The Keg Royalties Income Fund Fundamental Analysis (TSX: KEG-UN.TO)
The Keg Royalties Income Fund Fundamental Analysis (TSX: KEG-UN.TO)
The Keg Royalties Income Fund (TSX: KEG-UN.TO) shows moderate financial fundamentals with a PE ratio of 10.60, profit margin of 29.27%, and ROE of 8.07%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KEG-UN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakKEG-UN.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateKEG-UN.TO shows balanced valuation metrics.
Growth Score
ModerateKEG-UN.TO shows steady but slowing expansion.
Financial Health Score
ModerateKEG-UN.TO shows balanced financial health with some risks.
Profitability Score
ModerateKEG-UN.TO maintains healthy but balanced margins.
Key Financial Metrics
Is KEG-UN.TO Expensive or Cheap?
P/E Ratio
KEG-UN.TO trades at 10.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KEG-UN.TO's PEG of 2.45 indicates potential overvaluation.
Price to Book
The market values The Keg Royalties Income Fund at 2.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.95 times EBITDA. This signals the market has high growth expectations.
How Well Does KEG-UN.TO Make Money?
Net Profit Margin
For every $100 in sales, The Keg Royalties Income Fund keeps $29.27 as profit after all expenses.
Operating Margin
Core operations generate 98.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.07 in profit for every $100 of shareholder equity.
ROA
The Keg Royalties Income Fund generates $3.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Keg Royalties Income Fund generates strong operating cash flow of $40.92M, reflecting robust business health.
Free Cash Flow
The Keg Royalties Income Fund generates strong free cash flow of $40.92M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.44 in free cash annually.
FCF Yield
KEG-UN.TO converts 8.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How KEG-UN.TO Stacks Against Its Sector Peers
| Metric | KEG-UN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.60 | 25.50 | Better (Cheaper) |
| ROE | 8.07% | 964.00% | Weak |
| Net Margin | 29.27% | -4901.00% (disorted) | Strong |
| Debt/Equity | 0.14 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 0.04 | 2.34 | Weak Liquidity |
| ROA | 3.24% | 322.00% | Weak |
KEG-UN.TO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Keg Royalties Income Fund's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary