company background image
KEG.

Keg Royalties Income Fund TSX:KEG.UN Stock Report

Last Price

CA$16.21

Market Cap

CA$266.7m

7D

3.6%

1Y

14.6%

Updated

09 Aug, 2022

Data

Company Financials
KEG.UN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends4/6

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$16.21
52 Week HighCA$17.00
52 Week LowCA$13.62
Beta1.47
1 Month Change6.09%
3 Month Change4.78%
1 Year Change14.56%
3 Year Change-2.58%
5 Year Change-22.81%
Change since IPO62.10%

Recent News & Updates

Shareholder Returns

KEG.UNCA HospitalityCA Market
7D3.6%7.6%-0.4%
1Y14.6%-8.1%-1.2%

Return vs Industry: KEG.UN exceeded the Canadian Hospitality industry which returned -8.1% over the past year.

Return vs Market: KEG.UN exceeded the Canadian Market which returned -1.2% over the past year.

Price Volatility

Is KEG.UN's price volatile compared to industry and market?
KEG.UN volatility
KEG.UN Average Weekly Movement3.5%
Hospitality Industry Average Movement5.6%
Market Average Movement10.8%
10% most volatile stocks in CA Market19.3%
10% least volatile stocks in CA Market4.4%

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$266.68m
Earnings (TTM)-CA$7.77m
Revenue (TTM)CA$24.37m

7.6x

P/S Ratio

-23.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KEG.UN income statement (TTM)
RevenueCA$24.37m
Cost of RevenueCA$0
Gross ProfitCA$24.37m
Other ExpensesCA$32.14m
Earnings-CA$7.77m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.68
Gross Margin100.00%
Net Profit Margin-31.87%
Debt/Equity Ratio172.1%

How did KEG.UN perform over the long term?

See historical performance and comparison

Dividends

7.0%

Current Dividend Yield

-129%

Payout Ratio
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

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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/Revenue14x
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Sales Ratio vs Peers

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

KEG.UN PS Ratio vs Peers
The above table shows the PS ratio for KEG.UN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average12x
BPF.UN Boston Pizza Royalties Income Fund
7.9x6.8%CA$383.4m
PZA Pizza Pizza Royalty
12.7x40.1%CA$417.3m
SRV.UN SIR Royalty Income Fund
16.7xn/aCA$133.3m
AW.UN A&W Revenue Royalties Income Fund
10.8xn/aCA$538.9m
KEG.UN Keg Royalties Income Fund
7.6xn/aCA$266.7m

Price-To-Sales vs Peers: KEG.UN is good value based on its Price-To-Sales Ratio (7.6x) compared to the peer average (12x).


Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: KEG.UN is expensive based on its Price-To-Sales Ratio (7.6x) compared to the Canadian Hospitality industry average (2.9x)


Price to Sales Ratio vs Fair Ratio

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

KEG.UN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.6x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate KEG.UN's Price-To-Sales 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$16.21) is trading above our estimate of fair value (CA$14.83)

Significantly Below Fair Value: KEG.UN is trading above our estimate of fair value.


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


30.9%

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

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KEG.UN is currently unprofitable.

Growing Profit Margin: KEG.UN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KEG.UN is unprofitable, and losses have increased over the past 5 years at a rate of 19.1% per year.

Accelerating Growth: Unable to compare KEG.UN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KEG.UN is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (17.8%).


Return on Equity

High ROE: KEG.UN has a negative Return on Equity (-8.38%), as it is currently unprofitable.


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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$4.8M) exceed its short term liabilities (CA$2.0M).

Long Term Liabilities: KEG.UN's short term assets (CA$4.8M) do not cover its long term liabilities (CA$162.2M).


Debt to Equity History and Analysis

Debt Level: KEG.UN's net debt to equity ratio (170.4%) is considered high.

Reducing Debt: KEG.UN's debt to equity ratio has reduced from 174.6% to 172.1% over the past 5 years.

Debt Coverage: KEG.UN's debt is not well covered by operating cash flow (12%).

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


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


7.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KEG.UN's dividend (7%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: KEG.UN's dividend (7%) is in the top 25% of dividend payers in the Canadian market (5.36%)


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: KEG.UN is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (98.5%), KEG.UN's dividend payments are not well 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$266.685m
  • Market Cap: CA$184.040m
  • 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 Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/03/31
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.