OR ROYALTIES INC (OR.CA) Stock Fundamental Analysis
TSX:OR - Toronto Stock Exchange - CA68827L1013 - Common Stock - Currency: CAD
OR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 801 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making OR a very profitable company, without any liquidiy or solvency issues. OR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year OR was profitable.
In the past year OR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: OR reported negative net income in multiple years.
In the past 5 years OR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.47%, OR belongs to the top of the industry, outperforming 87.14% of the companies in the same industry.
OR's Return On Equity of 1.71% is amongst the best of the industry. OR outperforms 87.14% of its industry peers.
The Return On Invested Capital of OR (5.44%) is better than 91.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OR is significantly below the industry average of 24.98%.
The last Return On Invested Capital (5.44%) for OR is above the 3 year average (4.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 1.71% | ||
| ROIC | 5.44% |
ROA(3y)-2.43%
ROA(5y)-1.51%
ROE(3y)-2.82%
ROE(5y)-1.79%
ROIC(3y)4.05%
ROIC(5y)3.19%
1.3 Margins
Looking at the Profit Margin, with a value of 9.86%, OR belongs to the top of the industry, outperforming 92.63% of the companies in the same industry.
OR's Operating Margin of 66.81% is amongst the best of the industry. OR outperforms 99.88% of its industry peers.
In the last couple of years the Operating Margin of OR has grown nicely.
With an excellent Gross Margin value of 79.30%, OR belongs to the best of the industry, outperforming 98.88% of the companies in the same industry.
OR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.81% | ||
| PM (TTM) | 9.86% | ||
| GM | 79.3% |
OM growth 3Y23.11%
OM growth 5Y37.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.75%
GM growth 5Y30.4%
2. Health
2.1 Basic Checks
OR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for OR has been increased compared to 1 year ago.
Compared to 5 years ago, OR has more shares outstanding
The debt/assets ratio for OR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 14.88 indicates that OR is not in any danger for bankruptcy at the moment.
OR's Altman-Z score of 14.88 is fine compared to the rest of the industry. OR outperforms 78.78% of its industry peers.
The Debt to FCF ratio of OR is 1.14, which is an excellent value as it means it would take OR, only 1.14 years of fcf income to pay off all of its debts.
OR's Debt to FCF ratio of 1.14 is amongst the best of the industry. OR outperforms 94.38% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that OR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.08, OR is not doing good in the industry: 60.55% of the companies in the same industry are doing better.
Although OR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 14.88 |
ROIC/WACC0.63
WACC8.7%
2.3 Liquidity
A Current Ratio of 4.37 indicates that OR has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.37, OR is doing good in the industry, outperforming 74.28% of the companies in the same industry.
OR has a Quick Ratio of 4.37. This indicates that OR is financially healthy and has no problem in meeting its short term obligations.
OR has a better Quick ratio (4.37) than 74.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.37 | ||
| Quick Ratio | 4.37 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.84% over the past year.
Measured over the past years, OR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.35% on average per year.
Looking at the last year, OR shows a small growth in Revenue. The Revenue has grown by 4.33% in the last year.
OR shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -13.41% yearly.
EPS 1Y (TTM)4.84%
EPS 3Y21.77%
EPS 5Y18.35%
EPS Q2Q%0%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y-5.27%
Revenue growth 5Y-13.41%
Sales Q2Q%-9.6%
3.2 Future
The Earnings Per Share is expected to decrease by -2.34% on average over the next years.
OR is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -13.21% yearly.
EPS Next Y30.28%
EPS Next 2Y23.92%
EPS Next 3Y15.48%
EPS Next 5Y-2.34%
Revenue Next Year-12.42%
Revenue Next 2Y-3.41%
Revenue Next 3Y0.16%
Revenue Next 5Y-13.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
OR is valuated quite expensively with a Price/Earnings ratio of 38.28.
87.77% of the companies in the same industry are more expensive than OR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of OR to the average of the S&P500 Index (25.91), we can say OR is valued slightly more expensively.
With a Price/Forward Earnings ratio of 24.89, OR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OR indicates a rather cheap valuation: OR is cheaper than 88.64% of the companies listed in the same industry.
OR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.28 | ||
| Fwd PE | 24.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OR indicates a rather cheap valuation: OR is cheaper than 89.39% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, OR is valued cheaper than 91.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.73 | ||
| EV/EBITDA | 27.4 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OR has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as OR's earnings are expected to grow with 15.48% in the coming years.
PEG (NY)1.26
PEG (5Y)2.09
EPS Next 2Y23.92%
EPS Next 3Y15.48%
5. Dividend
5.1 Amount
OR has a yearly dividend return of 0.68%, which is pretty low.
OR's Dividend Yield is rather good when compared to the industry average which is at 2.83. OR pays more dividend than 95.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, OR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of OR decreases each year by -1.32%.
