Karora Resources Inc (KRR.CA) Fundamental Analysis & Valuation

TSX:KRR • CA48575L2066

Current stock price

6.7 CAD
+0.16 (+2.45%)
Last:

This KRR.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. KRR.CA Profitability Analysis

1.1 Basic Checks

  • In the past year KRR was profitable.
  • In the past year KRR had a positive cash flow from operations.
  • 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

  • KRR's Return On Assets of 2.29% is amongst the best of the industry. KRR outperforms 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.
  • 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 12.74%.
  • The 3 year average ROIC (5.90%) for KRR is below the current ROIC(5.99%), indicating increased profibility in the last year.
Industry 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

  • KRR has a better Profit Margin (3.22%) than 92.12% of its industry peers.
  • In the last couple of years the Profit Margin of KRR has declined.
  • KRR has a better Operating Margin (14.25%) than 92.62% of its industry peers.
  • 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 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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7

2. KRR.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KRR is destroying value.
  • The number of shares outstanding for KRR has been increased compared to 1 year ago.
  • KRR has a worse debt/assets ratio than last year.
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

  • 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.
  • The Altman-Z score of KRR (4.00) is better than 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.
  • 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 has a Debt to Equity ratio of 0.15. This is in the lower half of the industry: KRR underperforms 68.96% of its industry peers.
  • Although KRR's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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

  • 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 in line with its industry peers.
  • 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 of 1.33. This is comparable to the rest of the industry: KRR outperforms 44.56% of its industry peers.
  • 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 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. KRR.CA Growth Analysis

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.
  • The Revenue has grown by 24.81% in the past year. This is a very strong growth!
  • 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.
  • 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.
  • 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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9

4. KRR.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 26.80, which means the current valuation is very expensive for KRR.
  • Based on the Price/Earnings ratio, KRR is valued cheaply inside the industry as 89.99% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of KRR to the average of the S&P500 Index (26.21), we can say KRR is valued inline with the index average.
  • 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 cheaply inside the industry as 93.49% of the companies are valued more expensively.
  • KRR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
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 10 20 30 40 50

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.
  • 93.37% of the companies in the same industry are more expensive than KRR, based on the Price/Free Cash Flow ratio.
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. KRR.CA Dividend Analysis

5.1 Amount

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

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KRR.CA Fundamentals: All Metrics, Ratios and Statistics

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 Fundamental Analysis 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.


What is the profitability of KRR stock?

Karora Resources Inc (KRR.CA) has a profitability rating of 8 / 10.


What is the valuation of Karora Resources Inc based on its PE and PB ratios?

The Price/Earnings (PE) ratio for Karora Resources Inc (KRR.CA) is 26.8 and the Price/Book (PB) ratio is 3.23.


Can you provide the expected EPS growth for KRR stock?

The Earnings per Share (EPS) of Karora Resources Inc (KRR.CA) is expected to grow by 193.38% in the next year.