Karora Resources Inc (KRR.CA) Stock Fundamental Analysis
TSX:KRR - Toronto Stock Exchange - CA48575L2066 - Common Stock - Currency: CAD
Taking everything into account, KRR scores 7 out of 10 in our fundamental rating. KRR was compared to 822 industry peers in the Metals & Mining industry. KRR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KRR is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make KRR a good candidate for value and growth and quality investing.
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.
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.
The Return On Equity of KRR (3.78%) is better than 89.86% of its industry peers.
KRR has a Return On Invested Capital of 5.99%. This is amongst the best in the industry. KRR outperforms 94.49% of its industry peers.
KRR had an Average Return On Invested Capital over the past 3 years of 5.90%. This is significantly below the industry average of 11.99%.
The 3 year average ROIC (5.90%) for KRR is below the current ROIC(5.99%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 3.22%. This is amongst the best in the industry. KRR outperforms 92.12% of its industry peers.
KRR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 14.25%, KRR belongs to the best of the industry, outperforming 92.62% of the companies in the same industry.
KRR's Operating Margin has improved in the last couple of years.
KRR's Gross Margin of 40.26% is amongst the best of the industry. KRR outperforms 94.87% of its industry peers.
In the last couple of years the Gross Margin of KRR has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KRR is destroying value.
KRR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KRR has more shares outstanding
The debt/assets ratio for KRR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.00 indicates that KRR is not in any danger for bankruptcy at the moment.
KRR has a Altman-Z score of 4.00. This is in the better half 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.
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
A Current Ratio of 1.79 indicates that KRR should not have too much problems paying its short term obligations.
KRR has a Current ratio (1.79) which 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
KRR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.67%, which is quite impressive.
KRR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -56.65% yearly.
Looking at the last year, KRR shows a very strong growth in Revenue. The Revenue has grown by 24.81%.
Measured over the past years, KRR shows a very strong growth in Revenue. The Revenue has been growing by 26.45% on average per year.
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
Based on estimates for the next years, KRR will show a very strong growth in Earnings Per Share. The EPS will grow by 60.52% on average per year.
The Revenue is expected to grow by 19.87% on average over the next years. This is quite good.
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.
Based on the Price/Earnings ratio, KRR is valued 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 29.35.
Based on the Price/Forward Earnings ratio of 7.74, the valuation of KRR can be described as very cheap.
Based on the Price/Forward Earnings ratio, KRR is valued cheaper than 93.49% of the companies in the same industry.
KRR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRR is valued cheaper than 91.24% of the companies 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.36 | ||
| EV/EBITDA | 8.95 |
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.
The excellent profitability rating of KRR may justify a higher PE ratio.
A more expensive valuation may be justified as KRR's earnings are expected to grow with 60.52% in the coming years.
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)
Earnings (Next)
Inst Owners17.39%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.20B
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
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%
ROICexcg growth 3Y-26.23%
ROICexcg 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