ROYAL GOLD INC (RGLD)

US7802871084 - Common Stock

120.93  +0.52 (+0.43%)

After market: 119.91 -1.02 (-0.84%)

Fundamental Rating

6

Overall RGLD gets a fundamental rating of 6 out of 10. We evaluated RGLD against 155 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 is valued expensive and it does not seem to be growing.



8

1. Profitability

1.1 Basic Checks

RGLD had positive earnings in the past year.
RGLD had a positive operating cash flow in the past year.
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

RGLD's Return On Assets of 7.12% is amongst the best of the industry. RGLD outperforms 81.94% of its industry peers.
RGLD has a better Return On Equity (8.29%) than 74.19% of its industry peers.
With a decent Return On Invested Capital value of 7.98%, RGLD is doing good in the industry, outperforming 76.77% 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 9.16%.
Industry RankSector Rank
ROA 7.12%
ROE 8.29%
ROIC 7.98%
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

The Profit Margin of RGLD (39.52%) is better than 98.06% of its industry peers.
RGLD's Profit Margin has been stable in the last couple of years.
RGLD has a Operating Margin of 50.08%. This is amongst the best in the industry. RGLD outperforms 97.42% of its industry peers.
In the last couple of years the Operating Margin of RGLD has grown nicely.
Looking at the Gross Margin, with a value of 83.86%, RGLD belongs to the top 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 RankSector Rank
OM 50.08%
PM (TTM) 39.52%
GM 83.86%
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%

8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RGLD is destroying value.
RGLD has about the same amout of shares outstanding than it did 1 year ago.
RGLD has more shares outstanding than it did 5 years ago.
RGLD has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 10.83 indicates that RGLD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.83, RGLD belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
RGLD has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
RGLD's Debt to FCF ratio of 0.60 is amongst the best of the industry. RGLD outperforms 89.03% of its industry peers.
RGLD has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
RGLD has a Debt to Equity ratio of 0.09. This is in the better half of the industry: RGLD outperforms 61.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 0.6
Altman-Z 10.83
ROIC/WACC0.88
WACC9.09%

2.3 Liquidity

RGLD has a Current Ratio of 2.31. This indicates that RGLD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RGLD (2.31) is comparable to the rest of the industry.
RGLD has a Quick Ratio of 2.18. This indicates that RGLD is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.18, RGLD is doing good in the industry, outperforming 61.29% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.31
Quick Ratio 2.18

3

3. Growth

3.1 Past

RGLD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.80%.
RGLD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.06% yearly.
RGLD shows a small growth in Revenue. In the last year, the Revenue has grown by 0.41%.
Measured over the past years, RGLD shows a small growth in Revenue. The Revenue has been growing by 5.70% on average per year.
EPS 1Y (TTM)3.8%
EPS 3Y13.94%
EPS 5Y15.06%
EPS growth Q2Q4.4%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y6.69%
Revenue growth 5Y5.7%
Revenue growth Q2Q-6.34%

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 3.86% on average per year.
The Revenue is expected to grow by 1.01% on average over the next years.
EPS Next Y21.09%
EPS Next 2Y21.62%
EPS Next 3Y15.52%
EPS Next 5Y3.86%
Revenue Next Year16.28%
Revenue Next 2Y15.1%
Revenue Next 3Y5.37%
Revenue Next 5Y1.01%

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 decreasing: in the next years the growth will be less than in the last years.

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 34.06, the valuation of RGLD can be described as expensive.
RGLD's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.25. RGLD is valued slightly more expensive when compared to this.
RGLD is valuated quite expensively with a Price/Forward Earnings ratio of 28.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGLD is on the same level as its industry peers.
RGLD is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 34.06
Fwd PE 28.13

4.2 Price Multiples

RGLD's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, RGLD is valued a bit cheaper than the industry average as 78.06% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.24
EV/EBITDA 17.21

4.3 Compensation for Growth

RGLD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 15.52% in the coming years.
PEG (NY)1.62
PEG (5Y)2.26
EPS Next 2Y21.62%
EPS Next 3Y15.52%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.32%, RGLD has a reasonable but not impressive dividend return.
RGLD's Dividend Yield is a higher than the industry average which is at 2.87.
Compared to an average S&P500 Dividend Yield of 2.45, RGLD's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.32%

5.2 History

On average, the dividend of RGLD grows each year by 8.88%, which is quite nice.
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

41.18% of the earnings are spent on dividend by RGLD. This is a bit on the high side, but may be sustainable.
The dividend of RGLD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.18%
EPS Next 2Y21.62%
EPS Next 3Y15.52%

ROYAL GOLD INC

NASDAQ:RGLD (4/24/2024, 7:26:06 PM)

After market: 119.91 -1.02 (-0.84%)

120.93

+0.52 (+0.43%)

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 Cap7.95B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.32%
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)
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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)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 RankSector Rank
PE 34.06
Fwd PE 28.13
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)1.62
PEG (5Y)2.26
Profitability
Industry RankSector Rank
ROA 7.12%
ROE 8.29%
ROCE
ROIC
ROICexc
ROICexgc
OM 50.08%
PM (TTM) 39.52%
GM 83.86%
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 RankSector Rank
Debt/Equity 0.09
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.31
Quick Ratio 2.18
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)
Growth
EPS 1Y (TTM)3.8%
EPS 3Y13.94%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.41%
Revenue growth 3Y6.69%
Revenue growth 5Y
Revenue growth 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