RE:PE ratio for gold stocks - K92 vs upcoming miners My opinion on P/E-
First, the kntnf P/E has been as high as 70+ and as low as 23.
I've owned it starting w very small position in 2018.
Last November or so I recall it hit 28 when price dipped to 3.50.
... as you say, today the p/e is around 45.
In the 2018-2019 timeframe it was over 70 for a time because
earnings began to grow early on but then Covid and a continuous
series of negative events hit knt that most here are familiar with.
As importantly, kntnf began to announce the start of stage 2, 2a, then 3 and 4
which req'd add'l capital expense.
The best analysts will tell you a high p/e is function of earnings growth.
Here are kntnf earnings since 2020 (Year: 1st 2nd 3rd 4th):
2020: 0.02 0.08 0.04 0.05
2021: 0.01 0.02 0.02 0.07
2022: 0.06 0.02 0.01 0.06
2023: 0.02 0.04 0.00 0.08
2024: 0.01 0.03
What stands out??... some great quarters followed by complete duds.
Very inconsistent. There is no earnings growth trend.
I believe that trend is about to change for knt and so does the market
which is why knt still trades as high as 45.
Second (and this is not specific to knt),
if there is an overall market sell off then initially everything goes down
(aka p/e compression due to investor liquidity concerns).
You could see knt at 40,35 or 30 with no real change in fundamentals.
That said, I believe knt is approaching a point where they will be
able to demonstrate consistent earnings growth.
Your company? Can you make a case for earnings growth after
figuring in capital expenditures and current/future debt?