OR has been paying a dividend for at least 10 years, so it has a reliable track record.
OR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-1.32%
Div Incr Years4
Div Non Decr Years10
5.3 Sustainability
OR pays out 151.04% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of OR has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP151.04%
EPS Next 2Y23.92%
EPS Next 3Y15.48%
TSX:OR (5/22/2025, 7:00:00 PM)
34.45
-0.16 (-0.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.3%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap6.44B
Analysts78.82
Price Target33.83 (-1.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.23
Dividend Growth(5Y)-1.32%
DP151.04%
Div Incr Years4
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-21.1%
Min EPS beat(2)-44.52%
Max EPS beat(2)2.32%
EPS beat(4)3
Avg EPS beat(4)-8.17%
Min EPS beat(4)-44.52%
Max EPS beat(4)5.97%
EPS beat(8)6
Avg EPS beat(8)3.88%
EPS beat(12)8
Avg EPS beat(12)-8.06%
EPS beat(16)10
Avg EPS beat(16)-9.91%
Revenue beat(2)0
Avg Revenue beat(2)-17.07%
Min Revenue beat(2)-26.88%
Max Revenue beat(2)-7.26%
Revenue beat(4)0
Avg Revenue beat(4)-11.35%
Min Revenue beat(4)-26.88%
Max Revenue beat(4)-3.86%
Revenue beat(8)0
Avg Revenue beat(8)-7.23%
Revenue beat(12)2
Avg Revenue beat(12)-2.58%
Revenue beat(16)4
Avg Revenue beat(16)-1.74%
PT rev (1m)8.35%
PT rev (3m)2.21%
EPS NQ rev (1m)-9.73%
EPS NQ rev (3m)-31.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.09%
Revenue NY rev (1m)1.64%
Revenue NY rev (3m)-7.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.28 | ||
| Fwd PE | 24.89 | ||
| P/S | 22.59 | ||
| P/FCF | 53.73 | ||
| P/OCF | 29.05 | ||
| P/B | 3.91 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 27.4 |
EPS(TTM)0.9
EY2.61%
EPS(NY)1.38
Fwd EY4.02%
FCF(TTM)0.64
FCFY1.86%
OCF(TTM)1.19
OCFY3.44%
SpS1.53
BVpS8.81
TBVpS8.24
PEG (NY)1.26
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 1.71% | ||
| ROCE | 10.08% | ||
| ROIC | 5.44% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 6.05% | ||
| OM | 66.81% | ||
| PM (TTM) | 9.86% | ||
| GM | 79.3% | ||
| FCFM | 42.04% |
ROA(3y)-2.43%
ROA(5y)-1.51%
ROE(3y)-2.82%
ROE(5y)-1.79%
ROIC(3y)4.05%
ROIC(5y)3.19%
ROICexc(3y)4.27%
ROICexc(5y)3.39%
ROICexgc(3y)4.54%
ROICexgc(5y)3.61%
ROCE(3y)7.5%
ROCE(5y)5.9%
ROICexcg growth 3Y32.46%
ROICexcg growth 5Y27.14%
ROICexc growth 3Y32.42%
ROICexc growth 5Y27.22%
OM growth 3Y23.11%
OM growth 5Y37.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.75%
GM growth 5Y30.4%
F-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 218.78% | ||
| Cap/Sales | 35.71% | ||
| Interest Coverage | 18.94 | ||
| Cash Conversion | 93.53% | ||
| Profit Quality | 426.16% | ||
| Current Ratio | 4.37 | ||
| Quick Ratio | 4.37 | ||
| Altman-Z | 14.88 |
F-Score7
WACC8.7%
ROIC/WACC0.63
Cap/Depr(3y)321.87%
Cap/Depr(5y)359.62%
Cap/Sales(3y)71.43%
Cap/Sales(5y)80.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.84%
EPS 3Y21.77%
EPS 5Y18.35%
EPS Q2Q%0%
EPS Next Y30.28%
EPS Next 2Y23.92%
EPS Next 3Y15.48%
EPS Next 5Y-2.34%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y-5.27%
Revenue growth 5Y-13.41%
Sales Q2Q%-9.6%
Revenue Next Year-12.42%
Revenue Next 2Y-3.41%
Revenue Next 3Y0.16%
Revenue Next 5Y-13.21%
EBIT growth 1Y1.59%
EBIT growth 3Y16.62%
EBIT growth 5Y19.4%
EBIT Next Year10.98%
EBIT Next 3Y5.24%
EBIT Next 5Y-6.87%
FCF growth 1Y209.04%
FCF growth 3YN/A
FCF growth 5Y63.07%
OCF growth 1Y15.52%
OCF growth 3Y14.66%
OCF growth 5Y11.79%