NasdaqCM:KGJI

Stock Analysis Report

Executive Summary

Kingold Jewelry, Inc. designs, manufactures, and sells 24-karat gold jewelry and Chinese ornaments in the People’s Republic of China.


Snowflake Analysis

Fair value with questionable track record.


Similar Companies

Share Price & News

How has Kingold Jewelry's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

KGJI

13.7%

US Luxury

7.2%

US Market


1 Year Return

-80.6%

KGJI

-18.7%

US Luxury

-10.4%

US Market

Return vs Industry: KGJI underperformed the US Luxury industry which returned -18.7% over the past year.

Return vs Market: KGJI underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

KGJIIndustryMarket
7 Day-1.0%13.7%7.2%
30 Day-25.9%-14.5%-12.6%
90 Day-33.8%-27.8%-19.4%
1 Year-80.6%-80.6%-17.1%-18.7%-8.5%-10.4%
3 Year-84.7%-84.7%28.7%22.6%15.8%8.3%
5 Year-87.5%-87.5%10.0%2.4%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kingold Jewelry undervalued compared to its fair value and its price relative to the market?

2.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KGJI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KGJI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KGJI is good value based on its PE Ratio (2.5x) compared to the Luxury industry average (10.9x).

PE vs Market: KGJI is good value based on its PE Ratio (2.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KGJI is good value based on its PB Ratio (0x) compared to the US Luxury industry average (0.8x).


Next Steps

Future Growth

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

12.6%

Forecasted Consumer Durables 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 Kingold Jewelry 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.


Next Steps

Past Performance

How has Kingold Jewelry performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KGJI has high quality earnings.

Growing Profit Margin: KGJI's current net profit margins (0.2%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: KGJI's earnings have grown by 1.9% per year over the past 5 years.

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

Earnings vs Industry: KGJI had negative earnings growth (-91.2%) over the past year, making it difficult to compare to the Luxury industry average (3.2%).


Return on Equity

High ROE: KGJI's Return on Equity (0.5%) is considered low.


Next Steps

Financial Health

How is Kingold Jewelry's financial position?


Financial Position Analysis

Short Term Liabilities: KGJI's short term assets ($3.0B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: KGJI's short term assets ($3.0B) exceed its long term liabilities ($830.0M).


Debt to Equity History and Analysis

Debt Level: KGJI's debt to equity ratio (230.5%) is considered high.

Reducing Debt: KGJI's debt to equity ratio has increased from 19.5% to 230.5% over the past 5 years.

Debt Coverage: KGJI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: KGJI's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: KGJI has a low level of unsold assets or inventory.

Debt Coverage by Assets: KGJI's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Kingold Jewelry's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

9.8yrs

Average management tenure


CEO

Zhihong Jia (57yo)

10.25s

Tenure

US$175,000

Compensation

Mr. Zhihong Jia Founded Kingold Jewelry, Inc. in December 2009 and has been its Chief Executive Officer since December 2009. He also serves as President of Kingold Jewelry, Inc. Mr. Jia has been the Chairm ...


CEO Compensation Analysis

Compensation vs Market: Zhihong's total compensation ($USD175.00K) is below average for companies of similar size in the US market ($USD602.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zhihong Jia
Founder10.25yrsUS$175.00k0.41% $45.0k
Bin Liu
CFO & Secretary9.83yrsUS$135.00k0.54% $60.0k
Jun Wang
GM & Director5.67yrsno data0.57% $63.4k

9.8yrs

Average Tenure

48yo

Average Age

Experienced Management: KGJI's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhihong Jia
Founder10.25yrsUS$175.00k0.41% $45.0k
Jun Wang
GM & Director5.67yrsno data0.57% $63.4k
Guang Chen
Independent Director5.67yrsUS$17.88kno data
Io Wai Wu
Independent Director3.83yrsUS$48.00kno data
Zhiyong Xia
Independent Director3.58yrsno datano data

5.7yrs

Average Tenure

47yo

Average Age

Experienced Board: KGJI's board of directors are considered experienced (5.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kingold Jewelry, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kingold Jewelry, Inc.
  • Ticker: KGJI
  • Exchange: NasdaqCM
  • Founded: 2002
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$11.021m
  • Shares outstanding: 11.02m
  • Website: https://www.kingoldjewelry.com

Number of Employees


Location

  • Kingold Jewelry, Inc.
  • No. 8 Han Huang Road
  • Jiang’an District
  • Wuhan
  • Hubei Province
  • 430023
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KGJINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 2009
7KJADB (Deutsche Boerse AG)YesCommon StockDEEURDec 2009

Biography

Kingold Jewelry, Inc. designs, manufactures, and sells 24-karat gold jewelry and Chinese ornaments in the People’s Republic of China. The company offers a range of in-house designed products, including gold necklaces, rings, earrings, bracelets, gold bars, and pendants. It also invests in gold. The company sells its products to wholesalers, distributors, and retailers under the Kingold brand. Kingold Jewelry, Inc. was founded in 2002 and is based in Wuhan, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:29
End of Day Share Price2020/03/30 00:00
Earnings2019/09/30
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.