Kinross Gold Corp (NYSE:KGC) Screens as a 'Decent Value' Stock with Strong Fundamentals

The "Decent Value" screening method finds companies trading at good prices while keeping sound basic business operations. This system fits with main value investing ideas by looking for stocks where the market price seems separate from the actual worth, while making sure companies have the financial condition and operating ability to possibly achieve that worth over time. The screen looks for stocks with good valuation ratings (above 7/10) together with acceptable scores in profitability, financial condition, and growth measures.

Valuation Assessment

Kinross Gold Corp (NYSE:KGC) shows a strong valuation case based on the fundamental analysis report. The company's valuation rating of 7/10 shows several good measures:

• Enterprise Value to EBITDA ratio makes KGC less expensive than 79% of industry peers
• Price/Free Cash Flow ratio is better than 90% of mining competitors
• Forward P/E ratio of 14.48 is good compared to both industry average (32.27) and S&P 500 average (23.09)
• PEG ratio shows payment for growth is still acceptable

For value investors, these measures point to possible low pricing relative to both the wider market and the metals and mining sector. The discounted cash flow models important to value investing would probably find KGC's current price good when estimating future cash flows from operations.

Financial Health Analysis

The company shows solid financial condition with a rating of 8/10, an important factor for value investors looking for lasting businesses. Main strengths contain:

• Altman-Z score of 4.87 shows very low bankruptcy risk
• Debt-to-FCF ratio of 0.72 points to good ability to handle debts
• Careful debt-to-equity ratio of 0.18 reduces financial leverage worries
• Better debt/assets ratio compared to the year before

This financial steadiness gives the margin of safety that Benjamin Graham highlighted in value investing ideas. Companies with good balance sheets can manage economic drops and continue operations without cash problems, protecting the investor's money while waiting for market understanding of actual worth.

Profitability Metrics

KGC gets an 8/10 profitability rating, showing effective operations and good returns:

• Return on Equity of 22.29% is better than 94% of industry peers
• Return on Invested Capital of 14.87% is higher than 94% of competitors
• Operating margin of 38.20% is in the top ten percent of the industry
• Steady positive earnings and operating cash flow over the last five years

These profitability numbers are important for value investors because they show the company's skill in creating returns from used capital. High profitability suggests competitive benefits and operating effectiveness that can maintain actual worth increase over time, supporting the idea that current market pricing may not completely show the business's earning ability.

Growth Considerations

While KGC's growth rating of 4/10 indicates some difficulties, the past performance has good parts:

• EPS grew 151% over the past year with 15% average yearly growth in the past
• Revenue went up 34% in the last year with 8% average yearly growth
• Current estimates point to lower earnings and revenue in the future

Value investors usually choose current pricing over fast growth, but the good past growth gives background for the company's operating skills. The estimated drops need watching but may already be part of the current low pricing.

Investment Implications

The mix of good pricing, sound financial condition, and high profitability makes Kinross Gold Corp worth looking at for value-focused portfolios. The company's basic profile suggests it may be trading under its actual worth while keeping the operating strength to possibly give shareholder returns as market feeling matches business facts.

View the complete fundamental analysis report for KGC to look at all measures in detail.

For investors looking for similar chances, the Decent Value Stocks screen often finds companies fitting these needs of good pricing together with sound basics.

Disclaimer: This analysis is based on fundamental data and screening methods for information only. It does not make up investment advice, and investors should do their own research and think about their personal money situations before making investment choices. Past results do not promise future outcomes, and all investments have risk including possible loss of the main investment.