Kinross Gold Profitability Analysis
| KGC Stock | USD 7.85 0.05 0.64% |
Net Income | First Reported 1992-03-31 | Previous Quarter 65.4 M | Current Value 107 M | Quarterly Volatility 505 M |
For Kinross Gold profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Kinross Gold to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Kinross Gold utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Kinross Gold's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Kinross Gold over time as well as its relative position and ranking within its peers.
Kinross |
Is Kinross Gold's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Kinross Gold. If investors know Kinross will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Kinross Gold listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.244 | Dividend Share 0.12 | Earnings Share 0.36 | Revenue Per Share 3.577 | Quarterly Revenue Growth 0.164 |
The market value of Kinross Gold is measured differently than its book value, which is the value of Kinross that is recorded on the company's balance sheet. Investors also form their own opinion of Kinross Gold's value that differs from its market value or its book value, called intrinsic value, which is Kinross Gold's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Kinross Gold's market value can be influenced by many factors that don't directly affect Kinross Gold's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Kinross Gold's value and its price as these two are different measures arrived at by different means. Investors typically determine if Kinross Gold is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kinross Gold's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Kinross Gold Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Kinross Gold's current stock value. Our valuation model uses many indicators to compare Kinross Gold value to that of its competitors to determine the firm's financial worth. Kinross Gold is currently regarded as number one stock in return on equity category among related companies. It is currently regarded as number one stock in return on asset category among related companies reporting about 0.68 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Kinross Gold is roughly 1.46 . At present, Kinross Gold's Return On Equity is projected to increase slightly based on the last few years of reporting.Comparative valuation analysis is a catch-all model that can be used if you cannot value Kinross Gold by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Kinross Gold's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Kinross Gold's earnings, one of the primary drivers of an investment's value.Kinross Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Kinross Gold |
| = | 0.0706 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Kinross Gold |
| = | 0.0482 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Kinross Return On Asset Comparison
Kinross Gold is currently under evaluation in return on asset category among related companies.
Kinross Gold Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Kinross Gold, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Kinross Gold will eventually generate negative long term returns. The profitability progress is the general direction of Kinross Gold's change in net profit over the period of time. It can combine multiple indicators of Kinross Gold, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -61 M | -57.9 M | |
| Operating Income | 778.4 M | 817.3 M | |
| Net Income | 423.9 M | 445.1 M | |
| Income Tax Expense | 298.6 M | 313.5 M | |
| Income Before Tax | 721.6 M | 757.7 M | |
| Total Other Income Expense Net | -56.8 M | -59.7 M | |
| Net Loss | -696 M | -661.2 M | |
| Net Income From Continuing Ops | 243.4 M | 255.6 M | |
| Interest Income | 39.8 M | 50.1 M | |
| Net Interest Income | -30.7 M | -32.2 M | |
| Change To Netincome | 863.2 M | 906.3 M | |
| Net Income Per Share | 0.34 | 0.36 | |
| Income Quality | 3.45 | 3.63 | |
| Net Income Per E B T | 0.58 | 0.73 |
Kinross Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Kinross Gold. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Kinross Gold position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Kinross Gold's important profitability drivers and their relationship over time.
Kinross Gold Profitability Trends
Kinross Gold profitability trend refers to the progression of profit or loss within a business. An upward trend means that Kinross Gold's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Kinross Gold's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Kinross Gold Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Kinross Gold different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Kinross Gold in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Kinross Gold's future profitability.
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Use Kinross Gold in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Kinross Gold position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kinross Gold will appreciate offsetting losses from the drop in the long position's value.Kinross Gold Pair Trading
Kinross Gold Pair Trading Analysis
The ability to find closely correlated positions to Kinross Gold could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kinross Gold when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Kinross Gold - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Kinross Gold to buy it.
The correlation of Kinross Gold is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Kinross Gold moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kinross Gold moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Kinross Gold can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Kinross Gold position
In addition to having Kinross Gold in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Fabricated Products Thematic Idea Now
Fabricated Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Fabricated Products theme has 11 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Fabricated Products Theme or any other thematic opportunities.
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Check out Correlation Analysis. For information on how to trade Kinross Stock refer to our How to Trade Kinross Stock guide.Note that the Kinross Gold information on this page should be used as a complementary analysis to other Kinross Gold's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Kinross Stock analysis
When running Kinross Gold's price analysis, check to measure Kinross Gold's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Kinross Gold is operating at the current time. Most of Kinross Gold's value examination focuses on studying past and present price action to predict the probability of Kinross Gold's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Kinross Gold's price. Additionally, you may evaluate how the addition of Kinross Gold to your portfolios can decrease your overall portfolio volatility.
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To fully project Kinross Gold's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Kinross Gold at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Kinross Gold's income statement, its balance sheet, and the statement of cash flows.