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Kinross Gold Corp (NYSE:KGC): A Little Book Growth Candidate

By Mill Chart

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Kinross Gold Corp (NYSE:KGC) is a gold mining company with operations across North and South America, Africa, and Russia. For investors following the principles outlined in The Little Book That Makes You Rich by Louis Navellier, KGC presents an interesting case. The book emphasizes identifying high-growth stocks through eight key financial criteria. Let’s examine how KGC aligns with these rules.

The Little Book That Makes You Rich

How Kinross Gold Corp Fits the Little Book Criteria

1. Positive Earnings Revisions

Analysts have raised their EPS estimates for the next quarter by 5.71% over the past three months, signaling improving expectations.

2. Positive Earnings Surprises

KGC has beaten EPS estimates in three of the last four quarters, with an average surprise of 16.49%, indicating consistent outperformance.

3. Increasing Sales Growth

Revenue growth remains strong, with 21.44% year-over-year and 26.90% quarter-over-quarter increases, showing accelerating demand.

4. Expanding Operating Margin

Operating margins have improved by 43.68% over the past year, reflecting better cost efficiency as sales grow.

5. Strong Cash Flow

Free cash flow surged 170.39% in the last year, providing financial flexibility for further growth or shareholder returns.

6. Earnings Growth

EPS grew 54.20% year-over-year and 81.82% quarter-over-quarter, demonstrating strong profitability expansion.

7. Positive Earnings Momentum

The latest quarterly EPS growth (81.82%) significantly outpaced the same quarter a year ago (22.22%), confirming accelerating earnings.

8. High Return on Equity

KGC’s ROE stands at 13.83%, well above the minimum 10% threshold, indicating efficient use of shareholder capital.

Fundamental Analysis Summary

Our fundamental analysis report assigns KGC a rating of 6 out of 10, highlighting strengths in profitability and valuation. Key takeaways:

  • Profitability: High margins (Operating Margin: 28.48%) and strong returns (ROE: 13.83%) place KGC in the top tier of its industry.
  • Valuation: Trading at a P/E of 21.61, KGC is cheaper than 72.55% of its peers and below the S&P 500 average.
  • Growth: While past growth is robust (54.20% EPS growth), future estimates suggest a slowdown, warranting caution.
  • Financial Health: Solid solvency (Debt/FCF: 1.05) but a weaker Quick Ratio (0.83) raises minor liquidity concerns.

For investors seeking additional high-growth candidates, explore our pre-built Little Book screen.

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