TSX:KEG.UN

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Keg Royalties Income Fund

Executive Summary

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


Snowflake Analysis

Outstanding track record and undervalued.


Similar Companies

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

Stable Share Price: KEG.UN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.3%

KEG.UN

1.9%

CA Hospitality

0.6%

CA Market


1 Year Return

-52.6%

KEG.UN

-28.5%

CA Hospitality

-7.5%

CA Market

Return vs Industry: KEG.UN underperformed the Canadian Hospitality industry which returned -28.5% over the past year.

Return vs Market: KEG.UN underperformed the Canadian Market which returned -7.5% over the past year.


Shareholder returns

KEG.UNIndustryMarket
7 Day-3.3%1.9%0.6%
30 Day-8.7%1.6%-1.1%
90 Day-18.7%-0.3%6.6%
1 Year-49.3%-52.6%-26.0%-28.5%-4.2%-7.5%
3 Year-52.5%-60.9%-6.2%-14.2%10.0%-0.6%
5 Year-39.7%-55.8%48.7%31.8%42.3%20.3%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KEG.UN (CA$7.87) is trading below our estimate of fair value (CA$15.82)

Significantly Below Fair Value: KEG.UN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KEG.UN is good value based on its PE Ratio (1.9x) compared to the CA Hospitality industry average (17.2x).

PE vs Market: KEG.UN is good value based on its PE Ratio (1.9x) compared to the Canadian market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KEG.UN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KEG.UN is good value based on its PB Ratio (0.7x) compared to the CA Hospitality industry average (1x).


Next Steps

Future Growth

How is Keg Royalties Income Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

64.4%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Keg Royalties Income Fund has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

36.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEG.UN has high quality earnings.

Growing Profit Margin: KEG.UN's current net profit margins are higher than last year (51.1%).


Past Earnings Growth Analysis

Earnings Trend: KEG.UN's earnings have grown significantly by 36% per year over the past 5 years.

Accelerating Growth: KEG.UN's earnings growth over the past year (200.2%) exceeds its 5-year average (36% per year).

Earnings vs Industry: KEG.UN earnings growth over the past year (200.2%) exceeded the Hospitality industry -6.7%.


Return on Equity

High ROE: KEG.UN's Return on Equity (35.5%) is considered high.


Next Steps

Financial Health

How is Keg Royalties Income Fund's financial position?


Financial Position Analysis

Short Term Liabilities: KEG.UN's short term assets (CA$3.6M) exceed its short term liabilities (CA$1.1M).

Long Term Liabilities: KEG.UN's short term assets (CA$3.6M) do not cover its long term liabilities (CA$118.5M).


Debt to Equity History and Analysis

Debt Level: KEG.UN's debt to equity ratio (89.6%) is considered high.

Reducing Debt: KEG.UN's debt to equity ratio has reduced from 158.2% to 89.6% over the past 5 years.

Debt Coverage: KEG.UN's debt is not well covered by operating cash flow (18.4%).

Interest Coverage: KEG.UN's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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

5.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KEG.UN's dividend (5.34%) is higher than the bottom 25% of dividend payers in the Canadian market (1.77%).

High Dividend: KEG.UN's dividend (5.34%) is low compared to the top 25% of dividend payers in the Canadian market (5.72%).


Stability and Growth of Payments

Stable Dividend: KEG.UN's dividends per share have been stable in the past 10 years.

Growing Dividend: KEG.UN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.6%), KEG.UN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

18.3yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
Christopher Woodward
Independent Chairman of the Board of Trustees & Corporate Secretaryno dataCA$30.50k0.040%
CA$ 35.4k
David Aisenstat
President & Director of Keg GP Ltd and Chairman & CEO of KEG Restaurants Ltd.no datano datano data
Neil MacLean
Exec. VP18.33yrsno datano data
Peter Brown
Director of Keg Restaurants Ltdno datano datano data
George Killy
Independent Trustee18.42yrsCA$30.50k0.53%
CA$ 472.2k
Timothy Kerr
Independent Trustee7.25yrsCA$30.50k0.088%
CA$ 78.7k

18.3yrs

Average Tenure

Experienced Board: KEG.UN's board of directors are seasoned and experienced ( 18.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KEG.UN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$89.352m
  • Shares outstanding: 11.35m
  • Website: https://www.kegincomefund.com

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, through the Keg Rights Limited Partnership and The Keg Holdings Trust, holds trademarks, trade nam ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 06:03
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.