Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to AU$19.69, the stock trades at a trailing P/E ratio of 16.1x. Average trailing P/E is 12x in the Machinery industry in Australia. Total returns to shareholders of 231% over the past three years. Buy Or Sell Opportunity • Apr 08
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 9.1% to AU$15.25. The fair value is estimated to be AU$12.59, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.6% over the last 3 years. Earnings per share has grown by 9.2%. Buy Or Sell Opportunity • Mar 11
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to AU$15.48. The fair value is estimated to be AU$12.71, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.6% over the last 3 years. Earnings per share has grown by 9.2%. Declared Dividend • Jan 26
Final dividend of AU$0.25 announced Shareholders will receive a dividend of AU$0.25. Ex-date: 12th February 2026 Payment date: 6th March 2026 Dividend yield will be 5.1%, which is higher than the industry average of 2.7%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (51% cash payout ratio). The dividend has increased by an average of 8.4% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 13% over the next 2 years. However, it would need to fall by 36% to increase the payout ratio to a potentially unsustainable range. Announcement • Jan 23
Korvest Ltd Announces Fully Franked Ordinary Dividend for the Six Months Ended December 31, 2025, Payable on March 3, 2026 Korvest Ltd. announced fully franked ordinary dividend of AUD 0.25000000 per share for the six months ended December 31, 2025. Ex-date: February 12, 2026. Record date: February 13, 2026. Payment date: March 3, 2026. New Risk • Nov 08
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.5% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 5.5% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. New Risk • Oct 14
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: AU$153.8m (US$99.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (AU$153.8m market cap, or US$99.1m). Announcement • Sep 22
Korvest Ltd, Annual General Meeting, Oct 31, 2025 Korvest Ltd, Annual General Meeting, Oct 31, 2025. Location: kpmg boardroom, level 7, 151 pirie street, sa 5000, adelaide Australia Upcoming Dividend • Aug 10
Upcoming dividend of AU$0.50 per share Eligible shareholders must have bought the stock before 14 August 2025. Payment date: 05 September 2025. Payout ratio is a comfortable 58% and this is well supported by cash flows. Trailing yield: 4.7%. Lower than top quartile of Australian dividend payers (5.7%). Higher than average of industry peers (3.4%). Declared Dividend • Jul 27
Final dividend of AU$0.50 announced Shareholders will receive a dividend of AU$0.50. Ex-date: 14th August 2025 Payment date: 5th September 2025 Dividend yield will be 6.3%, which is higher than the industry average of 2.7%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (51% cash payout ratio). The dividend has increased by an average of 1.3% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to remain steady over the next year, which should provide adequate earnings cover for the dividend. Reported Earnings • Jul 26
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: AU$1.12 (up from AU$0.95 in FY 2024). Revenue: AU$120.2m (up 17% from FY 2024). Net income: AU$13.2m (up 19% from FY 2024). Profit margin: 11% (in line with FY 2024). Revenue exceeded analyst estimates by 5.3%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Feb 06
Upcoming dividend of AU$0.25 per share Eligible shareholders must have bought the stock before 13 February 2025. Payment date: 07 March 2025. Payout ratio is on the higher end at 81%, and the cash payout ratio is above 100%. Trailing yield: 6.0%. Within top quartile of Australian dividend payers (6.0%). Higher than average of industry peers (3.0%). Declared Dividend • Jan 22
First half dividend of AU$0.25 announced Dividend of AU$0.25 is the same as last year. Ex-date: 13th February 2025 Payment date: 7th March 2025 Dividend yield will be 6.3%, which is higher than the industry average of 2.7%. Sustainability & Growth Dividend is covered by earnings (81% earnings payout ratio) but not covered by cash flows (119% cash payout ratio). The dividend has increased by an average of 3.5% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 18% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 21
First half 2025 earnings released: EPS: AU$0.35 (vs AU$0.49 in 1H 2024) First half 2025 results: EPS: AU$0.35 (down from AU$0.49 in 1H 2024). Revenue: AU$51.2m (down 1.1% from 1H 2024). Net income: AU$4.09m (down 28% from 1H 2024). Profit margin: 8.0% (down from 11% in 1H 2024). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Jan 20
