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 scores excellent on profitability, but there are some minor concerns on its financial health. KGC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make KGC suitable 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.
Of the past 5 years KGC 4 years were profitable.
In the past 5 years KGC always reported a positive cash flow from operatings.
1.2 Ratios
KGC has a Return On Assets of 8.73%. This is amongst the best in the industry. KGC outperforms 87.66% of its industry peers.
KGC's Return On Equity of 13.83% is amongst the best of the industry. KGC outperforms 85.06% of its industry peers.
KGC has a Return On Invested Capital of 9.40%. This is amongst the best in the industry. KGC outperforms 83.12% of its industry peers.
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.
The Operating Margin of KGC (28.48%) is better than 83.12% of its industry peers.
KGC's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KGC is still creating some value.
The number of shares outstanding for KGC remains at a similar level compared to 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
An Altman-Z score of 2.90 indicates that KGC is not a great score, but indicates only limited risk for bankruptcy at the moment.
KGC has a Altman-Z score (2.90) which is comparable to the rest of the industry.
KGC has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.05, KGC belongs to the top of the industry, outperforming 88.31% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that KGC is not too dependend on debt financing.
KGC has a Debt to Equity ratio (0.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 2.9 |
ROIC/WACC1.22
WACC7.72%
2.3 Liquidity
A Current Ratio of 2.01 indicates that KGC has no problem at all paying its short term obligations.
KGC's Current ratio of 2.01 is in line compared to the rest of the industry. KGC outperforms 43.51% of its industry peers.
KGC has a Quick Ratio of 2.01. This is a bad value and indicates that KGC is not financially healthy enough and could expect problems in meeting its short term obligations.
KGC has a worse Quick ratio (0.83) than 76.62% 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.
The Revenue has grown by 26.71% in the past year. This is a very strong growth!
The Revenue has been growing by 8.04% on average over the past years. This is quite good.
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
KGC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.95% yearly.
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.
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
The Price/Earnings ratio is 18.02, which indicates a rather expensive current valuation of KGC.
79.22% of the companies in the same industry are more expensive than KGC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, KGC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.96, the valuation of KGC can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as KGC.
The average S&P500 Price/Forward Earnings ratio is at 21.90. KGC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
KGC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KGC is cheaper than 81.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KGC is valued cheaply inside the industry as 88.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.19 | ||
| EV/EBITDA | 7.76 |
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.
KGC has an outstanding profitability rating, which may justify a higher PE ratio.
KGC's earnings are expected to grow with 14.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)1.21
EPS Next 2Y20.9%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, KGC is not a good candidate for dividend investing.
KGC's Dividend Yield is a higher than the industry average which is at 2.98.
Compared to an average S&P500 Dividend Yield of 2.42, KGC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
15.55% of the earnings are spent on dividend by KGC. This is a low number and sustainable payout ratio.
DP15.55%
EPS Next 2Y20.9%
EPS Next 3Y14.28%
15.86
+0.29 (+1.86%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners68.33%
Inst Owner Change-1.39%
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap19.46B
Analysts80
Price Target19.53 (23.14%)
Short Float %1.48%
Short Ratio0.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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)10.67%
PT rev (3m)37.15%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)13.05%
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 | 18.02 | ||
| Fwd PE | 15.96 | ||
| P/S | 3.78 | ||
| P/FCF | 14.19 | ||
| P/OCF | 7.95 | ||
| P/B | 2.84 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 7.76 |
EPS(TTM)0.88
EY5.55%
EPS(NY)0.99
Fwd EY6.27%
FCF(TTM)1.12
FCFY7.05%
OCF(TTM)1.99
OCFY12.57%
SpS4.2
BVpS5.59
TBVpS5.59
PEG (NY)0.44
PEG (5Y)1.21
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 | 2.9 |
F-Score7
WACC7.72%
ROIC/WACC1.22
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%