ROYAL GOLD INC (RGLD) Stock Fundamental Analysis
NASDAQ:RGLD - Nasdaq - US7802871084 - Common Stock
We assign a fundamental rating of 7 out of 10 to RGLD. RGLD was compared to 154 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making RGLD a very profitable company, without any liquidiy or solvency issues. RGLD has a correct valuation and a medium growth rate. This makes RGLD very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year RGLD was profitable.
RGLD had a positive operating cash flow in the past year.
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
RGLD has a better Return On Assets (8.70%) than 85.71% of its industry peers.
RGLD's Return On Equity of 9.46% is fine compared to the rest of the industry. RGLD outperforms 75.51% of its industry peers.
RGLD has a better Return On Invested Capital (10.12%) than 85.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RGLD is in line with the industry average of 8.76%.
The 3 year average ROIC (8.42%) for RGLD is below the current ROIC(10.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.7% | ||
| ROE | 9.46% | ||
| ROIC | 10.12% |
ROA(3y)8.43%
ROA(5y)7.24%
ROE(3y)9.72%
ROE(5y)8.46%
ROIC(3y)8.42%
ROIC(5y)7.3%
1.3 Margins
Looking at the Profit Margin, with a value of 42.93%, RGLD belongs to the top of the industry, outperforming 97.28% of the companies in the same industry.
RGLD's Profit Margin has been stable in the last couple of years.
RGLD has a Operating Margin of 56.18%. This is amongst the best in the industry. RGLD outperforms 97.96% of its industry peers.
RGLD's Operating Margin has improved in the last couple of years.
RGLD has a Gross Margin of 84.94%. This is amongst the best in the industry. RGLD outperforms 100.00% of its industry peers.
RGLD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 56.18% | ||
| PM (TTM) | 42.93% | ||
| GM | 84.94% |
OM growth 3Y7.64%
OM growth 5Y6.86%
PM growth 3Y-0.36%
PM growth 5YN/A
GM growth 3Y0.58%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RGLD is destroying value.
RGLD has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, RGLD has more shares outstanding
RGLD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 21.77 indicates that RGLD is not in any danger for bankruptcy at the moment.
The Altman-Z score of RGLD (21.77) is better than 87.07% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 21.77 |
ROIC/WACC0.91
WACC11.17%
2.3 Liquidity
A Current Ratio of 2.34 indicates that RGLD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.34, RGLD is in line with its industry, outperforming 53.74% of the companies in the same industry.
RGLD has a Quick Ratio of 2.21. This indicates that RGLD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.21, RGLD is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
RGLD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.48%, which is quite impressive.
RGLD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.06% yearly.
The Revenue has grown by 8.69% in the past year. This is quite good.
The Revenue has been growing slightly by 5.70% on average over the past years.
EPS 1Y (TTM)30.48%
EPS 3Y13.94%
EPS 5Y15.06%
EPS Q2Q%93.42%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y6.69%
Revenue growth 5Y5.7%
Sales Q2Q%39.84%
3.2 Future
RGLD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.78% yearly.
The Revenue is expected to grow by 10.08% on average over the next years. This is quite good.
EPS Next Y46.97%
EPS Next 2Y39.02%
EPS Next 3Y25.46%
EPS Next 5Y8.78%
Revenue Next Year20.11%
Revenue Next 2Y22.29%
Revenue Next 3Y15.54%
Revenue Next 5Y10.08%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
RGLD is valuated quite expensively with a Price/Earnings ratio of 30.28.
Compared to the rest of the industry, the Price/Earnings ratio of RGLD is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.19. RGLD is around the same levels.
A Price/Forward Earnings ratio of 20.21 indicates a rather expensive valuation of RGLD.
RGLD's Price/Forward Earnings ratio is in line with the industry average.
RGLD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.28 | ||
| Fwd PE | 20.21 |
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.
76.19% of the companies in the same industry are more expensive than RGLD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.02 | ||
| EV/EBITDA | 17.06 |
4.3 Compensation for Growth
RGLD's 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.
RGLD's earnings are expected to grow with 25.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)2.01
EPS Next 2Y39.02%
EPS Next 3Y25.46%
5. Dividend
5.1 Amount
RGLD has a Yearly Dividend Yield of 1.30%.
Compared to an average industry Dividend Yield of 3.21, RGLD pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.30, RGLD pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of RGLD is nicely growing with an annual growth rate of 8.88%!
RGLD has been paying a dividend for at least 10 years, so it has a reliable track record.
