Kingsgate Consolidated Limited
Kingsgate Consolidated Limited Fundamental Analysis
Kingsgate Consolidated Limited (KCN.AX) shows strong financial fundamentals with a PE ratio of 9.77, profit margin of 23.78%, and ROE of 30.89%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 3.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KCN.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKCN.AX demonstrates superior asset utilization.
Valuation Score
ExcellentKCN.AX trades at attractive valuation levels.
Growth Score
ModerateKCN.AX shows steady but slowing expansion.
Financial Health Score
ExcellentKCN.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentKCN.AX achieves industry-leading margins.
Key Financial Metrics
Is KCN.AX Expensive or Cheap?
P/E Ratio
KCN.AX trades at 9.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KCN.AX's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Kingsgate Consolidated Limited at 2.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.77 times EBITDA. This is generally considered low.
How Well Does KCN.AX Make Money?
Net Profit Margin
For every $100 in sales, Kingsgate Consolidated Limited keeps $23.78 as profit after all expenses.
Operating Margin
Core operations generate 29.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.89 in profit for every $100 of shareholder equity.
ROA
Kingsgate Consolidated Limited generates $17.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kingsgate Consolidated Limited generates strong operating cash flow of $152.64M, reflecting robust business health.
Free Cash Flow
Kingsgate Consolidated Limited generates strong free cash flow of $128.11M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.48 in free cash annually.
FCF Yield
KCN.AX converts 10.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How KCN.AX Stacks Against Its Sector Peers
| Metric | KCN.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.77 | 23.94 | Better (Cheaper) |
| ROE | 30.89% | 886.00% | Weak |
| Net Margin | 23.78% | -111603.00% (disorted) | Strong |
| Debt/Equity | 0.31 | 0.54 | Strong (Low Leverage) |
| Current Ratio | 1.57 | 5.16 | Neutral |
| ROA | 17.79% | -6514.00% (disorted) | Strong |
KCN.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kingsgate Consolidated Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
1974.52%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-78.00%
Industry Style: Cyclical, Commodity, Value
Declining