TSX:KL

Stock Analysis Report

Kirkland Lake Gold

Executive Summary

Kirkland Lake Gold Ltd. engages in the acquisition, exploration, development, and operation of gold properties.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

KL

4.7%

CA Metals and Mining

0.1%

CA Market


1 Year Return

5.2%

KL

5.2%

CA Metals and Mining

4.7%

CA Market

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

Return vs Market: KL matched the Canadian Market which returned 4.7% over the past year.


Shareholder returns

KLIndustryMarket
7 Day-1.7%4.7%0.1%
30 Day-14.9%4.2%0.8%
90 Day-8.0%15.2%3.7%
1 Year5.6%5.2%5.8%5.2%7.9%4.7%
3 Year371.9%366.9%-2.4%-4.0%17.9%7.3%
5 Yearn/a25.6%22.0%33.8%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KL (CA$48.18) is trading below our estimate of fair value (CA$54.6)

Significantly Below Fair Value: KL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KL is good value based on its PE Ratio (13.7x) compared to the Metals and Mining industry average (17.4x).

PE vs Market: KL is good value based on its PE Ratio (13.7x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: KL is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: KL is overvalued based on its PB Ratio (4.8x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KL's forecast earnings growth (3.3% per year) is above the savings rate (1.4%).

Earnings vs Market: KL's earnings (3.3% per year) are forecast to grow slower than the Canadian market (10.9% per year).

High Growth Earnings: KL's earnings are forecast to grow, but not significantly.

Revenue vs Market: KL's revenue (12.8% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: KL's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KL's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Kirkland Lake Gold performed over the past 5 years?

56.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KL has a high level of non-cash earnings.

Growing Profit Margin: KL's current net profit margins (40.6%) are higher than last year (29.9%).


Past Earnings Growth Analysis

Earnings Trend: KL's earnings have grown significantly by 56.1% per year over the past 5 years.

Accelerating Growth: KL's earnings growth over the past year (104.5%) exceeds its 5-year average (56.1% per year).

Earnings vs Industry: KL earnings growth over the past year (104.5%) exceeded the Metals and Mining industry 11.9%.


Return on Equity

High ROE: KL's Return on Equity (34.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kirkland Lake Gold's financial position?


Financial Position Analysis

Short Term Liabilities: KL's short term assets ($691.4M) exceed its short term liabilities ($332.7M).

Long Term Liabilities: KL's short term assets ($691.4M) exceed its long term liabilities ($298.4M).


Debt to Equity History and Analysis

Debt Level: KL is debt free.

Reducing Debt: KL has no debt compared to 5 years ago when its debt to equity ratio was 41.7%.

Debt Coverage: KL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: KL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if KL's debt is covered by short term assets.


Next Steps

Dividend

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

1.37%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Kirkland Lake Gold before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.4%marketbottom25%2.0%markettop25%5.4%industryaverage1.2%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: KL's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: KL's dividend (1.37%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KL has been paying a dividend for less than 10 years.

Growing Dividend: KL's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.4%), KL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KL'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?

2.7yrs

Average management tenure


CEO

Tony Makuch (61yo)

3.3yrs

Tenure

US$4,352,873

Compensation

Mr. Anthony Paul Makuch, also known as Tony, B.Sc., M.Sc., M.B.A., P.Eng., has been the Chief Executive Officer, President and Director of Kirkland Lake Gold Ltd. (formerly, Kirkland Lake Gold Inc.) since  ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD3.29M) is below average for companies of similar size in the Canadian market ($USD6.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Makuch
President3.3yrsUS$4.35m0.022% $3.1m
David Soares
Chief Financial Officer1.3yrsUS$962.31kno data
Ian Holland
Vice President of Australian Operations2.7yrsUS$1.09mno data
Natasha Nella Vaz
Vice President of Technical Services1.1yrsno datano data
Mark E. Utting
Vice President of Investor Relations3.3yrsno datano data
Jennifer Wagner
VP of Legal & Corporate Secretary3.3yrsUS$395.97kno data
Darin Smith
Vice President of Corporate Development2.8yrsno data0.00017% $23.5k
John Landmark
Vice President of Human Resources1.1yrsno datano data
Alasdair Federico
Executive Vice President of Corporate Affairs & Corporate Social Responsibility3.3yrsno datano data
Eric Kallio
Senior Vice President of Exploration1.3yrsno datano data

2.7yrs

Average Tenure

Experienced Management: KL's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Makuch
President3.3yrsUS$4.35m0.022% $3.1m
Elizabeth Lewis-Gray
Independent Director0.4yrsno datano data
Arnold Klassen
Independent Director3.3yrsUS$221.50k0.0056% $770.6k
Barry Olson
Independent Director3.3yrsUS$207.50k0.0020% $272.1k
Jeffrey Parr
Independent Chairman0.8yrsUS$215.50k0.0069% $952.9k
Jonathan Gill
Independent Director3.3yrsUS$213.00kno data

3.3yrs

Average Tenure

67yo

Average Age

Experienced Board: KL's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KL 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

Kirkland Lake Gold Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kirkland Lake Gold Ltd.
  • Ticker: KL
  • Exchange: TSX
  • Founded: 1983
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$13.810b
  • Shares outstanding: 286.64m
  • Website: https://www.klgold.com

Number of Employees


Location

  • Kirkland Lake Gold Ltd.
  • South Tower
  • Suite 3120
  • Toronto
  • Ontario
  • M5J 2J1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KLTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2016
KLNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2016
NGDADB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2016
KL NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 2016
0V38LSE (London Stock Exchange)YesCommon SharesGBCADDec 2016
KLACHIA (Chi-X Australia)COMAUAUDNov 2017
KLAASX (Australian Securities Exchange)COMAUAUDNov 2017

Biography

Kirkland Lake Gold Ltd. engages in the acquisition, exploration, development, and operation of gold properties. It owns and operates four underground gold mines, including the Macassa, Holt, and Taylor mines located in northeastern Ontario, Canada; and the Fosterville Mine located in Victoria, Australia, as well as three milling facilities in Canada and Australia. The company was formerly known as Newmarket Gold Inc. and changed its name to Kirkland Lake Gold Ltd. in December 2016. Kirkland Lake Gold Ltd. was incorporated in 1983 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 02:34
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.