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Korvest Ltd. (AU:KOV)
ASX:KOV
Australian Market

Korvest Ltd. (KOV) AI Stock Analysis

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AU

Korvest Ltd.

(Sydney:KOV)

Rating:74Outperform
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. (KOV) vs. iShares MSCI Australia ETF (EWA)

Korvest Ltd. Business Overview & Revenue Model

Company DescriptionKorvest 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 MoneyKorvest 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
75
Positive
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
80
Positive
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
72
Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue102.06M102.89M107.48M99.22M69.79M63.09M
Gross Profit38.22M40.27M39.65M36.01M27.69M24.99M
EBITDA15.02M15.46M17.84M15.17M9.47M4.78M
Net Income9.42M11.04M11.18M11.34M6.05M4.03M
Balance Sheet
Total Assets75.78M79.55M70.66M65.91M56.52M51.52M
Cash, Cash Equivalents and Short-Term Investments6.87M7.06M9.21M3.83M6.96M6.75M
Total Debt9.02M9.48M5.19M5.47M6.23M4.75M
Total Liabilities22.78M26.10M21.62M22.09M20.60M18.87M
Stockholders Equity52.99M53.45M49.04M43.83M35.92M32.65M
Cash Flow
Free Cash Flow6.40M5.84M13.08M1.88M4.17M7.26M
Operating Cash Flow10.59M10.35M14.94M3.99M6.51M10.46M
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 Price11.14
Price Trends
50DMA
10.42
Positive
100DMA
9.99
Positive
200DMA
9.93
Positive
Market Momentum
MACD
0.19
Negative
RSI
66.38
Neutral
STOCH
86.97
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUKOV
74
Outperform
AU$131.00M13.8618.13%4.49%-3.71%-24.65%
AUCLX
72
Outperform
AU$144.98M9.1112.68%5.55%6.34%8.63%
AUMXI
68
Neutral
AU$127.52M20.856.97%2.65%25.55%135.68%
AUVEE
65
Neutral
AU$122.38M27.118.82%0.53%9.97%-22.07%
65
Neutral
$10.77B15.805.51%1.90%3.03%-26.66%
AUSLH
60
Neutral
AU$140.26M22.84-1.11%1.65%11.01%-106.43%
AUAL3
49
Neutral
AU$112.93M-20.13%421.43%62.31%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:KOV
Korvest Ltd.
11.14
2.55
29.69%
AU:MXI
MaxiPARTS Limited
2.30
0.34
17.35%
AU:AL3
AML3D Ltd
0.24
0.06
33.33%
AU:CLX
CTI Logistics Limited
1.80
0.52
40.63%
AU:VEE
Veem Ltd
0.87
-0.85
-49.42%
AU:SLH
Silk Logistics Holdings Ltd.
2.12
0.87
69.60%

Korvest Ltd. Corporate Events

Korvest Ltd. Approves Kilburn Site Expansion to Boost Production
Jun 27, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025