ASX:KOV

Stock Analysis Report

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Executive Summary

Korvest Ltd, together with its subsidiaries, manufacturers and supplies cable and pipe support systems, galvanising services, and access systems for large mobile equipment in Australia. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KOV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

KOV

7.3%

AU Machinery

0.01%

AU Market


1 Year Return

45.9%

KOV

-3.1%

AU Machinery

-5.7%

AU Market

Return vs Industry: KOV exceeded the Australian Machinery industry which returned -5.3% over the past year.

Return vs Market: KOV exceeded the Australian Market which returned -5.6% over the past year.


Shareholder returns

KOVIndustryMarket
7 Day4.0%7.3%0.01%
30 Day5.9%10.7%5.4%
90 Day11.2%39.5%4.0%
1 Year54.9%45.9%-1.6%-3.1%-2.4%-5.7%
3 Year151.0%110.4%-2.1%-4.7%18.0%3.0%
5 Year102.1%48.3%141.2%101.8%42.1%13.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Korvest 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: KOV (A$4.67) is trading below our estimate of fair value (A$36.75)

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


Price To Earnings Ratio

PE vs Industry: KOV is good value based on its PE Ratio (13x) compared to the AU Machinery industry average (21x).

PE vs Market: KOV is good value based on its PE Ratio (13x) compared to the Australian market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KOV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KOV is good value based on its PB Ratio (1.6x) compared to the AU Machinery industry average (1.9x).


Next Steps

Future Growth

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

45.9%

Forecasted Capital Goods industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if KOV's forecast earnings growth is above the savings rate (2.3%).

Earnings vs Market: Insufficient data to determine if KOV's earnings are forecast to grow faster than the Australian market

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

Revenue vs Market: Insufficient data to determine if KOV's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if KOV's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KOV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Korvest performed over the past 5 years?

39.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KOV has high quality earnings.

Growing Profit Margin: KOV's current net profit margins (6.3%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: KOV's earnings have grown significantly by 39.5% per year over the past 5 years.

Accelerating Growth: KOV's earnings growth over the past year (39.3%) is below its 5-year average (39.5% per year).

Earnings vs Industry: KOV earnings growth over the past year (39.3%) underperformed the Machinery industry 39.3%.


Return on Equity

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


Next Steps

Financial Health

How is Korvest's financial position?


Financial Position Analysis

Short Term Liabilities: KOV's short term assets (A$27.8M) exceed its short term liabilities (A$10.2M).

Long Term Liabilities: KOV's short term assets (A$27.8M) exceed its long term liabilities (A$5.5M).


Debt to Equity History and Analysis

Debt Level: KOV is debt free.

Reducing Debt: KOV has no debt compared to 5 years ago when its debt to equity ratio was 1.5%.

Debt Coverage: KOV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: KOV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Korvest current dividend yield, its reliability and sustainability?

6.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KOV's dividend (6%) is higher than the bottom 25% of dividend payers in the Australian market (2.13%).

High Dividend: KOV's dividend (6%) is in the top 25% of dividend payers in the Australian market (5.51%)


Stability and Growth of Payments

Stable Dividend: KOV's dividend payments have been volatile in the past 10 years.

Growing Dividend: KOV's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.1%), KOV's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Chris Hartwig (49 yo)

2.67yrs

Tenure

AU$531,251

Compensation

Mr. Chris A. Hartwig, BA(Acc), MAICD, has been Managing Director and Director of Korvest Ltd since February 28, 2018. Mr. Hartwig served as Executive General Manager of Sales & Marketing at Korvest Ltd. Mr ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD376.45K) is above average for companies of similar size in the Australian market ($USD277.02K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chris Hartwig
MD & Director2.67yrsAU$531.25k0.48%
A$ 254.0k
Steven John McGregor
Finance Director11.75yrsAU$403.32k0.52%
A$ 277.5k
Gavin Christie
General Manager of Operations4.75yrsAU$269.74k0.074%
A$ 39.3k
Stephen Taubitz
General Manager of Sales - EzyStrut2.58yrsAU$329.83k0.0027%
A$ 1.4k

3.7yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Chris Hartwig
MD & Director2.67yrsAU$531.25k0.48%
A$ 254.0k
Steven John McGregor
Finance Director11.75yrsAU$403.32k0.52%
A$ 277.5k
Andrew Stobart
Independent Non-Executive Director4.17yrsAU$73.18k0.075%
A$ 39.7k
Graeme Billings
Independent Non-Executive Chairman6.08yrsAU$146.64k0.10%
A$ 54.5k
Gerard Hutchinson
Independent Non-Executive Director5.92yrsAU$85.55k0.0044%
A$ 2.3k
Gary Francis
Independent Non Executive Director6.67yrsAU$85.55k0.055%
A$ 29.3k

6.0yrs

Average Tenure

58yo

Average Age

Experienced Board: KOV's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KOV 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

Korvest Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Korvest Ltd
  • Ticker: KOV
  • Exchange: ASX
  • Founded: 1970
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: AU$52.893m
  • Shares outstanding: 11.33m
  • Website: https://www.korvest.com.au

Number of Employees


Location

  • Korvest Ltd
  • 580 Prospect Road
  • Kilburn
  • South Australia
  • 5084
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KOVASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
KOVCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Korvest Ltd, together with its subsidiaries, manufacturers and supplies cable and pipe support systems, galvanising services, and access systems for large mobile equipment in Australia. It operates in two ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 10:37
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.