KINROSS GOLD CORP (KGC) Stock Fundamental Analysis
NYSE:KGC - New York Stock Exchange, Inc. - CA4969024047 - Common Stock - Currency: USD
Taking everything into account, KGC scores 6 out of 10 in our fundamental rating. KGC was compared to 154 industry peers in the Metals & Mining industry. While KGC has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on KGC. This makes KGC very considerable 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.
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
KGC's Return On Assets of 8.73% is amongst the best of the industry. KGC outperforms 87.66% of its industry peers.
The Return On Equity of KGC (13.83%) is better than 85.71% of its industry peers.
KGC's Return On Invested Capital of 9.40% is amongst the best of the industry. KGC outperforms 83.12% 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
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.
With an excellent Operating Margin value of 28.48%, KGC belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
KGC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.04%, KGC is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
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
KGC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KGC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KGC has less shares outstanding
KGC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.82 indicates that KGC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.82, KGC perfoms like the industry average, outperforming 51.95% 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.
KGC has a Debt to FCF ratio of 1.05. This is amongst the best in the industry. KGC outperforms 88.31% of its industry peers.
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 | 2.82 |
ROIC/WACC1.09
WACC8.63%
2.3 Liquidity
KGC has a Current Ratio of 2.01. This indicates that KGC is financially healthy and has no problem in meeting 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 Quick ratio of 0.83. This is in the lower half of the industry: KGC underperforms 77.27% 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.
KGC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
Looking at the last year, KGC shows a very strong growth in Revenue. The Revenue has grown by 26.71%.
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
The Earnings Per Share is expected to grow by 5.95% on average over the next years.
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
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
A Price/Earnings ratio of 17.42 indicates a rather expensive valuation of KGC.
79.22% of the companies in the same industry are more expensive than KGC, based on the Price/Earnings ratio.
KGC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
Based on the Price/Forward Earnings ratio of 15.42, the valuation of KGC can be described as correct.
Based on the Price/Forward Earnings ratio, KGC is valued a bit cheaper than the industry average as 61.04% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.44. KGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 15.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KGC is valued cheaper than 81.82% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KGC indicates a rather cheap valuation: KGC is cheaper than 89.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.72 | ||
| EV/EBITDA | 7.56 |
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.
KGC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as KGC's earnings are expected to grow with 14.28% in the coming years.
PEG (NY)0.43
PEG (5Y)1.17
EPS Next 2Y20.9%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
KGC has a yearly dividend return of 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 2.90, KGC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, KGC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
KGC has paid a dividend for at least 10 years, which is 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%
15.33
-0.1 (-0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners68.33%
Inst Owner Change-0.01%
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap18.81B
Analysts80
Price Target19.53 (27.4%)
Short Float %1.31%
Short Ratio0.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)3.06%
PT rev (3m)36.54%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)9.01%
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 | 17.42 | ||
| Fwd PE | 15.42 | ||
| P/S | 3.65 | ||
| P/FCF | 13.72 | ||
| P/OCF | 7.69 | ||
| P/B | 2.74 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)0.88
EY5.74%
EPS(NY)0.99
Fwd EY6.48%
FCF(TTM)1.12
FCFY7.29%
OCF(TTM)1.99
OCFY13.01%
SpS4.2
BVpS5.59
TBVpS5.59
PEG (NY)0.43
PEG (5Y)1.17
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 | 2.82 |
F-Score7
WACC8.63%
ROIC/WACC1.09
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%