As RGLD did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.88%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
RGLD pays out 36.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of RGLD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.04%
EPS Next 2Y39.02%
EPS Next 3Y25.46%
ROYAL GOLD INC
NASDAQ:RGLD (1/22/2025, 8:00:02 PM)
After market: 138.4 -0.28 (-0.2%)138.68
-2.05 (-1.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change-0.07%
Ins Owners0.31%
Ins Owner Change-0.43%
Market Cap9.12B
Analysts74.44
Price Target173.68 (25.24%)
Short Float %2.06%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend1.5
Dividend Growth(5Y)8.88%
DP36.04%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.52%
Min EPS beat(2)4.3%
Max EPS beat(2)8.75%
EPS beat(4)3
Avg EPS beat(4)7.31%
Min EPS beat(4)-4.96%
Max EPS beat(4)21.15%
EPS beat(8)4
Avg EPS beat(8)3.18%
EPS beat(12)6
Avg EPS beat(12)2.17%
EPS beat(16)7
Avg EPS beat(16)-1.48%
Revenue beat(2)1
Avg Revenue beat(2)1.11%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)2.62%
Revenue beat(4)2
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)6.79%
Revenue beat(8)4
Avg Revenue beat(8)0.57%
Revenue beat(12)6
Avg Revenue beat(12)0.5%
Revenue beat(16)8
Avg Revenue beat(16)0.4%
PT rev (1m)0.81%
PT rev (3m)7.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.19%
EPS NY rev (1m)0%
EPS NY rev (3m)7.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.28 | ||
| Fwd PE | 20.21 | ||
| P/S | 13.62 | ||
| P/FCF | 21.02 | ||
| P/OCF | 18.63 | ||
| P/B | 3 | ||
| P/tB | 3 | ||
| EV/EBITDA | 17.06 |
EPS(TTM)4.58
EY3.3%
EPS(NY)6.86
Fwd EY4.95%
FCF(TTM)6.6
FCFY4.76%
OCF(TTM)7.44
OCFY5.37%
SpS10.18
BVpS46.21
TBVpS46.21
PEG (NY)0.64
PEG (5Y)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.7% | ||
| ROE | 9.46% | ||
| ROCE | 11.7% | ||
| ROIC | 10.12% | ||
| ROICexc | 10.54% | ||
| ROICexgc | 10.54% | ||
| OM | 56.18% | ||
| PM (TTM) | 42.93% | ||
| GM | 84.94% | ||
| FCFM | 64.81% |
ROA(3y)8.43%
ROA(5y)7.24%
ROE(3y)9.72%
ROE(5y)8.46%
ROIC(3y)8.42%
ROIC(5y)7.3%
ROICexc(3y)8.91%
ROICexc(5y)7.81%
ROICexgc(3y)8.91%
ROICexgc(5y)7.81%
ROCE(3y)9.73%
ROCE(5y)8.43%
ROICexcg growth 3Y4.56%
ROICexcg growth 5Y7.97%
ROICexc growth 3Y4.56%
ROICexc growth 5Y7.97%
OM growth 3Y7.64%
OM growth 5Y6.86%
PM growth 3Y-0.36%
PM growth 5YN/A
GM growth 3Y0.58%
GM growth 5Y0.63%
F-Score9
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 36.9% | ||
| Cap/Sales | 8.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.9% | ||
| Profit Quality | 150.97% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 21.77 |
F-Score9
WACC11.17%
ROIC/WACC0.91
Cap/Depr(3y)202.89%
Cap/Depr(5y)139.66%
Cap/Sales(3y)60.21%
Cap/Sales(5y)42.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.48%
EPS 3Y13.94%
EPS 5Y15.06%
EPS Q2Q%93.42%
EPS Next Y46.97%
EPS Next 2Y39.02%
EPS Next 3Y25.46%
EPS Next 5Y8.78%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y6.69%
Revenue growth 5Y5.7%
Sales Q2Q%39.84%
Revenue Next Year20.11%
Revenue Next 2Y22.29%
Revenue Next 3Y15.54%
Revenue Next 5Y10.08%
EBIT growth 1Y24.8%
EBIT growth 3Y14.84%
EBIT growth 5Y12.95%
EBIT Next Year91.96%
EBIT Next 3Y34.83%
EBIT Next 5Y14.72%
FCF growth 1Y246.24%
FCF growth 3Y30.75%
FCF growth 5Y5.44%
OCF growth 1Y12.49%
OCF growth 3Y6.85%
OCF growth 5Y4.81%