K & S Corporation Limited (KSC) AI Stock Analysis

• Market Cap: AU$469.39M
• Dividend Yield: 4.66%
• Average Volume (3M): 4.33K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.10
• Revenue Growth: -6.12%
• EPS Growth: 2.79%
• Country: AU
• Employees: 2,024
• Sector: Industrials
• Sector Strength: 83
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.22
• Shares Outstanding: 136,848,980
• 10 Day Avg. Volume: 9,509
• 30 Day Avg. Volume: 4,327
• PEG Ratio: -3.47
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -83.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

K & S Corporation's financial stability and profitability are strong points, supported by low leverage and a solid equity position. However, revenue decline and negative free cash flow are significant challenges. The technical analysis indicates weak market momentum, impacting the stock's attractiveness. Despite a reasonable valuation and good dividend yield, these challenges lower the overall score.

K & S Corporation Limited Business Overview & Revenue Model

Company Description

K&S Corporation Limited provides transportation and logistics, contract management, warehousing and distribution, and fuel distribution services primarily in Australia and New Zealand. The company operates through three segments: Australian Transport, Fuels, and New Zealand Transport. It provides road, rail, and coastal sea forwarding for full and break bulk loads, including export packing, wharf lodgement, and the delivery of integrated supply chain and system solutions; remote, regional, and metro bulk fuel, oil, and gas transportation and distribution services; and dry and liquid bulk transportation services to mining, sugar, cement, and fertilizer industries. The company also offers line haul and logistical support, and warehousing and distribution services, as well as equipment and personnel; facility management services to various companies; distribution chain management services for various importers; and heavy haulage services. In addition, it provides dangerous and hazardous goods, chemicals, petro-chemicals, gases, bulk liquids, liquid foods, fuels, lubricants, and explosives by road, rail, and sea; aviation refueling services and aviation fuel supply solutions; full truck load and break distribution and export. The company was formerly known as Scott Corporation Limited and changed its name to K&S Corporation Limited in December 1998. K&S Corporation Limited was founded in 1945 and is headquartered in Truganina, Australia. K&S Corporation Limited is a subsidiary of AA Scott Pty Ltd.

How the Company Makes Money

KSC generates revenue primarily through its logistics and transportation services. The company's key revenue streams include freight transportation across road and rail networks, warehousing and distribution services, and supply chain management solutions. KSC leverages its extensive fleet and strategic partnerships with rail and shipping operators to optimize logistics operations and offer competitive pricing. Additionally, the company benefits from long-term contracts with major clients in various industries, ensuring a steady flow of income. The integration of technology in its service offerings also enhances operational efficiency, contributing to cost savings and improved profit margins.

K & S Corporation Limited Financial Statement Overview

Summary

K & S Corporation shows solid profitability with a strong equity position and efficient cost management. However, a decline in revenue and negative free cash flow present challenges that require strategic attention.

Income Statement

The company exhibits a strong EBIT margin of 15.6% and a gross profit margin of 15.6%, indicating efficient cost management. However, the revenue has declined by 2.86% from the previous year, which impacts overall growth perception. Net profit margin remains modest at 3.8%, showing room for improvement in profitability.

Balance Sheet

The debt-to-equity ratio is low at 0.19, suggesting a conservative leverage strategy which enhances financial stability. The equity ratio stands at 54.6%, indicating a strong equity position. Return on equity is decent at 8.8%, reflecting satisfactory shareholder returns.

