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

Fundamentals

Fair value with moderate growth potential.


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


Market Performance


7 Day Return

-1.0%

K

0.5%

CA Metals and Mining

0.2%

CA Market


1 Year Return

67.0%

K

15.0%

CA Metals and Mining

3.5%

CA Market

Return vs Industry: K exceeded the Canadian Metals and Mining industry which returned 15% over the past year.

Return vs Market: K exceeded the Canadian Market which returned 3.5% over the past year.


Shareholder returns

KIndustryMarket
7 Day-1.0%0.5%0.2%
30 Day-15.1%-8.9%-3.3%
90 Day9.6%-8.0%-1.9%
1 Year67.0%67.0%15.9%15.0%7.3%3.5%
3 Year19.2%19.2%-11.6%-13.2%14.7%4.4%
5 Year103.0%103.0%15.4%11.6%26.2%7.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: K (CA$6.03) is trading below our estimate of fair value (CA$16.75)

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


Price To Earnings Ratio

PE vs Industry: K is poor value based on its PE Ratio (1405.7x) compared to the Metals and Mining industry average (13.4x).

PE vs Market: K is poor value based on its PE Ratio (1405.7x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: K is poor value based on its PEG Ratio (35.6x)


Price to Book Ratio

PB vs Industry: K is good value based on its PB Ratio (1.2x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Kinross Gold forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: K's forecast earnings growth (39.5% per year) is above the savings rate (1.9%).

Earnings vs Market: K's earnings (39.5% per year) are forecast to grow faster than the Canadian market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: K's revenue (3% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: K's revenue (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 (6.3%).


Next Steps

Past Performance

How has Kinross Gold performed over the past 5 years?

57.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: K has become profitable over the past 5 years, growing earnings by 57.8% per year.

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

Earnings vs Industry: K had negative earnings growth (-98.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-11.9%).


Return on Equity

High ROE: K's Return on Equity (0.04%) is considered low.


Return on Assets

ROA vs Industry: K's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: K's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Kinross Gold's financial position?


Financial Position Analysis

Short Term Liabilities: K's short term assets ($1.7B) exceeds its short term liabilities ($576.5M)

Long Term Liabilities: K's short term assets (1.7B) do not cover its long term liabilities (3.1B)


Debt to Equity History and Analysis

Debt Level: K's debt to equity ratio (40.1%) is considered high

Reducing Debt: K's debt to equity ratio has increased from 33.6% to 40.1% over the past 5 years.

Debt Coverage: K's debt is well covered by operating cash flow (47.3%).

Interest Coverage: K's interest payments on its debt are well covered by EBIT (3.4x coverage).


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 0.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.9%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Kinross Gold's salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average management tenure


CEO

J. Rollinson (57yo)

7.2yrs

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 ($USD6.16M) is about average for companies of similar size in the Canadian market ($USD3.93M).