Korvest Ltd Determines to Pay a Ordinary Fully Franked Interim Dividend for the Half Year Ended December 31, 2024, Payable on 7 March 2025 On 20th January 2025 the Directors of Korvest Ltd. determined to pay a ordinary fully franked interim dividend of 25.0 cents per share for the half year ended December 31, 2024 against 25.0 cents a year ago, with a record date of 14 February 2025, ex-date on 13 February 2025 and a payment date of 7 March 2025. Announcement • Aug 28
Korvest Ltd, Annual General Meeting, Oct 25, 2024 Korvest Ltd, Annual General Meeting, Oct 25, 2024. Buy Or Sell Opportunity • Aug 15
Now 22% undervalued Over the last 90 days, the stock has risen 20% to AU$10.57. The fair value is estimated to be AU$13.56, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 12%. Reported Earnings • Jul 29
Full year 2024 earnings released: EPS: AU$0.95 (vs AU$0.97 in FY 2023) Full year 2024 results: EPS: AU$0.95 (down from AU$0.97 in FY 2023). Revenue: AU$103.2m (down 4.0% from FY 2023). Net income: AU$11.0m (down 1.2% from FY 2023). Profit margin: 11% (in line with FY 2023). Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 16% per year. Declared Dividend • Jul 29
First half dividend of AU$0.40 announced Shareholders will receive a dividend of AU$0.40. Ex-date: 15th August 2024 Payment date: 6th September 2024 Dividend yield will be 6.4%, which is higher than the industry average of 2.7%. Sustainability & Growth Dividend is covered by both earnings (56% earnings payout ratio) and cash flows (51% cash payout ratio). The dividend has increased by an average of 2.7% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 43% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Jul 07
Now 18% undervalued Over the last 90 days, the stock has risen 3.7% to AU$9.20. The fair value is estimated to be AU$11.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 23%. Buy Or Sell Opportunity • Jun 26
Now 20% undervalued Over the last 90 days, the stock has risen 3.5% to AU$8.76. The fair value is estimated to be AU$10.98, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 23%. Buy Or Sell Opportunity • Mar 19
Now 20% undervalued Over the last 90 days, the stock has risen 6.0% to AU$8.59. The fair value is estimated to be AU$10.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 23%. Buy Or Sell Opportunity • Feb 23
Now 20% undervalued Over the last 90 days, the stock has risen 9.3% to AU$8.58. The fair value is estimated to be AU$10.75, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 23%. Upcoming Dividend • Feb 08
Upcoming dividend of AU$0.25 per share at 6.5% yield Eligible shareholders must have bought the stock before 15 February 2024. Payment date: 05 March 2024. Payout ratio is a comfortable 56% and this is well supported by cash flows. Trailing yield: 6.5%. Lower than top quartile of Australian dividend payers (6.6%). Higher than average of industry peers (2.7%). Reported Earnings • Jan 24
First half 2024 earnings released: EPS: AU$0.49 (vs AU$0.39 in 1H 2023) First half 2024 results: EPS: AU$0.49 (up from AU$0.39 in 1H 2023). Revenue: AU$52.0m (down 1.8% from 1H 2023). Net income: AU$5.72m (up 27% from 1H 2023). Profit margin: 11% (up from 8.5% in 1H 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 21% per year. Announcement • Jan 22
Korvest Ltd. Announces Fully Franked Ordinary Dividend for the Six Months Ended December 31, 2023, Payable on March 3, 2024 Korvest Ltd. announced fully franked ordinary dividend for the six months ended December 31, 2023 of AUD 0.25000000 per share. Ex-date is February 15, 2024. Record date is February 16, 2024. Payment date is March 3, 2024. Buying Opportunity • Nov 30
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 7.6%. The fair value is estimated to be AU$9.89, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 30%. Buying Opportunity • Oct 25
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 2.4%. The fair value is estimated to be AU$10.02, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 30%. Buying Opportunity • Oct 05
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 1.7%. The fair value is estimated to be AU$9.83, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 30%. Announcement • Sep 27
Korvest Ltd Announces Director Changes Korvest Ltd. announced that Gerard Hutchinson has notified Korvest of his intention to retire as a director at the conclusion of the annual general meeting on 31 October 2023. Mr. Hutchinson joined the Board in November 2014 as a non-executive director and during his time on the Board has served as Chairman of the Audit Committee and as a member of the Remuneration and Nomination committees. The Board advise that as a replacement for Gerard Hutchinson, Warrick Ranson will be appointed as a director effective from 1 November 2023. Mr. Ranson will be the Chairman of the Audit Committee. Mr. Ranson brings broad commercial and financial experience across board, C-suite and advisory roles in listed entities, large businesses and community focused organizations to the Korvest Board. His roles have included senior finance and governance stewardship; strategy and thought