Karora Resources Inc (KRR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:KRR - CA48575L2066 - Common Stock
6.7 CAD
+0.16 (+2.45%)
We assign a fundamental rating of 7 out of 10 to KRR. KRR was compared to 817 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making KRR a very profitable company, without any liquidiy or solvency issues. KRR is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make KRR suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year KRR was profitable.
- KRR had a positive operating cash flow in the past year.
- Of the past 5 years KRR 4 years were profitable.
- KRR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of KRR (2.29%) is better than 89.24% of its industry peers.
- The Return On Equity of KRR (3.78%) is better than 89.86% of its industry peers.
- KRR's Return On Invested Capital of 5.99% is amongst the best of the industry. KRR outperforms 94.49% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for KRR is significantly below the industry average of 11.97%.
- The last Return On Invested Capital (5.99%) for KRR is above the 3 year average (5.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 3.78% | ||
| ROIC | 5.99% |
ROA(3y)3.18%
ROA(5y)6.17%
ROE(3y)5.4%
ROE(5y)10.25%
ROIC(3y)5.9%
ROIC(5y)6.85%
1.3 Margins
- KRR's Profit Margin of 3.22% is amongst the best of the industry. KRR outperforms 92.12% of its industry peers.
- KRR's Profit Margin has declined in the last couple of years.
- KRR's Operating Margin of 14.25% is amongst the best of the industry. KRR outperforms 92.62% of its industry peers.
- In the last couple of years the Operating Margin of KRR has grown nicely.
- The Gross Margin of KRR (40.26%) is better than 94.87% of its industry peers.
- KRR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.25% | ||
| PM (TTM) | 3.22% | ||
| GM | 40.26% |
OM growth 3Y-21.9%
OM growth 5Y4.75%
PM growth 3Y-61.26%
PM growth 5YN/A
GM growth 3Y-5.96%
GM growth 5Y7.74%
2. Health
2.1 Basic Checks
- KRR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- KRR has more shares outstanding than it did 1 year ago.
- KRR has a worse debt/assets ratio than last year.
2.2 Solvency
- KRR has an Altman-Z score of 4.00. This indicates that KRR is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.00, KRR is doing good in the industry, outperforming 64.71% of the companies in the same industry.
- KRR has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.63, KRR belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
- A Debt/Equity ratio of 0.15 indicates that KRR is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.15, KRR is doing worse than 68.96% of the companies in the same industry.
- Although KRR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 4 |
ROIC/WACC0.76
WACC7.85%
2.3 Liquidity
- KRR has a Current Ratio of 1.79. This is a normal value and indicates that KRR is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of KRR (1.79) is comparable to the rest of the industry.
- KRR has a Quick Ratio of 1.33. This is a normal value and indicates that KRR is financially healthy and should not expect problems in meeting its short term obligations.
- KRR has a Quick ratio (1.33) which is comparable to the rest of the industry.
- The current and quick ratio evaluation for KRR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 66.67% over the past year.
- KRR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -56.65% yearly.
- KRR shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.81%.
- The Revenue has been growing by 26.45% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)66.67%
EPS 3Y-56.65%
EPS 5YN/A
EPS Q2Q%133.33%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y20.3%
Revenue growth 5Y26.45%
Sales Q2Q%19.35%
3.2 Future
- KRR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 60.52% yearly.
- KRR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.87% yearly.
EPS Next Y193.38%
EPS Next 2Y102.98%
EPS Next 3Y60.52%
EPS Next 5YN/A
Revenue Next Year38.22%
Revenue Next 2Y24.68%
Revenue Next 3Y19.87%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.80 indicates a quite expensive valuation of KRR.
- Compared to the rest of the industry, the Price/Earnings ratio of KRR indicates a rather cheap valuation: KRR is cheaper than 89.99% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of KRR to the average of the S&P500 Index (26.94), we can say KRR is valued inline with the index average.
- KRR is valuated cheaply with a Price/Forward Earnings ratio of 7.74.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KRR indicates a rather cheap valuation: KRR is cheaper than 93.49% of the companies listed in the same industry.
- KRR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRR indicates a rather cheap valuation: KRR is cheaper than 91.24% of the companies listed in the same industry.
- KRR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KRR is cheaper than 93.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.36 | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- KRR has an outstanding profitability rating, which may justify a higher PE ratio.
