KINROSS GOLD CORP (KGC) Stock Fundamental Analysis
NYSE:KGC - New York Stock Exchange, Inc. - CA4969024047 - Common Stock - Currency: USD
KGC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. KGC has an excellent profitability rating, but there are some minor concerns on its financial health. KGC is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make KGC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year KGC was profitable.
In the past year KGC had a positive cash flow from operations.
Of the past 5 years KGC 4 years were profitable.
Each year in the past 5 years KGC had a positive operating cash flow.
1.2 Ratios
KGC's Return On Assets of 8.73% is amongst the best of the industry. KGC outperforms 87.66% of its industry peers.
Looking at the Return On Equity, with a value of 13.83%, KGC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.40%, KGC belongs to the top of the industry, outperforming 83.12% of the companies in the same industry.
KGC had an Average Return On Invested Capital over the past 3 years of 6.23%. This is significantly below the industry average of 11.67%.
The 3 year average ROIC (6.23%) for KGC is below the current ROIC(9.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.73% | ||
| ROE | 13.83% | ||
| ROIC | 9.4% |
ROA(3y)2.29%
ROA(5y)4.25%
ROE(3y)3.43%
ROE(5y)6.8%
ROIC(3y)6.23%
ROIC(5y)6.54%
1.3 Margins
KGC has a Profit Margin of 18.43%. This is amongst the best in the industry. KGC outperforms 88.96% of its industry peers.
In the last couple of years the Profit Margin of KGC has declined.
KGC has a Operating Margin of 28.48%. This is amongst the best in the industry. KGC outperforms 83.12% of its industry peers.
In the last couple of years the Operating Margin of KGC has grown nicely.
KGC has a Gross Margin of 35.04%. This is in the better half of the industry: KGC outperforms 75.97% of its industry peers.
KGC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.48% | ||
| PM (TTM) | 18.43% | ||
| GM | 35.04% |
OM growth 3Y9.12%
OM growth 5Y8.75%
PM growth 3Y45.92%
PM growth 5Y-2.15%
GM growth 3Y3.98%
GM growth 5Y4.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KGC is creating some value.
KGC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KGC has less shares outstanding
The debt/assets ratio for KGC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.84 indicates that KGC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.84, KGC perfoms like the industry average, outperforming 53.90% of the companies in the same industry.
The Debt to FCF ratio of KGC is 1.05, which is an excellent value as it means it would take KGC, only 1.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KGC (1.05) is better than 88.31% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that KGC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.18, KGC perfoms like the industry average, outperforming 50.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.09
WACC8.61%
2.3 Liquidity
KGC has a Current Ratio of 2.01. This indicates that KGC is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.01, KGC perfoms like the industry average, outperforming 43.51% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that KGC may have some problems paying its short term obligations.
The Quick ratio of KGC (0.83) is worse than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
KGC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.23%, which is quite impressive.
Measured over the past years, KGC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.87% on average per year.
Looking at the last year, KGC shows a very strong growth in Revenue. The Revenue has grown by 26.71%.
KGC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.04% yearly.
EPS 1Y (TTM)87.23%
EPS 3Y17.42%
EPS 5Y14.87%
EPS Q2Q%200%
Revenue 1Y (TTM)26.71%
Revenue growth 3Y11.35%
Revenue growth 5Y8.04%
Sales Q2Q%38.47%
3.2 Future
Based on estimates for the next years, KGC will show a small growth in Earnings Per Share. The EPS will grow by 5.95% on average per year.
Based on estimates for the next years, KGC will show a decrease in Revenue. The Revenue will decrease by -1.05% on average per year.
EPS Next Y40.71%
EPS Next 2Y20.9%
EPS Next 3Y14.28%
EPS Next 5Y5.95%
Revenue Next Year16.44%
Revenue Next 2Y9.09%
Revenue Next 3Y5.54%
Revenue Next 5Y-1.05%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.72, which indicates a rather expensive current valuation of KGC.
KGC's Price/Earnings ratio is a bit cheaper when compared to the industry. KGC is cheaper than 79.87% of the companies in the same industry.
KGC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 15.68, which indicates a correct valuation of KGC.
Based on the Price/Forward Earnings ratio, KGC is valued a bit cheaper than 60.39% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. KGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KGC is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KGC is valued cheaply inside the industry as 89.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.95 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
KGC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KGC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as KGC's earnings are expected to grow with 14.28% in the coming years.
