Last updated on October 23rd, 2019 at 09:53 am
The share price of Toronto, Ontario-based gold mining company Kirkland Lake Gold (KL) closed at $47.33 on the trading session of September 6, 2019. This is 1.97% lower compared to the closing price on the previous session and lower than the S&P 500’s gain of 0.09%.
However, the gold producer’s stock price has increased by 2.09% in the past month, which is higher compared to the average gain of the basic materials sector at 1.74%.
KL will be releasing its earnings report in October and investors are expecting positive results. The consensus estimate for the company’s quarterly revenue is $352.92 million, which represents a 58.47% year-over-year growth. While its earnings per share is projected to be $0.79, which would be 182.14% higher compared to the previous year.
Zack Consensus Estimates predicts a full-year revenue of $1.29 billion, which is 41.29% compared to the prior year. Full-year earnings per share is projected to be 69.85% higher than the previous year at $2.31.
The Zacks Ranking gave KL a #1 or Strong Buy rating. The company’s earnings per share rose by 3.94% over the past month. Meanwhile, the gold mining industry to which KL belongs was given a Zacks Industry Rank of 9. This means that the sector is in the top 4% of more than 250 industries evaluated by Zacks.
Investors considering to add KL to stocks watchlist should take note of the company’s valuation metrics. It has a forward earnings per share ratio of 20.9 while its industry has 34.16. This means KL stocks are trading at a lower price compared to other companies in its industry. It is worth mentioning that there were positive revisions to analysts’ estimates for KL which indicates optimism about the company’s business outlook.
Here are additional information and data that can help potential investors in deciding whether or not to invest in KL stocks. The company has a total market capitalization of more than US$13 billion. It has a share book value of $7.02 and a trailing twelve-month dividend yield of 0.34%. Return on equity is 29.11 which means KL is making good use of its equity or investing efficiently.
In stock investing, profitable companies are preferred. And KL is profitable. Its earnings before interest and taxes (EBIT) has improved by 17.1 compared to the previous year.
Another good thing about KL is that insiders have invested in their stocks. This suggests that shareholders’ interests will be taken into considerations when company leadership makes decisions. In addition, its CEO compensation is reasonable. Its CEO received a total compensation of only $4.4. million in 2018. The median CEO pay for companies with the same market capitalization as KL is around CA8.9 million. Executive pay may not be very important in making investment decision but a modest pay indicates an alignment between the CEO and ordinary shareholders.