KGCKinross Gold Corporation
Is the business good?
A genuinely good business: earnings fully cash-backed (1.5×) and elite returns on assets.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 28% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is KGC?
Kinross Gold Corporation earns 39% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 30 points above what the capital costs: growth creates value
- Operating margin
- 46%
Operating margin · Gold median 38% · fiscal year to FY2025
- Cash conversion
- 1.48×
Cash conversion · 2.37× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.80%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 45% |
| FY2021 | 2.8% |
| FY2022 | 3.4% |
| FY2023 | 19% |
| FY2024 | 30% |
| FY2025 | 46% |
Details›
- Gross marginfiscal year to FY2025
- 53%
- Operating marginfiscal year to FY2025
- 46%
- Net marginfiscal year to FY2025
- 34%
- Free cash flow margin
- 36%
- Revenue, trailing twelve months
- $7.05B
- Free cash flow, trailing twelve months
- $2.57B
- Net income, trailing twelve months
- $2.39B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 39%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.