TSX:K

Stock Analysis Report

Executive Summary

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: K's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.3%

K

4.7%

CA Metals and Mining

0.1%

CA Market


1 Year Return

64.6%

K

5.2%

CA Metals and Mining

4.7%

CA Market

Return vs Industry: K exceeded the Canadian Metals and Mining industry which returned 5.2% over the past year.

Return vs Market: K exceeded the Canadian Market which returned 4.7% over the past year.


Shareholder returns

KIndustryMarket
7 Day17.3%4.7%0.1%
30 Day21.5%4.2%0.8%
90 Day40.7%15.2%3.7%
1 Year64.6%64.6%5.8%5.2%7.9%4.7%
3 Year57.3%57.3%-2.4%-4.0%17.9%7.3%
5 Year123.0%123.0%25.6%22.0%33.8%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kinross Gold undervalued compared to its fair value and its price relative to the market?

10.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: K (CA$7.85) is trading above our estimate of fair value (CA$7.77)

Significantly Below Fair Value: K is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: K is good value based on its PE Ratio (10.4x) compared to the Metals and Mining industry average (17.4x).

PE vs Market: K is good value based on its PE Ratio (10.4x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: K's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: K is good value based on its PB Ratio (1.4x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Kinross Gold forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: K's earnings are forecast to decline over the next 3 years (-14.7% per year).

Earnings vs Market: K's earnings are forecast to decline over the next 3 years (-14.7% per year).

High Growth Earnings: K's earnings are forecast to decline over the next 3 years.

Revenue vs Market: K's revenue (1.3% per year) is forecast to grow slower than the Canadian market (4.7% per year).

High Growth Revenue: K's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: K's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has Kinross Gold performed over the past 5 years?

71.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K has a large one-off gain of $162.9M impacting its December 31 2019 financial results.

Growing Profit Margin: K became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: K has become profitable over the past 5 years, growing earnings by 71.1% per year.

Accelerating Growth: K has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: K has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: K's Return on Equity (13.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kinross Gold's financial position?


Financial Position Analysis

Short Term Liabilities: K's short term assets ($1.8B) exceed its short term liabilities ($615.5M).

Long Term Liabilities: K's short term assets ($1.8B) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: K's debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: K's debt to equity ratio has reduced from 42% to 34.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: K's debt is not covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: K is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: K is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Kinross Gold's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.4%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate K'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 K's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: K is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

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


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

J. Rollinson (57yo)

7.5yrs

Tenure

US$6,157,108

Compensation

Mr. J. Paul Rollinson has served as Chief Executive Officer and Director of Kinross Gold Corporation since August 1, 2012. Mr. Rollinson serves as President of Kinross Gold Corporation. He was appointed Ex ...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD6.16M) is above average for companies of similar size in the Canadian market ($USD3.73M).

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


Leadership Team

NamePositionTenureCompensationOwnership
J. Rollinson
President7.5yrsUS$6.16m0.31% $30.3m
Paul Botond Tomory
Executive VP & CTO3.1yrsUS$1.51m0.040% $3.9m
Geoffrey Gold
Executive VP of Corporate Development & External Relations and Chief Legal Officer12yrsUS$2.68m0.13% $12.4m
Andrea Freeborough
Senior VP & CFO0.8yrsno data0.020% $2.0m
Thomas Elliott
Senior Vice President of Investor Relations & Corporate Development4.1yrsno data0.034% $3.4m
Greg Etter
Senior Vice-President of Legal0yrsno datano data
John Sims
Senior Vice-President of Geology & Brownfields Exploration0.8yrsno data0.016% $1.6m
Claude J. Schimper
Senior Vice-President of Russia Operations0.8yrsno data0.020% $1.9m
Nathan Longenecker
Senior VP of Legal & General Counsel0.8yrsno data0.024% $2.4m
Andreas Mittler
Senior Vice-President of West Africa Operations0.8yrsno data0.014% $1.3m

0.8yrs

Average Tenure

Experienced Management: K's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
J. Rollinson
President7.5yrsUS$6.16m0.31% $30.3m
Ian Atkinson
Independent Director4yrsUS$222.65kno data
Catherine McLeod-Seltzer
Independent Chairman1.1yrsUS$209.82k0.00098% $96.5k
John Brough
Independent Director26.1yrsUS$225.03kno data
Kerry Dyte
Independent Director2.3yrsUS$208.91k0.0032% $317.9k
Ave Lethbridge
Independent Director4.8yrsUS$205.85kno data
David Scott
Independent Director0.8yrsno datano data
Kelly Osborne
Corporate Director4.8yrsUS$211.65kno data
Elizabeth McGregor
Director1.1yrsno datano data

4.0yrs

Average Tenure

59yo

Average Age

Experienced Board: K's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: K insiders have only sold shares 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

Kinross Gold Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kinross Gold Corporation
  • Ticker: K
  • Exchange: TSX
  • Founded: 1993
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$9.843b
  • Shares outstanding: 1.25b
  • Website: https://www.kinross.com

Number of Employees


Location

  • Kinross Gold Corporation
  • 25 York Street
  • 17th Floor
  • Toronto
  • Ontario
  • M5J 2V5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KGCNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 1993
KTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 1993
KIN2DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1993
KIN2XTRA (XETRA Trading Platform)YesCommon SharesDEEURJun 1993
KGSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJun 1993
0R2DLSE (London Stock Exchange)YesCommon SharesGBCADJun 1993

Biography

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania. It is also involved in the reclamation of gold mining properties; and production and sale of silver. As of December 31, 2018, its proven and probable mineral reserves included approximately 25.5 million ounces of gold, as well as 53.9 million ounces of silver. The company was founded in 1993 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:20
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.