ROYAL GOLD INC (RGLD) Stock Fundamental Analysis
USA - NASDAQ:RGLD - US7802871084 - Common Stock
200.34 USD
+1.31 (+0.66%)
200.34 USD
0 (0%)
RGLD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. RGLD gets an excellent profitability rating and is at the same time showing great financial health properties. RGLD has a decent growth rate and is not valued too expensively. These ratings could make RGLD a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year RGLD was profitable.
In the past year RGLD had a positive cash flow from operations.
RGLD had positive earnings in each of the past 5 years.
In the past 5 years RGLD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.58%, RGLD belongs to the top of the industry, outperforming 93.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.59%, RGLD belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
RGLD has a Return On Invested Capital of 12.07%. This is amongst the best in the industry. RGLD outperforms 89.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RGLD is below the industry average of 12.87%.
The 3 year average ROIC (8.30%) for RGLD is below the current ROIC(12.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.58% | ||
| ROE | 13.59% | ||
| ROIC | 12.07% |
ROA(3y)7.89%
ROA(5y)8.46%
ROE(3y)9.22%
ROE(5y)9.71%
ROIC(3y)8.3%
ROIC(5y)8.08%
1.3 Margins
Looking at the Profit Margin, with a value of 56.22%, RGLD belongs to the top of the industry, outperforming 98.72% of the companies in the same industry.
In the last couple of years the Profit Margin of RGLD has grown nicely.
With an excellent Operating Margin value of 64.70%, RGLD belongs to the best of the industry, outperforming 98.08% of the companies in the same industry.
RGLD's Operating Margin has improved in the last couple of years.
RGLD has a better Gross Margin (86.51%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of RGLD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.7% | ||
| PM (TTM) | 56.22% | ||
| GM | 86.51% |
OM growth 3Y6.62%
OM growth 5Y12.44%
PM growth 3Y-2.05%
PM growth 5Y15.79%
GM growth 3Y0.68%
GM growth 5Y1.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RGLD is still creating some value.
The number of shares outstanding for RGLD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RGLD has more shares outstanding
There is no outstanding debt for RGLD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
RGLD has an Altman-Z score of 30.82. This indicates that RGLD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 30.82, RGLD belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
RGLD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 30.82 |
ROIC/WACC1.3
WACC9.27%
2.3 Liquidity
RGLD has a Current Ratio of 4.49. This indicates that RGLD is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.49, RGLD is doing good in the industry, outperforming 77.56% of the companies in the same industry.
RGLD has a Quick Ratio of 4.32. This indicates that RGLD is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of RGLD (4.32) is better than 78.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.49 | ||
| Quick Ratio | 4.32 |
3. Growth
3.1 Past
RGLD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.89%, which is quite impressive.
The Earnings Per Share has been growing by 29.76% on average over the past years. This is a very strong growth
The Revenue has grown by 30.15% in the past year. This is a very strong growth!
RGLD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.20% yearly.
EPS 1Y (TTM)65.89%
EPS 3Y13.16%
EPS 5Y29.76%
EPS Q2Q%44.8%
Revenue 1Y (TTM)30.15%
Revenue growth 3Y5.31%
Revenue growth 5Y11.2%
Sales Q2Q%20.42%
3.2 Future
Based on estimates for the next years, RGLD will show a small growth in Earnings Per Share. The EPS will grow by 4.67% on average per year.
Based on estimates for the next years, RGLD will show a quite strong growth in Revenue. The Revenue will grow by 8.04% on average per year.
EPS Next Y49.55%
EPS Next 2Y33.09%
EPS Next 3Y20.59%
EPS Next 5Y4.67%
Revenue Next Year15.99%
Revenue Next 2Y17.23%
Revenue Next 3Y22.23%
Revenue Next 5Y8.04%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RGLD is valuated quite expensively with a Price/Earnings ratio of 31.21.
Based on the Price/Earnings ratio, RGLD is valued a bit cheaper than 69.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of RGLD to the average of the S&P500 Index (27.86), we can say RGLD is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.50, RGLD is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGLD is on the same level as its industry peers.
RGLD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 21.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RGLD is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, RGLD is valued a bit cheaper than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.16 | ||
| EV/EBITDA | 19.74 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RGLD has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RGLD's earnings are expected to grow with 20.59% in the coming years.
PEG (NY)0.63
PEG (5Y)1.05
EPS Next 2Y33.09%
EPS Next 3Y20.59%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, RGLD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.48, RGLD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, RGLD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of RGLD is nicely growing with an annual growth rate of 9.20%!
RGLD has paid a dividend for at least 10 years, which is a reliable track record.
