Kinovo (AIM:KINO) - Share price, News & Analysis

Q: What is the Fair Price of KINO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

KINO (£0.16) is trading below our estimate of [[fair value]] (£0.77)

KINO fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	2/6

KINO Stock Overview

Rewards

Trading at 79.8% below our estimate of its fair value

Earnings grew by 184% over the past year

Risk Analysis

Highly volatile share price over the past 3 months

Unstable dividend track record

Large one-off items impacting financial results

Latest financial reports are more than 6 months old

+ 1 more risk

Kinovo Competitors

REACT Group

AIM:REAT

UK£11.0m

Water Intelligence

AIM:WATR

UK£112.0m

RPS Group

LSE:RPS

UK£267.6m

Renewi

LSE:RWI

UK£613.3m

Price History & Performance

Summary of all time highs, changes and price drops for Kinovo
Historical stock prices
Current Share Price	UK£0.15
52 Week High	UK£0.53
52 Week Low	UK£0.085
Beta	1.92
1 Month Change	65.77%
3 Month Change	-53.03%
1 Year Change	-59.21%
3 Year Change	-51.94%
5 Year Change	-78.62%
Change since IPO	-75.20%

Recent News & Updates

Jun 29

Kinovo (LON:KINO) Is Experiencing Growth In Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

	KINO	GB Commercial Services	GB Market
7D	12.7%	-2.1%	-1.1%
1Y	-59.2%	-1.2%	-9.7%

Return vs Industry: KINO underperformed the UK Commercial Services industry which returned -1.2% over the past year.

Return vs Market: KINO underperformed the UK Market which returned -9.7% over the past year.

Price Volatility

Is KINO's price volatile compared to industry and market?
KINO volatility
KINO Average Weekly Movement	19.6%
Commercial Services Industry Average Movement	5.2%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.6%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: KINO is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 20% a week.

Volatility Over Time: KINO's weekly volatility has increased from 11% to 20% over the past year.

About the Company

Founded	Employees	CEO	Website
2014	285	David Michael Bullen	https://www.kinovoplc.com

Kinovo plc, through its subsidiaries, provides gas heating, electrical, and general building services to housing associations and local authorities, public buildings, and education and private sectors in the United Kingdom. It operates through Gas Maintenance, Building Services, and Electrical Services segments. The company offers building maintenance services, such as internal and external building maintenance, refurbishment and conversion projects, living solutions, domestic and commercial plumbing, electrical design and planning, plastering, tiling, bathroom plumbing and installations, window replacements, ground works, carpentry, painting, decorating, and roofing.

Kinovo Fundamentals Summary

How do Kinovo's earnings and revenue compare to its market cap?
KINO fundamental statistics
Market Cap	UK£9.63m
Earnings (TTM)	UK£1.35m
Revenue (TTM)	UK£69.47m

7.1x

P/E Ratio

0.1x

P/S Ratio

Is KINO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KINO income statement (TTM)
Revenue	UK£69.47m
Cost of Revenue	UK£55.03m
Gross Profit	UK£14.44m
Other Expenses	UK£13.09m
Earnings	UK£1.35m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.022
Gross Margin	20.78%
Net Profit Margin	1.95%
Debt/Equity Ratio	34.7%

How did KINO perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

22%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is KINO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KINO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KINO. This is calculated by dividing KINO's market cap by their current preferred multiple.
What is KINO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£9.63m

KINO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.2x
Enterprise Value/EBITDA	3.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does KINO's PE Ratio compare to its peers?

KINO PE Ratio vs Peers

The above table shows the PE ratio for KINO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	32.1x
REAT REACT Group	50x	61.0%	UK£11.0m
WATR Water Intelligence	23.5x	n/a	UK£112.0m
RPS RPS Group	45.4x	32.0%	UK£267.6m
RWI Renewi	9.6x	12.9%	UK£613.3m
KINO Kinovo	7.1x	n/a	UK£9.6m

Forward PE

Price-To-Earnings vs Peers: KINO is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (32.1x).

Price to Earnings Ratio vs Industry

How does KINO's PE Ratio compare vs other companies in the GB Commercial Services Industry?

Price-To-Earnings vs Industry: KINO is good value based on its Price-To-Earnings Ratio (7.1x) compared to the UK Commercial Services industry average (33.6x)

Price to Earnings Ratio vs Fair Ratio

What is KINO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KINO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KINO's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of KINO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KINO (£0.16) is trading below our estimate of fair value (£0.77)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KINO's PEG Ratio to determine if it is good value.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.4%

Forecasted Commercial Services 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 Kinovo 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.

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Examine whether Kinovo is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Kinovo competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Kinovo performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-11.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KINO has a large one-off gain of £326.0K impacting its September 30 2021 financial results.

Growing Profit Margin: KINO's current net profit margins (1.9%) are higher than last year (1%).

Past Earnings Growth Analysis

Earnings Trend: KINO has become profitable over the past 5 years, growing earnings by -11.4% per year.

Accelerating Growth: KINO's earnings growth over the past year (184%) exceeds its 5-year average (-11.4% per year).

Earnings vs Industry: KINO earnings growth over the past year (184%) exceeded the Commercial Services industry 99.3%.

Return on Equity

High ROE: KINO's Return on Equity (12%) is considered low.

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Financial Health

How is Kinovo's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KINO's short term assets (£26.3M) exceed its short term liabilities (£19.1M).

Long Term Liabilities: KINO's short term assets (£26.3M) exceed its long term liabilities (£3.5M).

Debt to Equity History and Analysis

Debt Level: KINO's net debt to equity ratio (16.7%) is considered satisfactory.

Reducing Debt: KINO's debt to equity ratio has reduced from 56.5% to 34.7% over the past 5 years.

Debt Coverage: KINO's debt is well covered by operating cash flow (121.2%).

Interest Coverage: KINO's interest payments on its debt are well covered by EBIT (5.4x coverage).

Balance Sheet

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Dividend

What is Kinovo current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KINO's dividend (3.23%) is higher than the bottom 25% of dividend payers in the UK market (1.89%).

High Dividend: KINO's dividend (3.23%) is low compared to the top 25% of dividend payers in the UK market (5.29%).

Stability and Growth of Payments

Stable Dividend: KINO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KINO has only been paying a dividend for 7 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22.3%), KINO's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.

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Management

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

3.3yrs

Average management tenure

CEO

David Michael Bullen (49 yo)

3.25yrs

Tenure

UK£218,000

Compensation

Mr. David Michael Alexander Bullen serves as the Chief Executive Officer and Director of Kinovo plc (formerly known as Bilby Plc) since April 17, 2019. Mr. Bullen joined Bilby in April 2019 from Boleyn Int...

CEO Compensation Analysis

Compensation vs Market: David Michael's total compensation ($USD264.07K) is about average for companies of similar size in the UK market ($USD344.95K).

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

Leadership Team

Experienced Management: KINO's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: KINO'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: 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/07/04 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31