Rating Change #9

Kinross Gold Corporation ( KGC) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:
  • KINROSS GOLD CORP has improved earnings per share by 46.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, KINROSS GOLD CORP increased its bottom line by earning $0.93 versus $0.45 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 138.3% when compared to the same quarter one year prior, rising from $103.80 million to $247.40 million.
  • The gross profit margin for KINROSS GOLD CORP is rather high; currently it is at 58.20%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 25.00% trails the industry average.
  • KGC has underperformed the S&P 500 Index, declining 23.62% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Metals & Mining industry and the overall market, KINROSS GOLD CORP's return on equity is below that of both the industry average and the S&P 500.

Kinross Gold Corporation, together with its subsidiaries, engages in mining and processing gold ores. It also involves in the exploration and acquisition of gold bearing properties. The company has a P/E ratio of 15.3, above the average metals & mining industry P/E ratio of 15 and below the S&P 500 P/E ratio of 17.7. Kinross has a market cap of $16.6 billion and is part of the basic materials sector and metals & mining industry. Shares are down 23.1% year to date as of the close of trading on Thursday.

You can view the full Kinross Ratings Report or get investment ideas from our investment research center.

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