KINROSS GOLD CORP (KGC) Stock Fundamental Analysis
NYSE:KGC - New York Stock Exchange, Inc. - CA4969024047 - Common Stock - Currency: USD
Overall KGC gets a fundamental rating of 6 out of 10. We evaluated KGC against 157 industry peers in the Metals & Mining industry. KGC has an excellent profitability rating, 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 could make KGC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year KGC was profitable.
KGC had a positive operating cash flow in the past year.
KGC had positive earnings in 4 of the past 5 years.
In the past 5 years KGC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.73%, KGC belongs to the best of the industry, outperforming 87.26% of the companies in the same industry.
KGC's Return On Equity of 13.83% is amongst the best of the industry. KGC outperforms 85.35% of its industry peers.
The Return On Invested Capital of KGC (9.40%) is better than 82.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KGC 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
With an excellent Profit Margin value of 18.43%, KGC belongs to the best of the industry, outperforming 88.53% of the companies in the same industry.
In the last couple of years the Profit Margin of KGC has declined.
Looking at the Operating Margin, with a value of 28.48%, KGC belongs to the top of the industry, outperforming 82.80% of the companies in the same industry.
In the last couple of years the Operating Margin of KGC has grown nicely.
The Gross Margin of KGC (35.04%) is better than 75.80% of its industry peers.
In the last couple of years the Gross Margin of KGC has grown nicely.
| 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.
Compared to 1 year ago, KGC has about the same amount of shares outstanding.
KGC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KGC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.96 indicates that KGC is not a great score, but indicates only limited risk for bankruptcy at the moment.
KGC's Altman-Z score of 2.96 is in line compared to the rest of the industry. KGC outperforms 56.69% of its industry peers.
The Debt to FCF ratio of KGC is 1.05, which is an excellent value as it means it would take KGC, only 1.05 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.05, KGC belongs to the best of the industry, outperforming 87.90% of the companies in the same industry.
KGC has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.96 |
ROIC/WACC1.12
WACC8.41%
2.3 Liquidity
A Current Ratio of 2.01 indicates that KGC has no problem at all paying its short term obligations.
KGC has a Current ratio (2.01) which is in line with 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 76.43% 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 151.06%, 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.
KGC shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.44%.
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)151.06%
EPS 3Y17.42%
EPS 5Y14.87%
EPS Q2Q%214.29%
Revenue 1Y (TTM)21.44%
Revenue growth 3Y11.35%
Revenue growth 5Y8.04%
Sales Q2Q%41.74%
3.2 Future
The Earnings Per Share is expected to grow by 5.95% on average over the next years.
The Revenue is expected to decrease by -1.05% on average over the next years.
EPS Next Y40.71%
EPS Next 2Y20.9%
EPS Next 3Y14.28%
EPS Next 5Y5.95%
Revenue Next Year20.75%
Revenue Next 2Y11.55%
Revenue Next 3Y6.35%
Revenue Next 5Y-1.05%
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
KGC is valuated correctly with a Price/Earnings ratio of 13.74.
85.99% of the companies in the same industry are more expensive than KGC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.82. KGC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.31, the valuation of KGC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KGC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of KGC to the average of the S&P500 Index (36.21), we can say KGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
KGC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KGC is cheaper than 78.34% of the companies in the same industry.
87.90% of the companies in the same industry are more expensive than KGC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.51 | ||
| EV/EBITDA | 7.92 |
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 14.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)0.92
EPS Next 2Y20.9%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, KGC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.94, KGC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.73, KGC pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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%
16.21
+0.21 (+1.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners68.33%
Inst Owner Change0.38%
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap19.89B
Analysts80
Price Target19.61 (20.97%)
Short Float %1.24%
Short Ratio0.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)0.42%
PT rev (3m)20.42%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)1.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.7%
Revenue NY rev (3m)6.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 16.31 | ||
| P/S | 3.86 | ||
| P/FCF | 14.51 | ||
| P/OCF | 8.13 | ||
| P/B | 2.9 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)1.18
EY7.28%
EPS(NY)0.99
Fwd EY6.13%
FCF(TTM)1.12
FCFY6.89%
OCF(TTM)1.99
OCFY12.3%
SpS4.2
BVpS5.59
TBVpS5.59
PEG (NY)0.34
PEG (5Y)0.92
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 | 2.96 |
F-Score7
WACC8.41%
ROIC/WACC1.12
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)151.06%
EPS 3Y17.42%
EPS 5Y14.87%
EPS Q2Q%214.29%
EPS Next Y40.71%
EPS Next 2Y20.9%
EPS Next 3Y14.28%
EPS Next 5Y5.95%
Revenue 1Y (TTM)21.44%
Revenue growth 3Y11.35%
Revenue growth 5Y8.04%
Sales Q2Q%41.74%
Revenue Next Year20.75%
Revenue Next 2Y11.55%
Revenue Next 3Y6.35%
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%