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KRR

Karora Resources TSX:KRR Stock Report

Last Price

CA$4.80

Market Cap

CA$745.3m

7D

-5.9%

1Y

11.4%

Updated

21 May, 2022

Data

Company Financials +
KRR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends0/6

KRR Stock Overview

Karora Resources Inc. operates as a multi-operational mineral resource company in Australia.

Karora Resources Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Karora Resources
Historical stock prices
Current Share PriceCA$4.80
52 Week HighCA$7.55
52 Week LowCA$3.03
Beta0.21
1 Month Change-34.61%
3 Month Change-8.75%
1 Year Change11.37%
3 Year Change177.06%
5 Year Change407.94%
Change since IPO-46.67%

Recent News & Updates

May 13
Downgrade: Here's How Analysts See Karora Resources Inc. (TSE:KRR) Performing In The Near Term

Downgrade: Here's How Analysts See Karora Resources Inc. (TSE:KRR) Performing In The Near Term

The analysts covering Karora Resources Inc. ( TSE:KRR ) delivered a dose of negativity to shareholders today, by making...

Shareholder Returns

KRRCA Metals and MiningCA Market
7D-5.9%4.0%0.8%
1Y11.4%-7.4%4.8%

Return vs Industry: KRR exceeded the Canadian Metals and Mining industry which returned -7.4% over the past year.

Return vs Market: KRR exceeded the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is KRR's price volatile compared to industry and market?
KRR volatility
KRR Average Weekly Movement8.1%
Metals and Mining Industry Average Movement10.8%
Market Average Movement9.9%
10% most volatile stocks in CA Market16.9%
10% least volatile stocks in CA Market4.4%

Stable Share Price: KRR is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: KRR's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006210Paul Huethttps://www.karoraresources.com

Karora Resources Inc. operates as a multi-operational mineral resource company in Australia. The company explores for gold and nickel deposits. It holds 100% interests in the Beta Hunt Gold Mine; the Higginsville Gold Operations; and Spargos Reward Gold Project located in Western Australia.

Karora Resources Fundamentals Summary

How do Karora Resources's earnings and revenue compare to its market cap?
KRR fundamental statistics
Market CapCA$745.25m
Earnings (TTM)CA$18.13m
Revenue (TTM)CA$270.17m

41.1x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KRR income statement (TTM)
RevenueCA$270.17m
Cost of RevenueCA$151.33m
Gross ProfitCA$118.85m
Other ExpensesCA$100.72m
EarningsCA$18.13m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin43.99%
Net Profit Margin6.71%
Debt/Equity Ratio12.9%

How did KRR perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: KRR (CA$4.8) is trading below our estimate of fair value (CA$34.7)

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


Price To Earnings Ratio

PE vs Industry: KRR is poor value based on its PE Ratio (41.1x) compared to the Canadian Metals and Mining industry average (11x).

PE vs Market: KRR is poor value based on its PE Ratio (41.1x) compared to the Canadian market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: KRR is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: KRR is overvalued based on its PB Ratio (2.9x) compared to the CA Metals and Mining industry average (2x).


Future Growth

How is Karora Resources forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


47.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRR's forecast earnings growth (40.6% per year) is above the savings rate (1.6%).

Earnings vs Market: KRR's earnings (40.6% per year) are forecast to grow faster than the Canadian market (7.5% per year).

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

Revenue vs Market: KRR's revenue (16.2% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: KRR's revenue (16.2% per year) is forecast to grow slower 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?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


64.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KRR has high quality earnings.

Growing Profit Margin: KRR's current net profit margins (6.7%) are lower than last year (38.2%).


Past Earnings Growth Analysis

Earnings Trend: KRR has become profitable over the past 5 years, growing earnings by 64.6% per year.

Accelerating Growth: KRR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KRR had negative earnings growth (-80.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (-3.8%).


Return on Equity

High ROE: KRR's Return on Equity (7.1%) is considered low.


Financial Health

How is Karora Resources's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: KRR's short term assets (CA$126.6M) exceed its short term liabilities (CA$72.8M).

Long Term Liabilities: KRR's short term assets (CA$126.6M) exceed its long term liabilities (CA$114.7M).


Debt to Equity History and Analysis

Debt Level: KRR has more cash than its total debt.

Reducing Debt: KRR's debt to equity ratio has increased from 4.6% to 12.9% over the past 5 years.

Debt Coverage: KRR's debt is well covered by operating cash flow (305.3%).

Interest Coverage: KRR's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as KRR has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.1yrs

Average management tenure


CEO

Paul Huet (52 yo)

2.83yrs

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 ($USD2.19M) is above average for companies of similar size in the Canadian market ($USD974.36K).

Compensation vs Earnings: Paul's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: KRR's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: KRR's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KRR insiders have only sold shares 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 5.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Karora Resources Inc.
  • Ticker: KRR
  • Exchange: TSX
  • Founded: 2006
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: CA$745.250m
  • Shares outstanding: 155.26m
  • Website: https://www.karoraresources.com

Number of Employees


Location

  • Karora Resources Inc.
  • Ground Floor
  • 15 Altona Street
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 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.