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K&S

ASX:KSC
Snowflake Description

Undervalued with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KSC
ASX
A$215M
Market Cap
  1. Home
  2. AU
  3. Transportation
Company description

K&S Corporation Limited provides transportation and logistics, contract management, warehousing and distribution, and fuel distribution services primarily in Australia and New Zealand. The last earnings update was 120 days ago. More info.


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KSC Share Price and Events
7 Day Returns
0%
ASX:KSC
2.8%
Oceania Logistics
0.2%
AU Market
1 Year Returns
2.4%
ASX:KSC
32.8%
Oceania Logistics
5.7%
AU Market
KSC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
K&S (KSC) 0% 1.8% -8.9% 2.4% 28% 33.6%
Oceania Logistics 2.8% 10.1% 9.3% 32.8% 98.6% 125.8%
AU Market 0.2% 3.2% 7.5% 5.7% 27.5% 13.8%
1 Year Return vs Industry and Market
  • KSC underperformed the Logistics industry which returned 32.8% over the past year.
  • KSC underperformed the Market in Australia which returned 5.7% over the past year.
Price Volatility
KSC
Industry
5yr Volatility vs Market

Value

 Is K&S undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of K&S to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for K&S.

ASX:KSC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:KSC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Logistics Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.986 (1 + (1- 30%) (73.07%))
1.329
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.329 * 5.96%)
10.23%

Discounted Cash Flow Calculation for ASX:KSC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for K&S is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:KSC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 10.23%)
2019 42.81 Est @ 19.42% 38.84
2020 48.93 Est @ 14.29% 40.27
2021 54.16 Est @ 10.69% 40.43
2022 58.59 Est @ 8.18% 39.68
2023 62.35 Est @ 6.42% 38.31
2024 65.58 Est @ 5.19% 36.56
2025 68.42 Est @ 4.32% 34.60
2026 70.97 Est @ 3.72% 32.55
2027 73.31 Est @ 3.3% 30.50
2028 75.51 Est @ 3% 28.50
Present value of next 10 years cash flows A$360.24
ASX:KSC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$75.51 × (1 + 2.31%) ÷ (10.23% – 2.31%)
A$975.41
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$975.41 ÷ (1 + 10.23%)10
A$368.22
ASX:KSC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$360.24 + A$368.22
A$728.46
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$728.46 / 127.28
A$5.72
ASX:KSC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$5.72
Current discount Discount to share price of A$1.69
= -1 x (A$1.69 - A$5.72) / A$5.72
70.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price K&S is available for.
Intrinsic value
>50%
Share price is A$1.69 vs Future cash flow value of A$5.72
Current Discount Checks
For K&S to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • K&S's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • K&S's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for K&S's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are K&S's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:KSC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.18
ASX:KSC Share Price ** ASX (2019-06-18) in AUD A$1.69
Oceania Logistics Industry PE Ratio Median Figure of 5 Publicly-Listed Logistics Companies 28.11x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 15.8x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of K&S.

ASX:KSC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:KSC Share Price ÷ EPS (both in AUD)

= 1.69 ÷ 0.18

9.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K&S is good value based on earnings compared to the Oceania Logistics industry average.
  • K&S is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does K&S's expected growth come at a high price?
Raw Data
ASX:KSC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
19.2%per year
Global Logistics Industry PEG Ratio Median Figure of 42 Publicly-Listed Logistics Companies 1.38x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.42x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for K&S, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on K&S's assets?
Raw Data
ASX:KSC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.83
ASX:KSC Share Price * ASX (2019-06-18) in AUD A$1.69
Oceania Logistics Industry PB Ratio Median Figure of 6 Publicly-Listed Logistics Companies 3.02x
Australia Market PB Ratio Median Figure of 1,690 Publicly-Listed Companies 1.63x
ASX:KSC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:KSC Share Price ÷ Book Value per Share (both in AUD)

