Korvest Ltd. (KOV) AI Stock Analysis

• Market Cap: AU$137.58M
• Dividend Yield: 5.42%
• Average Volume (3M): 4.28K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.52
• Revenue Growth: 16.21%
• EPS Growth: 18.21%
• Country: AU
• Employees: 246
• Sector: Industrials
• Sector Strength: 93
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.59
• Shares Outstanding: 11,759,086
• 10 Day Avg. Volume: 4,614
• 30 Day Avg. Volume: 4,284
• PEG Ratio: -0.96
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.77
• 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: AU$12.00
• Price Target Upside: 0.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: AU$14.00 ▲(16.76%Upside)

Korvest Ltd. receives a strong overall stock score, driven primarily by robust technical indicators and an attractive valuation. The company's solid financial performance, despite some challenges in revenue and cash flow growth, provides a solid foundation. The absence of earnings call and corporate events data does not impact the score significantly.

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 manufacture and sale of its diverse range of products targeted at infrastructure, construction, and industrial projects. The company's key revenue streams include cable and pipe support systems, which are essential for electrical and plumbing installations across various industries. Korvest also earns income from its steel fabrication services, providing custom solutions for industrial and commercial applications. Additionally, the company benefits from significant partnerships with distributors and direct sales channels, ensuring a broad reach for its products. By leveraging its expertise and reputation for quality, Korvest capitalizes on infrastructure and development projects, which are critical to its financial performance.

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

Korvest Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 11.99 is above the 20-day moving average (MA) of 11.34, above the 50-day MA of 10.83, and above the 200-day MA of 10.04, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 73.70 is Negative, neither overbought nor oversold. The STOCH value of 93.83 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	80 Outperform	AU$137.58M	10.45	23.03%	5.42%	16.21%	18.21%
CLX	72 Outperform	AU$154.65M	9.72	12.68%	5.63%	6.34%	8.63%
MXI	68 Neutral	AU$127.52M	20.85	6.97%	2.44%	25.55%	135.68%
VEE	66 Neutral	AU$127.82M	28.31	8.82%	1.07%	9.97%	-22.07%
Sector *	63 Neutral	kr61.37B	12.58	1.88%	2.29%	0.13%	-4.39%
SLH	60 Neutral	AU$173.29M	22.84	-1.11%	1.98%	11.01%	-106.43%
AL3	50 Neutral	AU$149.09M	―	-20.13%	―	421.43%	62.31%

Korvest Ltd. Corporate Events

Korvest Ltd. Director’s Interest Update

Korvest Ltd. has announced a change in the director’s interest notice, specifically for Director Steven McGregor. On July 25, 2025, McGregor exercised vested performance rights, resulting in the acquisition of 17,730 ordinary shares and the disposal of an equal number of performance rights. This change increased his total ordinary shares to 177,928 and decreased his performance rights to 33,409. This adjustment in securities reflects the director’s strategic management of his investment in the company.

Korvest Ltd Director Adjusts Shareholding

Korvest Ltd has announced a change in the director’s interest, with Christian Hartwig exercising vested performance rights, resulting in the acquisition of 18,490 ordinary shares and a reduction of performance rights by the same number. This change reflects an adjustment in the director’s holdings, potentially impacting stakeholder perceptions of the company’s governance and director alignment with shareholder interests.

Korvest Ltd Announces Quotation of New Securities

Korvest Ltd has announced the application for quotation of 67,232 ordinary fully paid securities on the ASX, issued under an employee incentive scheme. This move could enhance the company’s market presence and provide additional liquidity, potentially benefiting stakeholders by aligning employee interests with company performance.

Korvest Ltd. Unveils Strategic Focus for Growth and Operational Excellence

Korvest Ltd. has announced its strategic focus areas for growth, emphasizing expansion in day-to-day and small project markets, as well as infrastructure and large project pipelines. The company is also committed to operational excellence through factory automation, product development, and improving customer service, while prioritizing safety, environmental impact, and employee engagement.

Korvest Ltd Achieves Record Earnings and Plans Kilburn Site Expansion

Korvest Ltd reported record earnings for the fiscal year ending June 30, 2025, with a 16.2% increase in revenue driven by major project activity in its Industrial Products segment. The company faced challenges such as remediation costs due to a third-party design fault and a 17-day production halt in its galvanizing plant, but these were mitigated by insurance recoveries. The board has approved a significant redevelopment project at the Kilburn site to enhance production capabilities, with construction starting in FY26. The outlook for the infrastructure sector remains strong, although FY26 revenue is not expected to match FY25 levels.

Korvest Ltd. Strengthens Corporate Governance and Diversity Initiatives

Korvest Ltd. has outlined its corporate governance practices, emphasizing the Board’s role in enhancing shareholder value and overseeing management. The company is committed to diversity, with specific objectives for gender representation in senior management, although current figures show room for improvement. These initiatives reflect Korvest’s dedication to aligning with ASX Corporate Governance Principles and enhancing its operational and strategic direction.

Korvest Ltd Publishes 2025 Corporate Governance Statement

Korvest Ltd has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement, approved by the board, outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting the company’s commitment to transparency and accountability in its governance practices.

Korvest Ltd Announces Dividend Distribution

Korvest Ltd has announced a dividend distribution for its ordinary fully paid securities, with a payment of AUD 0.50 per share. The dividend relates to the six-month period ending June 30, 2025, with key dates including an ex-date of August 14, 2025, a record date of August 15, 2025, and a payment date of September 5, 2025. This announcement may impact stakeholders by providing a return on investment and indicating the company’s financial health.

Korvest Ltd Reports Strong Financial Growth for FY 2025

Korvest Ltd reported a significant financial performance for the fiscal year ending June 30, 2025, with a 16.2% increase in revenues and a 19.1% rise in net profit attributable to members, reaching $13,157,000. Earnings per share also saw an 18.3% increase to 112.0¢. The company declared a final dividend of 40.0¢ per share, maintaining the same level as the previous period, and introduced a special dividend of 10.0¢. The Dividend Reinvestment Plan is suspended for the final dividend, with the record date for entitlements set for August 15, 2025. These results underscore Korvest’s robust operational performance and strategic positioning in its industry, promising positive implications for its stakeholders.

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.