Kinross Gold Corp (NYSE: KGC)

Sector: Basic Materials Industry: Gold CIK: 0000701818
Market Cap 41.29 Bn
P/B 5.19
P/E 23.47
P/S 6.41
ROIC (Qtr) 21.14
Div Yield % 0.36
Rev 1y % (Qtr) 25.84
Total Debt (Qtr) 1.24 Bn
Debt/Equity (Qtr) 0.16
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About

Investment thesis

Bull case

  • Strong operating cash flow of 3.72B provides robust 3.01x coverage of total debt 1.24B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 3.72B provides exceptional 43.22x coverage of minority interest expenses 86.10M, showing strong core operations.
  • Operating cash flow of 3.72B provides exceptional 30.16x coverage of interest expenses 123.40M, showing strong debt service capability.
  • Operating cash flow of 3.72B provides strong 273.62x coverage of stock compensation 13.60M, indicating sustainable incentive practices.
  • Strong tangible asset base of 12.13B provides 9.81x coverage of total debt 1.24B, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 3.72B barely covers its investment activities of (995.10M), with a coverage ratio of -3.74, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (995.10M) provide weak support for R&D spending of 205.50M, which is -4.84x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 3.72B provides thin coverage of dividend payments of (146.90M) with a -25.33 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 2.63B show weak coverage of depreciation charges of 1.12B, with a 2.34 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 2.59B represents just -5.26x of debt issuance (492.60M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Geographical areas [axis] Breakdown of Revenue (2024)

Consolidated Entities Breakdown of Revenue (2024)

Peer comparison

Companies in the Gold
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AEM Agnico Eagle Mines Ltd 106.87 Bn 23.96 8.98 0.32 Bn
2 NEM NEWMONT Corp /DE/ 100.23 Bn 25.64 9.43 5.65 Bn
3 B Barrick Mining Corp 79.50 Bn 15.92 4.69 4.70 Bn
4 WPM Wheaton Precious Metals Corp. 64.59 Bn 64.49 35.29 0.01 Bn
5 FNV FRANCO NEVADA Corp 48.16 Bn 52.35 31.14 0.00 Bn
6 KGC Kinross Gold Corp 41.29 Bn 23.47 6.41 1.24 Bn
7 PAAS Pan American Silver Corp 20.44 Bn 32.24 6.28 0.86 Bn
8 AGI Alamos Gold Inc 18.08 Bn 33.57 11.23 0.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.41 3.33
EV to Cash from Ops. EV/CFO 11.12 -11.32
EV to Debt EV to Debt 33.45 525.64
EV to EBIT EV/EBIT 15.74 17.81
EV to EBITDA EV/EBITDA 10.95 3.39
EV to Free Cash Flow [EV/FCF] EV/FCF 15.98 11.13
EV to Market Cap EV to Market Cap 1.00 1.25
EV to Revenue EV/Rev 6.42 8.35
Price to Book Value [P/B] P/B 5.19 5.92
Price to Earnings [P/E] P/E 23.47 32.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 11.98 1.59
Dividend Payout Ratio % Div Payout % (Qtr) 8.40 5.12
Dividend per Basic Share Div per Share (Qtr) 0.12 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 5.65 9.95
Interest Coverage Int. cover (Qtr) 21.30 407.12
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 6.82 -96.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 258.95 134.81
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -5.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 130.49 487.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 59.60 54.68
EBIT Growth (1y) % EBIT 1y % (Qtr) 118.69 679.83
EBT Growth (1y) % EBT 1y % (Qtr) 125.99 193.12
EPS Growth (1y) % EPS 1y % (Qtr) 138.33 248.58
FCF Growth (1y) % FCF 1y % (Qtr) 138.89 147.05
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 90.94 84.36
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.53 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.03 0.03
Cash Ratio Cash Ratio (Qtr) 1.44 3.07
Current Ratio Curr Ratio (Qtr) 2.83 4.82
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 0.28
Interest Cover Ratio Int Coverage (Qtr) 21.30 407.12
Times Interest Earned Times Interest Earned (Qtr) 21.30 407.12
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 58.20 -19.62
EBIT Margin % EBIT Margin % (Qtr) 40.80 -44.48
EBT Margin % EBT Margin % (Qtr) 38.88 -34.17
Gross Margin % Gross Margin % (Qtr) 46.90 30.57
Net Profit Margin % Net Margin % (Qtr) 27.30 -40.06