= 1.69 ÷ 1.83

0.92x

* Primary Listing of K&S.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K&S is good value based on assets compared to the Oceania Logistics industry average.
X
Value checks
We assess K&S's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Logistics industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Logistics industry average (and greater than 0)? (1 check)
  5. K&S has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover K&S, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is K&S expected to grow at an attractive rate?
  • K&S's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • K&S's earnings growth is expected to exceed the Australia market average.
  • Unable to compare K&S's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:KSC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:KSC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 19.2%
Oceania Logistics Industry Earnings Growth Rate Market Cap Weighted Average 11.6%
Global Logistics Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.8%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:KSC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:KSC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
ASX:KSC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 909 54 22
2018-09-30 882 47 20
2018-06-30 855 41 17
2018-03-31 838 42 12
2017-12-31 821 44 7
2017-09-30 788 47 7
2017-06-30 755 49 7
2017-03-31 720 41 -3
2016-12-31 686 33 -12
2016-09-30 687 37 -58
2016-06-30 689 41 -104
2016-03-31 692 46 -93

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • K&S's earnings are expected to grow by 19.2% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if K&S is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:KSC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from K&S Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:KSC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
ASX:KSC Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.18
2018-09-30 0.16
2018-06-30 0.14
2018-03-31 0.10
2017-12-31 0.06
2017-09-30 0.06
2017-06-30 0.05
2017-03-31 -0.02
2016-12-31 -0.10
2016-09-30 -0.48
2016-06-30 -0.87
2016-03-31 -0.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if K&S will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess K&S's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Oceania market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
K&S has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has K&S performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare K&S's growth in the last year to its industry (Logistics).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • K&S's year on year earnings growth rate has been positive over the past 5 years.
  • K&S's 1-year earnings growth exceeds its 5-year average (210.9% vs 9.4%)
  • K&S's earnings growth has exceeded the Oceania Logistics industry average in the past year (210.9% vs 25.5%).
Earnings and Revenue History
K&S's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from K&S Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:KSC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 908.52 22.14 268.38
2018-09-30 881.58 19.63 268.38
2018-06-30 854.64 17.12 268.38
2018-03-31 837.74 12.12 132.98
2017-12-31 820.83 7.12 128.62
2017-09-30 788.03 6.82 183.66
2017-06-30 755.23 6.51 238.70
2017-03-31 720.48 -2.60 233.83
2016-12-31 685.72 -11.72 228.96
2016-09-30 687.24 -57.95 228.09
2016-06-30 688.76 -104.18 227.22
2016-03-31 691.51 -92.93 219.99
2015-12-31 694.26 -81.68 212.77
2015-09-30 696.73 -34.19 210.92
2015-06-30 699.21 13.31 209.07
2015-03-31 693.27 11.59 205.43
2014-12-31 687.33 9.88 201.78
2014-09-30 636.78 9.43 189.29
2014-06-30 586.23 8.97 176.79
2014-03-31 558.13 10.20 167.91
2013-12-31 530.04 11.43 159.02
2013-09-30 547.31 13.66 160.13
2013-06-30 564.58 15.90 161.24
2013-03-31 570.55 17.55 159.29
2012-12-31 576.52 19.20 157.34
2012-09-30 565.66 17.83 154.50
2012-06-30 554.80 16.45 151.66

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • K&S has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • K&S used its assets less efficiently than the Oceania Logistics industry average last year based on Return on Assets.
  • K&S's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess K&S's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Logistics industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
K&S has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is K&S's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up K&S's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • K&S's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • K&S's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of K&S's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from K&S Company Filings, last reported 5 months ago.

