TSXV:KAR

Stock Analysis Report

Karmin Exploration

Executive Summary

Karmin Exploration Inc., a mining and exploration company, explores for and develops mineral properties.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Karmin Exploration's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

KAR

-1.3%

CA Metals and Mining

-4.8%

CA Market


1 Year Return

42.3%

KAR

6.3%

CA Metals and Mining

0.1%

CA Market

Return vs Industry: KAR exceeded the Canadian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: KAR exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

KARIndustryMarket
7 Day0%-1.3%-4.8%
30 Day0%3.6%-3.2%
90 Day44.3%9.3%-1.0%
1 Year42.3%42.3%7.1%6.3%3.3%0.1%
3 Year274.1%274.1%1.3%-0.5%12.9%2.7%
5 Year165.8%165.8%27.5%23.8%29.2%10.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Karmin Exploration undervalued compared to its fair value and its price relative to the market?

12.99x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: KAR is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: KAR 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 KAR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KAR is overvalued based on its PB Ratio (13x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

15.1%

Forecasted Materials 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 Karmin Exploration 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 Karmin Exploration performed over the past 5 years?

-67.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KAR is currently unprofitable.

Growing Profit Margin: KAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KAR is unprofitable, and losses have increased over the past 5 years at a rate of -67.4% per year.

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

Earnings vs Industry: KAR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-1.4%).


Return on Equity

High ROE: KAR has a negative Return on Equity (-280.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Karmin Exploration's financial position?


Financial Position Analysis

Short Term Liabilities: KAR's short term assets (CA$53.1K) do not cover its short term liabilities (CA$2.0M).

Long Term Liabilities: KAR's short term assets (CA$53.1K) do not cover its long term liabilities (CA$1.3M).


Debt to Equity History and Analysis

Debt Level: KAR's debt to equity ratio (20.9%) is considered satisfactory.

Reducing Debt: KAR's debt to equity ratio has reduced from 23.8% to 20.9% over the past 5 years.


Balance Sheet

Inventory Level: KAR has a low level of unsold assets or inventory.

Debt Coverage by Assets: KAR's debt is not covered by short term assets (assets are 0x debt).


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: KAR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: KAR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -26.2% each year


Next Steps

Dividend

What is Karmin Exploration's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.8%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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

8.1yrs

Average board tenure


CEO

David Brace (66yo)

8.1yrs

Tenure

CA$120,000

Compensation

Mr. David W. Brace, P. Geo, B.Sc. (geology), M.B.A., serves as the President of Lambton Capital Inc. Mr. Brace has been the Chief Executive Officer of Karmin Exploration Inc. since September 2, 2011. He se ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD165.67K).

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


Board Members

NamePositionTenureCompensationOwnership
David Brace
CEO & Director8.1yrsCA$120.00k2.58% CA$2.3m
John Iannozzi
CFO & Director21.8yrsCA$84.00k6.49% CA$5.9m
Richard Faucher
Independent Director8.1yrsno datano data
Larry Ciccarelli
Chairman of the Board0yrsCA$48.00k15.94% CA$14.5m
Terence Ortslan
Independent Director8.1yrsno data0.28% CA$252.5k
Luis Mariategui Canny
Independent Director7.8yrsno data0.34% CA$309.7k

8.1yrs

Average Tenure

67.5yo

Average Age

Experienced Board: KAR's board of directors are considered experienced (8.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KAR 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

Karmin Exploration Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Karmin Exploration Inc.
  • Ticker: KAR
  • Exchange: TSXV
  • Founded: 1995
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$90.845m
  • Shares outstanding: 89.95m
  • Website: https://www.karmin.com

Location

  • Karmin Exploration Inc.
  • First Canadian Place
  • 100 King Street West
  • Toronto
  • Ontario
  • M5X 1C7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KARTSXV (TSX Venture Exchange)YesCommon SharesCACADOct 2000
KARBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDOct 2000
KRME.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2000
K1XBST (Boerse-Stuttgart)YesCommon SharesDEEUROct 2000

Biography

Karmin Exploration Inc., a mining and exploration company, explores for and develops mineral properties. It primarily explores for zinc, gold, and silver deposits. It owns an interest in the Aripuana property located in Brazil. The company was formerly known as Ambrex Mining Corporation and changed its name to Karmin Exploration Inc. in August 1999. Karmin Exploration Inc. was incorporated in 1995 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/30 23:39
End of Day Share Price2019/10/28 00:00
Earnings2019/07/31
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.