Kier, to invest, or not?
Kier Group plc is a UK-based construction, services, and property company that operates globally. The company was founded in 1928 and is headquartered in Sandy, Bedfordshire.
Kier Group provides a wide range of construction and infrastructure services, including building, civil engineering, highways, utilities, and environmental services. The company also has a property development and management arm, which is involved in the design, construction, and management of residential and commercial property projects.
In addition to its core operations, Kier Group has a number of subsidiaries, including Kier Living, Kier Highways, and Kier Workplace Services, which offer specialized services in their respective areas of expertise.
Kier Group is committed to sustainability and has set ambitious targets to reduce its environmental impact, improve its social performance, and promote ethical business practices. The company has also been recognized for its commitment to diversity and inclusion, winning several awards for its efforts in this area. As of 2021, Kier Group had a workforce of over 14,000 employees and reported revenue of over £3 billion.
Over the past five years, Kier Group’s stock price has experienced significant volatility. In early 2018, the stock reached a high of around 1,200p per share, but then experienced a steep decline, reaching a low of around 70p per share in late 2018. Since then, the stock has fluctuated, but has generally trended upwards. As of my knowledge cutoff date of September 2021, Kier Group’s stock was trading at around 150p per share.
It’s important to note that stock prices are affected by a wide range of factors, including market conditions, industry trends, company performance, and global economic events, among others. Therefore, stock prices can be unpredictable and subject to change. It’s always a good idea to do your own research and consult with a financial professional before making any investment decisions.
Who is Kier Group?
Kier Group plc has a long history dating back to its founding in 1928 by J. and R. W. Kier as a small building contractor in Stoke-on-Trent, England. The company grew steadily over the following decades, expanding its operations and diversifying into new areas of construction.
In the 1960s, Kier Group began to undertake larger and more complex projects, such as the construction of power stations and major infrastructure projects. By the 1980s, the company had become one of the UK’s largest and most respected construction firms, with a reputation for delivering high-quality projects on time and within budget.
In the 1990s and early 2000s, Kier Group continued to expand its operations, acquiring a number of other construction companies and diversifying into new areas such as property development and facilities management. The company also began to expand its operations internationally, opening offices in the Middle East, Asia, and Africa.
Today, Kier Group is a multinational company with operations in over 20 countries and a workforce of over 14,000 employees. While the company has grown and evolved over the decades, it remains committed to the principles of quality, integrity, and innovation that have guided it since its founding.
Kier Group’s Main Competitors
Kier Group operates in a highly competitive industry and has several main competitors in the construction and engineering sector. Here are some of Kier Group’s main competitors and a brief background on each:
- Balfour Beatty – Balfour Beatty is a UK-based construction and engineering company that operates globally. The company was founded in 1909 and has a long history of delivering major infrastructure projects, including airports, railways, and power stations. Balfour Beatty has a workforce of over 24,000 employees and reported revenue of £8.4 billion in 2020.
- Carillion – Carillion was a UK-based construction and facilities management company that was founded in 1999. The company grew rapidly over the following years, acquiring a number of other construction companies and diversifying into new areas such as support services and project management. However, Carillion went into liquidation in 2018 due to financial difficulties.
- Laing O’Rourke – Laing O’Rourke is a privately owned construction company that operates globally. The company was founded in 1978 and has a reputation for delivering complex infrastructure projects, including airports, hospitals, and stadiums. Laing O’Rourke has a workforce of over 15,000 employees and reported revenue of £3.3 billion in 2020.
- Interserve – Interserve is a UK-based construction and facilities management company that operates globally. The company was founded in 1884 and has a long history of delivering major infrastructure projects, including airports, railways, and hospitals. Interserve has a workforce of over 50,000 employees and reported revenue of £2.9 billion in 2020.
These companies, along with other global construction and engineering companies, compete with Kier Group for contracts and projects in a highly competitive market.
Kier Group Investment Advantages
Some potential reasons why an investor may choose to invest in Kier Group:
- Strong Market Position: Kier Group is a well-established and respected company in the construction and infrastructure sector with a long history of delivering high-quality projects. The company has a strong market position and a diversified business model that includes a range of services, from building and civil engineering to property development and management.
- Growth Opportunities: Kier Group has a presence in over 20 countries, providing opportunities for growth and expansion into new markets. The company has also been involved in major infrastructure projects such as Crossrail, HS2, and the Hinkley Point C nuclear power station, which could lead to further growth and revenue opportunities.
- Commitment to Sustainability: Kier Group is committed to sustainability and has set ambitious targets to reduce its environmental impact and improve its social performance. This could be appealing to investors who prioritize ESG (environmental, social, and governance) considerations in their investment decisions.
- Resilience: Despite facing challenges in recent years, such as a decline in profitability and financial difficulties, Kier Group has implemented a significant restructuring plan and has shown resilience in overcoming these challenges. This could be seen as a positive sign for investors who believe in the company’s ability to weather future storms.
It’s important to note that investing in any company comes with inherent risks, and it’s always a good idea to do your own research and consult with a financial professional before making any investment decisions.