Executive Summary
Karora Resources Inc. engages in the exploration and production of mineral resources in Australia. More Details
Rewards
Risk Analysis
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
| KRR | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 1.9% | 1.2% |
| 30 Day | -8.8% | -1.9% | -1.5% |
| 90 Day | -4.2% | -4.3% | 2.1% |
| 1 Year | 3.4%3.4% | -9.2%-10.3% | 31.7%27.8% |
| 3 Year | 796.3%796.3% | 54.6%50.9% | 29.5%17.0% |
| 5 Year | 101.7%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
1 month ago | Simply Wall St
Is Karora Resources Inc.'s (TSE:KRR) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?2 months ago | Simply Wall St
Did You Miss Karora Resources' (TSE:KRR) Impressive 285% Share Price Gain?4 months ago | Simply Wall St
Karora Resources (TSE:KRR) Seems To Use Debt Quite SensiblyValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/29 01:35 |
| End of Day Share Price | 2021/07/28 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.