ASX:KSC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 230.65 37.06 14.10
2018-09-30 230.65 37.06 14.10
2018-06-30 220.87 35.69 15.95
2018-03-31 220.87 35.69 15.95
2017-12-31 208.48 95.27 3.67
2017-09-30 208.48 95.27 3.67
2017-06-30 205.36 19.69 13.99
2017-03-31 205.36 19.69 13.99
2016-12-31 203.53 78.14 0.06
2016-09-30 203.53 78.14 0.06
2016-06-30 199.39 20.69 7.39
2016-03-31 199.39 20.69 7.39
2015-12-31 206.50 88.76 10.10
2015-09-30 206.50 88.76 10.10
2015-06-30 294.57 13.69 7.33
2015-03-31 294.57 13.69 7.33
2014-12-31 292.14 83.66 19.68
2014-09-30 292.14 83.66 19.68
2014-06-30 287.28 24.69 23.53
2014-03-31 287.28 24.69 23.53
2013-12-31 243.77 60.71 7.57
2013-09-30 243.77 60.71 7.57
2013-06-30 239.64 18.44 15.94
2013-03-31 239.64 18.44 15.94
2012-12-31 231.72 61.91 14.56
2012-09-30 231.72 61.91 14.56
2012-06-30 224.93 33.24 21.04
  • K&S's level of debt (68.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (32% vs 68.1% today).
  • Debt is well covered by operating cash flow (34.4%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 0.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess K&S's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. K&S has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.37%
Current annual income from K&S dividends.
If you bought A$2,000 of K&S shares you are expected to receive A$47 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • K&S's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.59%).
  • K&S's dividend is below the markets top 25% of dividend payers in Australia (5.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:KSC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Global Logistics Industry Average Dividend Yield Market Cap Weighted Average of 46 Stocks 3.1%
Australia Market Average Dividend Yield Market Cap Weighted Average of 416 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:KSC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
ASX:KSC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-26 0.040 2.419
2018-08-23 0.040 2.696
2018-02-26 0.040 2.418
2017-08-22 0.040 2.314
2017-02-21 0.030 1.820
2016-08-23 0.000 0.000
2015-08-21 0.070 5.107
2014-08-26 0.060 4.277
2013-08-23 0.110 6.955
2013-02-26 0.130 6.932
2012-08-21 0.120 6.808
2012-02-22 0.100 7.916
2011-08-22 0.100 8.212
2011-08-19 0.100 7.098
2011-02-23 0.120 7.498
2010-08-25 0.140 5.723
2010-02-24 0.120 4.510
2009-08-26 0.100 3.559
2009-02-25 0.150 6.989
2008-08-27 0.160 5.946

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of K&S's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess K&S's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can K&S afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. K&S has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paul Sarant
COMPENSATION A$761,746
AGE 50
TENURE AS CEO 5.2 years
CEO Bio

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 Limited from November 19, 2007 to April 2014. He has been Director of K & S Corporation Limited since April 2014. He has extensive experience in the transport and logistics sector. Mr. Sarant served as Executive General Manager of DTM for seven years at K&S Corporation. Before that, Mr. Sarant occupied a range of senior management roles, including general management and senior logistics roles, in the course of his fifteen years at Amcor Printing Paper Group/PaperlinX and former General Manager Spicer Stationery Group. He has been a Director of K&S Corporation Limited since April 2014.

CEO Compensation
  • Paul's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Paul's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the K&S management team in years:

4.3
Average Tenure
50.5
Average Age
  • The tenure for the K&S management team is about average.
Management Team

Paul Sarant

TITLE
CEO, MD & Executive Director
COMPENSATION
A$762K
AGE
50
TENURE
5.2 yrs

Chris Bright

TITLE
General Counsel & Company Secretary
COMPENSATION
A$325K
AGE
47

Simon Hine

TITLE
Executive General Manager of Business Development
COMPENSATION
A$378K

Wayne Johnston

TITLE
Chief Financial Officer
TENURE
0.7 yrs

Kevin Glennon

TITLE
Chief Information Officer

Simon Skazlic

TITLE
Executive General Manager of HS&E/Compliance
COMPENSATION
A$292K
AGE
55

Kaye Evans

TITLE
Executive General Manager of Human Resources
COMPENSATION
A$277K

Mark Kohne

TITLE
Executive General Manager of DTM
COMPENSATION
A$261K
TENURE
5 yrs

Rod King

TITLE
Executive General Manager of Western Australia
COMPENSATION
A$319K
TENURE
4.3 yrs

Paul Dale

TITLE
General Manager of K&S Energy
COMPENSATION
A$297K
AGE
51
TENURE
3.6 yrs
Board of Directors Tenure

Average tenure and age of the K&S board of directors in years:

5.8
Average Tenure
71
Average Age
  • The tenure for the K&S board of directors is about average.
Board of Directors

Tony Johnson

TITLE
Non-Executive Chairman
COMPENSATION
A$150K
AGE
71
TENURE
13.8 yrs

Paul Sarant

TITLE
CEO, MD & Executive Director
COMPENSATION
A$762K
AGE
50
TENURE
5.2 yrs

Ray Smith

TITLE
Non-Executive Director
COMPENSATION
A$84K
AGE
71
TENURE
11.3 yrs

John Winser

TITLE
Non-Executive Director
COMPENSATION
A$84K
AGE
70
TENURE
5.8 yrs

Graham Walters

TITLE
Independent Non-Executive Director
COMPENSATION
A$7K
AGE
76
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
08. Mar 19 Buy Fox Group Holdings Pty Ltd. Company 27. Feb 18 07. Mar 19 1,220,028 A$1.61 A$1,967,492
31. Dec 18 Buy Graham Walters Individual 24. Dec 18 24. Dec 18 5,252 A$1.50 A$7,878
X
Management checks
We assess K&S's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. K&S has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does K&S Corporation Limited's (ASX:KSC) CEO Salary Compare Well With Others?

