KINROSS GOLD CORP (KGC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KGC - CA4969024047 - Common Stock
38.07 USD
+0.2 (+0.53%)
38.73 USD
+0.66 (+1.73%)
Overall KGC gets a fundamental rating of 6 out of 10. We evaluated KGC against 154 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making KGC a very profitable company, without any liquidiy or solvency issues. KGC may be a bit undervalued, certainly considering the very reasonable score on growth This makes KGC very considerable 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.
- KGC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- KGC has a Return On Assets of 13.34%. This is amongst the best in the industry. KGC outperforms 94.16% of its industry peers.
- The Return On Equity of KGC (20.25%) is better than 93.51% of its industry peers.
- KGC's Return On Invested Capital of 13.90% is amongst the best of the industry. KGC outperforms 88.96% of its industry peers.
- 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's Profit Margin of 25.19% is amongst the best of the industry. KGC outperforms 90.26% of its industry peers.
- In the last couple of years the Profit Margin of KGC has declined.
- The Operating Margin of KGC (38.20%) is better than 89.61% of its industry peers.
- In the last couple of years the Operating Margin of KGC has grown nicely.
- KGC has a better Gross Margin (44.10%) than 77.92% of its industry peers.
- In the last couple of years the Gross Margin of KGC has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KGC is creating some value.
- The number of shares outstanding for KGC remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, KGC has less shares outstanding
- Compared to 1 year ago, KGC has an improved debt to assets ratio.
2.2 Solvency
- KGC has an Altman-Z score of 7.54. This indicates that KGC is financially healthy and has little risk of bankruptcy at the moment.
- KGC's Altman-Z score of 7.54 is fine compared to the rest of the industry. KGC outperforms 70.78% of its industry peers.
- 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 Debt to FCF ratio of 0.62. This is amongst the best in the industry. KGC outperforms 90.91% of its industry peers.
- KGC has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- 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 | 7.54 |
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.
- KGC's Quick ratio of 1.45 is in line compared to the rest of the industry. KGC outperforms 48.05% of its industry peers.
| 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.
- KGC shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.90%.
- The Revenue has been growing by 8.04% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to decrease by -9.53% on average over the next years.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- With a Price/Earnings ratio of 27.59, KGC can be considered very expensive at the moment.
- 80.52% of the companies in the same industry are more expensive than KGC, based on the Price/Earnings ratio.
- KGC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 15.63 indicates a correct valuation of KGC.
- Based on the Price/Forward Earnings ratio, KGC is valued a bit cheaper than 72.08% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of KGC to the average of the S&P500 Index (25.83), we can say KGC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.59 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
- 73.38% of the companies in the same industry are more expensive than KGC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, KGC is valued cheaply inside the industry as 90.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.17 | ||
| EV/EBITDA | 13.67 |
4.3 Compensation for Growth
- The 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.
- A more expensive valuation may be justified as KGC's earnings are expected to grow with 54.93% in the coming years.
PEG (NY)0.18
PEG (5Y)1.86
EPS Next 2Y89.26%
EPS Next 3Y54.93%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.32%, KGC is not a good candidate for dividend investing.
- KGC's Dividend Yield is a higher than the industry average which is at 1.02.
- Compared to an average S&P500 Dividend Yield of 1.82, KGC's dividend is way lower than the S&P500 average.
| 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
- 9.65% of the earnings are spent on dividend by KGC. This is a low number and 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 27.59 and the Price/Book (PB) ratio is 6.08.
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%.