CHIA:KSC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Undervalued with proven track record.

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: Insufficient data to determine KSC's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine KSC's volatility change over the past year.


Market Performance


7 Day Return

0%

KSC

2.6%

AU Logistics

2.3%

AU Market


1 Year Return

n/a

KSC

35.8%

AU Logistics

-0.3%

AU Market

Return vs Industry: Insufficient data to determine how KSC performed against the Australian Logistics industry.

Return vs Market: Insufficient data to determine how KSC performed against the Australian Market.


Shareholder returns

KSCIndustryMarket
7 Day0%2.6%2.3%
30 Day0%10.0%7.2%
90 Dayn/a25.5%8.7%
1 Yearn/a38.4%35.8%3.1%-0.3%
3 Yearn/a35.0%25.9%24.2%8.8%
5 Year0.09%-6.7%67.0%47.3%55.4%24.4%

Long-Term 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

No news available

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$1.25) is trading below our estimate of fair value (A$14.19)

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


Price To Earnings Ratio

PE vs Industry: KSC is good value based on its PE Ratio (14.8x) compared to the XO Logistics industry average (31.3x).

PE vs Market: KSC is good value based on its PE Ratio (14.8x) compared to the Australian market (22.7x).


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 (0.7x) compared to the XO Logistics industry average (1.7x).


Next Steps

Future Growth

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

16.5%

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?

58.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KSC has a large one-off gain of A$3.4M impacting its June 30 2020 financial results.

Growing Profit Margin: KSC's current net profit margins (1.4%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: KSC has become profitable over the past 5 years, growing earnings by 58.1% per year.

Accelerating Growth: KSC's earnings growth over the past year (391.9%) exceeds its 5-year average (58.1% per year).

Earnings vs Industry: KSC earnings growth over the past year (391.9%) exceeded the Logistics industry -25.3%.


Return on Equity

High ROE: KSC's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is K&S's financial position?


Financial Position Analysis

Short Term Liabilities: KSC's short term assets (A$137.4M) exceed its short term liabilities (A$135.4M).

Long Term Liabilities: KSC's short term assets (A$137.4M) do not cover its long term liabilities (A$172.5M).


Debt to Equity History and Analysis

Debt Level: KSC's debt to equity ratio (34%) is considered satisfactory.

Reducing Debt: KSC's debt to equity ratio has increased from 4.8% to 34% over the past 5 years.

Debt Coverage: KSC's debt is well covered by operating cash flow (95.7%).

Interest Coverage: KSC's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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

4.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KSC's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: KSC's dividend (4.55%) is low compared to the top 25% of dividend payers in the Australian market (5%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56%), KSC's dividend 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?

5.7yrs

Average management tenure


CEO

Paul Sarant (52 yo)

6.58yrs

Tenure

AU$1,108,097

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 ($USD814.66K) is above average for companies of similar size in the Australian market ($USD277.79K).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Sarant
CEO, MD & Executive Director6.58yrsAU$1.11m0.14%
A$ 246.3k
Raunak Parikh
CFO & Group Financial Controller0.58yrAU$311.89kno data
Christopher Bright
General Counsel & Company Secretaryno dataAU$476.18k0.040%
A$ 67.3k
Kevin Glennon
Chief Information Officerno datano datano data
Simon Skazlic
Executive General Manager of HS&E/Complianceno dataAU$291.92kno data
Kaye Evans
Executive General Manager of Human Resourcesno dataAU$276.99kno data
Mark Kohne
Executive General Manager of DTM6.42yrsAU$261.48kno data
Rod King
Executive General Manager of Western Australia5.67yrsAU$318.60kno data
Paul Dale
General Manager of K&S Energy5yrsAU$297.00kno data

5.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: KSC's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Sarant
CEO, MD & Executive Director6.58yrsAU$1.11m0.14%
A$ 246.3k
Graham Walters
Independent Non-Executive Director2.5yrsAU$88.03k0.0041%
A$ 6.9k
John Winser
Non-Executive Director7.25yrsAU$88.03k1.04%
A$ 1.8m
Anthony Johnson
Non-Executive Chairman15.25yrsAU$164.57k0.42%
A$ 716.7k
Sallie Emmett
Non-Executive Director1.17yrsAU$67.72kno data

6.6yrs

Average Tenure

72yo

Average Age

Experienced Board: KSC's board of directors are considered experienced (6.6 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

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


Key Information

  • Name: K&S Corporation Limited
  • Ticker: KSC
  • Exchange: CHIA
  • Founded: 1945
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: AU$169.997m
  • Shares outstanding: 128.79m
  • 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 Analysis2020/11/25 10:31
End of Day Share Price2020/09/21 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.