# Kingsgate Consolidated (KCN.AU)

Canonical: https://gigainvestors.com/s/KCN.AU

Analysis as of: 2026-10-16T07:44:44.245Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 4.49 per share; close as of 2026-10-15.

Estimated value: low AUD 1.85 per share, central AUD 2.06 per share, high AUD 2.33 per share. Buy at or below the central value AUD 2.06 per share. Valuation as of 2026-10-16T07:44:44.245Z; scenarios are not confidence intervals.

Expected annual return: 5.8% at the stated quote. About 5.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 4

- Operating margin variation: 4.06×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.01×

- FY2020: -1.88×

- FY2021: -0.26×

- FY2023: 0.50×

- FY2024: -0.15×

- FY2025: 0.14×

- FY2026: 0.38×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -16.4%

- ROIC, second-lowest year: -244.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.3%

- ROIC including acquisitions, ten-year median: -36.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -1.7%

- FY2018: -57.9%

- FY2019: -244.0%

- FY2020: -194.1%

- FY2021: -26.3%

- FY2022: -307.0%

- FY2023: 14.5%

- FY2024: -6.4%

- FY2025: 11.6%

- FY2026: 43.9%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.36×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 182M

- Net income, five-year total: AUD 499M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 3.8 pp

- Working capital / revenue, final three-year average: 12.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.11×

- FY2023: -9.71×

- FY2024: 0.02×

- FY2025: 1.29×

- FY2026: 0.72×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -57.9% vs 11.6%

- Per-share earnings: -0.34 to 0.78 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.7%

- Ordinary dilution, 5-year annual growth: 3.5%

- Market cap gain: AUD 1.3B

- Cumulative retained earnings: AUD 375M

- Diluted shares, 10-year annual growth: 1.7%

- Diluted shares, 5-year annual growth: 3.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: AUD 1.11

- Per-share value, starting three-year median: AUD -0.34

- Per-share value, ending three-year median: AUD 0.78

- Buybacks concentrated in cheaper years (correlation): 0.21

- Average buyback yield: 0.9%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 6.6M

- Cumulative net income, 10 years: AUD 405M

- ROIC, first three-year median: -57.9%

- ROIC, last three-year median: 11.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.03

- FY2018: AUD -0.34

- FY2019: AUD 0.04

- FY2020: AUD -0.11

- FY2021: AUD -0.04

- FY2022: AUD -0.06

- FY2023: AUD 0.02

- FY2024: AUD 0.78

- FY2025: AUD 0.11

- FY2026: AUD 1.05

### accounting: pass

- Sloan accruals: 8.3%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.77×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -37.1%

- FY2018: -60.8%

- FY2019: -47.7%

- FY2020: 0.4%

- FY2021: -10.0%

- FY2022: 3.1%

- FY2023: 39.5%

- FY2024: 48.4%

- FY2025: -10.7%

- FY2026: 8.3%

## Holders

## Price story

Down 36% since Feb 2026 · sales +77.1%

Story as of 2026-10-16T10:00:13.155Z; price observation 2026-10-15.

Price needs cash profits to grow 12.1% a year for ten years

### Sales · FY2025–2026

sales +77.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 176M 

- FY2018: AUD 0 

- FY2019: AUD 0 

- FY2020: AUD 12M 

- FY2021: AUD 12M 

- FY2022: AUD 0 

- FY2023: AUD 27M 

- FY2024: AUD 133M 

- FY2025: AUD 337M 

- FY2026: AUD 596M 

### Gross margin · FY2026

gross margin 42%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 44.4% 

- FY2021: 51.3% 

- FY2025: 20.8% 

- FY2026: 42.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in gold; annual sales are AUD 596.4 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); FY2026: revenue 596446000; grossProfit 250526000; margin = grossProfit / revenue.

### Why customers stay

It lost 16.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); FY2024: grossProfit / revenue = -2.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); FY2025: grossProfit / revenue = 20.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); FY2026: grossProfit / revenue = 42%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); 10-year return on capital observations [[2017,-0.016859238289391763],[2018,-0.5794847831296429],[2019,-2.4401040934939497],[2020,-1.9410664409648752],[2021,-0.26344459702123163],[2022,-3.0699016823246668],[2023,0.14487746543476837],[2024,-0.06402008992589844],[2025,0.11595285083363323],[2026,0.43878360766520247]]; median -0.16373234347356502. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 4 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); FY2017: growth capex 0; upkeep 2722000; owner earnings 55639000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); FY2019: growth capex 0; upkeep 8000; owner earnings 8848800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); FY2024: growth capex 15100000; upkeep 4231000; owner earnings 3670400. Growth capex / owner earnings = 4.113993025283348.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); FY2025: growth capex 0; upkeep 39295000; owner earnings 38131000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); FY2026: growth capex 0; upkeep 13811000; owner earnings 199985000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,1931000],[2021,0],[2022,9675000],[2023,49945000],[2024,0],[2025,0],[2026,26605000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 9.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KCN.AU SharesStats.PercentInsiders = 9.555 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 12.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:44.245Z); Ten-year compound average after fade. Initial solved rate 0.16149287584565453. Price 4.49; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -0.9892297577142755 → FY2026 0.7585665657950336. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 0.20 per share

