K + S Group Market Conditions

Market Conditions

According to K + S Groups Annual Report, the K + S share was able to develop positively in 2012, thanks to low interest rates and a strong German DAX. However, this growth was hindered by a prolonged winter, and drawn out negotiations between competitors and major customers in China and India (K + S Group 2013). 

In 2013, the K + S share posted a substantial decline. According to the K + S Group Annual Report, ‘stock was particularly depressed by the announcement of an aggressive volume policy by Uralkali at the end of July 2013, which resulted in a sharp drop in the share prices of all potash producers and subsequently caused the share prices to become highly volatile’ (2014, p.20).

Some of this downturn would be recovered in 2014. According to the K + S Group Annual Report, the sector began to stabilize again. However, political conflicts including those in Ukraine, and the drop in price for oil limited this recovery. As did the European debt crisis (K + S Group 2015).

Market Ratios

		2014	2013	2012	2011
Earnings per Share (EPS)	Net profit after tax/nos of issued ordinary shares	3.73	1.69	3.47	3.51
Dividends per Share (DPS)	Dividends/number of issued ordinary shares	0.91	0.25	1.40	1.30
Price Earnings Ratio	Market price per share/earnings per share	6.15	13.21	10.10	9.94