ASX:KSC

Stock Analysis Report

Executive Summary

K&S Corporation Limited provides transportation and logistics, contract management, warehousing and distribution, and fuel distribution services primarily in Australia and New Zealand.

Rewards

Trading at 74.1% below its fair value

Risk Analysis

Large one-off items impacting financial results

Profit margins (0.3%) are lower than last year (2%)

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with imperfect balance sheet.

Share Price & News

How has K&S's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.7%

KSC

2.7%

AU Logistics

0.5%

AU Market


1 Year Return

4.5%

KSC

28.4%

AU Logistics

19.1%

AU Market

Return vs Industry: KSC underperformed the Australian Logistics industry which returned 28.4% over the past year.

Return vs Market: KSC underperformed the Australian Market which returned 19.1% over the past year.


Shareholder returns

KSCIndustryMarket
7 Day1.7%2.7%0.5%
30 Day-2.9%2.0%-1.0%
90 Day-15.3%7.4%0.2%
1 Year5.8%4.5%31.5%28.4%24.9%19.1%
3 Year5.9%0%9.7%1.8%37.0%18.2%
5 Year31.6%17.3%22.4%8.1%58.6%22.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is K&S 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: KSC (A$1.55) is trading below our estimate of fair value (A$5.98)

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


Price To Earnings Ratio

PE vs Industry: KSC is poor value based on its PE Ratio (84x) compared to the Logistics industry average (41x).

PE vs Market: KSC is poor value based on its PE Ratio (84x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KSC is good value based on its PB Ratio (0.8x) compared to the XO Logistics industry average (2.2x).


Next Steps

Future Growth

How is K&S forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.4%

Forecasted Transportation 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 K&S 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 K&S performed over the past 5 years?

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KSC has a large one-off gain of A$7.7M impacting its June 30 2019 financial results.

Growing Profit Margin: KSC's current net profit margins (0.3%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: KSC has become profitable over the past 5 years, growing earnings by 26% per year.

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

Earnings vs Industry: KSC had negative earnings growth (-86.4%) over the past year, making it difficult to compare to the Logistics industry average (-53.7%).


Return on Equity

High ROE: KSC's Return on Equity (1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is K&S's financial position?


Financial Position Analysis

Short Term Liabilities: KSC's short term assets (A$149.6M) do not cover its short term liabilities (A$170.6M).

Long Term Liabilities: KSC's short term assets (A$149.6M) do not cover its long term liabilities (A$168.9M).


Debt to Equity History and Analysis

Debt Level: KSC's debt to equity ratio (12.5%) is considered satisfactory.

Reducing Debt: KSC's debt to equity ratio has increased from 8.6% to 12.5% over the past 5 years.

Debt Coverage: KSC's debt is well covered by operating cash flow (205.7%).

Interest Coverage: Insufficient data to determine if KSC's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: KSC has a high level of physical assets or inventory.

Debt Coverage by Assets: KSC's debt is covered by short term assets (assets are 5x debt).


Next Steps

Dividend

What is K&S's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate KSC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KSC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KSC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KSC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KSC is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KSC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of K&S's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Paul Sarant (51yo)

5.7yrs

Tenure

AU$847,628

Compensation

Mr. Paul Sarant, B.Eng has been Chief Executive Officer and Managing Director of K&S Corporation Limited since April 22, 2014. Mr. Sarant served as Executive General Manager of DTM at K&S Corporation Limit ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD581.92K) is above average for companies of similar size in the Australian market ($USD261.19K).

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


Management Age and Tenure

4.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: KSC's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

71yo

Average Age

Experienced Board: KSC's board of directors are considered experienced (5.7 years average tenure).


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$919,50616 Aug 19
Scott Group of Companies
EntityCompany
Shares616,331
Max PriceAU$1.49
BuyAU$1,967,49208 Mar 19
Fox Group Holdings Pty Ltd.
EntityCompany
Shares1,220,028
Max PriceAU$1.61
BuyAU$7,87831 Dec 18
Graham Walters
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,252
Max PriceAU$1.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Management Team

  • Simon Skazlic (56yo)

    Executive General Manager of HS&E/Compliance

    • Tenure: 0yrs
    • Compensation: AU$291.92k
  • Chris Bright (48yo)

    General Counsel & Company Secretary

    • Tenure: 0yrs
    • Compensation: AU$337.96k
  • Paul Sarant (51yo)

    CEO, MD & Executive Director

    • Tenure: 5.7yrs
    • Compensation: AU$847.63k
  • Wayne Johnston

    Chief Financial Officer

    • Tenure: 1.2yrs
    • Compensation: AU$419.59k
  • Kaye Evans

    Executive General Manager of Human Resources

    • Tenure: 0yrs
    • Compensation: AU$276.99k
  • Paul Dale (52yo)

    General Manager of K&S Energy

    • Tenure: 4.1yrs
    • Compensation: AU$297.00k
  • Mark Kohne

    Executive General Manager of DTM

    • Tenure: 5.5yrs
    • Compensation: AU$261.48k
  • Rod King

    Executive General Manager of Western Australia

    • Tenure: 4.8yrs
    • Compensation: AU$318.60k
  • Kevin Glennon

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Graham Walters (77yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$88.03k
  • John Winser (71yo)

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: AU$88.03k
  • Tony Johnson (72yo)

    Non-Executive Chairman

    • Tenure: 14.3yrs
    • Compensation: AU$160.55k
  • Paul Sarant (51yo)

    CEO, MD & Executive Director

    • Tenure: 5.7yrs
    • Compensation: AU$847.63k
  • Sallie Emmett (53yo)

    Non-Executive Director

    • Tenure: 0.3yrs

Company Information

K&S Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: K&S Corporation Limited
  • Ticker: KSC
  • Exchange: ASX
  • Founded: 1945
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: AU$194.101m
  • Shares outstanding: 127.28m
  • Website: https://www.ksgroup.com.au

Number of Employees


Location

  • K&S Corporation Limited
  • 591 Boundary Road
  • Truganina
  • Victoria
  • 3029
  • Australia

Listings

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

Biography

K&S Corporation Limited provides transportation and logistics, contract management, warehousing and distribution, and fuel distribution services primarily in Australia and New Zealand. The company operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 10:32
End of Day Share Price2019/12/13 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.