According to our data, K&S Corporation Limited has a market capitalization of AU$214m, and pays its CEO total annual compensation worth AU$762k. … With a total shareholder return of 32% over three years, K&S Corporation Limited shareholders would, in general, be reasonably content. … We compared the total CEO remuneration paid by K&S Corporation Limited, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Could K&S Corporation Limited (ASX:KSC) Have The Makings Of Another Dividend Aristocrat?

Dividend paying stocks like K&S Corporation Limited (ASX:KSC) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to be form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, K&S paid out 23% of its profit as dividends. We like this low payout ratio, because it implies the dividend is well covered and leaves ample opportunity for reinvestment. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. K&S's cash payout ratio last year was 2.5%. Cash flows are typically lumpy, but this looks like an appropriately conservative payout. Is K&S's Balance Sheet Risky? As K&S has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Conclusion To summarise, shareholders should always check that K&S's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Is K&S Corporation Limited's (ASX:KSC) Balance Sheet A Threat To Its Future?

While small-cap stocks, such as K&S Corporation Limited (ASX:KSC) with its market cap of AU$210m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Should K&S Corporation Limited’s (ASX:KSC) Weak Investment Returns Worry You?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

The K&S (ASX:KSC) Share Price Has Gained 13% And Shareholders Are Hoping For More

For example, long term K&S Corporation Limited (ASX:KSC) shareholders have enjoyed a 13% share price rise over the last half decade, well in excess of the market return of around 4.7% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … That's generally thought to be a genuine positive, so we would expect to see an increasing share price.

Simply Wall St -

Does K&S Corporation Limited (ASX:KSC) Have A Good P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how K&S Corporation Limited's (ASX:KSC) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

K&S Corporation Limited (ASX:KSC) Delivered A Weaker ROE Than Its Industry

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows K&S has a return on equity of 9.6% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Buy K&S Corporation Limited (ASX:KSC) For Its 2.7% Dividend?

Help shape the future of investing tools and receive a $20 prize! … A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, K&S Corporation Limited (ASX:KSC) has paid a dividend to shareholders.

Simply Wall St -

Is K&S Corporation Limited's (ASX:KSC) CEO Salary Justified?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … The aim of all this is to consider the appropriateness of CEO pay levels. … How Does Paul Sarant's Compensation Compare With Similar Sized Companies?

Simply Wall St -

K&S Corporation Limited (ASX:KSC) Might Not Be A Great Investment

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed

Simply Wall St -

Company Info

Description

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 in three segments: Australian Transport, Fuels, and New Zealand Transport. It provides road, rail, and coastal sea forwarding for full and break bulk loads, including export packing, wharf lodgement, and the delivery of integrated supply chain and system solutions to timber, paper, dairy, steel, agriculture, and general transportation industries; support services to offshore exploration and drilling projects; dry and liquid bulk transportation services to mining, sugar, cement, and fertilizer industries; and fuel distribution services to retail and service stations, primary producers, fishing industry, and transport operators. The company also manages distribution services, as well as provides equipment and personnel. In addition, it offers facility management services to various companies; distribution chain management services for various importers; general, full load, and part load freight services, as well as project services; and heavy haulage services. Further, the company transports bulk liquids, and dangerous and explosive goods by road, rail, and sea; and aviation refueling services and aviation fuel supply solutions to airports and bulk fuel customers. The company was formerly known as Scott Corporation Limited and changed its name to K&S Corporation Limited in December 1998. K&S Corporation Limited was founded in 1945 and is headquartered in Truganina, Australia. K&S Corporation Limited is a subsidiary of A.A. Scott Pty Limited.

Details
Name: K&S Corporation Limited
KSC
Exchange: ASX
Founded: 1945
A$215,102,082
127,279,339
Website: http://www.ksgroup.com.au
Address: K&S Corporation Limited
591 Boundary Road,
Truganina,
Victoria, 3029,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX KSC Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
CHIA KSC Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
Number of employees
Current staff
Staff numbers
2,814
K&S employees.
Industry
Air Freight and Logistics
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 10:33
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2017/08/21
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.