- KRR's earnings are expected to grow with 60.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y102.98%
EPS Next 3Y60.52%
5. Dividend
5.1 Amount
- KRR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:KRR (8/2/2024, 7:00:00 PM)
6.7
+0.16 (+2.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)05-13 2024-05-13/bmo
Earnings (Next)08-12 2024-08-12/amc
Inst Owners17.39%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.20B
Revenue(TTM)435.05M
Net Income(TTM)14.00M
Analysts75.56
Price Target6.36 (-5.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)94.48%
Min EPS beat(2)-57.57%
Max EPS beat(2)246.54%
EPS beat(4)2
Avg EPS beat(4)51.36%
Min EPS beat(4)-57.57%
Max EPS beat(4)246.54%
EPS beat(8)2
Avg EPS beat(8)5.83%
EPS beat(12)2
Avg EPS beat(12)-5.08%
EPS beat(16)5
Avg EPS beat(16)7.49%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)1.06%
EPS NQ rev (1m)400%
EPS NQ rev (3m)0%
EPS NY rev (1m)22%
EPS NY rev (3m)101.99%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)17.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 7.74 | ||
| P/S | 2.76 | ||
| P/FCF | 30.36 | ||
| P/OCF | 7.76 | ||
| P/B | 3.23 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)0.25
EY3.73%
EPS(NY)0.87
Fwd EY12.91%
FCF(TTM)0.22
FCFY3.29%
OCF(TTM)0.86
OCFY12.89%
SpS2.43
BVpS2.07
TBVpS2.07
PEG (NY)0.14
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 3.78% | ||
| ROCE | 11.55% | ||
| ROIC | 5.99% | ||
| ROICexc | 7.19% | ||
| ROICexgc | 7.19% | ||
| OM | 14.25% | ||
| PM (TTM) | 3.22% | ||
| GM | 40.26% | ||
| FCFM | 9.07% |
ROA(3y)3.18%
ROA(5y)6.17%
ROE(3y)5.4%
ROE(5y)10.25%
ROIC(3y)5.9%
ROIC(5y)6.85%
ROICexc(3y)7.5%
ROICexc(5y)9.01%
ROICexgc(3y)7.5%
ROICexgc(5y)9.01%
ROCE(3y)11.36%
ROCE(5y)13.19%
ROICexgc growth 3Y-26.23%
ROICexgc growth 5Y-24.41%
ROICexc growth 3Y-26.23%
ROICexc growth 5Y-24.41%
OM growth 3Y-21.9%
OM growth 5Y4.75%
PM growth 3Y-61.26%
PM growth 5YN/A
GM growth 3Y-5.96%
GM growth 5Y7.74%
F-Score7
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 0.41 | ||
| Cap/Depr | 166.97% | ||
| Cap/Sales | 26.43% | ||
| Interest Coverage | 14.17 | ||
| Cash Conversion | 118.04% | ||
| Profit Quality | 282.01% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 4 |
F-Score7
WACC7.85%
ROIC/WACC0.76
Cap/Depr(3y)256.17%
Cap/Depr(5y)245.72%
Cap/Sales(3y)37.86%
Cap/Sales(5y)30.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)66.67%
EPS 3Y-56.65%
EPS 5YN/A
EPS Q2Q%133.33%
EPS Next Y193.38%
EPS Next 2Y102.98%
EPS Next 3Y60.52%
EPS Next 5YN/A
Revenue 1Y (TTM)24.81%
Revenue growth 3Y20.3%
Revenue growth 5Y26.45%
Sales Q2Q%19.35%
Revenue Next Year38.22%
Revenue Next 2Y24.68%
Revenue Next 3Y19.87%
Revenue Next 5YN/A
EBIT growth 1Y58.24%
EBIT growth 3Y-6.04%
EBIT growth 5Y32.45%
EBIT Next Year524.63%
EBIT Next 3Y106.32%
EBIT Next 5YN/A
FCF growth 1Y2845.97%
FCF growth 3Y-12.98%
FCF growth 5YN/A
OCF growth 1Y54.53%
OCF growth 3Y13.34%
OCF growth 5YN/A
Karora Resources Inc / KRR.CA FAQ
What is the fundamental rating for KRR stock?
ChartMill assigns a fundamental rating of 7 / 10 to KRR.CA.
Can you provide the valuation status for Karora Resources Inc?
ChartMill assigns a valuation rating of 9 / 10 to Karora Resources Inc (KRR.CA). This can be considered as Undervalued.
Can you provide the profitability details for Karora Resources Inc?
Karora Resources Inc (KRR.CA) has a profitability rating of 8 / 10.
Can you provide the financial health for KRR stock?
The financial health rating of Karora Resources Inc (KRR.CA) is 7 / 10.