Total Assets	11.41B	11.43B	11.44B	11.90B	12.10B	12.35B
Cash, Cash Equivalents and Short-Term Investments	411.67M	466.39M	297.00M	360.00M	286.00M	823.00M
Total Debt	2.34B	2.35B	2.32B	2.48B	2.56B	2.39B
Total Liabilities	5.30B	5.26B	5.10B	5.30B	5.44B	5.57B
Stockholders Equity	6.11B	6.18B	6.34B	6.60B	6.66B	6.78B
Cash Flow
Free Cash Flow	882.44M	1.02B	980.00M	954.00M	368.00M	752.00M
Operating Cash Flow	1.24B	1.41B	1.30B	1.32B	824.00M	1.16B
Investing Cash Flow	-509.71M	-351.28M	-316.00M	-339.00M	-441.00M	-389.00M
Financing Cash Flow	-1.04B	-958.74M	-997.00M	-898.00M	-938.00M	-1.01B

Kingfisher Technical Analysis

Technical Analysis SentimentPositive

Last Price9.93

Price Trends

50DMA8.83Positive

100DMA8.46Positive

200DMA8.23Positive

Market Momentum

MACD0.35Negative

RSI59.03Neutral

STOCH73.53Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KGFHY, the sentiment is Positive. The current price of 9.93 is above the 20-day moving average (MA) of 9.58, above the 50-day MA of 8.83, and above the 200-day MA of 8.23, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 73.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KGFHY.

Kingfisher Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

KGFHY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHK	75Outperform	$8.82B	17.84	6.17%	―	4.50%	26.62%
FND	66Neutral	$5.36B	22.90	9.74%	―	1.82%	10.69%
HD	63Neutral	$350.19B	24.53	102.68%	2.64%	2.50%	-2.95%
KGFHY	62Neutral	$8.06B	21.17	4.86%	3.31%	4.42%	71.71%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LOW	60Neutral	$130.09B	19.56	-71.79%	2.12%	8.16%	-2.84%
RH	55Neutral	$2.55B	22.99	184.91%	―	3.35%	3.38%

* Consumer Cyclical Sector Average

Performance Comparison

KGFHY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KGFHY	Kingfisher Plc Sponsored ADR	9.93	2.45	32.79%
HD	Home Depot	348.26	-4.12	-1.17%
LOW	Lowe's Companies	227.46	4.51	2.02%
MHK	Mohawk Industries, Inc.	146.64	39.68	37.10%
RH	Rh	129.17	-20.24	-13.55%
FND	Floor & Decor Holdings	48.83	-11.19	-18.64%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 22, 2026

Kingfisher AI Stock Analysis