TSX:KRR

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Karora Resources

Market Cap

CA$534.2m

Last Updated

2021/07/29 01:35 UTC

Data Sources

Company Financials +

Executive Summary

Karora Resources Inc. engages in the exploration and production of mineral resources in Australia. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KRR is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KRR's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

KRR

1.9%

CA Metals and Mining

1.2%

CA Market


1 Year Return

3.4%

KRR

-10.3%

CA Metals and Mining

27.8%

CA Market

Return vs Industry: KRR exceeded the Canadian Metals and Mining industry which returned -10.3% over the past year.

Return vs Market: KRR underperformed the Canadian Market which returned 27.8% over the past year.


Shareholder returns

KRRIndustryMarket
7 Day0.6%1.9%1.2%
30 Day-8.8%-1.9%-1.5%
90 Day-4.2%-4.3%2.1%
1 Year3.4%3.4%-9.2%-10.3%31.7%27.8%
3 Year796.3%796.3%54.6%50.9%29.5%17.0%
5 Year101.7%101.7%16.0%12.2%51.9%29.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Karora Resources 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: KRR (CA$3.63) is trading below our estimate of fair value (CA$23.6)

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


Price To Earnings Ratio

PE vs Industry: KRR is good value based on its PE Ratio (5.6x) compared to the Canadian Metals and Mining industry average (11.7x).

PE vs Market: KRR is good value based on its PE Ratio (5.6x) compared to the Canadian market (13.9x).


Price to Earnings Growth Ratio

PEG Ratio: KRR is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: KRR's PB Ratio (2.5x) is in line with the CA Metals and Mining industry average.


Future Growth

How is Karora Resources forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRR's forecast earnings growth (23.1% per year) is above the savings rate (1.5%).

Earnings vs Market: KRR's earnings (23.1% per year) are forecast to grow faster than the Canadian market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KRR's revenue (20.7% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: KRR's revenue (20.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KRR's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Karora Resources performed over the past 5 years?

48.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRR has a high level of non-cash earnings.

Growing Profit Margin: KRR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: KRR has become profitable over the past 5 years, growing earnings by 48.1% per year.

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

Earnings vs Industry: KRR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (214.7%).


Return on Equity

High ROE: KRR's Return on Equity (43.8%) is considered outstanding.


Financial Health

How is Karora Resources's financial position?


Financial Position Analysis

Short Term Liabilities: KRR's short term assets (CA$109.8M) exceed its short term liabilities (CA$46.6M).

Long Term Liabilities: KRR's short term assets (CA$109.8M) exceed its long term liabilities (CA$88.2M).


Debt to Equity History and Analysis

Debt Level: KRR's debt to equity ratio (16.5%) is considered satisfactory.

Reducing Debt: KRR's debt to equity ratio has reduced from 27.5% to 16.5% over the past 5 years.

Debt Coverage: KRR's debt is well covered by operating cash flow (278.7%).

Interest Coverage: KRR's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate KRR'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 KRR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KRR'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 KRR'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?

1.5yrs

Average management tenure


CEO

Paul Huet (52 yo)

2yrs

Tenure

CA$2,809,611

Compensation

Mr. Paul Andre Huet, Acc.Dir., has been the Chief Executive Officer of Karora Resources Inc. (formerly, Royal Nickel Corporation) since August 2019 and served as its Interim Chief Executive Officer since J...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.23M) is above average for companies of similar size in the Canadian market ($USD885.88K).

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


Leadership Team

Experienced Management: KRR's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: KRR's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: KRR insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

Karora Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Karora Resources Inc.
  • Ticker: KRR
  • Exchange: TSX
  • Founded: 2006
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$534.207m
  • Shares outstanding: 147.16m
  • Website: https://www.karoraresources.com

Number of Employees


Location

  • Karora Resources Inc.
  • 141 Adelaide Street West
  • Suite 1608
  • Toronto
  • Ontario
  • M5H 3L5
  • Canada

Listings


Biography

Karora Resources Inc. engages in the exploration and production of mineral resources in Australia. The company explores for gold and nickel deposits. It holds 100% interests in the Beta Hunt Gold Mine; the...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/29 01:35
End of Day Share Price2021/07/28 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.