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 155 industry peers in the Metals & Mining industry. KGC has an excellent profitability rating, but there are some minor concerns on its financial health. KGC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year KGC was profitable.
In the past year KGC had a positive cash flow from operations.
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's Return On Assets of 8.73% is amongst the best of the industry. KGC outperforms 87.10% of its industry peers.
KGC has a Return On Equity of 13.83%. This is amongst the best in the industry. KGC outperforms 84.52% of its industry peers.
With an excellent Return On Invested Capital value of 9.40%, KGC belongs to the best of the industry, outperforming 83.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KGC is below the industry average of 11.10%.
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 better Profit Margin (18.43%) than 89.03% of its industry peers.
In the last couple of years the Profit Margin of KGC has declined.
KGC has a better Operating Margin (28.48%) than 83.87% of its industry peers.
KGC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 35.04%, KGC is doing good in the industry, outperforming 76.13% of the companies in the same industry.
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
KGC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
The debt/assets ratio for KGC has been reduced compared to a year ago.
2.2 Solvency
KGC has an Altman-Z score of 2.84. This is not the best score and indicates that KGC is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.84, KGC is in line with its industry, outperforming 56.13% of the companies in the same industry.
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.
The Debt to FCF ratio of KGC (1.05) is better than 87.74% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that KGC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.18, KGC perfoms like the industry average, outperforming 50.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.1
WACC8.52%
2.3 Liquidity
A Current Ratio of 2.01 indicates that KGC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.01, KGC is in line with its industry, outperforming 43.87% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that KGC may have some problems paying its short term obligations.
KGC has a Quick ratio of 0.83. This is in the lower half of the industry: KGC underperforms 76.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 87.23% over the past year.
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 26.71%.
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)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.
KGC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.05% yearly.
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
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 rather expensively with a Price/Earnings ratio of 17.94.
Based on the Price/Earnings ratio, KGC is valued a bit cheaper than the industry average as 78.71% of the companies are valued more expensively.
KGC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 15.89, which indicates a correct valuation of KGC.
The rest of the industry has a similar Price/Forward Earnings ratio as KGC.
KGC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 15.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KGC is valued a bit cheaper than the industry average as 79.35% of the companies are valued more expensively.
KGC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KGC is cheaper than 88.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.13 | ||
| EV/EBITDA | 7.6 |
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.
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 0.77%, KGC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.85, KGC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.77, KGC pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
KGC pays out 15.55% of its income as dividend. This is a sustainable payout ratio.
DP15.55%
EPS Next 2Y20.9%
EPS Next 3Y14.28%
15.79
+0.26 (+1.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners68.64%
Inst Owner Change-1.39%
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap19.37B
Analysts80
Price Target18.95 (20.01%)
Short Float %0.96%
Short Ratio0.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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)7.39%
PT rev (3m)34.71%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)5.41%
EPS NY rev (1m)0%
EPS NY rev (3m)13.97%
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 | 17.94 | ||
| Fwd PE | 15.89 | ||
| P/S | 3.76 | ||
| P/FCF | 14.13 | ||
| P/OCF | 7.92 | ||
| P/B | 2.82 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 7.6 |
EPS(TTM)0.88
EY5.57%
EPS(NY)0.99
Fwd EY6.29%
FCF(TTM)1.12
FCFY7.08%
OCF(TTM)1.99
OCFY12.63%
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 | 2.84 |
F-Score7
WACC8.52%
ROIC/WACC1.1
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%