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KSL

Kina SecuritiesASX:KSL Stock Report

Market Cap

AU$255.4m

7D

-2.2%

1Y

12.8%

Updated

20 Oct, 2021

Data

Company Financials +
KSL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth5/6
Past Performance4/6
Financial Health4/6
Dividends4/6

KSL Overview

Kina Securities Limited, together with its subsidiaries, provides commercial banking, financial, fund administration, investment management, and share brokerage services in Papua New Guinea.

Kina Securities Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kina Securities
Historical stock prices
Current Share PriceAU$0.88
52 Week HighAU$0.71
52 Week LowAU$1.20
Beta0.80
1 Month Change3.53%
3 Month Change-13.30%
1 Year Change12.82%
3 Year Change-16.19%
5 Year Change-16.19%
Change since IPO-32.31%

Recent News & Updates

Apr 18
Kina Securities Limited (ASX:KSL) Is Yielding 9.5% - But Is It A Buy?

Kina Securities Limited (ASX:KSL) Is Yielding 9.5% - But Is It A Buy?

Today we'll take a closer look at Kina Securities Limited ( ASX:KSL ) from a dividend investor's perspective. Owning a...

Shareholder Returns

KSLAU BanksAU Market
7D-2.2%0.7%1.7%
1Y12.8%44.6%20.2%

Return vs Industry: KSL underperformed the Australian Banks industry which returned 44.6% over the past year.

Return vs Market: KSL underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is KSL's price volatile compared to industry and market?
KSL volatility
KSL Beta0.80
Industry Beta0.77
Market Beta1

Stable Share Price: KSL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KSL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985682Greg Pawsonhttps://www.kinabank.com.pg

Kina Securities Limited, together with its subsidiaries, provides commercial banking, financial, fund administration, investment management, and share brokerage services in Papua New Guinea. The company operates through two segments, Bank and Wealth Management. It also offers savings, cheque and business cheque, cash management, fixed deposit accounts; debit cards; and insurance products, such as business assets and income, and business liability, theft and burglary, and workers compensation insurance.

Kina Securities Fundamentals Summary

How do Kina Securities's earnings and revenue compare to its market cap?
KSL fundamental statistics
Market CapK675.04m
Earnings (TTM)K86.44m
Revenue (TTM)K305.38m

7.7x

P/E Ratio

1.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KSL income statement (TTM)
RevenueK305.38m
Cost of RevenueK0
Gross ProfitK305.38m
ExpensesK218.94m
EarningsK86.44m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.30
Gross Margin100.00%
Net Profit Margin28.30%
Debt/Equity Ratio0.8%

How did KSL perform over the long term?

See historical performance and comparison

Dividends

10.8%

Current Dividend Yield

76%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KSL (A$0.88) is trading below our estimate of fair value (A$2.17)

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 (7.7x) compared to the Australian Banks industry average (10.3x).

PE vs Market: KSL is good value based on its PE Ratio (7.7x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: KSL is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: KSL is overvalued based on its PB Ratio (1.2x) compared to the AU Banks industry average (1x).


Future Growth

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

23.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KSL's forecast earnings growth (23.6% per year) is above the savings rate (1.9%).

Earnings vs Market: KSL's earnings (23.6% per year) are forecast to grow faster than the Australian market (11.9% per year).

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

Revenue vs Market: KSL's revenue (13.1% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: KSL's revenue (13.1% 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 high in 3 years time (21.4%)


Past Performance

How has Kina Securities performed over the past 5 years?

25.3%

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 (28.3%) are higher than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: KSL's earnings have grown significantly by 25.3% per year over the past 5 years.

Accelerating Growth: KSL's earnings growth over the past year (29.9%) exceeds its 5-year average (25.3% per year).

Earnings vs Industry: KSL earnings growth over the past year (29.9%) exceeded the Banks industry 13.7%.


Return on Equity

High ROE: KSL's Return on Equity (15.2%) is considered low.


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 (6.2x) is low.

Allowance for Bad Loans: KSL has a low allowance for bad loans (23%).

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 (50%).

Low Risk Deposits: KSL's Loans to Deposits ratio (63%) is appropriate.

Level of Bad Loans: KSL has a high level of bad loans (9.1%).


Dividend

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

10.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KSL's dividend (10.81%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: KSL's dividend (10.81%) is in the top 25% of dividend payers in the Australian market (5.33%)


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 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.7%), KSL's 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 (70% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Greg Pawson (55 yo)

4yrs

Tenure

K1,914,000

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 ($USD541.37K) is about average for companies of similar size in the Australian market ($USD547.68K).

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


Leadership Team

Experienced Management: KSL's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: KSL's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

Company Information

Kina Securities Limited's 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$255.373m
  • Shares outstanding: 286.94m
  • Website: https://www.kinabank.com.pg

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 07:04
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.