ROYAL GOLD INC (RGLD)
US7802871084 - Common Stock
Taking everything into account, RGLD scores 7 out of 10 in our fundamental rating. RGLD was compared to 157 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make RGLD a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
RGLD had positive earnings in the past year.
In the past year RGLD had a positive cash flow from operations.
RGLD had positive earnings in each of the past 5 years.
RGLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.72%, RGLD belongs to the top of the industry, outperforming 80.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.65%, RGLD is in the better half of the industry, outperforming 71.97% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.83%, RGLD is doing good in the industry, outperforming 75.80% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RGLD is in line with the industry average of 8.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 7.65% | ||
| ROIC | 7.83% |
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
With an excellent Profit Margin value of 38.11%, RGLD belongs to the best of the industry, outperforming 96.82% of the companies in the same industry.
In the last couple of years the Profit Margin of RGLD has remained more or less at the same level.
RGLD's Operating Margin of 50.11% is amongst the best of the industry. RGLD outperforms 96.82% of its industry peers.
RGLD's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 83.92%, RGLD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 | 50.11% | ||
| PM (TTM) | 38.11% | ||
| GM | 83.92% |
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.
Compared to 1 year ago, RGLD has about the same amount of shares outstanding.
The number of shares outstanding for RGLD has been increased compared to 5 years ago.
Compared to 1 year ago, RGLD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 14.07 indicates that RGLD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.07, RGLD belongs to the top of the industry, outperforming 85.35% of the companies in the same industry.
The Debt to FCF ratio of RGLD is 0.33, which is an excellent value as it means it would take RGLD, only 0.33 years of fcf income to pay off all of its debts.
RGLD has a Debt to FCF ratio of 0.33. This is amongst the best in the industry. RGLD outperforms 90.45% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that RGLD is not too dependend on debt financing.
RGLD has a Debt to Equity ratio of 0.05. This is in the better half of the industry: RGLD outperforms 66.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.33 | ||
| Altman-Z | 14.07 |
ROIC/WACC0.89
WACC8.78%
2.3 Liquidity
A Current Ratio of 2.50 indicates that RGLD has no problem at all paying its short term obligations.
RGLD has a Current ratio (2.50) which is comparable to the rest of the industry.
A Quick Ratio of 2.35 indicates that RGLD has no problem at all paying its short term obligations.
RGLD's Quick ratio of 2.35 is fine compared to the rest of the industry. RGLD outperforms 64.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.24% over the past year.
The Earnings Per Share has been growing by 15.06% on average over the past years. This is quite good.
Looking at the last year, RGLD shows a decrease in Revenue. The Revenue has decreased by -4.42% in the last year.
The Revenue has been growing slightly by 5.70% on average over the past years.
EPS 1Y (TTM)3.24%
EPS 3Y13.94%
EPS 5Y15.06%
EPS Q2Q%-5.21%
Revenue 1Y (TTM)-4.42%
Revenue growth 3Y6.69%
Revenue growth 5Y5.7%
Sales Q2Q%-12.61%
3.2 Future
The Earnings Per Share is expected to grow by 8.78% on average over the next years. This is quite good.
Based on estimates for the next years, RGLD will show a quite strong growth in Revenue. The Revenue will grow by 10.08% on average per year.
EPS Next Y30.99%
EPS Next 2Y29.57%
EPS Next 3Y21.52%
EPS Next 5Y8.78%
Revenue Next Year2.65%
Revenue Next 2Y13.34%
Revenue Next 3Y9.21%
Revenue Next 5Y10.08%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RGLD is valuated quite expensively with a Price/Earnings ratio of 38.60.
RGLD's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.41. RGLD is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 22.67, which indicates a rather expensive current valuation of RGLD.
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 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.6 | ||
| Fwd PE | 22.67 |
4.2 Price Multiples
RGLD's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGLD indicates a somewhat cheap valuation: RGLD is cheaper than 74.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.11 | ||
| EV/EBITDA | 19.78 |
4.3 Compensation for Growth
RGLD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of RGLD may justify a higher PE ratio.
RGLD's earnings are expected to grow with 21.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)2.56
EPS Next 2Y29.57%
EPS Next 3Y21.52%
5. Dividend
5.1 Amount
RGLD has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
RGLD's Dividend Yield is a higher than the industry average which is at 2.66.
With a Dividend Yield of 1.15, RGLD pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of RGLD is nicely growing with an annual growth rate of 8.88%!
RGLD has paid a dividend for at least 10 years, which is 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 Years8
Div Non Decr Years8
5.3 Sustainability
45.03% of the earnings are spent on dividend by RGLD. This is a bit on the high side, but may be sustainable.
RGLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.03%
EPS Next 2Y29.57%
EPS Next 3Y21.52%
ROYAL GOLD INC
NASDAQ:RGLD (7/26/2024, 7:00:01 PM)
After market: 135.09 0 (0%)135.09
-0.25 (-0.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.6 | ||
| Fwd PE | 22.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.25
PEG (5Y)2.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 7.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 50.11% | ||
| PM (TTM) | 38.11% | ||
| GM | 83.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.5 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.24%
EPS 3Y13.94%
EPS 5Y
EPS Q2Q%
EPS Next Y30.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.42%
Revenue growth 3Y6.69%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y