Karora Resources Inc (KRR.CA) Stock Fundamental Analysis

TSX:KRR • CA48575L2066

6.7 CAD
+0.16 (+2.45%)
Last: Aug 2, 2024, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall KRR gets a fundamental rating of 7 out of 10. We evaluated KRR against 816 industry peers in the Metals & Mining industry. KRR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KRR has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make KRR a good candidate for value and growth and quality investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • KRR had positive earnings in the past year.
  • KRR had a positive operating cash flow in the past year.
  • Of the past 5 years KRR 4 years were profitable.
  • In the past 5 years KRR always reported a positive cash flow from operatings.
KRR.CA Yearly Net Income VS EBIT VS OCF VS FCFKRR.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.29%, KRR belongs to the top of the industry, outperforming 89.24% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 3.78%, KRR belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 5.99%, KRR belongs to the best of the industry, outperforming 94.49% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for KRR is significantly below the industry average of 12.59%.
  • 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 RankSector 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%
KRR.CA Yearly ROA, ROE, ROICKRR.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 -2K -4K -6K -8K

1.3 Margins

  • The Profit Margin of KRR (3.22%) is better than 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 RankSector 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%
KRR.CA Yearly Profit, Operating, Gross MarginsKRR.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KRR is destroying value.
  • The number of shares outstanding for KRR has been increased compared to 1 year ago.
  • Compared to 1 year ago, KRR has a worse debt to assets ratio.
KRR.CA Yearly Shares OutstandingKRR.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
KRR.CA Yearly Total Debt VS Total AssetsKRR.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

2.2 Solvency

  • An Altman-Z score of 4.00 indicates that KRR is not in any danger for bankruptcy at the moment.
  • KRR's Altman-Z score of 4.00 is fine compared to the rest of the industry. KRR outperforms 64.71% of its industry peers.
  • 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.
  • KRR has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
  • KRR's Debt to Equity ratio of 0.15 is on the low side compared to the rest of the industry. KRR is outperformed by 68.96% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.15
Debt/FCF 1.63
Altman-Z 4
ROIC/WACC0.76
WACC7.85%
KRR.CA Yearly LT Debt VS Equity VS FCFKRR.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

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.
  • Looking at the Current ratio, with a value of 1.79, KRR is in line with its industry, outperforming 46.81% of the companies in the same industry.
  • A Quick Ratio of 1.33 indicates that KRR should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.33, KRR perfoms like the industry average, outperforming 44.56% of the companies in the same industry.
  • KRR does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.79
Quick Ratio 1.33
KRR.CA Yearly Current Assets VS Current LiabilitesKRR.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 66.67% over the past year.
  • The earnings per share for KRR have been decreasing by -56.65% on average. This is quite bad
  • Looking at the last year, KRR shows a very strong growth in Revenue. The Revenue has grown by 24.81%.
  • KRR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.45% yearly.
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.
  • Based on estimates for the next years, KRR will show a quite strong growth in Revenue. The Revenue will grow by 19.87% on average per year.
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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
KRR.CA Yearly Revenue VS EstimatesKRR.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
KRR.CA Yearly EPS VS EstimatesKRR.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2019 2020 2021 2022 2023 2024 2025 2026 0 0.2 -0.2 0.4 0.6 0.8

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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 26.80, which means the current valuation is very expensive for KRR.
  • KRR's Price/Earnings ratio is rather cheap when compared to the industry. KRR is cheaper than 89.99% of the companies in the same industry.
  • KRR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.07.
  • A Price/Forward Earnings ratio of 7.74 indicates a rather cheap valuation of KRR.
  • Based on the Price/Forward Earnings ratio, KRR is valued cheaper than 93.49% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of KRR to the average of the S&P500 Index (28.05), we can say KRR is valued rather cheaply.
Industry RankSector Rank
PE 26.8
Fwd PE 7.74
KRR.CA Price Earnings VS Forward Price EarningsKRR.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of KRR indicates a rather cheap valuation: KRR is cheaper than 93.37% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 30.36
EV/EBITDA 8.95
KRR.CA Per share dataKRR.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.5 1 1.5 2

4.3 Compensation for Growth

  • KRR's 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for KRR!.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

Karora Resources Inc

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
Earnings (Next)08-12
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.