ASX:KSL

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Kina Securities

Executive Summary

Kina Securities Limited, together with its subsidiaries, provides various diversified financial services in Papua New Guinea. More Details


Snowflake Analysis

Undervalued with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Kina Securities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KSL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KSL's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

KSL

7.2%

AU Banks

2.3%

AU Market


1 Year Return

-42.1%

KSL

-7.8%

AU Banks

-0.3%

AU Market

Return vs Industry: KSL underperformed the Australian Banks industry which returned -9.3% over the past year.

Return vs Market: KSL underperformed the Australian Market which returned -1% over the past year.


Shareholder returns

KSLIndustryMarket
7 Day1.3%7.2%2.3%
30 Day5.9%15.4%7.2%
90 Day-19.8%20.5%8.7%
1 Year-34.4%-42.1%-4.9%-7.8%3.1%-0.3%
3 Year42.3%9.5%-3.5%-17.3%24.2%8.8%
5 Year10.5%-24.3%8.6%-18.5%55.4%24.4%

Long-Term Price Volatility Vs. Market

How volatile is Kina Securities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kina Securities undervalued compared to its fair value and its price relative to the market?

40.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KSL (A$0.81) is trading below our estimate of fair value (A$1.36)

Significantly Below Fair Value: KSL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KSL is good value based on its PE Ratio (5.4x) compared to the AU Banks industry average (17.2x).

PE vs Market: KSL is good value based on its PE Ratio (5.4x) compared to the Australian market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: KSL is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: KSL's PB Ratio (1.1x) is in line with the AU Banks industry average.


Next Steps

Future Growth

How is Kina Securities forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KSL's forecast earnings growth (26.1% per year) is above the savings rate (2.3%).

Earnings vs Market: KSL's earnings (26.1% per year) are forecast to grow faster than the Australian market (17.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KSL's revenue (17.9% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: KSL's revenue (17.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KSL's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has Kina Securities performed over the past 5 years?

32.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KSL has a high level of non-cash earnings.

Growing Profit Margin: KSL's current net profit margins (25.9%) are lower than last year (31%).


Past Earnings Growth Analysis

Earnings Trend: KSL's earnings have grown significantly by 32.3% per year over the past 5 years.

Accelerating Growth: KSL's earnings growth over the past year (30.2%) is below its 5-year average (32.3% per year).

Earnings vs Industry: KSL earnings growth over the past year (30.2%) exceeded the Banks industry -9.5%.


Return on Equity

High ROE: KSL's Return on Equity (20.1%) is considered high.


Next Steps

Financial Health

How is Kina Securities's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: KSL's Assets to Equity ratio (9.1x) is low.

Allowance for Bad Loans: KSL has a low allowance for bad loans (32%).

Low Risk Liabilities: 94% of KSL's liabilities are made up of primarily low risk sources of funding.

Loan Level: KSL has an appropriate level of Loans to Assets ratio (47%).

Low Risk Deposits: KSL's Loans to Deposits ratio (56%) is appropriate.

Level of Bad Loans: KSL has a high level of bad loans (5.5%).


Next Steps

Dividend

What is Kina Securities's current dividend yield, its reliability and sustainability?

12.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KSL's dividend (12.33%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: KSL's dividend (12.33%) is in the top 25% of dividend payers in the Australian market (5.06%)


Stability and Growth of Payments

Stable Dividend: KSL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KSL's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67%), KSL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KSL's dividends in 3 years are forecast to be covered by earnings (53.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Greg Pawson (54 yo)

3.08yrs

Tenure

K1,898,000

Compensation

Mr. Gregory Alan Pawson, also known as Greg, has been Managing Director of Kina Securities Limited since January 02, 2018 and has been its Chief Executive Officer since December 2017. He was Director of Ki...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD540.93K) is about average for companies of similar size in the Australian market ($USD529.04K).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Pawson
CEO & MD3.08yrsK1.90m0.094%
PGK 212.1k
Chetan Chopra
CFO & Company Secretary4.42yrsK524.80kno data
Johnson Kalo
Chief Operating Officer1.17yrsno datano data
Gavin Heard
Group Manager of Corporate Affairs & Investor Relations0.75yrno datano data
Veronica Weiang
Group Manager of Legalno datano datano data
Michael Van Dorssen
Chief Risk Officer4.75yrsK541.22kno data
Ivan Vidovich
Chief Transformation Officerno datano datano data
Nathanial Wingti
Group Manager of Treasury & Financial Markets4.33yrsno datano data

3.7yrs

Average Tenure

Experienced Management: KSL's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Hutchinson
Independent Non-Executive Director2.25yrsK195.00k0.022%
PGK 49.4k
Andrew Carriline
Independent Non-Executive Director2.25yrsK207.00k0.044%
PGK 98.8k
Karen Smith-Pomeroy
Independent Non-Executive Director4.17yrsK240.00k0.031%
PGK 71.1k
Jane Thomason
Independent Non-Executive Director2.5yrsK238.00k0.0070%
PGK 15.8k
Isikeli Taureka
Independent Non-Executive Chairman of the Board2.83yrsK362.00k0.016%
PGK 35.6k

2.5yrs

Average Tenure

60yo

Average Age

Experienced Board: KSL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KSL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 74.3%.


Top Shareholders

Company Information

Kina Securities Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kina Securities Limited
  • Ticker: KSL
  • Exchange: ASX
  • Founded: 1985
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: AU$225.774m
  • Shares outstanding: 285.79m
  • Website: https://www.kinabank.com.pg

Number of Employees


Location

  • Kina Securities Limited
  • Kina Bank Haus
  • Level 9
  • Port Moresby
  • Papua New Guinea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KSLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2015
KSLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2015

Biography

Kina Securities Limited, together with its subsidiaries, provides various diversified financial services in Papua New Guinea. The company operates through three segments: Banking & Finance, Wealth Manageme...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 10:35
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.