TSXV:KFG

Stock Analysis Report

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Executive Summary

KFG Resources Ltd., through its wholly-owned subsidiary, KFG Petroleum Corporation, engages in the exploration and production of crude oil and natural gas in the United States.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

How has KFG Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

25.0%

KFG

1.3%

CA Oil and Gas

3.4%

CA Market


1 Year Return

-66.7%

KFG

-28.3%

CA Oil and Gas

-11.0%

CA Market

Return vs Industry: KFG underperformed the Canadian Oil and Gas industry which returned -28.3% over the past year.

Return vs Market: KFG underperformed the Canadian Market which returned -11% over the past year.


Shareholder returns

KFGIndustryMarket
7 Day25.0%1.3%3.4%
30 Day66.7%3.9%2.2%
90 Dayn/a-21.1%-7.8%
1 Year-66.7%-66.7%-24.5%-28.3%-7.9%-11.0%
3 Year-50.0%-50.0%-28.4%-36.7%0.1%-9.2%
5 Year-78.3%-78.3%-32.3%-43.5%15.3%-1.9%

Price Volatility Vs. Market

How volatile is KFG Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KFG Resources undervalued compared to its fair value and its price relative to the market?

2.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KFG's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KFG's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KFG is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: KFG is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KFG is overvalued based on its PB Ratio (2.6x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is KFG Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

48.3%

Forecasted Energy 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 KFG Resources 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 KFG Resources performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KFG is currently unprofitable.

Growing Profit Margin: KFG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KFG is unprofitable, but has reduced losses over the past 5 years at a rate of 13.9% per year.

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

Earnings vs Industry: KFG is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-18.2%).


Return on Equity

High ROE: KFG has a negative Return on Equity (-100.64%), as it is currently unprofitable.


Next Steps

Financial Health

How is KFG Resources's financial position?


Financial Position Analysis

Short Term Liabilities: KFG's short term assets ($574.8K) exceed its short term liabilities ($334.4K).

Long Term Liabilities: KFG's short term assets ($574.8K) exceed its long term liabilities ($208.9K).


Debt to Equity History and Analysis

Debt Level: KFG's debt to equity ratio (5.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if KFG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: KFG has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: KFG has sufficient cash runway for 1 years if free cash flow continues to reduce at historical rates of 11% each year.


Next Steps

Dividend

What is KFG Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KFG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KFG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KFG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KFG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KFG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.6yrs

Average board tenure


CEO

Bob Kadane

3.83yrs

Tenure

US$136,800

Compensation

Mr. Robert A. Kadane, also known as Bob, has been the Chief Executive Officer and President of KFG Resources Ltd. since July 1, 2016. Mr. Kadane serves as President KFG Petroleum Corporation. He serves as  ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD136.80K) is about average for companies of similar size in the Canadian market ($USD158.18K).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Robert Kadane
President3.83yrsUS$136.80k1.78% $22.5k
G. Guido
COO, VP of Operations & Director9.33yrsUS$136.80k2.02% $25.5k
Kevin Haney
Independent Director3.58yrsUS$4.80k14.26% $180.1k
Giacomo Grassi
Independent Director3.58yrsUS$4.80k2.97% $37.5k

3.6yrs

Average Tenure

Experienced Board: KFG's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KFG 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

KFG Resources Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KFG Resources Ltd.
  • Ticker: KFG
  • Exchange: TSXV
  • Founded: 1994
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$1.263m
  • Shares outstanding: 50.54m
  • Website: https://www.kfgresources.com

Location

  • KFG Resources Ltd.
  • 150-A Providence Road
  • Natchez
  • Mississippi
  • 39120
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KFGTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 1994

Biography

KFG Resources Ltd., through its wholly-owned subsidiary, KFG Petroleum Corporation, engages in the exploration and production of crude oil and natural gas in the United States. The company develops onshore oil and gas reserves located in Concordia and Catahoula parishes, Louisiana; Adams, Jefferson, and Wilkinson counties, Mississippi; and Comanche County, Kansas. KFG Resources Ltd. was incorporated in 1994 and is headquartered in Natchez, Mississippi. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 07:31
End of Day Share Price2020/05/28 00:00
Earnings2020/01/31
Annual Earnings2019/04/30


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.