Keg Royalties Fund (KEG.UN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 8.71%
• Average Volume (3M): 10.97K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.67
• Revenue Growth: -2.67%
• EPS Growth: -66.51%
• Country: CA
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Restaurants
• EPS (TTM): 0.74
• Shares Outstanding: 11,353,500
• 10 Day Avg. Volume: 10,513
• 30 Day Avg. Volume: 10,973
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.57
• Price to Cash Flow (P/CF): 6.00
• P/FCF Ratio: 6.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall stock score of 67 reflects a strong operational performance and cash flow management but is tempered by declining revenue and profitability. The stock's neutral technical indicators suggest no clear momentum, while the valuation provides a reasonable P/E ratio and an attractive dividend yield. To improve its score, the company should focus on strategies to boost revenue growth.

Keg Royalties Fund Business Overview & Revenue Model

Company Description

The Keg Royalties Income Fund operates as an unincorporated open-ended limited purpose trust. The company invests in The Keg Rights Limited Partnership, which owns the trademarks, trade names, operating procedures and systems, and other intellectual property used in connection with the operation of Keg steakhouse restaurants and bars. As of December 31, 2021, it had 106 Keg restaurants in operation, including 39 in Canada and 10 in the United Sates; and 57 Keg restaurants, which are owned and operated by Keg franchisees in Canada. The Keg Royalties Income Fund was incorporated in 2002 and is headquartered in Richmond, Canada.

How the Company Makes Money

Keg Royalties Income Fund makes money primarily through the collection of royalties from Keg restaurants. The fund owns the Keg trademarks and receives a 4% royalty on the gross sales of all Keg restaurants in its royalty pool. This pool includes both franchisee-owned and corporate-owned locations. The fund's revenue is largely dependent on the performance and sales growth of these restaurants. A key partnership is with Keg Restaurants Ltd., which operates the Keg restaurants and is responsible for their day-to-day management and operational decisions. The fund benefits from the established brand and loyal customer base of The Keg Steakhouse & Bar, contributing to consistent royalty income.

Keg Royalties Fund Financial Statement Overview

Summary

The company's financials exhibit strong operational efficiency and cash flow management, evidenced by high EBITDA and cash flow ratios. However, challenges include a decline in revenue and profitability in 2024, necessitating a focus on growth strategies.

Income Statement

The company shows a decline in revenue from 2023 to 2024, with a revenue growth rate of -15.48%. Gross profit margin remains strong at 100%, indicating efficient cost management. However, the net profit margin decreased from 73.88% to 29.27%, reflecting reduced profitability. There was no EBIT reported in 2024, but the EBITDA margin is still high at 95.67%, signifying strong operational performance.

Balance Sheet

The debt-to-equity ratio remains low at 0.14, suggesting a conservative leverage approach. Return on equity decreased to 8.27% in 2024 from 23.55% in 2023, indicating lower profitability. The equity ratio is stable at 39.20%, reflecting a solid capital structure.

Cash Flow

Free cash flow remains consistent, with a slight increase in 2024. The operating cash flow to net income ratio is strong at 3.28, highlighting robust cash generation relative to net income. Free cash flow to net income ratio also indicates strong cash flow management at 3.28.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.78M	34.05M	27.06M	17.17M	13.88M
	Gross Profit
28.78M	34.05M	27.06M	17.17M	13.88M
	EBIT
0.00	33.57M	26.58M	11.26M	9.12M
	EBITDA
27.53M	44.67M	23.48M	7.41M	0.00
	Net Income Common Stockholders
8.42M	25.16M	5.30M	-5.37M	22.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.06M	2.52M	3.29M	2.37M	3.01M
	Total Assets
259.93M	260.99M	260.80M	254.34M	251.25M
	Total Debt
13.97M	13.95M	13.97M	13.96M	13.98M
	Net Debt
11.90M	11.43M	10.69M	11.59M	10.97M
	Total Liabilities
158.02M	154.15M	165.33M	151.28M	134.16M
	Stockholders Equity
101.91M	106.83M	95.47M	103.06M	117.09M
Cash Flow		Free Cash Flow
27.65M	26.86M	26.62M	16.71M	17.44M
	Operating Cash Flow
27.65M	26.86M	26.62M	16.71M	17.44M
	Investing Cash Flow
0.00	0.00	0.00	0.00	0.00
	Financing Cash Flow
-28.11M	-27.63M	-25.71M	-17.35M	-16.49M

Keg Royalties Fund Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KEG.UN, the sentiment is Negative. The current price of 13.03 is below the 20-day moving average (MA) of 13.81, below the 50-day MA of 13.97, and below the 200-day MA of 14.20, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:KEG.UN.

Keg Royalties Fund Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QSP.UN	80 Outperform	C$40.70B	20.46	29.95%	3.67%	21.63%	-9.39%
BPF.UN	74 Outperform		11.40	11.40%	7.59%	0.64%	8.65%
KEG.UN	67 Neutral		18.21	8.07%	8.71%	-2.67%	-66.51%
Sector *	59 Neutral	$11.74B	10.16	-1.06%	4.15%	1.27%	-16.61%