leadership; merger and acquisition oversight; and developing and driving ESG, risk, and assurance frameworks. Mr. Ranson has had an extensive career in the mining industry, including as Chief Financial Officer at OZ Minerals Limited and over 18 years at Rio Tinto where he held various senior executive financial, commercial and transformation roles. Prior to joining OZ Minerals, he was with German-headquartered diversified industrial group, thyssenkrupp. At OZ Minerals, he was an ex-officio member of the board, with nominated executive responsibility for the Audit Committee. He is a member of the Finance, Audit & Compliance Committee of Surf Life Saving Australia; a member of the Advisory Board for the University of Adelaide School of Mechanical Engineering; and a past director of Palabora Mining Company Limited (South Africa), Anglesey Aluminium Metal Ltd. (United Kingdom), and the Northparkes Mine Joint Venture Committee. Warrick is a Fellow of the Institute of Chartered Accountants in Australia, a graduate of the Australian Institute of Company Directors, and holds an MBA from the University of Oxford. Announcement • Sep 15
Korvest Ltd, Annual General Meeting, Oct 31, 2023 Korvest Ltd, Annual General Meeting, Oct 31, 2023. Buying Opportunity • Aug 18
Now 20% undervalued Over the last 90 days, the stock is up 9.7%. The fair value is estimated to be AU$9.89, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 30%. Upcoming Dividend • Aug 10
Upcoming dividend of AU$0.35 per share at 7.0% yield Eligible shareholders must have bought the stock before 17 August 2023. Payment date: 06 September 2023. Payout ratio is a comfortable 62% and this is well supported by cash flows. Trailing yield: 7.0%. Lower than top quartile of Australian dividend payers (7.4%). Higher than average of industry peers (2.9%). Reported Earnings • Jul 25
Full year 2023 earnings released: EPS: AU$0.97 (vs AU$0.99 in FY 2022) Full year 2023 results: EPS: AU$0.97 (down from AU$0.99 in FY 2022). Revenue: AU$107.5m (up 8.3% from FY 2022). Net income: AU$11.2m (down 1.4% from FY 2022). Profit margin: 10% (down from 11% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Announcement • Jul 24
Korvest Ltd Announces Fully Franked Final Dividend, to Be Paid on 6 September 2023 Korvest Ltd. announced a fully franked final dividend of 35.0 cents per share (2022: 35.0 cents per share) following an interim dividend of 25.0 cents per share at the half year (2022: 25.0 cents per share). The Dividend Reinvestment Plan (DRP) will remain suspended for the final dividend. The dividend will be paid on 6 September 2023 with a record date of 18 August 2023. Upcoming Dividend • Feb 09
Upcoming dividend of AU$0.25 per share at 7.4% yield Eligible shareholders must have bought the stock before 16 February 2023. Payment date: 03 March 2023. Payout ratio and cash payout ratio are on the higher end at 78% and 86% respectively. Trailing yield: 7.4%. Within top quartile of Australian dividend payers (6.7%). Higher than average of industry peers (2.8%). Reported Earnings • Jan 25
First half 2023 earnings released: EPS: AU$0.39 (vs AU$0.61 in 1H 2022) First half 2023 results: EPS: AU$0.39 (down from AU$0.61 in 1H 2022). Revenue: AU$53.0m (up 2.7% from 1H 2022). Net income: AU$4.52m (down 36% from 1H 2022). Profit margin: 8.5% (down from 14% in 1H 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Nov 17
Now 20% undervalued Over the last 90 days, the stock is up 3.8%. The fair value is estimated to be AU$9.68, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 46%. Announcement • Aug 26
Korvest Ltd, Annual General Meeting, Oct 21, 2022 Korvest Ltd, Annual General Meeting, Oct 21, 2022. Agenda: To consider election of directors. Upcoming Dividend • Aug 11
Upcoming dividend of AU$0.35 per share Eligible shareholders must have bought the stock before 18 August 2022. Payment date: 02 September 2022. Payout ratio is a comfortable 61% but the company is paying out more than the cash it is generating. Trailing yield: 8.7%. Within top quartile of Australian dividend payers (6.3%). Higher than average of industry peers (3.5%). Reported Earnings • Jul 23
Full year 2022 earnings released: EPS: AU$0.99 (vs AU$0.54 in FY 2021) Full year 2022 results: EPS: AU$0.99 (up from AU$0.54 in FY 2021). Revenue: AU$100.1m (up 43% from FY 2021). Net income: AU$11.3m (up 87% from FY 2021). Profit margin: 11% (up from 8.7% in FY 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is expected to shrink by 17% compared to a 267% growth forecast for the industry in Australia. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Announcement • Jul 22
Korvest Ltd Announces Ordinary Dividend for the Period of Six Months Ended June 30, 2022, Payable on September 2, 2022 Korvest Ltd. announced an ordinary fully paid dividend of AUD 0.35000000 per share for the period of six months ended June 30, 2022. The record date is August 19, 2022, ex-date is August 18, 2022, and payment date is on September 2, 2022. Upcoming Dividend • Feb 10
