KINROSS GOLD CORP (KGC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KGC - CA4969024047 - Common Stock
37.87 USD
0 (0%)
38.1593 USD
+0.29 (+0.76%)
Taking everything into account, KGC scores 6 out of 10 in our fundamental rating. KGC was compared to 154 industry peers in the Metals & Mining industry. KGC gets an excellent profitability rating and is at the same time showing great financial health properties. 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
- KGC had positive earnings in the past year.
- KGC had a positive operating cash flow in the past year.
- KGC had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years KGC had a positive operating cash flow.
1.2 Ratios
- KGC's Return On Assets of 13.34% is amongst the best of the industry. KGC outperforms 94.16% of its industry peers.
- KGC has a Return On Equity of 20.25%. This is amongst the best in the industry. KGC outperforms 93.51% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.90%, KGC belongs to the top of the industry, outperforming 88.96% 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 below the industry average of 10.32%.
- The 3 year average ROIC (6.23%) for KGC is below the current ROIC(13.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.34% | ||
| ROE | 20.25% | ||
| ROIC | 13.9% |
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 25.19%. This is amongst the best in the industry. KGC outperforms 90.26% of its industry peers.
- KGC's Profit Margin has declined in the last couple of years.
- KGC has a better Operating Margin (38.20%) than 89.61% of its industry peers.
- KGC's Operating Margin has improved in the last couple of years.
- KGC's Gross Margin of 44.10% is fine compared to the rest of the industry. KGC outperforms 77.92% of its industry peers.
- KGC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.2% | ||
| PM (TTM) | 25.19% | ||
| GM | 44.1% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KGC is still creating some value.
- KGC has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for KGC has been reduced compared to 5 years ago.
- The debt/assets ratio for KGC has been reduced compared to a year ago.
2.2 Solvency
- KGC has an Altman-Z score of 7.50. This indicates that KGC is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 7.50, KGC is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- KGC has a debt to FCF ratio of 0.62. This is a very positive value and a sign of high solvency as it would only need 0.62 years to pay back of all of its debts.
- KGC has a better Debt to FCF ratio (0.62) than 90.91% of its industry peers.
- A Debt/Equity ratio of 0.16 indicates that KGC is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.16, KGC is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.62 | ||
| Altman-Z | 7.5 |
ROIC/WACC1.43
WACC9.71%
2.3 Liquidity
- A Current Ratio of 2.84 indicates that KGC has no problem at all paying its short term obligations.
- The Current ratio of KGC (2.84) is comparable to the rest of the industry.
- KGC has a Quick Ratio of 1.45. This is a normal value and indicates that KGC is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.45, KGC perfoms like the industry average, outperforming 47.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
- KGC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 133.90%, which is quite impressive.
- The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
- Looking at the last year, KGC shows a very strong growth in Revenue. The Revenue has grown by 32.90%.
- Measured over the past years, KGC shows a quite strong growth in Revenue. The Revenue has been growing by 8.04% on average per year.
EPS 1Y (TTM)133.9%
EPS 3Y17.42%
EPS 5Y14.87%
EPS Q2Q%83.33%
Revenue 1Y (TTM)32.9%
Revenue growth 3Y11.35%
Revenue growth 5Y8.04%
Sales Q2Q%25.84%
3.2 Future
- Based on estimates for the next years, KGC will show a decrease in Earnings Per Share. The EPS will decrease by -9.53% on average per year.
- KGC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.86% yearly.
EPS Next Y154.7%
EPS Next 2Y89.26%
EPS Next 3Y54.93%
EPS Next 5Y-9.53%
Revenue Next Year36.17%
Revenue Next 2Y26.07%
Revenue Next 3Y16.65%
Revenue Next 5Y-4.86%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 27.44, the valuation of KGC can be described as expensive.
- Based on the Price/Earnings ratio, KGC is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
- KGC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 15.55, KGC is valued correctly.
- Based on the Price/Forward Earnings ratio, KGC is valued a bit cheaper than the industry average as 70.78% of the companies are valued more expensively.
- KGC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.44 | ||
| Fwd PE | 15.55 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KGC is valued a bit cheaper than 72.73% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KGC indicates a rather cheap valuation: KGC is cheaper than 89.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.04 | ||
| EV/EBITDA | 13.6 |
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.
- The excellent profitability rating of KGC may justify a higher PE ratio.
- KGC's earnings are expected to grow with 54.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)1.85
EPS Next 2Y89.26%
EPS Next 3Y54.93%
5. Dividend
5.1 Amount
- KGC has a yearly dividend return of 0.32%, which is pretty low.
- KGC's Dividend Yield is a higher than the industry average which is at 1.02.
- With a Dividend Yield of 0.32, KGC pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
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 9.65% of its income as dividend. This is a sustainable payout ratio.
DP9.65%
EPS Next 2Y89.26%
EPS Next 3Y54.93%
KINROSS GOLD CORP / KGC FAQ
Can you provide the ChartMill fundamental rating for KINROSS GOLD CORP?
ChartMill assigns a fundamental rating of 6 / 10 to KGC.
What is the valuation status of KINROSS GOLD CORP (KGC) stock?
ChartMill assigns a valuation rating of 7 / 10 to KINROSS GOLD CORP (KGC). This can be considered as Undervalued.
How profitable is KINROSS GOLD CORP (KGC) stock?
KINROSS GOLD CORP (KGC) has a profitability rating of 8 / 10.
What is the valuation of KINROSS GOLD CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KINROSS GOLD CORP (KGC) is 27.44 and the Price/Book (PB) ratio is 6.05.
Is the dividend of KINROSS GOLD CORP sustainable?
The dividend rating of KINROSS GOLD CORP (KGC) is 4 / 10 and the dividend payout ratio is 9.65%.