Cash Flow

The free cash flow has turned negative, reflecting a -108.19% growth rate, signaling potential short-term cash challenges. However, the operating cash flow to net income ratio of 2.11 indicates robust cash flow generation relative to net income, which is a positive aspect.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
785.80M	824.58M	848.94M	776.18M	688.54M	790.63M
	Gross Profit
127.17M	128.93M	76.57M	50.83M	39.81M	31.70M
	EBIT
127.17M	36.20M	37.95M	21.21M	13.82M	14.49M
	EBITDA
70.71M	87.64M	92.87M	72.70M	83.34M	82.50M
	Net Income Common Stockholders
30.71M	31.23M	28.63M	17.43M	18.12M	11.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.15M	33.44M	39.54M	27.35M	22.46M	17.24M
	Total Assets
667.43M	652.38M	612.36M	601.75M	525.84M	540.14M
	Total Debt
100.81M	66.23M	54.24M	63.93M	69.44M	113.45M
	Net Debt
73.66M	32.79M	14.71M	36.58M	46.98M	96.21M
	Total Liabilities
306.77M	296.43M	290.68M	294.80M	257.12M	300.98M
	Stockholders Equity
360.65M	355.95M	321.68M	306.94M	268.72M	239.16M
Cash Flow		Free Cash Flow
-5.60M	-2.76M	33.73M	4.88M	41.17M	63.48M
	Operating Cash Flow
63.32M	65.78M	101.59M	64.70M	75.45M	83.42M
	Investing Cash Flow
-54.97M	-58.62M	-57.13M	-49.29M	-14.94M	-7.49M
	Financing Cash Flow
-8.81M	-13.26M	-32.33M	-10.43M	-55.29M	-75.24M

K & S Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KSC, the sentiment is Negative. The current price of 3.43 is below the 20-day moving average (MA) of 3.49, below the 50-day MA of 3.51, and below the 200-day MA of 3.43, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 13.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:KSC.

K & S Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUL	73 Outperform	AU$2.99B	13.13	17.52%	4.88%	2.56%	-13.62%
GWA	68 Neutral	AU$636.49M	17.23	12.07%	6.46%	1.63%	-18.01%
KSC	64 Neutral	AU$469.39M	15.29	8.92%	4.66%	-6.12%	2.79%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%

K & S Corporation Limited Corporate Events

K&S Corporation Announces Minimum Holding Buy-Back

K&S Corporation Limited, a company listed on the ASX, has announced a buy-back program for shareholders holding less than a marketable parcel of shares, defined as fewer than 139 shares. This initiative allows these shareholders to sell their shares back to the company at a price of $3.601 per share, without incurring brokerage or other expenses, aiming to reduce administrative costs associated with maintaining small holdings. The buy-back, which does not require shareholder approval, affects 138 shareholders and represents 0.002% of the company’s shares, with an aggregate value of $7,436.

K & S Corporation Reports Slight Profit Decline Amid Market Challenges

K & S Corporation Limited reported a slight decline in profits for the half year ending December 2024, with underlying profit before tax at $23.4 million, down 4.1% from the previous year. The company faced challenges such as tight market conditions and high competition in its Australian transport division, while its New Zealand operations remained stable. Despite these challenges, K & S Corporation continues to focus on cost reduction strategies and operational efficiencies. The company’s net debt increased due to investments in property projects, which are expected to enhance earnings. Safety remains a priority, although a prosecution related to a safety incident is underway. An interim dividend of 8.0 cents per share has been declared, reflecting a decrease from the previous year.

K & S Corporation Reports Mixed Financial Results Amid Revenue Decline

K & S Corporation Limited reported a decline in operating revenue by 9.3% and a slight decrease in statutory profit after tax by 3.1% for the half-year ending December 2024 compared to the previous year. Despite these declines, the company saw a significant increase in total assets by 9.4% and shareholders’ funds by 10%, indicating a strong financial position. The company also improved its safety record with a 42.9% reduction in lost time injuries. However, the dividend per share decreased by 20%, reflecting the overall challenging financial environment.

K & S Corporation Limited Announces Dividend Distribution

K & S Corporation Limited has announced a dividend distribution of AUD 0.08 per ordinary fully paid share for the period ending December 31, 2024. The ex-dividend date is set for March 20, 2025, with the record date on March 21, 2025, and payment to be made on April 3, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may have implications for investor sentiment and market positioning.

K & S Corporation Reports Decrease in Revenue and Dividend for H2 2024

K & S Corporation Limited reported a 9.3% decrease in revenues for the six-month period ending December 31, 2024, compared to the previous year. Despite a slight decline in profit after tax, the company announced an interim dividend of 8.0 cents per share, down from 10.0 cents in the previous period. The report highlights an unrealized loss on the group’s interest rate swap as a significant item affecting financial results. The net tangible assets per share increased by 8.3%, indicating a stronger asset position.