PEG (NY)0.44
PEG (5Y)1.19
EPS Next 2Y20.9%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
KGC has a yearly dividend return of 0.78%, which is pretty low.
KGC's Dividend Yield is a higher than the industry average which is at 2.90.
With a Dividend Yield of 0.78, KGC pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
KGC has been paying a dividend for at least 10 years, so it has a reliable track record.
KGC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
KGC pays out 15.55% of its income as dividend. This is a sustainable payout ratio.
DP15.55%
EPS Next 2Y20.9%
EPS Next 3Y14.28%
15.59
+0.04 (+0.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners68.33%
Inst Owner Change-0.01%
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap19.13B
Analysts80
Price Target19.53 (25.27%)
Short Float %1.48%
Short Ratio0.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP15.55%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.54%
Min EPS beat(2)-18.81%
Max EPS beat(2)25.89%
EPS beat(4)3
Avg EPS beat(4)16.49%
Min EPS beat(4)-18.81%
Max EPS beat(4)57.06%
EPS beat(8)7
Avg EPS beat(8)29.26%
EPS beat(12)8
Avg EPS beat(12)13.27%
EPS beat(16)10
Avg EPS beat(16)12.49%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.06%
PT rev (3m)36.54%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)9.01%
EPS NY rev (1m)0%
EPS NY rev (3m)17.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 15.68 | ||
| P/S | 3.71 | ||
| P/FCF | 13.95 | ||
| P/OCF | 7.82 | ||
| P/B | 2.79 | ||
| P/tB | 2.79 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)0.88
EY5.64%
EPS(NY)0.99
Fwd EY6.38%
FCF(TTM)1.12
FCFY7.17%
OCF(TTM)1.99
OCFY12.79%
SpS4.2
BVpS5.59
TBVpS5.59
PEG (NY)0.44
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.73% | ||
| ROE | 13.83% | ||
| ROCE | 14.95% | ||
| ROIC | 9.4% | ||
| ROICexc | 10.02% | ||
| ROICexgc | 10.02% | ||
| OM | 28.48% | ||
| PM (TTM) | 18.43% | ||
| GM | 35.04% | ||
| FCFM | 26.63% |
ROA(3y)2.29%
ROA(5y)4.25%
ROE(3y)3.43%
ROE(5y)6.8%
ROIC(3y)6.23%
ROIC(5y)6.54%
ROICexc(3y)6.62%
ROICexc(5y)7.08%
ROICexgc(3y)6.62%
ROICexgc(5y)7.14%
ROCE(3y)9.92%
ROCE(5y)10.4%
ROICexcg growth 3Y20.62%
ROICexcg growth 5Y13.48%
ROICexc growth 3Y21.33%
ROICexc growth 5Y13.94%
OM growth 3Y9.12%
OM growth 5Y8.75%
PM growth 3Y45.92%
PM growth 5Y-2.15%
GM growth 3Y3.98%
GM growth 5Y4.42%
F-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 93.73% | ||
| Cap/Sales | 20.89% | ||
| Interest Coverage | 11.44 | ||
| Cash Conversion | 93.6% | ||
| Profit Quality | 144.49% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.84 |
F-Score7
WACC8.61%
ROIC/WACC1.09
Cap/Depr(3y)100.83%
Cap/Depr(5y)104.58%
Cap/Sales(3y)22.97%
Cap/Sales(5y)23.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)87.23%
EPS 3Y17.42%
EPS 5Y14.87%
EPS Q2Q%200%
EPS Next Y40.71%
EPS Next 2Y20.9%
EPS Next 3Y14.28%
EPS Next 5Y5.95%
Revenue 1Y (TTM)26.71%
Revenue growth 3Y11.35%
Revenue growth 5Y8.04%
Sales Q2Q%38.47%
Revenue Next Year16.44%
Revenue Next 2Y9.09%
Revenue Next 3Y5.54%
Revenue Next 5Y-1.05%
EBIT growth 1Y74.49%
EBIT growth 3Y21.5%
EBIT growth 5Y17.5%
EBIT Next Year131.51%
EBIT Next 3Y30.48%
EBIT Next 5Y11.84%
FCF growth 1Y170.39%
FCF growth 3Y91.05%
FCF growth 5Y62.85%
OCF growth 1Y52.4%
OCF growth 3Y29.17%
OCF growth 5Y14.84%