- 2016-11: AUD 0.25 per share

- 2016-12: AUD 0.29 per share

- 2017-01: AUD 0.28 per share

- 2017-02: AUD 0.29 per share

- 2017-03: AUD 0.25 per share

- 2017-04: AUD 0.23 per share

- 2017-05: AUD 0.19 per share

- 2017-06: AUD 0.20 per share

- 2017-07: AUD 0.23 per share

- 2017-08: AUD 0.27 per share

- 2017-09: AUD 0.28 per share

- 2017-10: AUD 0.41 per share

- 2017-11: AUD 0.43 per share

- 2017-12: AUD 0.40 per share

- 2018-01: AUD 0.33 per share

- 2018-02: AUD 0.38 per share

- 2018-03: AUD 0.33 per share

- 2018-04: AUD 0.29 per share

- 2018-05: AUD 0.29 per share

- 2018-06: AUD 0.28 per share

- 2018-07: AUD 0.25 per share

- 2018-08: AUD 0.22 per share

- 2018-09: AUD 0.22 per share

- 2018-10: AUD 0.17 per share

- 2018-11: AUD 0.17 per share

- 2018-12: AUD 0.16 per share

- 2019-01: AUD 0.16 per share

- 2019-02: AUD 0.16 per share

- 2019-03: AUD 0.23 per share

- 2019-04: AUD 0.27 per share

- 2019-05: AUD 0.26 per share

- 2019-06: AUD 0.25 per share

- 2019-07: AUD 0.34 per share

- 2019-08: AUD 0.37 per share

- 2019-09: AUD 0.42 per share

- 2019-10: AUD 0.42 per share

- 2019-11: AUD 0.41 per share

- 2019-12: AUD 0.42 per share

- 2020-01: AUD 0.57 per share

- 2020-02: AUD 0.45 per share

- 2020-03: AUD 0.36 per share

- 2020-04: AUD 0.41 per share

- 2020-05: AUD 0.43 per share

- 2020-06: AUD 0.40 per share

- 2020-07: AUD 0.57 per share

- 2020-08: AUD 0.61 per share

- 2020-09: AUD 0.86 per share

- 2020-10: AUD 0.77 per share

- 2020-11: AUD 0.81 per share

- 2020-12: AUD 0.92 per share

- 2021-01: AUD 0.90 per share

- 2021-02: AUD 0.96 per share

- 2021-03: AUD 0.86 per share

- 2021-04: AUD 0.85 per share

- 2021-05: AUD 0.90 per share

- 2021-06: AUD 0.84 per share

- 2021-07: AUD 0.80 per share

- 2021-08: AUD 0.78 per share

- 2021-09: AUD 1.58 per share

- 2021-10: AUD 1.62 per share

- 2021-11: AUD 1.51 per share

- 2021-12: AUD 1.94 per share

- 2022-01: AUD 1.73 per share

- 2022-02: AUD 1.21 per share

- 2022-03: AUD 1.56 per share

- 2022-04: AUD 1.44 per share

- 2022-05: AUD 1.75 per share

- 2022-06: AUD 1.33 per share

- 2022-07: AUD 1.65 per share

- 2022-08: AUD 1.62 per share

- 2022-09: AUD 1.57 per share

- 2022-10: AUD 1.69 per share

- 2022-11: AUD 1.78 per share

- 2022-12: AUD 1.73 per share

- 2023-01: AUD 1.60 per share

- 2023-02: AUD 1.57 per share

- 2023-03: AUD 1.50 per share

- 2023-04: AUD 1.41 per share

- 2023-05: AUD 1.24 per share

- 2023-06: AUD 1.51 per share

- 2023-07: AUD 1.22 per share

- 2023-08: AUD 1.32 per share

- 2023-09: AUD 1.21 per share

- 2023-10: AUD 1.16 per share

- 2023-11: AUD 1.44 per share

- 2023-12: AUD 1.38 per share

- 2024-01: AUD 1.43 per share

- 2024-02: AUD 1.21 per share

- 2024-03: AUD 1.22 per share

- 2024-04: AUD 1.63 per share

- 2024-05: AUD 1.82 per share

- 2024-06: AUD 1.62 per share

- 2024-07: AUD 1.51 per share

- 2024-08: AUD 1.33 per share

- 2024-09: AUD 1.39 per share

- 2024-10: AUD 1.60 per share

- 2024-11: AUD 1.43 per share

- 2024-12: AUD 1.29 per share

- 2025-01: AUD 1.26 per share

- 2025-02: AUD 1.30 per share

- 2025-03: AUD 1.51 per share

- 2025-04: AUD 1.68 per share

- 2025-05: AUD 2.07 per share

- 2025-06: AUD 2.26 per share

- 2025-07: AUD 2.22 per share

- 2025-08: AUD 2.86 per share

- 2025-09: AUD 3.84 per share

- 2025-10: AUD 3.92 per share

- 2025-11: AUD 4.29 per share

- 2025-12: AUD 5.63 per share

- 2026-01: AUD 6.52 per share

- 2026-02: AUD 7.05 per share

- 2026-03: AUD 4.40 per share

- 2026-04: AUD 6.15 per share

- 2026-05: AUD 6.08 per share

- 2026-06: AUD 4.95 per share

- 2026-07: AUD 4.04 per share

- 2026-08: AUD 5.56 per share

- 2026-09: AUD 4.93 per share

- 2026-10: AUD 4.69 per share

## Annual estimated value (AUD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.