RGLD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)9.2%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
RGLD pays out 24.89% of its income as dividend. This is a sustainable payout ratio.
RGLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.89%
EPS Next 2Y33.09%
EPS Next 3Y20.59%
200.34
+1.31 (+0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners89.63%
Inst Owner Change0.01%
Ins Owners0.32%
Ins Owner Change0.63%
Market Cap13.19B
Analysts81.33
Price Target225.65 (12.63%)
Short Float %4.5%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend1.6
Dividend Growth(5Y)9.2%
DP24.89%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.41%
Min EPS beat(2)4.95%
Max EPS beat(2)7.86%
EPS beat(4)4
Avg EPS beat(4)7.31%
Min EPS beat(4)4.95%
Max EPS beat(4)8.75%
EPS beat(8)6
Avg EPS beat(8)5.4%
EPS beat(12)7
Avg EPS beat(12)3.4%
EPS beat(16)9
Avg EPS beat(16)2.2%
Revenue beat(2)1
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-8.75%
Max Revenue beat(2)7.65%
Revenue beat(4)3
Avg Revenue beat(4)2.05%
Min Revenue beat(4)-8.75%
Max Revenue beat(4)7.65%
Revenue beat(8)4
Avg Revenue beat(8)1.24%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)9
Avg Revenue beat(16)1%
PT rev (1m)5.74%
PT rev (3m)7.96%
EPS NQ rev (1m)4.25%
EPS NQ rev (3m)14.98%
EPS NY rev (1m)3.44%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.07%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)-5.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 21.5 | ||
| P/S | 16.5 | ||
| P/FCF | 38.16 | ||
| P/OCF | 23.27 | ||
| P/B | 3.99 | ||
| P/tB | 3.99 | ||
| EV/EBITDA | 19.74 |
EPS(TTM)6.42
EY3.2%
EPS(NY)9.32
Fwd EY4.65%
FCF(TTM)5.25
FCFY2.62%
OCF(TTM)8.61
OCFY4.3%
SpS12.14
BVpS50.23
TBVpS50.23
PEG (NY)0.63
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.58% | ||
| ROE | 13.59% | ||
| ROCE | 14.79% | ||
| ROIC | 12.07% | ||
| ROICexc | 12.99% | ||
| ROICexgc | 12.99% | ||
| OM | 64.7% | ||
| PM (TTM) | 56.22% | ||
| GM | 86.51% | ||
| FCFM | 43.23% |
ROA(3y)7.89%
ROA(5y)8.46%
ROE(3y)9.22%
ROE(5y)9.71%
ROIC(3y)8.3%
ROIC(5y)8.08%
ROICexc(3y)8.68%
ROICexc(5y)8.66%
ROICexgc(3y)8.68%
ROICexgc(5y)8.66%
ROCE(3y)10.17%
ROCE(5y)9.91%
ROICexcg growth 3Y2.59%
ROICexcg growth 5Y18.62%
ROICexc growth 3Y2.59%
ROICexc growth 5Y18.62%
OM growth 3Y6.62%
OM growth 5Y12.44%
PM growth 3Y-2.05%
PM growth 5Y15.79%
GM growth 3Y0.68%
GM growth 5Y1.17%
F-Score9
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 165.06% | ||
| Cap/Sales | 27.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.04% | ||
| Profit Quality | 76.88% | ||
| Current Ratio | 4.49 | ||
| Quick Ratio | 4.32 | ||
| Altman-Z | 30.82 |
F-Score9
WACC9.27%
ROIC/WACC1.3
Cap/Depr(3y)196.04%
Cap/Depr(5y)153.72%
Cap/Sales(3y)55.86%
Cap/Sales(5y)45.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65.89%
EPS 3Y13.16%
EPS 5Y29.76%
EPS Q2Q%44.8%
EPS Next Y49.55%
EPS Next 2Y33.09%
EPS Next 3Y20.59%
EPS Next 5Y4.67%
Revenue 1Y (TTM)30.15%
Revenue growth 3Y5.31%
Revenue growth 5Y11.2%
Sales Q2Q%20.42%
Revenue Next Year15.99%
Revenue Next 2Y17.23%
Revenue Next 3Y22.23%
Revenue Next 5Y8.04%
EBIT growth 1Y60.19%
EBIT growth 3Y12.28%
EBIT growth 5Y25.03%
EBIT Next Year86.23%
EBIT Next 3Y36.73%
EBIT Next 5Y11.87%
FCF growth 1Y172.83%
FCF growth 3Y21.32%
FCF growth 5Y11.11%
OCF growth 1Y37.39%
OCF growth 3Y9.15%
OCF growth 5Y15.9%