company background image
KCT

Kin and CartaLSE:KCT Stock Report

Market Cap

UK£520.6m

7D

-0.7%

1Y

183.4%

Updated

30 Nov, 2021

Data

Company Financials +
KCT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

KCT Stock Overview

Kin and Carta plc provides technology, data, consultancy, and digital transformation services in the United Kingdom, the United States, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Kin and Carta
Historical stock prices
Current Share PriceUK£2.99
52 Week HighUK£3.59
52 Week LowUK£1.04
Beta1.26
1 Month Change11.99%
3 Month Change6.79%
1 Year Change183.41%
3 Year Change187.22%
5 Year Change140.64%
Change since IPO13.69%

Recent News & Updates

Sep 21
Estimating The Intrinsic Value Of Kin and Carta plc (LON:KCT)

Estimating The Intrinsic Value Of Kin and Carta plc (LON:KCT)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Kin and Carta plc...

Shareholder Returns

KCTGB ITGB Market
7D-0.7%1.1%-2.6%
1Y183.4%27.1%10.9%

Return vs Industry: KCT exceeded the UK IT industry which returned 29.7% over the past year.

Return vs Market: KCT exceeded the UK Market which returned 13.8% over the past year.

Price Volatility

Is KCT's price volatile compared to industry and market?
KCT volatility
KCT Average Weekly Movement6.9%
IT Industry Average Movement5.0%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: KCT is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: KCT's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19811,395John Schwanhttps://www.kinandcarta.com

Kin and Carta plc provides technology, data, consultancy, and digital transformation services in the United Kingdom, the United States, and internationally. The company offers cloud and platforms, digital products, data and AI, managed, digital experiences, and strategy and innovation services. It serves financial services, retail and distribution, industrial and agriculture, transportation, healthcare, and public and other sectors.

Kin and Carta Fundamentals Summary

How do Kin and Carta's earnings and revenue compare to its market cap?
KCT fundamental statistics
Market CapUK£520.56m
Earnings (TTM)-UK£5.10m
Revenue (TTM)UK£141.42m

3.7x

P/S Ratio

-102.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KCT income statement (TTM)
RevenueUK£141.42m
Cost of RevenueUK£76.27m
Gross ProfitUK£65.15m
ExpensesUK£70.24m
Earnings-UK£5.10m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.029
Gross Margin46.07%
Net Profit Margin-3.60%
Debt/Equity Ratio77.2%

How did KCT perform over the long term?

See historical performance and comparison

Valuation

Is Kin and Carta undervalued compared to its fair value and its price relative to the market?

6.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: KCT (£2.99) is trading above our estimate of fair value (£2.68)

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


Price To Earnings Ratio

PE vs Industry: KCT is unprofitable, so we can't compare its PE Ratio to the UK IT industry average.

PE vs Market: KCT is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KCT is overvalued based on its PB Ratio (6.3x) compared to the GB IT industry average (4.3x).


Future Growth

How is Kin and Carta forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

69.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KCT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: KCT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KCT's is expected to become profitable in the next 3 years.

Revenue vs Market: KCT's revenue (15.7% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: KCT's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KCT's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Kin and Carta performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KCT is currently unprofitable.

Growing Profit Margin: KCT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KCT is unprofitable, and losses have increased over the past 5 years at a rate of 4.6% per year.

Accelerating Growth: Unable to compare KCT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KCT is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (13.9%).


Return on Equity

High ROE: KCT has a negative Return on Equity (-6.13%), as it is currently unprofitable.


Financial Health

How is Kin and Carta's financial position?


Financial Position Analysis

Short Term Liabilities: KCT's short term assets (£89.5M) exceed its short term liabilities (£50.5M).

Long Term Liabilities: KCT's short term assets (£89.5M) exceed its long term liabilities (£81.6M).


Debt to Equity History and Analysis

Debt Level: KCT's net debt to equity ratio (23.1%) is considered satisfactory.

Reducing Debt: KCT's debt to equity ratio has increased from 68.6% to 77.2% over the past 5 years.


Balance Sheet


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: Whilst unprofitable KCT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: KCT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 11% per year.


Dividend

What is Kin and Carta current dividend yield, its reliability and sustainability?

0.033%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate KCT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KCT's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: KCT is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

John Schwan

3.25yrs

Tenure

UK£1,483,000

Compensation

Mr. John Schwan serves as Chief Executive Officer at Kin and Carta plc (formerly known as St Ives plc) since August 04, 2018. He is an Executive Director at Kin and Carta plc (formerly known as St Ives plc...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.96M) is above average for companies of similar size in the UK market ($USD1.03M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: KCT's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: KCT's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

Kin and Carta plc's employee growth, exchange listings and data sources


Key Information

  • Name: Kin and Carta plc
  • Ticker: KCT
  • Exchange: LSE
  • Founded: 1981
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£520.558m
  • Shares outstanding: 174.10m
  • Website: https://www.kinandcarta.com

Number of Employees


Location

  • Kin and Carta plc
  • The Spitfire Building
  • 71 Collier Street
  • London
  • Greater London
  • N1 9BE
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:38
End of Day Share Price2021/11/30 00:00
Earnings2021/07/31
Annual Earnings2021/07/31


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.