Kingspan Group (KGSPY) AI Stock Analysis

• Market Cap: $13.33B
• Dividend Yield: 0.9%
• Average Volume (3M): 936.00
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.77
• Revenue Growth: 10.21%
• EPS Growth: 8.80%
• Country: US
• Employees: 24,802
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 1.88
• Shares Outstanding: 180,752,820
• 10 Day Avg. Volume: 1,690
• 30 Day Avg. Volume: 936
• PEG Ratio: 7.61
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 24.53
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 6.90
• Enterprise Value/Ebitda: 15.16
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $90.00 ▲(23.75% Upside)

Kingspan Group's overall stock score is driven by strong financial performance and a resilient earnings call, highlighting revenue and profit growth. However, technical analysis shows mixed signals, and valuation metrics suggest a balanced outlook. Currency headwinds and a challenging trading environment are notable risks.

Kingspan Group Business Overview & Revenue Model

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.

How the Company Makes Money

Kingspan Group generates revenue through several key streams, primarily from the sale of its insulation products, including insulated panels and insulation boards, which are essential for energy-efficient building construction. The company also offers a range of complementary products such as roof and wall systems, as well as energy management solutions that help clients optimize building performance. Significant partnerships with construction firms and architects enhance Kingspan's market reach and product integration in new projects. Additionally, Kingspan benefits from increasing global demand for sustainable building materials and energy-efficient solutions, which aligns with regulatory trends that favor environmentally friendly construction practices.

Kingspan Group Financial Statement Overview

Summary

Kingspan Group exhibits strong financial performance with consistent revenue and profit growth. The income statement reflects efficient operations and profitability, while the balance sheet shows a solid financial foundation with stable leverage and strong ROE. Despite a slight dip in operating cash flow, the company's cash flow position remains healthy, supporting ongoing investments and financial flexibility.

Income Statement

Kingspan Group has demonstrated strong revenue growth with a notable increase from €4,576M in 2020 to €8,608M in 2024. Gross profit margin is healthy at 29.6% for 2024, indicating efficient cost management. Net profit margin has improved to 7.7% in 2024 from 8.1% in 2023, showing enhanced profitability. EBIT and EBITDA margins are stable, reflecting robust operating performance.

Balance Sheet

The balance sheet exhibits a solid equity position with an equity ratio of 43.7% in 2024. The debt-to-equity ratio is manageable at 0.66, indicating a balanced approach to leverage. ROE is strong at 15.5%, showcasing effective utilization of equity for generating profits. The increased total assets and shareholder equity reflect growth and financial stability.

Cash Flow

Operating cash flow remains strong at €894.5M in 2024, albeit a decrease from €1,162M in 2023. Free cash flow is €527.8M, reflecting the company's ability to generate cash after capital expenditures. The operating cash flow to net income ratio is robust at 1.34, indicating efficient cash generation relative to earnings. However, free cash flow growth rate has declined compared to previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.96B	8.61B	8.09B	8.34B	6.50B	4.58B
Gross Profit	2.64B	2.55B	2.34B	2.22B	1.86B	1.39B
EBITDA	1.20B	1.18B	1.09B	983.50M	893.10M	629.30M
Net Income	674.90M	665.50M	640.30M	598.00M	554.10M	373.60M
Balance Sheet
Total Assets	9.83B	9.82B	8.00B	7.68B	6.39B	5.34B
Cash, Cash Equivalents and Short-Term Investments	581.40M	1.01B	938.70M	649.30M	641.40M	1.33B
Total Debt	2.72B	2.82B	2.14B	2.39B	1.56B	1.70B
Total Liabilities	5.22B	5.23B	4.05B	4.29B	3.43B	2.94B
Stockholders Equity	4.41B	4.29B	3.85B	3.32B	2.89B	2.35B
Cash Flow
Free Cash Flow	402.80M	527.80M	924.50M	422.80M	160.40M	506.70M
Operating Cash Flow	775.20M	894.50M	1.16B	692.00M	329.20M	638.50M
Investing Cash Flow	-834.90M	-1.11B	-458.30M	-1.30B	-708.70M	-171.20M
Financing Cash Flow	142.40M	254.60M	-416.30M	630.80M	-351.70M	712.90M

Kingspan Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KGSPY, the sentiment is Negative. The current price of 72.73 is below the 20-day moving average (MA) of 78.70, below the 50-day MA of 80.22, and below the 200-day MA of 81.62, indicating a bearish trend. The MACD of -2.08 indicates Positive momentum. The RSI at 30.43 is Neutral, neither overbought nor oversold. The STOCH value of 8.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KGSPY.

Kingspan Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMS	74 Outperform	$10.48B	24.32	27.09%	0.50%	2.48%	-6.92%
KGSPY	73 Outperform	$13.33B	18.27	15.47%	0.90%	10.21%	8.80%
CSL	69 Neutral	$13.76B	18.63	32.36%	1.26%	0.14%	3.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	61 Neutral	$12.06B	20.82	13.56%	―	-6.44%	-48.84%
MAS	53 Neutral	$13.08B	16.14	―	2.00%	-3.62%	3.41%
OC	51 Neutral	$9.29B	―	-3.27%	2.65%	3.47%	-148.53%

Kingspan Group Corporate Events

Kingspan Group Reports Strong H1 2025 Performance

Kingspan Group, a global leader in high-performance insulation and building systems, has reported its half-year financial results for 2025, showcasing resilience in challenging market conditions. The company operates primarily in the construction and building materials industry, focusing on energy-efficient solutions for buildings.

Kingspan Group Reports Strong Growth Amid Challenges

Kingspan Group’s recent earnings call painted a picture of robust revenue growth and significant strides in emissions reduction, coupled with strategic market expansions. However, the company faces challenges such as declining margins, currency headwinds, and a negative outlook in the U.K. market. Despite these hurdles, Kingspan’s financial health and strategic initiatives, including a share buyback and expansion plans, demonstrate a proactive stance in navigating uncertain market conditions.