Korvest Ltd. (KOV) AI Stock Analysis

• Market Cap: AU$131.00M
• Dividend Yield: 4.49%
• Average Volume (3M): 3.57K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.46
• Revenue Growth: -3.71%
• EPS Growth: -24.65%
• Country: AU
• Employees: 246
• Sector: Industrials
• Sector Strength: 86
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.35
• Shares Outstanding: 11,759,086
• 10 Day Avg. Volume: 4,311
• 30 Day Avg. Volume: 3,571
• PEG Ratio: -3.97
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.85
• 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

• Rating: 74 Outperform
• Price Target: AU$12.00 ▲(7.72%Upside)

Korvest Ltd. maintains a strong financial position with solid profitability and balance sheet health, contributing significantly to the overall score. The stock's positive technical momentum is tempered by overbought signals, while attractive valuation metrics further support the score. The absence of recent earnings call data and corporate events limits additional insights.

Korvest Ltd. Business Overview & Revenue Model

Company Description

Korvest Ltd, together with its subsidiaries, engages in the hot dip galvanizing and sheet metal fabrication businesses in Australia. It operates through two segments, Industrial Products and Production. The Industrial Products segment manufactures electrical and cable support systems, which include channel, cable trays, cable ladders, cable mesh and ducts, and general and heavy duty pipe clamps and hangers, as well as specialist pipe supports products, other fittings, fasteners, and clamping components under the EzyStrut name. The Production segment provides hot dip galvanizing services. The company is also involved in the manufacture of cable and pipe support systems, and fittings. It serves infrastructure, commercial, utilities, mining, food processing, oil and gas, power stations, health, and industrial sectors. Korvest Ltd was incorporated in 1970 and is based in Kilburn, Australia.

How the Company Makes Money

Korvest Ltd. generates revenue through the sale of its cable and pipe support systems, as well as industrial access systems, to a wide range of industries. The company also offers galvanizing services, which provide a protective zinc coating to steel products, adding to its revenue streams. Key revenue sources include direct sales to construction and infrastructure companies, and partnerships with distributors who sell Korvest's products to end users. The company's earnings are influenced by the demand in the construction and infrastructure sectors, as well as the cyclical nature of the mining industry, which affects the demand for its products and services.

Korvest Ltd. Financial Statement Overview

Summary

Korvest Ltd. demonstrates strong profitability with healthy EBIT and EBITDA margins, a solid balance sheet with low leverage, and effective equity utilization. However, the recent revenue decline and negative free cash flow growth highlight areas for improvement.

Income Statement

Korvest Ltd. shows strong profitability with a consistent gross profit margin around 39% and a net profit margin of 10.7% in 2024. However, there is a slight decline in revenue growth, with a decrease of 4.27% from 2023. The EBIT and EBITDA margins remain healthy, indicating efficient operations despite the revenue drop.

Balance Sheet

The balance sheet reflects strong equity with a debt-to-equity ratio of 0.18, showcasing low leverage, and a solid equity ratio of 67.2%. Return on equity remains robust at 20.7%, illustrating effective use of equity. The company's financial stability is further underscored by its increasing asset base and decreasing debt levels.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow due to decreased operating cash flow in 2024, leading to a negative free cash flow growth rate. The operating cash flow to net income ratio stands at 0.94, indicating efficient cash generation relative to profit, though free cash flow to net income ratio dropped.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	102.06M	102.89M	107.48M	99.22M	69.79M	63.09M
Gross Profit	38.22M	40.27M	39.65M	36.01M	27.69M	24.99M
EBITDA	15.02M	15.46M	17.84M	15.17M	9.47M	4.78M
Net Income	9.42M	11.04M	11.18M	11.34M	6.05M	4.03M
Balance Sheet
Total Assets	75.78M	79.55M	70.66M	65.91M	56.52M	51.52M
Cash, Cash Equivalents and Short-Term Investments	6.87M	7.06M	9.21M	3.83M	6.96M	6.75M
Total Debt	9.02M	9.48M	5.19M	5.47M	6.23M	4.75M
Total Liabilities	22.78M	26.10M	21.62M	22.09M	20.60M	18.87M
Stockholders Equity	52.99M	53.45M	49.04M	43.83M	35.92M	32.65M
Cash Flow
Free Cash Flow	6.40M	5.84M	13.08M	1.88M	4.17M	7.26M
Operating Cash Flow	10.59M	10.35M	14.94M	3.99M	6.51M	10.46M
Investing Cash Flow	-4.09M	-4.44M	-1.81M	-1.18M	-2.31M	-3.17M
Financing Cash Flow	-8.73M	-8.06M	-7.75M	-5.94M	-3.98M	-3.94M

Korvest Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KOV, the sentiment is Positive. The current price of 11.14 is above the 20-day moving average (MA) of 10.69, above the 50-day MA of 10.42, and above the 200-day MA of 9.93, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 86.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:KOV.

Korvest Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KOV	74 Outperform	AU$131.00M	13.86	18.13%	4.49%	-3.71%	-24.65%
CLX	72 Outperform	AU$144.98M	9.11	12.68%	5.55%	6.34%	8.63%
MXI	68 Neutral	AU$127.52M	20.85	6.97%	2.65%	25.55%	135.68%
VEE	65 Neutral	AU$122.38M	27.11	8.82%	0.53%	9.97%	-22.07%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
SLH	60 Neutral	AU$140.26M	22.84	-1.11%	1.65%	11.01%	-106.43%
AL3	49 Neutral	AU$112.93M	―	-20.13%	―	421.43%	62.31%

Korvest Ltd. Corporate Events

Korvest Ltd. Approves Kilburn Site Expansion to Boost Production

Korvest Ltd. has announced the approval of Phase 1 of its expansion plans at the Kilburn site, which includes constructing a new 3,000 m2 fabrication facility with a 500 m2 canopy, costing approximately $7.4 million. This expansion, funded through operating cash flows and a short-term debt facility, aims to enhance production capacity and capability, providing opportunities for market share growth, vertical integration, and access to additional markets.