Karnalyte Resources (KRN) AI Stock Analysis

• Market Cap: C$8.26M
• Dividend Yield: N/A
• Average Volume (3M): 19.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: N/A
• EPS Growth: -15.33%
• Country: CA
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Agriculture
• EPS (TTM): -0.03
• Shares Outstanding: 53,283,980
• 10 Day Avg. Volume: 27,953
• 30 Day Avg. Volume: 19,691
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -7.30
• P/FCF Ratio: 0.00
• 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

Karnalyte Resources is struggling financially with no revenue and persistent losses, which significantly impacts its stock score. The technical indicators also reflect a weak market position. The lack of profitability and unattractive valuation further detract from the company's investment appeal.

Karnalyte Resources Business Overview & Revenue Model

Company Description

Karnalyte Resources Inc. is a Canadian resource company focused on the development and production of premium potash and nitrogen fertilizer products. The company operates primarily in the agricultural sector, catering to the global demand for fertilizers. Karnalyte is engaged in the exploration and development of its flagship Wynyard Potash Project, located in Saskatchewan, Canada, which aims to produce high-quality potash, an essential nutrient for plant growth.

How the Company Makes Money

Karnalyte Resources makes money through the exploration, development, and eventual production and sale of potash and nitrogen fertilizers. The company's primary revenue stream is expected to come from the sale of potash extracted from its Wynyard Potash Project. Potash is a key ingredient in fertilizers, and its demand is driven by the agricultural sector's need to increase crop yields. Karnalyte plans to capitalize on this demand by supplying high-quality potash to both domestic and international markets. Additional revenue may be generated through strategic partnerships or joint ventures with other companies in the fertilizer industry, which could provide financial support and market access. As Karnalyte moves towards production, its financial performance will also depend on potash market prices, production efficiency, and operational scalability.

Karnalyte Resources Financial Statement Overview

Summary

Karnalyte Resources faces severe financial challenges with no revenue and continuous losses. While the absence of debt is a positive, the company's negative cash flows and weakening balance sheet are concerning. The lack of revenue generation is a critical issue that needs immediate attention.

Income Statement

Karnalyte Resources has reported zero revenue consistently, leading to negative profitability metrics such as gross profit, EBIT, and net income. The lack of revenue growth and high net losses indicate significant financial challenges.

Balance Sheet

The company reports no debt, which is a positive sign of low leverage. However, the declining asset base and decreasing stockholders' equity reflect a weakening financial position. The equity ratio remains high, but the lack of revenue and profitability are concerning.

Cash Flow

Karnalyte Resources faces negative operating and free cash flows, indicating poor cash generation. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. Although capital expenditures are controlled, the company struggles with liquidity.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-40.00K	-56.00K	-51.00K	-80.00K	-92.00K	-86.00K
	EBIT
-1.17M	-1.93M	-721.00K	-1.66M	-2.31M	-2.08M
	EBITDA
-1.63M	-1.37M	-1.68M	-1.61M	-3.34M	-3.00M
	Net Income Common Stockholders
-1.69M	-1.42M	-2.70M	-2.48M	-3.54M	-3.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.50M	2.30M	3.68M	1.80M	4.82M	7.52M
	Total Assets
16.92M	8.38M	9.88M	8.39M	11.24M	13.88M
	Total Debt
0.00	0.00	0.00	0.00	39.00K	71.00K
	Net Debt
-10.50M	-2.30M	-3.68M	-1.80M	-4.78M	-7.45M
	Total Liabilities
2.61M	1.89M	2.01M	2.63M	3.31M	2.55M
	Stockholders Equity
14.31M	6.49M	7.88M	5.76M	7.93M	11.33M
Cash Flow		Free Cash Flow
-1.63M	-546.84K	-2.20M	-3.08M	-2.66M	-3.05M
	Operating Cash Flow
-1.01M	-839.00	-1.17M	-2.56M	-1.60M	-2.23M
	Investing Cash Flow
-353.00K	-546.00	-754.00K	-422.00K	-1.05M	-827.00K
	Financing Cash Flow
0.00	0.00	3.80K	-39.00K	-32.00K	71.00K

Karnalyte Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KRN, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.11, and below the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 73.90 is Negative, neither overbought nor oversold. The STOCH value of 91.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KRN.

Karnalyte Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTR	70 Outperform	C$36.10B	39.49	2.72%	4.25%	-13.24%	-65.53%
NPK	59 Neutral	C$37.40M	―	-29.87%	―	-45.92%	-166.44%
CFX	48 Neutral	C$46.32M	―	-63.11%	―	-8.78%	-68.46%
Sector *	47 Neutral	$2.64B	-3.82	-29.05%	3.32%	2.72%	-29.50%
KRN	23 Underperform	C$8.26M	―	-27.77%	―	―	-15.33%

Karnalyte Resources Corporate Events

Karnalyte Resources Reveals Third Quarter Highlights

Karnalyte Resources announced progress on its technical report and cost-saving measures for equipment sourcing, supported by strategic partner GSFC. The company is also reviewing its development strategy to enhance magnesium chloride production, leveraging its abundant carnallite deposits and advanced mining technologies.