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


Management Age and Tenure

0.5yrs

Average Tenure

Experienced Management: K's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

59yo

Average Age

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


Insider Trading

Insider Buying: K insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$10,76901 Oct 19
Gregory Van Etter
EntityIndividual
Shares1,757
Max PriceUS$6.13
SellUS$118,03830 Sep 19
Michel J. Sylvestre
EntityIndividual
Shares18,182
Max PriceUS$6.49
SellUS$135,70027 Sep 19
Paul Botond Tomory
EntityIndividual
Role
Chief Technology Officer
Executive VP & CTO
Shares20,000
Max PriceUS$6.79
SellUS$70,00023 Sep 19
Tara Wiseman
EntityIndividual
Shares10,000
Max PriceUS$7.00
SellUS$67,00709 Aug 19
Mike van Akkooi
EntityIndividual
Shares10,636
Max PriceUS$6.30
SellUS$135,80009 Aug 19
Paul Botond Tomory
EntityIndividual
Role
Chief Technology Officer
Executive VP & CTO
Shares20,000
Max PriceUS$6.79
SellUS$307,01309 Aug 19
Thomas Elliott
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Investor Relations & Corporate Development
Shares47,406
Max PriceUS$6.80
SellUS$63,76209 Aug 19
Claude J. Schimper
EntityIndividual
Role
Senior Key Executive
Senior Vice-President of Russia Operations
Shares13,452
Max PriceUS$4.74
SellUS$148,28209 Aug 19
John Sims
EntityIndividual
Role
Senior Key Executive
Senior Vice-President of Geology & Brownfields Exploration
Shares22,033
Max PriceUS$6.73
SellUS$11,17806 Aug 19
Gregory Van Etter
EntityIndividual
Shares1,786
Max PriceUS$6.26
SellUS$133,07706 Aug 19
Nathan Longenecker
EntityIndividual
Role
Senior Key Executive
Senior VP of Legal & General Counsel
Shares20,826
Max PriceUS$6.40
SellUS$25,13504 Jun 19
Michel J. Sylvestre
EntityIndividual
Shares5,500
Max PriceUS$4.57
SellUS$9,78502 Apr 19
Gregory Van Etter
EntityIndividual
Shares2,120
Max PriceUS$4.62
SellUS$270,32007 Mar 19
Claude J. Schimper
EntityIndividual
Role
Senior Key Executive
Senior Vice-President of Russia Operations
Shares62,000
Max PriceUS$4.36
SellUS$270,57001 Mar 19
Gregory Van Etter
EntityIndividual
Shares60,715
Max PriceUS$4.46
SellUS$60,42422 Feb 19
Michel J. Sylvestre
EntityIndividual
Shares12,109
Max PriceUS$4.99
SellUS$2920 Feb 19
Mike van Akkooi
EntityIndividual
Shares6
Max PriceUS$4.85
SellUS$2920 Feb 19
Michel J. Sylvestre
EntityIndividual
Shares6
Max PriceUS$4.85
SellUS$3420 Feb 19
J. Rollinson
EntityIndividual
Role
Chief Executive Officer
President
Shares7
Max PriceUS$4.85
SellUS$4,89620 Feb 19
Gregory Van Etter
EntityIndividual
Shares1,055
Max PriceUS$4.85
SellUS$2920 Feb 19
Paul Botond Tomory
EntityIndividual
Role
Chief Technology Officer
Executive VP & CTO
Shares6
Max PriceUS$4.85
SellUS$3420 Feb 19
Gina Jardine
EntityIndividual
Shares7
Max PriceUS$4.85
SellUS$2920 Feb 19
Claude J. Schimper
EntityIndividual
Role
Senior Key Executive
Senior Vice-President of Russia Operations
Shares6
Max PriceUS$4.85
SellUS$40,86120 Feb 19
Geoffrey Gold
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development & External Relations and Chief Legal Officer
Shares8,425
Max PriceUS$4.85
SellUS$3420 Feb 19
Nathan Longenecker
EntityIndividual
Role
Senior Key Executive
Senior VP of Legal & General Counsel
Shares7
Max PriceUS$4.85
SellUS$2920 Feb 19
Thomas Elliott
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Investor Relations & Corporate Development
Shares6
Max PriceUS$4.85
SellUS$3420 Feb 19
Tony Giardini
EntityIndividual
Shares7
Max PriceUS$4.85
SellUS$2920 Feb 19
John Sims
EntityIndividual
Role
Senior Key Executive
Senior Vice-President of Geology & Brownfields Exploration
Shares6
Max PriceUS$4.85
SellUS$2920 Feb 19
Lauren Roberts
EntityIndividual
Shares6
Max PriceUS$4.85
SellUS$231,31019 Feb 19
Gina Jardine
EntityIndividual
Shares49,959
Max PriceUS$4.63

Ownership Breakdown


Management Team

  • Greg Etter (60yo)

    Senior Vice-President of Legal

    • Tenure: 0yrs
  • Geoff Gold

    Executive VP of Corporate Development & External Relations and Chief Legal Officer

    • Tenure: 11.7yrs
    • Compensation: US$2.68m
  • Claude J. Schimper

    Senior Vice-President of Russia Operations

    • Tenure: 0.5yrs
  • Nathan Longenecker

    Senior VP of Legal & General Counsel

    • Tenure: 0.5yrs
  • Tom Elliott

    Senior Vice President of Investor Relations & Corporate Development

    • Tenure: 3.8yrs
  • J. Rollinson (57yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$6.16m
  • Andrea Freeborough

    Senior VP & CFO

    • Tenure: 0.4yrs
  • Paul Botond Tomory

    Executive VP & CTO

    • Tenure: 2.8yrs
    • Compensation: US$1.51m
  • John Sims

    Senior Vice-President of Geology & Brownfields Exploration

    • Tenure: 0.5yrs
  • Andreas Mittler

    Senior Vice-President of West Africa Operations

    • Tenure: 0.5yrs

Board Members

  • Ian Atkinson (69yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$222.65k
  • Catherine McLeod-Seltzer (59yo)

    Independent Chairman

    • Tenure: 0.8yrs
    • Compensation: US$209.82k
  • John Brough (72yo)

    Independent Director

    • Tenure: 25.8yrs
    • Compensation: US$225.03k
  • Kerry Dyte (59yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$208.91k
  • Ave Lethbridge (57yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$205.85k
  • J. Rollinson (57yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$6.16m
  • Kelly Osborne (62yo)

    Corporate Director

    • Tenure: 4.4yrs
    • Compensation: US$211.65k
  • David Scott (57yo)

    Independent Director

    • Tenure: 0.4yrs

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$7.552b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:57
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.