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K & S Corporation Limited (AU:KSC)
ASX:KSC
Australian Market

K & S Corporation Limited (KSC) AI Stock Analysis

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AU

K & S Corporation Limited

(Sydney:KSC)

Rating:70Outperform
Price Target:
AU$4.00
▲(18.34%Upside)
K & S Corporation benefits from solid financial stability and attractive valuation, but faces challenges due to declining revenues and negative free cash flow. Technical indicators show neutral momentum, calling for cautious optimism.

K & S Corporation Limited (KSC) vs. iShares MSCI Australia ETF (EWA)

K & S Corporation Limited Business Overview & Revenue Model

Company DescriptionK&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 MoneyKSC 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 showcases solid profitability with efficient cost management and low leverage. Despite a strong equity position, challenges arise from declining revenue and negative free cash flow, requiring strategic focus.
Income Statement
76
Positive
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
81
Very Positive
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
62
Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue785.80M824.58M848.94M776.18M688.54M790.63M
Gross Profit127.17M128.93M76.57M50.83M39.81M31.70M
EBITDA70.71M87.64M92.87M72.70M83.34M82.50M
Net Income30.71M31.23M28.63M17.43M18.12M11.24M
Balance Sheet
Total Assets667.43M652.38M612.36M601.75M525.84M540.14M
Cash, Cash Equivalents and Short-Term Investments27.15M33.44M39.54M27.35M22.46M17.24M
Total Debt100.81M66.23M54.24M63.93M69.44M113.45M
Total Liabilities306.77M296.43M290.68M294.80M257.12M300.98M
Stockholders Equity360.65M355.95M321.68M306.94M268.72M239.16M
Cash Flow
Free Cash Flow-5.60M-2.76M33.73M4.88M41.17M63.48M
Operating Cash Flow63.32M65.78M101.59M64.70M75.45M83.42M
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 Price3.38
Price Trends
50DMA
3.45
Negative
100DMA
3.48
Negative
200DMA
3.47
Negative
Market Momentum
MACD
-0.03
Positive
RSI
43.21
Neutral
STOCH
80.25
Negative
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 3.38 is below the 20-day moving average (MA) of 3.39, below the 50-day MA of 3.45, and below the 200-day MA of 3.47, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.21 is Neutral, neither overbought nor oversold. The STOCH value of 80.25 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUKSC
70
Outperform
AU$457.07M14.888.92%4.73%-6.12%2.79%
59
Neutral
AU$1.62B9.5311.29%3.79%6.45%5.22%
DE1K1
€4.19B30.437.24%1.94%
$28.84B597.230.68%4.52%
DE0BS
€936.45M-16.06%3.21%
AUSUL
77
Outperform
AU$3.18B14.0217.52%4.52%2.56%-13.62%
AUGWA
68
Neutral
AU$628.54M17.0112.07%6.33%1.63%-18.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:KSC
K & S Corporation Limited
3.34
0.56
20.14%
DE:1K1
Qube Holdings
2.36
0.13
5.83%
TRAUF
Transurban Group
8.94
1.07
13.60%
DE:0BS
Bapcor Ltd
2.70
-0.27
-9.09%
AU:GWA
GWA Group Limited
2.34
0.17
7.83%
AU:SUL
Super Retail Group Limited
14.06
1.42
11.23%

K & S Corporation Limited Corporate Events

K & S Corporation Updates Securities Cessation Notification
May 19, 2025

K & S Corporation Limited, listed on the ASX under the code KSC, has announced an amendment to its previous notification regarding the cessation of securities. The company clarified that no additional securities were canceled in its recent buyback of less than minimum holdings, and the amendment corrects an error in the number of securities on issue following the buyback. This update ensures accurate reporting of the company’s issued capital, which is crucial for maintaining transparency with stakeholders and the market.

K & S Corporation Completes Minimum Holdings Buyback
May 16, 2025

K & S Corporation Limited announced the completion of a buyback of securities that were below the minimum holding threshold. This move is part of the company’s ongoing efforts to manage its capital structure effectively. The announcement, made through an Appendix 3H filing with the ASX, indicates a strategic step towards optimizing shareholder value and streamlining the company’s equity base.

K&S Corporation Completes Minimum Holding Buy-Back
May 16, 2025

K&S Corporation Limited has completed a buy-back of ordinary shares for shareholders holding less than a marketable parcel, as announced earlier in March 2025. This initiative allowed eligible shareholders to sell their shares without incurring additional expenses, reducing the number of shareholders and administrative costs for the company. The buy-back involved 1,671 shares from 89 shareholders, costing the company approximately $6,017, with payments to be dispatched by the end of May 2025.

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: May 31, 2025