TSX:KEG.UN

Stock Analysis Report

Keg Royalties Income Fund

Executive Summary

The Keg Royalties Income Fund operates as an unincorporated open-ended limited purpose trust.

Snowflake

Risks

  • Keg Royalties Income Fund is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.

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Share Price & News

How has Keg Royalties Income Fund's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

TSX:KEG.UN

0.3%

CA Hospitality

1.6%

CA Market


1 Year Return

-4.7%

TSX:KEG.UN

-17.4%

CA Hospitality

-0.3%

CA Market

KEG.UN outperformed the Hospitality industry which returned -16.5% over the past year.

KEG.UN underperformed the Market in Canada which returned -0.5% over the past year.


Share holder returns

KEG.UNIndustryMarket
7 Day2.4%0.3%1.6%
30 Day2.1%6.5%4.1%
90 Day-3.7%-2.9%1.1%
1 Year2.1%-4.7%-16.8%-17.4%3.3%-0.3%
3 Year-5.5%-20.7%22.9%19.6%19.3%8.6%
5 Year32.0%-1.2%-3.4%-6.2%21.6%4.1%

Price Volatility Vs. Market

How volatile is Keg Royalties Income Fund's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Keg Royalties Income Fund undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Keg Royalties Income Fund's share price is below the future cash flow value, and at a moderate discount (> 20%).

Keg Royalties Income Fund's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Keg Royalties Income Fund is good value based on earnings compared to the CA Hospitality industry average.

Keg Royalties Income Fund is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Keg Royalties Income Fund earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Keg Royalties Income Fund is overvalued based on assets compared to the CA Hospitality industry average.

Future Growth

How is Keg Royalties Income Fund expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

-3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Keg Royalties Income Fund's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

Keg Royalties Income Fund's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Keg Royalties Income Fund's revenue growth is positive but not above the Canada market average.

Keg Royalties Income Fund's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.

Keg Royalties Income Fund's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Keg Royalties Income Fund will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Past Performance

How has Keg Royalties Income Fund performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Keg Royalties Income Fund has delivered over 20% year on year earnings growth in the past 5 years.

Keg Royalties Income Fund's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Keg Royalties Income Fund's 1-year earnings growth is negative, it can't be compared to the CA Hospitality industry average.


Return on Equity

Keg Royalties Income Fund has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Keg Royalties Income Fund used its assets more efficiently than the CA Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Keg Royalties Income Fund has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Financial Health

How is Keg Royalties Income Fund's financial position?


Financial Position Analysis

Keg Royalties Income Fund is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Keg Royalties Income Fund's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Keg Royalties Income Fund's level of debt (14.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (14.8% vs 14.8% today).

Debt is well covered by operating cash flow (176.7%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x debt.

Dividend

What is Keg Royalties Income Fund's current dividend yield, its reliability and sustainability?

6.99%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Keg Royalties Income Fund's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Keg Royalties Income Fund's dividend is above the markets top 25% of dividend payers in Canada (5.8%).

Dividends per share have been stable in the past 10 years.

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.

Management

What is the CEO of Keg Royalties Income Fund's salary, the management and board of directors tenure and is there insider trading?

12.5yrs

Average management tenure


CEO

Keg Royalties Income Fund has no CEO, or we have no data on them.


Management Age and Tenure

12.5yrs

Average Tenure

The average tenure for the Keg Royalties Income Fund management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

17.3yrs

Average Tenure

The average tenure for the Keg Royalties Income Fund board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCA$324,57230 May 19
Stephen Gunn
EntityIndividual
Shares18,660
Max PriceCA$17.39
BuyCA$174,38129 May 19
Stephen Gunn
EntityIndividual
Shares10,000
Max PriceCA$17.47
BuyCA$157,94401 Jan 19
Timothy Kerr
EntityIndividual
Role
Member of the Board of Directors
Shares10,000
Max PriceCA$15.87

Ownership Breakdown


Management Team

  • David Aisenstat

    President & Director of Keg GP Ltd and President

    • Tenure: 0yrs
  • Christopher Woodward

    Chairman of the Board of Trustees & Corporate Secretary

    • Tenure: 0yrs
    • Compensation: CA$30.50k
  • Neil MacLean

    Exec. VP

    • Tenure: 17.3yrs
  • James Henderson

    Executive Vice President of Business Development - Keg Restaurants Ltd.

    • Tenure: 12.5yrs
  • Doug Smith

    Executive VP & COO of Keg Restaurants Ltd

    • Tenure: 8.3yrs

Board Members

  • Peter Brown (78yo)

    Director of Keg Restaurants Ltd

    • Tenure: 0yrs
  • David Aisenstat

    President & Director of Keg GP Ltd and President

    • Tenure: 0yrs
  • Christopher Woodward

    Chairman of the Board of Trustees & Corporate Secretary

    • Tenure: 0yrs
    • Compensation: CA$30.50k
  • Neil MacLean

    Exec. VP

    • Tenure: 17.3yrs
  • George Killy

    • Tenure: 17.4yrs
    • Compensation: CA$30.50k
  • Tim Kerr

    • Tenure: 6.3yrs
    • Compensation: CA$30.50k

Company Information

The Keg Royalties Income Fund's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Keg Royalties Income Fund
  • Ticker: KEG.UN
  • Exchange: TSX
  • Founded: 2002
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: CA$190.058m
  • Shares outstanding: 11.35m
  • Website: https://www.kegincomefund.com

Number of Employees


Location

  • The Keg Royalties Income Fund
  • 10100 Shellbridge Way
  • Richmond
  • British Columbia
  • V6X 2W7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KEG.UNTSX (The Toronto Stock Exchange)YesFund UnitsCACADMay 2002
KRIU.FOTCPK (Pink Sheets LLC)YesFund UnitsUSUSDMay 2002

Biography

The Keg Royalties Income Fund operates as an unincorporated open-ended limited purpose trust. The company invests in The Keg Rights Limited Partnership, which owns the trademarks, trade names, operating pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:37
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.