NYSE:KGC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania. More Details


Snowflake Analysis

Outstanding track record, undervalued and pays a dividend.


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

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

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


Market Performance


7 Day Return

-4.2%

KGC

-2.8%

US Metals and Mining

-0.7%

US Market


1 Year Return

16.9%

KGC

71.0%

US Metals and Mining

36.6%

US Market

Return vs Industry: KGC underperformed the US Metals and Mining industry which returned 69.7% over the past year.

Return vs Market: KGC underperformed the US Market which returned 41.9% over the past year.


Shareholder returns

KGCIndustryMarket
7 Day-4.2%-2.8%-0.7%
30 Day-7.7%12.8%4.3%
90 Day-12.4%16.9%8.1%
1 Year18.4%16.9%75.5%71.0%39.6%36.6%
3 Year75.3%73.1%31.8%22.6%53.5%43.7%
5 Year128.0%125.2%150.9%127.4%123.7%98.8%

Long-Term 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

No news available

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: KGC ($6.44) is trading below our estimate of fair value ($12.98)

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


Price To Earnings Ratio

PE vs Industry: KGC is good value based on its PE Ratio (5.8x) compared to the US Metals and Mining industry average (17.9x).

PE vs Market: KGC is good value based on its PE Ratio (5.8x) compared to the US market (21.7x).


Price to Earnings Growth Ratio

PEG Ratio: KGC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KGC is good value based on its PB Ratio (1.2x) compared to the US Metals and Mining industry average (2.3x).


Next Steps

Future Growth

How is Kinross Gold forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KGC's earnings are forecast to decline over the next 3 years (-3.3% per year).

Earnings vs Market: KGC's earnings are forecast to decline over the next 3 years (-3.3% per year).

High Growth Earnings: KGC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KGC's revenue (3.6% per year) is forecast to grow slower than the US market (10.7% per year).

High Growth Revenue: KGC's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KGC's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has Kinross Gold performed over the past 5 years?

74.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KGC has high quality earnings.

Growing Profit Margin: KGC's current net profit margins (31.9%) are higher than last year (20.6%).


Past Earnings Growth Analysis

Earnings Trend: KGC has become profitable over the past 5 years, growing earnings by 74% per year.

Accelerating Growth: KGC's earnings growth over the past year (86.6%) exceeds its 5-year average (74% per year).

Earnings vs Industry: KGC earnings growth over the past year (86.6%) exceeded the Metals and Mining industry 2.3%.


Return on Equity

High ROE: KGC's Return on Equity (20.4%) is considered high.


Next Steps

Financial Health

How is Kinross Gold's financial position?


Financial Position Analysis

Short Term Liabilities: KGC's short term assets ($2.4B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: KGC's short term assets ($2.4B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: KGC's debt to equity ratio (28.9%) is considered satisfactory.

Reducing Debt: KGC's debt to equity ratio has reduced from 50.3% to 28.9% over the past 5 years.

Debt Coverage: KGC's debt is well covered by operating cash flow (101.8%).

Interest Coverage: KGC's interest payments on its debt are well covered by EBIT (21x coverage).


Balance Sheet


Next Steps

Dividend

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

1.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KGC's dividend (1.94%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: KGC's dividend (1.94%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: KGC's dividend payments have been volatile in the past 10 years.

Growing Dividend: KGC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.6%), KGC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KGC's dividends in 3 years are forecast to be thoroughly covered by earnings (11.5% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

J. Rollinson (58 yo)

8.58yrs

Tenure

US$6,876,647

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 ($USD6.88M) is about average for companies of similar size in the US market ($USD6.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
J. Rollinson
President8.58yrsUS$6.88m0.31%
$ 24.4m
Andrea Freeborough
Senior VP & CFO1.83yrsUS$1.56m0.037%
$ 2.9m
Paul Botond Tomory
Executive VP & CTO4.17yrsUS$1.83m0.039%
$ 3.0m
Geoffrey Gold
Executive VP of Corporate Development & External Relations and Chief Legal Officer13.08yrsUS$3.50m0.13%
$ 10.4m
Claude J. Schimper
Senior Vice-President of Russia Operations1.92yrsUS$1.79m0.021%
$ 1.6m
Thomas Elliott
Senior Vice President of Investor Relations5.17yrsno data0.031%
$ 2.4m
Kathleen Grandy
VP of Human Resourcesno datano datano data
Louie Diaz
Senior Director of Corporate Communicationsno datano datano data
Kathleen Allamby
Executive Assistant to CFO & Senior VP of Global Human Resourcesno datano datano data
Greg Etter
Senior Vice-President of Legalno datano datano data
Nathan Longenecker
Senior VP of Legal & General Counsel1.92yrsno data0.021%
$ 1.7m
Andreas Mittler
Senior Vice-President of West Africa Operations1.92yrsno data0.018%
$ 1.4m

3.0yrs

Average Tenure

Experienced Management: KGC's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
J. Rollinson
President8.58yrsUS$6.88m0.31%
$ 24.4m
Ian Atkinson
Independent Director5.08yrsUS$244.32kno data
Catherine McLeod-Seltzer
Independent Chairman2.17yrsUS$369.55k0.00098%
$ 76.2k
Glenn Ives
Independent Director0.83yrno data0.0024%
$ 185.0k
Kerry Dyte
Independent Director3.33yrsUS$220.96k0.0032%
$ 250.3k
Ave Lethbridge
Independent Director5.83yrsUS$219.42kno data
David Scott
Independent Director1.83yrsUS$142.43kno data
Kelly Osborne
Independent Corporate Director5.83yrsUS$237.90kno data
Elizabeth McGregor
Independent Director1.33yrsUS$36.83kno data

3.3yrs

Average Tenure

58yo

Average Age

Experienced Board: KGC'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: KGC insiders have only sold shares 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

Kinross Gold Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kinross Gold Corporation
  • Ticker: KGC
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$9.840b
  • Listing Market Cap: CA$7.772b
  • Shares outstanding: 1.26b
  • 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
KGCBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1 SHAREARARSMar 2011

Biography

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in Canada, the United States, the Russian Federation, Brazi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/02 23:06
End of Day Share Price2021/03/02 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.