Keg Royalties Fund (KEG.UN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 6.08%
• Average Volume (3M): 78.65K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.78
• Revenue Growth: -2.67%
• EPS Growth: -66.51%
• Country: CA
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Restaurants
• EPS (TTM): 0.79
• Shares Outstanding: 11,353,500
• 10 Day Avg. Volume: 34,966
• 30 Day Avg. Volume: 78,652
• PEG Ratio: 0.09
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.98
• 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

• Rating: 67 Neutral
• Price Target: ―

The stock of TSE:KEG.UN scores 67, supported by strong operational efficiency and cash flow management. However, challenges arise from declining revenue and profitability, along with weak technical momentum and overbought conditions. The valuation is fair, with an attractive dividend yield offering income potential.

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 Ltd. The fund owns the Keg Rights and licenses these rights to Keg Restaurants Ltd., which operates the Keg Steakhouse & Bar locations. In return, the fund receives a royalty fee based on a percentage of gross sales from Keg restaurants. This revenue model provides a stable income stream tied directly to the sales performance of the restaurants. Additionally, the fund benefits from strategic partnerships with Keg Restaurants Ltd., which operates and expands the restaurant brand, potentially increasing the royalties collected as new locations are opened and sales grow.

Keg Royalties Fund Financial Statement Overview

Summary

The company's financials show strong operational efficiency and cash flow management, with stable leverage and solid capital structure. However, declining revenue and profitability in 2024 indicate potential challenges in maintaining growth. The company should focus on revenue growth strategies to enhance overall financial performance.

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
EBITDA	27.53M	44.67M	23.48M	7.41M	0.00
Net Income	8.42M	25.16M	5.30M	-5.37M	22.26M
Balance Sheet
Total Assets	259.93M	260.99M	260.80M	254.34M	251.25M
Cash, Cash Equivalents and Short-Term Investments	2.06M	2.52M	3.29M	2.37M	3.01M
Total Debt	13.97M	13.95M	13.97M	13.96M	13.98M
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: Positive
• Last Price: 18.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 18.69 is above the 20-day moving average (MA) of 18.66, above the 50-day MA of 18.37, and above the 200-day MA of 15.19, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 69.77 is Neutral, neither overbought nor oversold. The STOCH value of 37.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
KEG.UN	67 Neutral		11.15	17.96%	6.08%	-2.67%	-66.51%
Sector *	62 Neutral	$16.91B	10.88	-7.01%	2.97%	1.73%	-25.16%
DOOO	―	$3.58B	18.62	26.57%	1.28%	―	―
PZRIF	―	$373.59M	16.59	10.29%	6.10%	―	―
AWI	―	C$6.68M	43.08	1.12%	―	―	―
BPF.UN	74 Outperform		14.28	10.55%	6.91%	0.64%	8.65%
SRV.UN	68 Neutral		10.46	12.57%	8.22%	―	-37.07%