This comment has already been saved in your, Comic: Stimulus Hopes Boost S&P 500, Nasdaq To Best Month In Years, Point/Counterpoint: The Case for AstraZeneca, Freedom ETF Bucks Mainstream to Bet on Human Rights & Long-Term Growth, Riding Vaccine Optimism With FTSE Oil Major Shell, Vanguard Total Bond Market II Index Fund Investor, PIMCO Commodity Real Return Strategy Institutional, SG FTSE MIB Gross TR 5x Daily Short Strategy RT 18, Vontobel 7X Long Fixed Lever on Natural Gas 8.06, Kia Motors workers in South Korea to stage partial strike over wages, EV plans, Hyundai Motor swings to quarterly loss as engine issues batter earnings, Hyundai Motor, Kia Motors flag $2.9 billion earnings hit from quality costs. The Company sells its products in domestic and overseas market such as North America, Europe and other Asian countries. The Company's products include passenger vehicles, recreational vehicles (RVs), taxi, bus, commercial vehicles as well as hybrid vehicles under the brand names of K3, K5, K7, K9, Soul, Sedona, Sorento, Sportage and others. -In FY12, Kia commanded 3.8% and 2.6% of the U.S. and European automarkets, respectively However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion. Kia's stock hasn't done anything in four years. Kia plant in Anantpur is one of the largest car factories in the country. Strategy: Deep Value. Incredibly Cheap Stock On An Absolute and Relative Basis With Masking Issues: Target Price: $80.00. © 2020 SumZero, Inc. | All Rights Reserved, The 5G Landscape Takes Shape: Rakuten, T-Mobile, Micron, Investors Place Their Bets on Gambling Stocks: DraftKings, Monday Never Sleeps: Weekend Round-Up 08/31/2020, Curtains or Comeback? European shares inch cautiously higher amid mixed earnings, first round of U.K. Parliament votes on final Brexit bill Avoid profanity, slander or personal attacks. Want access to more professional investment research? Incredibly Cheap Stock On An Absolute and Relative Basis With Masking Issues: -Kia trades at a 1 year forward P/E of 6.4x, at an EV / LTM EBITDA of 3.3x and at only a 26% premium to its liquidation value -Kia is easily the cheapest large OEM auto stock on a P/E basis in the world and the cheapest on an EV / EBITDA basis excl. Are you sure you want to delete this chart? -Given this reluctance, the enterprise value of the core Auto business relative to its EBITDA is extremely low, indicating the equity could be over-sold, Great Company - Strong Cash Flow, Balance Sheet and High Historical ROEs Han Woo Park, CEO & President, Kia Motors Corporation said, "Kia Motors has big plans for India and the company has already made significant investment in its plant in the country. Please note that all comments are pending until approved by our moderators. any of each other's Investing.com's posts. Investment Merits. The Kia Motors manufacturing plant in Anantapur, Andhra Pradesh is one of the largest car factories in India. The Oil Week Ahead: Will Russia Agree To Production Cuts? CEO Kookhyun Shim says Kia is all set to become a model for foreign investors and investments coming to Andhra Pradesh. -Kia has also built a substantial marketing foot print and brand value in these countries (Super Bowl, UEFA advertising), Investment Risks The opinions expressed reflect those of the contributor and not SumZero, Inc. Over the last year, Kia's stock price has decreased over 23% because of numerous operational issues. Movie Theaters and Studios Adapt or Die During Pandemic, Monday Never Sleeps: Weekend Round-Up 08/17/2020, Manager Q&A: Tech Stocks to Watch in the Remote Work Landscape, Zeroed-In: The Market at a Glance, 06/03/2020, Zeroed-In: The Market at a Glance, 06/02/2020, Zeroed-In: The Market at a Glance, 06/01/2020. By doing so, you and %USER_NAME% will not be able to see New Brexit deadlock adds to stock and pound weakness The Kia Motors manufacturing plant in Anantapur, Andhra Pradesh is one of the largest car factories in India. 2. -Generates in excess of 2 trillion won each year in free cash flow Replace the attached chart with a new chart ? With its latest investment, Kia Motors plans to expand the existing plant in the state to manufacture Sports Utility Vehicles (SUVs), said the CEO. Please sign in or create an account on SumZero to post a comment. -Kia has focused on selling strategic models custom built for European, Russian and Chinese consumers GM Recent Price: $55.75. -Net-cash balance sheet, both including and excluding investment portfolio, with minimal intangibles -Historical ROEs between 20% and 30%, Well-Positioned for Emerging Market Growth I believe this to be the lowest rational market price for Kia's equity and highly unlikely to be seen in this market absent a major negative externality (e.g., a recall). Kia Motors India will be investing an amount of $54 million (approximately ₹ 408 crore) in its Anantapur manufacturing facility in Andhra Pradesh. Location: Adu Dhabi, UAE. GM 4. © 2007-2020 Fusion Media Limited. Incredibly Cheap Stock On An Absolute and Relative Basis With Masking Issues: -Kia trades at a 1 year forward P/E of 6.4x, at an EV / LTM EBITDA of 3.3x and at only a 26% premium to its liquidation value -Kia is easily the cheapest large OEM auto stock on a P/E basis in the world and the cheapest on an EV / EBITDA basis excl. The company has a market cap of 17 trillion Korean won ($15.4 billion). -It appears that Kia trades primarily on a P/E basis and investors are wary to assign a high multiple for the above reasons *Anticipated Won Strength Dampens Forward Profit Expectations, Catalysts Kia Motors plans to invest $2 billion (Rs 12,750 crore) in India over the next two years to set up a manufacturing plant and develop a supplier base, a top executive said. With SUVs in focus, Kia Motors to invest additional $54 million at Andhra plant 1 min read. Market is currently closed. Be the First to Comment. Office Address. GM Cash Flow from Investing-3,399,122 ... KIA MOTORS Corp. engages in the manufacture and sale of motor vehicles. Voting is open during market