ASX:KPG

Stock Analysis Report

Kelly Partners Group Holdings

Executive Summary

Kelly Partners Group Holdings Limited provides chartered accounting and other professional services to private businesses and clients, owners, and families in Australia.

Snowflake

Fundamentals

Excellent balance sheet and good value.

Share Price & News

How has Kelly Partners Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.6%

KPG

2.7%

AU Professional Services

0.3%

AU Market


1 Year Return

-20.4%

KPG

26.7%

AU Professional Services

18.1%

AU Market

Return vs Industry: KPG underperformed the Australian Professional Services industry which returned 26.7% over the past year.

Return vs Market: KPG underperformed the Australian Market which returned 18.1% over the past year.


Shareholder returns

KPGIndustryMarket
7 Day-2.6%2.7%0.3%
30 Day-1.5%5.8%0.8%
90 Day6.1%8.8%3.3%
1 Year-15.9%-20.4%30.5%26.7%23.9%18.1%
3 Yearn/a49.9%38.2%37.1%18.4%
5 Yearn/a57.8%36.7%53.7%19.5%

Price Volatility Vs. Market

How volatile is Kelly Partners Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kelly Partners Group Holdings 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: KPG (A$0.96) is trading below our estimate of fair value (A$4.32)

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


Price To Earnings Ratio

PE vs Industry: KPG is good value based on its PE Ratio (17.8x) compared to the Professional Services industry average (21.4x).

PE vs Market: KPG is good value based on its PE Ratio (17.8x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KPG is overvalued based on its PB Ratio (2.8x) compared to the AU Professional Services industry average (2.1x).


Next Steps

Future Growth

How is Kelly Partners Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.9%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kelly Partners Group Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Kelly Partners Group Holdings performed over the past 5 years?

25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KPG has high quality earnings.

Growing Profit Margin: KPG's current net profit margins (6.1%) are lower than last year (11.1%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: KPG had negative earnings growth (-44.4%) over the past year, making it difficult to compare to the Professional Services industry average (22.2%).


Return on Equity

High ROE: KPG's Return on Equity (29%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kelly Partners Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KPG's short term assets (A$14.5M) exceeds its short term liabilities (A$10.8M)

Long Term Liabilities: KPG's short term assets (A$14.5M) exceeds its long term liabilities (14.0M)


Debt to Equity History and Analysis

Debt Level: KPG's debt to equity ratio (75.6%) is considered high.

Reducing Debt: KPG's debt to equity ratio has reduced from 149.6% to 75.6% over the past 5 years.

Debt Coverage: KPG's debt is well covered by operating cash flow (53.5%).

Interest Coverage: KPG's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet

Inventory Level: KPG has a low level of unsold assets or inventory.

Debt Coverage by Assets: KPG's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Kelly Partners Group Holdings's current dividend yield, its reliability and sustainability?

5.07%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.4%markettop25%5.6%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: KPG's dividend (5.07%) is higher than the bottom 25% of dividend payers in the Australian market (2.37%).

High Dividend: KPG's dividend (5.07%) is low compared to the top 25% of dividend payers in the Australian market (5.65%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KPG has been paying a dividend for less than 10 years.

Growing Dividend: KPG's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.2%), KPG'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

What is the CEO of Kelly Partners Group Holdings's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Brett Kelly 0

0yrs

Tenure

AU$434,390

Compensation

Mr. Brett Kelly, BBus,CA,MTax,DipFS,RTA,JP is Founder at Kelly Partners Group Holdings Limited. Mr. Kelly serves as the Chief Executive Officer and Executive Chairman of Kelly Partners Group Holdings Pty L ...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD296.59K) is about average for companies of similar size in the Australian market ($USD256.04K).

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


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: KPG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.5yrs

Average Tenure

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$83,99627 Sep 19
Ellerston Capital Limited
EntityCompany
Shares59,230
Max PriceAU$1.42
SellAU$1,046,80027 Sep 19
Ellerston Capital Limited
EntityCompany
Shares870,346
Max PriceAU$1.20
BuyAU$19,99910 Mar 19
Brett Kelly
EntityIndividual
Role
Chief Executive Officer
Founder
Shares23,000
Max PriceAU$0.88
BuyAU$9,51906 Mar 19
Paul Kuchta
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares11,005
Max PriceAU$0.86

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Franks (49yo)

    Company Secretary

    • Tenure: 2.8yrs
  • Brett Kelly

    Founder

    • Tenure: 0yrs
    • Compensation: AU$434.39k
  • Paul Kuchta

    Executive Director

    • Tenure: 2.5yrs
  • Leanne Edmonds

    Head of People

    • Tenure: 1.9yrs
  • Justin Sweeting

    Deputy Chief Financial Officer

    • Tenure: 0.2yrs

Board Members

  • Steve Rouvray

    Independent Deputy Chairman

    • Tenure: 2.8yrs
    • Compensation: AU$30.00k
  • Brett Kelly

    Founder

    • Tenure: 0yrs
    • Compensation: AU$434.39k
  • Ada Wing Poon

    Director

    • Tenure: 0.2yrs
  • Paul Kuchta

    Executive Director

    • Tenure: 2.5yrs
  • Ryan MacNamee

    Independent Non Executive Director

    • Tenure: 2.5yrs
    • Compensation: AU$30.00k

Company Information

Kelly Partners Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kelly Partners Group Holdings Limited
  • Ticker: KPG
  • Exchange: ASX
  • Founded: 2006
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: AU$43.357m
  • Shares outstanding: 45.40m
  • Website: https://kellypartnersgroup.com.au

Location

  • Kelly Partners Group Holdings Limited
  • 32 Walker Street
  • Level 8
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KPGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2017
KPGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2017

Biography

Kelly Partners Group Holdings Limited provides chartered accounting and other professional services to private businesses and clients, owners, and families in Australia. It offers audit; business, and pers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 10:43
End of Day Share Price2019/11/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.