Kiaro Holdings (TSXV:KO) - Share price, News & Analysis

Q: What is the Fair Price of KO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

KO (CA$0.03) is trading above our estimate of [[fair value]] (CA$0)

KO fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

KO Stock Overview

Kiaro Holdings Corp. owns and operates cannabis retail stores in Canada.

Rewards

Earnings have grown 0.7% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Highly volatile share price over the past 3 months

Does not have a meaningful market cap (CA$7M)

Shareholders have been diluted in the past year

Kiaro Holdings Competitors

Delota

TSXV:LOTA

CA$5.2m

PesoRama

TSXV:PESO

CA$20.5m

ShinyBud

TSXV:SNYB

CA$19.7m

Fire & Flower Holdings

TSX:FAF

CA$121.4m

Price History & Performance

Summary of all time highs, changes and price drops for Kiaro Holdings
Historical stock prices
Current Share Price	CA$0.025
52 Week High	CA$0.15
52 Week Low	CA$0.02
Beta	0
1 Month Change	-37.50%
3 Month Change	-61.54%
1 Year Change	-80.00%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-84.85%

Shareholder Returns

	KO	CA Specialty Retail	CA Market
7D	25.0%	3.9%	0.1%
1Y	-80.0%	-19.1%	-2.6%

Return vs Industry: KO underperformed the Canadian Specialty Retail industry which returned -20.1% over the past year.

Return vs Market: KO underperformed the Canadian Market which returned -4% over the past year.

Price Volatility

Is KO's price volatile compared to industry and market?
KO volatility
KO Average Weekly Movement	21.3%
Specialty Retail Industry Average Movement	6.5%
Market Average Movement	10.0%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: KO is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 21% a week.

Volatility Over Time: KO's weekly volatility has increased from 16% to 21% over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	n/a	Eleanor Lynch	https://kiaro.com

Kiaro Holdings Corp. owns and operates cannabis retail stores in Canada. The company offers cannabis and cannabis related products. It sells its products through a network of 16 stores under the Kiaro and Hemisphere banners, as well as online.

Kiaro Holdings Fundamentals Summary

How do Kiaro Holdings's earnings and revenue compare to its market cap?
KO fundamental statistics
Market Cap	CA$6.70m
Earnings (TTM)	-CA$9.19m
Revenue (TTM)	CA$26.90m

0.2x

P/S Ratio

-0.7x

P/E Ratio

Is KO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KO income statement (TTM)
Revenue	CA$26.90m
Cost of Revenue	CA$19.21m
Gross Profit	CA$7.70m
Other Expenses	CA$16.89m
Earnings	-CA$9.19m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.034
Gross Margin	28.61%
Net Profit Margin	-34.17%
Debt/Equity Ratio	45.3%

How did KO perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is KO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KO. This is calculated by dividing KO's market cap by their current preferred multiple.
What is KO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$6.70m

KO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	-3.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does KO's PS Ratio compare to its peers?

KO PS Ratio vs Peers

The above table shows the PS ratio for KO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.9x
LOTA Delota	0.3x	n/a	CA$5.2m
PESO PesoRama	2.2x	n/a	CA$20.5m
SNYB ShinyBud	1x	n/a	CA$19.7m
FAF Fire & Flower Holdings	0.7x	18.4%	CA$121.4m
KO Kiaro Holdings	0.2x	n/a	CA$6.7m

Forward PS

Price-To-Sales vs Peers: KO is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1x).

Price to Earnings Ratio vs Industry

How does KO's PE Ratio compare vs other companies in the North American Specialty Retail Industry?

Price-To-Sales vs Industry: KO is good value based on its Price-To-Sales Ratio (0.2x) compared to the Canadian Specialty Retail industry average (0.6x)

Price to Sales Ratio vs Fair Ratio

What is KO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate KO's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of KO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KO (CA$0.03) is trading above our estimate of fair value (CA$0)

Significantly Below Fair Value: KO is trading above our estimate of fair value.

Price to Earnings Growth Ratio

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

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Future Growth

How is Kiaro Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.0%

Forecasted Retail industry annual growth in earnings

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if KO's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if KO's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if KO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if KO's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if KO's revenue 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 KO's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Kiaro Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KO is currently unprofitable.

Growing Profit Margin: KO is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: KO is unprofitable, but has reduced losses over the past 5 years at a rate of 0.7% per year.

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

Earnings vs Industry: KO is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (47.3%).

Return on Equity

High ROE: KO has a negative Return on Equity (-119.63%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Kiaro Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: KO's short term assets (CA$6.0M) exceed its short term liabilities (CA$4.9M).

Long Term Liabilities: KO's short term assets (CA$6.0M) do not cover its long term liabilities (CA$8.1M).

Debt to Equity History and Analysis

Debt Level: KO's net debt to equity ratio (14.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if KO'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: KO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: KO has less than a year of cash runway if free cash flow continues to grow at historical rates of 47.4% each year.

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Dividend

What is Kiaro Holdings'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 KO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if KO'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 KO has not reported any payouts.

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Management

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

1.7yrs

Average board tenure

CEO

Eleanor Lynch (41 yo)

2.58yrs

Tenure

CA$240,000

Compensation

Ms. Eleanor Lynch serves as Chief Operating Officer at Kiaro Holdings Corp. since October 28, 2020 and serves as its Interim Chief Executive Officer and served as its President of Operations from November...

CEO Compensation Analysis

Compensation vs Market: Eleanor's total compensation ($USD186.41K) is about average for companies of similar size in the Canadian market ($USD175.18K).

Compensation vs Earnings: Eleanor's compensation has increased whilst the company is unprofitable.

Board Members

Experienced Board: KO's board of directors are not considered experienced ( 1.7 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: Insufficient data to determine if insiders have bought more shares than they have sold 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 39.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/01/31
Annual Earnings	2022/01/31