company background image
KEG.

Keg Royalties Income Fund TSX:KEG.UN Stock Report

Last Price

CA$16.70

Market Cap

CA$278.5m

7D

2.5%

1Y

19.0%

Updated

18 Aug, 2022

Data

Company Financials
KEG.UN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health2/6
Dividends5/6

KEG.UN Stock Overview

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

Keg Royalties Income Fund Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Keg Royalties Income Fund
Historical stock prices
Current Share PriceCA$16.70
52 Week HighCA$17.00
52 Week LowCA$13.62
Beta1.47
1 Month Change6.10%
3 Month Change8.09%
1 Year Change19.03%
3 Year Change1.95%
5 Year Change-18.74%
Change since IPO67.00%

Recent News & Updates

Shareholder Returns

KEG.UNCA HospitalityCA Market
7D2.5%-0.02%1.5%
1Y19.0%-7.7%2.1%

Return vs Industry: KEG.UN exceeded the Canadian Hospitality industry which returned -7.7% over the past year.

Return vs Market: KEG.UN exceeded the Canadian Market which returned 2.1% over the past year.

Price Volatility

Is KEG.UN's price volatile compared to industry and market?
KEG.UN volatility
KEG.UN Average Weekly Movement3.6%
Hospitality Industry Average Movement5.5%
Market Average Movement10.6%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.2%

Stable Share Price: KEG.UN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KEG.UN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2002n/an/ahttps://www.kegincomefund.com

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 procedures and systems, and other intellectual property used in connection with the operation of Keg steakhouse restaurants and bars. As of December 31, 2021, it had 106 Keg restaurants in operation, including 39 in Canada and 10 in the United Sates; and 57 Keg restaurants, which are owned and operated by Keg franchisees in Canada.

Keg Royalties Income Fund Fundamentals Summary

How do Keg Royalties Income Fund's earnings and revenue compare to its market cap?
KEG.UN fundamental statistics
Market CapCA$278.53m
Earnings (TTM)CA$7.81m
Revenue (TTM)CA$29.06m

24.3x

P/E Ratio

6.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KEG.UN income statement (TTM)
RevenueCA$29.06m
Cost of RevenueCA$0
Gross ProfitCA$29.06m
Other ExpensesCA$21.25m
EarningsCA$7.81m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.69
Gross Margin100.00%
Net Profit Margin26.86%
Debt/Equity Ratio153.7%

How did KEG.UN perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

154%

Payout Ratio

Does KEG.UN pay a reliable dividends?

See KEG.UN dividend history and benchmarks
When do you need to buy KEG.UN by to receive an upcoming dividend?
Keg Royalties Income Fund dividend dates
Ex Dividend DateAug 18 2022
Dividend Pay DateAug 31 2022
Days until Ex dividend1 day
Days until Dividend pay date12 days

Does KEG.UN pay a reliable dividends?

See KEG.UN dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is KEG.UN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KEG.UN?

Other financial metrics that can be useful for relative valuation.

KEG.UN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue11.7x
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does KEG.UN's PE Ratio compare to its peers?

KEG.UN PE Ratio vs Peers
The above table shows the PE ratio for KEG.UN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.7x
BPF.UN Boston Pizza Royalties Income Fund
10.9x-6.4%CA$411.4m
PZA Pizza Pizza Royalty
17.1xn/aCA$441.5m
AW.UN A&W Revenue Royalties Income Fund
15.6xn/aCA$542.9m
SRV.UN SIR Royalty Income Fund
3.2xn/aCA$137.4m
KEG.UN Keg Royalties Income Fund
24.3xn/aCA$278.5m

Price-To-Earnings vs Peers: KEG.UN is expensive based on its Price-To-Earnings Ratio (24.3x) compared to the peer average (11.7x).


Price to Earnings Ratio vs Industry

How does KEG.UN's PE Ratio compare vs other companies in the North American Hospitality Industry?

Price-To-Earnings vs Industry: KEG.UN is expensive based on its Price-To-Earnings Ratio (24.3x) compared to the Canadian Hospitality industry average (15.7x)


Price to Earnings Ratio vs Fair Ratio

What is KEG.UN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KEG.UN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KEG.UN's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of KEG.UN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KEG.UN (CA$16.7) is trading below our estimate of fair value (CA$27.61)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.1%

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.


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  • Keg Royalties Income Fund is a dividend payer. Have a look at its current yield, dividend levels over time and whether analysts believe the payout ratio will be sustainable moving forward.
  • Keg Royalties Income Fund competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-22.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KEG.UN has high quality earnings.

Growing Profit Margin: KEG.UN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: KEG.UN has become profitable over the past 5 years, growing earnings by -22.6% per year.

Accelerating Growth: KEG.UN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: KEG.UN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (17.8%).


Return on Equity

High ROE: KEG.UN's Return on Equity (7.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Keg Royalties Income Fund's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: KEG.UN's short term assets (CA$5.5M) exceed its short term liabilities (CA$2.4M).

Long Term Liabilities: KEG.UN's short term assets (CA$5.5M) do not cover its long term liabilities (CA$155.6M).


Debt to Equity History and Analysis

Debt Level: KEG.UN's net debt to equity ratio (151.4%) is considered high.

Reducing Debt: KEG.UN's debt to equity ratio has reduced from 204.4% to 153.7% over the past 5 years.

Debt Coverage: KEG.UN's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: KEG.UN's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.80%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KEG.UN's dividend (6.8%) is higher than the bottom 25% of dividend payers in the Canadian market (1.86%).

High Dividend: KEG.UN's dividend (6.8%) is in the top 25% of dividend payers in the Canadian market (5.31%)


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 increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (154.4%), KEG.UN's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (80.9%), KEG.UN's dividend payments are covered by cash flows.


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Management

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

20.3yrs

Average board tenure


CEO

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


Board Members

Experienced Board: KEG.UN's board of directors are seasoned and experienced ( 20.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: CA$278.531m
  • Market Cap: CA$189.603m
  • Shares outstanding: 16.68m
  • Website: https://www.kegincomefund.com

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.