Upcoming dividend of AU$0.25 per share Eligible shareholders must have bought the stock before 17 February 2022. Payment date: 04 March 2022. Payout ratio is a comfortable 50% but the company is paying out more than the cash it is generating. Trailing yield: 6.2%. Within top quartile of Australian dividend payers (5.4%). Higher than average of industry peers (3.0%). Reported Earnings • Jan 23
First half 2022 earnings: Revenues and EPS in line with analyst expectations First half 2022 results: EPS: AU$0.61 (up from AU$0.25 in 1H 2021). Revenue: AU$51.6m (up 58% from 1H 2021). Net income: AU$7.04m (up 148% from 1H 2021). Profit margin: 14% (up from 8.7% in 1H 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the next year, revenue is expected to shrink by 8.4% compared to a 294% growth forecast for the industry in Australia. Over the last 3 years on average, earnings per share has increased by 45% per year whereas the company’s share price has increased by 40% per year. Valuation Update With 7 Day Price Move • Oct 11
Investor sentiment improved over the past week After last week's 17% share price gain to AU$6.31, the stock trades at a trailing P/E ratio of 11.9x. Average forward P/E is 18x in the Machinery industry in Australia. Total returns to shareholders of 203% over the past three years. Board Change • Sep 10
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. MD & Director Chris Hartwig was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Sep 09
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. MD & Director Chris Hartwig was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Sep 07
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. MD & Director Chris Hartwig was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Executive Departure • Sep 01
Independent Non-Executive Chairman Graeme Billings has left the company On the 31st of August, Graeme Billings' tenure as Independent Non-Executive Chairman ended after 7.0 years in the role. As of June 2021, Graeme still personally held only 11.67k shares (AU$58k worth at the time). Graeme is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 4.54 years. Announcement • Aug 27
An unknown buyer agreed to acquire Titan Technologies (SE Asia) Pty Ltd./Power Step (Australia) Pty Ltd from Korvest Ltd (ASX:KOV) for AUD 1 million. An unknown buyer agreed to acquire Titan Technologies (SE Asia) Pty Ltd./Power Step (Australia) Pty Ltd. from Korvest Ltd (ASX:KOV) for AUD 1 million on August 26, 2021. The sale price of AUD 1.04 million is subject to normal completion adjustments. The completion of the transaction is expected to occur on or around September 3, 2021. The proceeds of the sale will be used to continue the investment in the manufacturing capacity and capability at Korvest’s Kilburn site. Upcoming Dividend • Aug 12
Upcoming dividend of AU$0.20 per share Eligible shareholders must have bought the stock before 19 August 2021. Payment date: 03 September 2021. Trailing yield: 5.4%. Within top quartile of Australian dividend payers (4.9%). Higher than average of industry peers (2.5%). Reported Earnings • Jul 23
Full year 2021 earnings released: EPS AU$0.54 (vs AU$0.36 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: AU$71.7m (up 12% from FY 2020). Net income: AU$6.05m (up 50% from FY 2020). Profit margin: 8.4% (up from 6.3% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 41% per year whereas the company’s share price has increased by 36% per year. Is New 90 Day High Low • Feb 19
New 90-day low: AU$4.51 The company is down 2.0% from its price of AU$4.62 on 20 November 2020. The Australian market is up 7.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Machinery industry, which is down 5.0% over the same period. Upcoming Dividend • Feb 11
Upcoming Dividend of AU$0.15 Per Share Will be paid on the 5th of March to those who are registered shareholders by the 18th of February. The trailing yield of 5.7% is in the top quartile of Australian dividend payers (5.1%), and it is higher than industry peers (2.1%). Reported Earnings • Jan 23
First half 2021 earnings released: EPS AU$0.25 The company reported a decent first half result with improved earnings and profit margins, although revenues were weaker. First half 2021 results: Revenue: AU$34.5m (down 4.6% from 1H 2020). Net income: AU$2.84m (up 33% from 1H 2020). Profit margin: 8.2% (up from 5.9% in 1H 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Dec 29
New 90-day high: AU$5.14 The company is up 22% from its price of AU$4.20 on 29 September 2020. The Australian market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 13% over the same period. Is New 90 Day High Low • Nov 25
New 90-day high: AU$4.76 The company is up 5.0% from its price of AU$4.55 on 27 August 2020. The Australian market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 32% over the same period. 
