ROYAL GOLD INC (RGLD) Stock Fundamental Analysis
NASDAQ:RGLD - Nasdaq - US7802871084 - Common Stock - Currency: USD
RGLD gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 154 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.
RGLD had a positive operating cash flow in the past year.
Each year in the past 5 years RGLD has been profitable.
RGLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RGLD (11.52%) is better than 90.91% of its industry peers.
With an excellent Return On Equity value of 12.44%, RGLD belongs to the best of the industry, outperforming 82.47% of the companies in the same industry.
RGLD has a Return On Invested Capital of 11.48%. This is amongst the best in the industry. RGLD outperforms 89.61% of its industry peers.
RGLD had an Average Return On Invested Capital over the past 3 years of 8.30%. This is in line with the industry average of 8.82%.
The 3 year average ROIC (8.30%) for RGLD is below the current ROIC(11.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.52% | ||
| ROE | 12.44% | ||
| ROIC | 11.48% |
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
RGLD's Profit Margin of 52.15% is amongst the best of the industry. RGLD outperforms 99.35% of its industry peers.
In the last couple of years the Profit Margin of RGLD has grown nicely.
The Operating Margin of RGLD (62.50%) is better than 98.05% of its industry peers.
In the last couple of years the Operating Margin of RGLD has grown nicely.
With an excellent Gross Margin value of 85.97%, 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 | 62.5% | ||
| PM (TTM) | 52.15% | ||
| GM | 85.97% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RGLD is creating some 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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
RGLD has an Altman-Z score of 29.09. 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 29.09, RGLD belongs to the top of the industry, outperforming 87.66% of the companies in the same industry.
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 | 29.09 |
ROIC/WACC1.13
WACC10.16%
2.3 Liquidity
A Current Ratio of 4.74 indicates that RGLD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.74, RGLD belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
A Quick Ratio of 4.52 indicates that RGLD has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.52, RGLD belongs to the best of the industry, outperforming 82.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.74 | ||
| Quick Ratio | 4.52 |
3. Growth
3.1 Past
RGLD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.43%, which is quite impressive.
RGLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.76% yearly.
The Revenue has grown by 30.77% 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)67.43%
EPS 3Y13.16%
EPS 5Y29.76%
EPS Q2Q%65.93%
Revenue 1Y (TTM)30.77%
Revenue growth 3Y5.31%
Revenue growth 5Y11.2%
Sales Q2Q%29.91%
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 11.29% yearly.
The Revenue is expected to grow by 6.16% on average over the next years.
EPS Next Y34.28%
EPS Next 2Y24.96%
EPS Next 3Y14.17%
EPS Next 5Y11.29%
Revenue Next Year22.06%
Revenue Next 2Y18.79%
Revenue Next 3Y11.69%
Revenue Next 5Y6.16%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.82, which means the current valuation is very expensive for RGLD.
64.29% of the companies in the same industry are more expensive than RGLD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.82. RGLD is around the same levels.
Based on the Price/Forward Earnings ratio of 21.99, the valuation of RGLD can be described as rather expensive.
RGLD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of RGLD to the average of the S&P500 Index (21.76), we can say RGLD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 21.99 |
4.2 Price Multiples
RGLD's Enterprise Value to EBITDA is on the same level as the industry average.
RGLD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RGLD is cheaper than 70.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.31 | ||
| EV/EBITDA | 18.9 |
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 14.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)1.04
EPS Next 2Y24.96%
EPS Next 3Y14.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.00%, RGLD has a reasonable but not impressive dividend return.
RGLD's Dividend Yield is a higher than the industry average which is at 2.97.
Compared to an average S&P500 Dividend Yield of 2.39, RGLD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
On average, the dividend of RGLD grows each year by 9.20%, which is quite nice.
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)9.2%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
RGLD pays out 27.25% of its income as dividend. This is a sustainable payout ratio.
The dividend of RGLD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.25%
EPS Next 2Y24.96%
EPS Next 3Y14.17%
180.59
+3.86 (+2.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners88.27%
Inst Owner Change2.55%
Ins Owners0.29%
Ins Owner Change1.3%
Market Cap11.89B
Analysts77.78
Price Target194.64 (7.78%)
Short Float %2.93%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend1.6
Dividend Growth(5Y)9.2%
DP27.25%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.76%
Min EPS beat(2)7.66%
Max EPS beat(2)7.86%
EPS beat(4)4
Avg EPS beat(4)7.14%
Min EPS beat(4)4.3%
Max EPS beat(4)8.75%
EPS beat(8)5
Avg EPS beat(8)4.53%
EPS beat(12)6
Avg EPS beat(12)1.98%
EPS beat(16)8
Avg EPS beat(16)1.78%
Revenue beat(2)2
Avg Revenue beat(2)7.16%
Min Revenue beat(2)6.67%
Max Revenue beat(2)7.65%
Revenue beat(4)3
Avg Revenue beat(4)4.13%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)7.65%
Revenue beat(8)4
Avg Revenue beat(8)1.26%
Revenue beat(12)6
Avg Revenue beat(12)0.36%
Revenue beat(16)9
Avg Revenue beat(16)1.54%
PT rev (1m)10.88%
PT rev (3m)10.94%
EPS NQ rev (1m)2.79%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)7.45%
EPS NY rev (3m)7.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.54%
Revenue NY rev (1m)2.34%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 21.99 | ||
| P/S | 15.56 | ||
| P/FCF | 32.31 | ||
| P/OCF | 22.53 | ||
| P/B | 3.71 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 18.9 |
EPS(TTM)5.86
EY3.24%
EPS(NY)8.21
Fwd EY4.55%
FCF(TTM)5.59
FCFY3.09%
OCF(TTM)8.02
OCFY4.44%
SpS11.61
BVpS48.66
TBVpS48.66
PEG (NY)0.9
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.52% | ||
| ROE | 12.44% | ||
| ROCE | 14.08% | ||
| ROIC | 11.48% | ||
| ROICexc | 12.36% | ||
| ROICexgc | 12.36% | ||
| OM | 62.5% | ||
| PM (TTM) | 52.15% | ||
| GM | 85.97% | ||
| FCFM | 48.16% |
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 | 115.18% | ||
| Cap/Sales | 20.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.63% | ||
| Profit Quality | 92.35% | ||
| Current Ratio | 4.74 | ||
| Quick Ratio | 4.52 | ||
| Altman-Z | 29.09 |
F-Score9
WACC10.16%
ROIC/WACC1.13
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)67.43%
EPS 3Y13.16%
EPS 5Y29.76%
EPS Q2Q%65.93%
EPS Next Y34.28%
EPS Next 2Y24.96%
EPS Next 3Y14.17%
EPS Next 5Y11.29%
Revenue 1Y (TTM)30.77%
Revenue growth 3Y5.31%
Revenue growth 5Y11.2%
Sales Q2Q%29.91%
Revenue Next Year22.06%
Revenue Next 2Y18.79%
Revenue Next 3Y11.69%
Revenue Next 5Y6.16%
EBIT growth 1Y63.12%
EBIT growth 3Y12.28%
EBIT growth 5Y25.03%
EBIT Next Year68.77%
EBIT Next 3Y24.42%
EBIT Next 5Y14.53%
FCF growth 1Y180.06%
FCF growth 3Y21.32%
FCF growth 5Y11.11%
OCF growth 1Y24.17%
OCF growth 3Y9.15%
OCF growth 5Y15.9%