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 not significantly more volatile than the rest 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
1.9%
KSL
3.3%
AU Banks
1.7%
AU Market
1 Year Return
-41.4%
KSL
-7.5%
AU Banks
-1.6%
AU Market
Return vs Industry: KSL underperformed the Australian Banks industry which returned -7.5% over the past year.
Return vs Market: KSL underperformed the Australian Market which returned -1.6% over the past year.
Shareholder returns
| KSL | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 3.3% | 1.7% |
| 30 Day | 9.4% | 17.9% | 9.5% |
| 90 Day | -20.1% | 21.9% | 9.2% |
| 1 Year | -33.5%-41.4% | -4.6%-7.5% | 1.8%-1.6% |
| 3 Year | 43.8%10.1% | -2.9%-16.8% | 24.8%9.2% |
| 5 Year | n/a | 8.8%-18.4% | 56.1%25.0% |
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
No news available
Valuation
Is Kina Securities undervalued compared to its fair value and its price relative to the market?
39.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KSL (A$0.82) is trading below our estimate of fair value (A$1.34)
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 (5.5x) compared to the AU Banks industry average (17.9x).
PE vs Market: KSL is good value based on its PE Ratio (5.5x) compared to the Australian market (22.6x).
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 (17.8% 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% 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?
12.11%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KSL's dividend (12.11%) is higher than the bottom 25% of dividend payers in the Australian market (2.06%).
High Dividend: KSL's dividend (12.11%) is in the top 25% of dividend payers in the Australian market (5.1%)
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 ($USD520.59K).
Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & MD | 3.08yrs | K1.90m | 0.094% PGK 218.8k | |
| CFO & Company Secretary | 4.42yrs | K524.80k | no data | |
| Chief Operating Officer | 1.17yrs | no data | no data | |
| Group Manager of Corporate Affairs & Investor Relations | 0.75yr | no data | no data | |
| Group Manager of Legal | no data | no data | no data | |
| Chief Risk Officer | 4.75yrs | K541.22k | no data | |
| Chief Transformation Officer | no data | no data | no data | |
| Group Manager of Treasury & Financial Markets | 4.33yrs | no data | no data |
3.7yrs
Average Tenure
Experienced Management: KSL's management team is considered experienced (3.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Non-Executive Director | 2.25yrs | K195.00k | 0.022% PGK 50.9k | |
| Independent Non-Executive Director | 2.25yrs | K207.00k | 0.044% PGK 101.9k | |
| Independent Non-Executive Director | 4.17yrs | K240.00k | 0.031% PGK 73.3k | |
| Independent Non-Executive Director | 2.5yrs | K238.00k | 0.0070% PGK 16.3k | |
| Independent Non-Executive Chairman of the Board | 2.83yrs | K362.00k | 0.016% PGK 36.7k |
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: CHIA
- Founded: 1985
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: AU$232.919m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KSL | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jul 2015 |
| KSL | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/27 07:35 |
| End of Day Share Price | 2020/11/26 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.