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KSL

Kina Securities CHIA:KSL Stock Report

Last Price

AU$0.87

Market Cap

AU$248.7m

7D

-1.1%

1Y

-10.3%

Updated

07 Aug, 2022

Data

Company Financials +
KSL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance1/6
Financial Health4/6
Dividends3/6

KSL Stock Overview

Kina Securities Limited, together with its subsidiaries, provides commercial banking and 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$0.87
52 Week HighAU$0.98
52 Week LowAU$0.80
Beta0.81
1 Month Change2.96%
3 Month Change-1.14%
1 Year Change-10.31%
3 Year Change-36.03%
5 Year Change-2.25%
Change since IPO-22.15%

Recent News & Updates

Shareholder Returns

KSLAU BanksAU Market
7D-1.1%0.9%1.0%
1Y-10.3%-4.3%-7.9%

Return vs Industry: KSL underperformed the Australian Banks industry which returned -4.3% over the past year.

Return vs Market: KSL underperformed the Australian Market which returned -7.9% over the past year.

Price Volatility

Is KSL's price volatile compared to industry and market?
KSL volatility
KSL Average Weekly Movement3.5%
Banks Industry Average Movement3.6%
Market Average Movement10.6%
10% most volatile stocks in AU Market17.5%
10% least volatile stocks in AU Market4.7%

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

Volatility Over Time: KSL's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985685Greg Pawsonhttps://www.kinabank.com.pg

Kina Securities Limited, together with its subsidiaries, provides commercial banking and financial, fund administration, investment management, and share brokerage services in Papua New Guinea. It operates through two segments, Bank and Wealth Management. The company offers savings, individual and business cheque, business, cash management, and fixed deposit accounts; personal, home, residential property investment, and business loans; insurance premium funding; equipment finance; overdrafts; and bank guarantees products.

Kina Securities Fundamentals Summary

How do Kina Securities's earnings and revenue compare to its market cap?
KSL fundamental statistics
Market CapK602.50m
Earnings (TTM)K70.81m
Revenue (TTM)K327.84m

8.5x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KSL income statement (TTM)
RevenueK327.84m
Cost of RevenueK0
Gross ProfitK327.84m
Other ExpensesK257.03m
EarningsK70.81m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.25
Gross Margin100.00%
Net Profit Margin21.60%
Debt/Equity Ratio0.8%

How did KSL perform over the long term?

See historical performance and comparison

Dividends

11.2%

Current Dividend Yield

108%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is KSL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KSL?

Other financial metrics that can be useful for relative valuation.

KSL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does KSL's PE Ratio compare to its peers?

KSL PE Ratio vs Peers
The above table shows the PE ratio for KSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.5x
BFL BSP Financial Group
5.2xn/aAU$2.3b
ABA Auswide Bank
10.9xn/aAU$288.1m
BBC BNK Banking
13.1xn/aAU$73.0m
RMC Resimac Group
4.7x-0.3%AU$522.6m
KSL Kina Securities
8.5x23.6%AU$248.7m

Price-To-Earnings vs Peers: KSL is expensive based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (8.5x).


Price to Earnings Ratio vs Industry

How does KSL's PE Ratio compare vs other companies in the Global Banks Industry?

Price-To-Earnings vs Industry: KSL is good value based on its Price-To-Earnings Ratio (8.5x) compared to the Australian Banks industry average (12.3x)


Price to Earnings Ratio vs Fair Ratio

What is KSL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KSL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.5x
Fair PE Ratio13.9x

Price-To-Earnings vs Fair Ratio: KSL is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (13.9x).


Share Price vs Fair Value

What is the Fair Price of KSL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KSL (A$0.87) is trading below our estimate of fair value (A$4.24)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


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 (1.8%).

Earnings vs Market: KSL's earnings (23.6% per year) are forecast to grow faster than the Australian market (6.2% per year).

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

Revenue vs Market: KSL's revenue (14.1% per year) is forecast to grow faster than the Australian market (5.7% per year).

High Growth Revenue: KSL's revenue (14.1% 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 (24.4%)


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Past Performance

How has Kina Securities performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


22.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KSL has a large one-off loss of PGK27.7M impacting its December 31 2021 financial results.

Growing Profit Margin: KSL's current net profit margins (21.6%) are lower than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: KSL's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: KSL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KSL had negative earnings growth (-6.8%) over the past year, making it difficult to compare to the Banks industry average (16.5%).


Return on Equity

High ROE: KSL's Return on Equity (12.3%) is considered low.


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Financial Health

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

Financial Health Score

4/6

Financial Health Score 4/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: KSL's Assets to Equity ratio (6.6x) is low.

Allowance for Bad Loans: KSL has a low allowance for bad loans (44%).

Low Risk Liabilities: 95% 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 (52%).

Low Risk Deposits: KSL's Loans to Deposits ratio (64%) is appropriate.

Level of Bad Loans: KSL has a high level of bad loans (4.4%).


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


11.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KSL's dividend (11.23%) is higher than the bottom 25% of dividend payers in the Australian market (2.62%).

High Dividend: KSL's dividend (11.23%) is in the top 25% of dividend payers in the Australian market (6.24%)


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

Earnings Coverage: With its high payout ratio (108.4%), KSL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KSL's dividends in 3 years are forecast to be covered by earnings (79.6% payout ratio).


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Management

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

5.5yrs

Average management tenure


CEO

Greg Pawson (56 yo)

4.83yrs

Tenure

K1,987,000

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 ($USD565.50K) is about average for companies of similar size in the Australian market ($USD564.46K).

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 seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: KSL's board of directors are considered experienced (4.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Kina Securities Limited
  • Ticker: KSL
  • Exchange: CHIA
  • Founded: 1985
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: AU$248.737m
  • Shares outstanding: 287.56m
  • 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 Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.