hours. KIA India CEO Kookhyun Shim declared to invest an additional sum of USD 54 million on the company's expansions in the state while speaking at the Andhra Pradesh government's flagship programme 'Mana Paalana, Mee Soochana' on industries. Your status will be reviewed by our moderators. Now, it trades at 42,150 won. -Brazil: New import taxes in Brazil have resulted in a 2.2% decrease in sales in 1Q13 to 38k units, but this is mitigated by news that Kia intends to build a factory in Brazil, making the Company eligible for more attractive tax treatment going forward With its latest investment, Kia Motors plans to expand the existing plant in the state to manufacture Sports Utility Vehicles (SUVs), said the CEO. 1H Earnings in July - Stub imapct of new product introductions This is currently reflected in analyst recommendations but not in current multiples. Kia sold 2,215,256 cars in 2015, 2,707,120 cars in 2014 and 2,746,430 cars in 2013. Thanks for your comment. Assuming Kia trades at 9x P/E (at a 25% discount to global peers) in 2014 or 5.5x 2014 EBITDA (~30% discount to global peers), each Kia share will be worth ~92,000 Won, a 57% premium to today's price. In July 2012, unionized workers at Hyundai and Kia in South Korea voted to strike, which ended in September and cost Kia ~63k units in lost output. Impact of increased productivity at existing plants due to new capex in the next year. Most importantly, because Kia aspires to continue to increase share, new capacity will eventually come online, and this will most likely happen in a jurisdiction outside of Korea to mitigate the strengthening Won. Incremental impact of new model launches in USA, Korea and Europe in 2H13 (K5, Sportage and Soul in USA; Soul, Sportage, K3 Coupe and K7 Hybrid in Korea; K5, Soul and Sportage in Europe) I anticipate that this will be announced within the next 12 months. -Kia trades at a 1 year forward P/E of 6.4x, at an EV / LTM EBITDA of 3.3x and at only a 26% premium to its liquidation value You can find more details by going to one of the sections under this page such as historical data, charts, technical analysis and others. In 2012, it was over 80,000 won. Timeframe: 1-2 Years. -Kia is easily the cheapest large OEM auto stock on a P/E basis in the world and the cheapest on an EV / EBITDA basis excl. %USER_NAME% was successfully added to your Block List. Opening Bell: U.S. Futures Hit By Dire Corporate Warnings; Oil Tumbles, Opening Bell: Stocks Err On Side Of Caution Amid Mixed Earnings, Brexit Vote, Direxion Daily Junior Gold Miners Bull 2X Shares, U.S. Commodity Futures Trading Commission (United States), Securities and Exchange Commission (United States), To use this feature, make sure you are signed-in to your account, Make sure you are signed-in with the same user profile. Disclaimer: This is a reduced version of a full SumZero report republished with the author's consent. Other factors that weigh on the stock: (1) fears of a stengthening won over the next year, decreasing profitability and (2) fear that capacity will not grow in the next two years (current capacity utilization is ~100% globally). Sign up to create alerts for Instruments, Investment Merits. Please wait a minute before you try to comment again. The company's CEO, Kookhyun Shim, confirmed the news while participating in a discussion organised by the Andhra Pradesh government. Get today's KIA Motors stock price and latest 000270 news as well as KIA Motors real-time stock quotes, technical analysis, full financials and more. All of these factors have caused Kia to trade at 3.3x LTM EBITDA, 6.4x FY13E earnings and at EBITDA less Capex / EV yield of 16%. View real-time stock prices and stock quotes for a full financial overview. By: SumZero Staff | Your ability to comment is currently suspended due to negative user reports. Yen, gold,... Kia Motors Corp is a Korea-based company principally engaged in the manufacture and distribution of automobiles. Compounding these events, in November 2012, Kia announced that it would restate the fuel economy of certain cars and compensate customers in the United States after the EPA determined the Company's mileage testing methodology was flawed and aggressive. *Labor Contract Renegotiation / Strike Risk This Summer Swiss heavyweight ABB adds to dire... U.S. futures give up Monday's trade-driven gains -China: In FY 2012, Kia sold 481,000 units and saw unit sales in 1Q13 up 26% YoY, with capacity and the dealer network in the country set to increase when Kia's new factory comes online next year -Rest of World sales up 10.3% in FY12 and increased traction in 1Q13 seen in the Middle East and Africa (69k units, +4.6%), Russa (42k units, +6.1%) and Eastern Europe (+19.9%), Share Gainer in U.S. and E.U. Disclosure: The author of this report held an active position in this security at the time of its posting. 1. Economic Events and content by followed authors. Firm: Redacted. South Korean automaker KIA Motors on Thursday announced an additional investment of USD 54 million in Andhra Pradesh for an upcoming project. -43% of Kia's market capitalization is composed of cash and long-term investments in associates, net of debt Once this announcement is made, coupled with increased traction of new product rollouts and increases in productivity due to new capital projects over the next year, I believe Kia's earnings will surprise on the upside of investor expectations. All Rights Reserved. Updated: 28 May 2020, 04:57 PM IST Srinivasa Rao Apparasu. Investors are forgetting that Kia is a fantastic company that has grown share consistently all over the world since its founding by making stylish and high quality vehicles. Since you’ve just unblocked this person, you must wait 48 hours before renewing the block. This is the main KIA Motors stock chart and current price. 187, 188-B, Teigaon Industrial Area, Dhaka-1208, Bangladesh Kia has already invested $1.1 billion in its plant here, however, the company has big plans for the future.
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