Karora Resources Inc (KRR.CA) Stock Fundamental Analysis
Canada - TSX:KRR - CA48575L2066 - Common Stock
6.7 CAD
+0.16 (+2.45%)
KRR gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 807 industry peers in the Metals & Mining industry. KRR gets an excellent profitability rating and is at the same time showing great financial health properties. 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
In the past year KRR was profitable.
In the past year KRR had a positive cash flow from operations.
KRR had positive earnings in 4 of the past 5 years.
In the past 5 years KRR always reported a positive cash flow from operatings.
1.2 Ratios
KRR has a better Return On Assets (2.29%) than 89.24% of its industry peers.
KRR's Return On Equity of 3.78% is amongst the best of the industry. KRR outperforms 89.86% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for KRR is significantly below the industry average of 11.74%.
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'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.
Looking at the Operating Margin, with a value of 14.25%, KRR belongs to the top 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.
The Gross Margin of KRR (40.26%) is better than 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.
KRR has more shares outstanding than it did 5 years ago.
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.
The Debt to FCF ratio of KRR is 1.63, which is an excellent value as it means it would take KRR, only 1.63 years of fcf income to pay off all of its debts.
KRR has a better Debt to FCF ratio (1.63) than 94.87% of its industry peers.
KRR has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
KRR has a worse Debt to Equity ratio (0.15) than 68.96% of its industry peers.
Even though the debt/equity ratio score it not favorable for KRR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| 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.
A Quick Ratio of 1.33 indicates that KRR should not have too much problems paying its short term obligations.
KRR has a Quick ratio (1.33) which is comparable to the rest of the 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 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.
The earnings per share for KRR have been decreasing by -56.65% on average. This is quite bad
The Revenue has grown by 24.81% in the past year. This is a very strong growth!
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
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.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 26.80, which means the current valuation is very expensive for 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.
The average S&P500 Price/Earnings ratio is at 27.41. KRR is around the same levels.
Based on the Price/Forward Earnings ratio of 7.74, the valuation of KRR can be described as very cheap.
93.49% of the companies in the same industry are more expensive than KRR, based on the Price/Forward Earnings ratio.
KRR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
91.24% of the companies in the same industry are more expensive than KRR, based on the Enterprise Value to EBITDA ratio.
93.37% of the companies in the same industry are more expensive than KRR, based on the Price/Free Cash Flow ratio.
| 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
No dividends for KRR!.
| 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