Analysis of Kingfisher share price for trading

If you are a private investor and you are interested on buying Kingfisher shares, we suggest you discover all the information and tips you need, to speculate on this asset through CFDs, in this article. In it you will find information about this company’s activities, its competitors, its partners, as well as a historical technical analysis of its price and important stock market data that you will need in to set up your own investment strategies.

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Analysis of Kingfisher share price for trading
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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Kingfisher in short:

  • Total market capitalization: 856 059.52 MGBX
  • Number of titles: 2 369 386 963
  • Place where it is listed: London Stock Exchange
  • Market: Main market
  • Index: FTSE 100
  • Sector of activity: Distribution

 

Kingfisher’s Activities:

Kingfisher is a British company specialized in the sale and distribution of home improvement items. It is the leader in this particular sector of activity in Europe and the company also ranks as second in the world in this field.

The products offered by this company are sold through numerous stores located in several countries and distributed as follows:

  • In the United Kingdom and Ireland, Kingfisher has 1994 stores, which makes it number one in this sector of activity in both countries. It also counts with 812 retailers under the name of B & Q and Screwfix in this area.
  • In France, the group counts with 221 stores, 119 stores under the name of Brico Depot and 102 stores under the name of Castorama. It is also the leader in this sector of activity on the French territory.
  • In Poland, the company owns 75 stores exclusively under the name Castorama and is also the leader in this sector of activity.
  • In Spain, it has 28 stores under the name of Brico Depot, Kingfisher is number 2 in this sector.
  • In Russia, Kingfisher owns 21 stores under the name of Castorama and is number 3 in this market
  • In Germany, it owns 19 stores under the name of Screwfix
  • In Romania, Kingfisher owns 15 stores under the name of Brico Depot
  • Finally, in Portugal, there are 3 stores under the name of Brico Depot owned by this group.

It is therefore in the United Kingdom and Ireland that the group Kingfisher generates most of its turnover with 44.4% of its total turnover. Then comes France with 37.9% of its turnover, then Poland with 10.6% of its turnover, the rest is generated in other countries which we mentioned before.

 

Find out everything about Kingfishers competitors:

Even if the sector of home improvement and of the distribution of items in this field is not very competitive in Europe, Kingfisher is not the only group trying to build itself a reputation in this sector of activity, the group faces competition by a few other companies that you should know about.

Kingfisher is in fact number two in the world in this sector of activity and its main competitor has always been the group Adeo which owns the brands: Leroy-Merlin, Weldom and Bricoman and holds more than 38% of shares on the market. Kingfisher comes immediately after with around 33% of shares on the market.

Of course, there are also other companies that are less important, but which still represent a competition to the giant Kingfisher with among others, Mr. Bricolage and Bricomarche each one holding 10% of the market shares as well as other even smaller competitors such as Bricorama and Brico Leclerc.

It remains essential to make a serious and objective study of this competition when you carry out your fundamental studies of Kingfisher. This should include but not be limited to the evolution of their shares on the market and of any news from these companies that may have an influence on their long-term results.

 

The strategic alliances established by the group Kingfisher:

In order to become the key player in the sector of home improvement and of the distribution of construction items, that it is today, the giant Kingfisher had to put in place very specific development strategies that are based on certain strategic alliances. Therefore, we invite you to find out some examples of these association to other companies to understand better the impact that such associations could have on the course of this asset.

In 2011, Kingfisher moved closer to the outsourcing company Atos, as part of an extended partnership. The contract, was signed for a period of 4 years then, in it, Atos engaged to take care of the computer park services of the company as well as of the operating supervision, technical administration and the development of software for the company in Europe. In total, there are more than 286 stores in France, Spain, Poland and Russia that are affected by this agreement.

In 2014, Kingfisher also started negotiations with one of its main competitors Mr Bricolage, to bring the two companies closer. A preliminary agreement without engagement was signed then between both entities regarding the redemption by Kingfisher of all shares of Mr Bricolage held by ANPF, or nearly 42% of its capital and the shares of this company held by the Tabur Family which accounted for 26.2% of the capital, for a total of 68.1% of its capital at a price of €15 per share. However, this partnership that would have propelled Kingfisher as the leader of the home improvement stores in the world did not take place and this partnership was finally abandoned.

Of course, it is essential to closely follow all the news from the group Kingfisher in order to identify all the future partnerships that this group is likely to establish and thus anticipate its influence on its price on the stock market.

 

Kingfisher shares price analysis:

In order to understand better how the price of Kingfisher shares has behaved over the time and thus put in place adapted strategies, we invite you to dive in the history of the course of this stock with the technical analysis history of these last ten years.

The first thing we can see in the stock charts about this period is a significant uptrend since this title went from a price of 129 GBX to more than 349 GBX in just 10 years. But this trend has been also marked by several other movements which should also be considered.

The first uptrend started in July 2008 after a short period of decline which lead the price of this title under the psychological bar of 100 GBX. Stimulated by the low price, investors started buying its shares which lead to a rise in price to 312.10 GBX in March 2012. Of course, this uptrend was marked by several corrective downward micromovements and by an interesting volatility in the medium term. But the technical resistance of 300 GBX finally retained this first uptrend and pushed the price back to the level of 270 GBX in September 2012.

In April 2013 we could appreciate a new uptrend stronger and faster than the previous one which lead this title to the level of 438.6 GBX in April 2014. This is in fact the highest price in history registered by this title over a period of 10 years.

But this spectacular increase did not last long, and investors were cautious in taking their profits quickly. We then witnessed a significant decrease to the level of 296 GBX in November of the same year. But then again, the price of 300 GBX hold good and the holding of this important psychological support lead to a new gain in points of the title. Which then managed to increase to the level of 378 GBX in April 2016 and remained around this same level until May of the following year, with of course some up and down corrective movements. Between May and September 2017, the price of this title experienced another downtrend which brought it back to the level of 289 GBX.

But just after this new negative phase, the course started a new bullish trend that pushed it to climb just above 300 GBX in October 2017. The uptrend is still present and visible in the beginning of 2018. It could continue at least until the achievement of the next threshold at 380 GBX but the holding or breaking of this major resistance will determine the course that this title will take.

From a graphical point of view, it remains interesting to trade on this title on the short and medium term. Its movements over short periods are mostly radical and volatile and gives place to the implementation of effective day trading strategies.

How to start trading Kingfisher shares

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.