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 156 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. With these ratings, RGLD could be worth investigating further 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.
Each year in the past 5 years RGLD had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.70%, RGLD belongs to the best of the industry, outperforming 85.90% of the companies in the same industry.
RGLD's Return On Equity of 9.46% is fine compared to the rest of the industry. RGLD outperforms 75.64% of its industry peers.
RGLD has a better Return On Invested Capital (10.12%) than 85.26% 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 8.89%.
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
RGLD's Profit Margin of 42.93% is amongst the best of the industry. RGLD outperforms 97.44% of its industry peers.
In the last couple of years the Profit Margin of RGLD has remained more or less at the same level.
Looking at the Operating Margin, with a value of 56.18%, RGLD belongs to the top 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 (84.94%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RGLD is destroying value.
The number of shares outstanding for RGLD remains at a similar level compared to 1 year ago.
The number of shares outstanding for RGLD has been increased compared to 5 years ago.
RGLD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 21.08 indicates that RGLD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 21.08, RGLD belongs to the top of the industry, outperforming 87.18% 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 | 21.08 |
ROIC/WACC0.9
WACC11.2%
2.3 Liquidity
RGLD has a Current Ratio of 2.34. This indicates that RGLD is financially healthy and has no problem in meeting its short term obligations.
RGLD's Current ratio of 2.34 is in line compared to the rest of the industry. RGLD outperforms 52.56% of its industry peers.
A Quick Ratio of 2.21 indicates that RGLD has no problem at all paying its short term obligations.
The Quick ratio of RGLD (2.21) is better than 63.46% of its industry peers.
| 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.
Measured over the past years, RGLD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.06% on average per year.
Looking at the last year, RGLD shows a quite strong growth in Revenue. The Revenue has grown by 8.69% in the last year.
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
The Earnings Per Share is expected to grow by 8.78% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.08% on average over the next years. This is quite good.
EPS Next Y46.27%
EPS Next 2Y37.77%
EPS Next 3Y24.53%
EPS Next 5Y8.78%
Revenue Next Year19.93%
Revenue Next 2Y22.17%
Revenue Next 3Y15.23%
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.
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
The Price/Earnings ratio is 29.22, which means the current valuation is very expensive for RGLD.
The rest of the industry has a similar Price/Earnings ratio as RGLD.
When comparing the Price/Earnings ratio of RGLD to the average of the S&P500 Index (27.73), we can say RGLD is valued inline with the index average.
The Price/Forward Earnings ratio is 19.86, which indicates a rather expensive current valuation of RGLD.
RGLD's Price/Forward Earnings is on the same level as the industry average.
RGLD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.22 | ||
| Fwd PE | 19.86 |
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 76.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.28 | ||
| EV/EBITDA | 16.49 |
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.
The excellent profitability rating of RGLD may justify a higher PE ratio.
RGLD's earnings are expected to grow with 24.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)1.94
EPS Next 2Y37.77%
EPS Next 3Y24.53%
5. Dividend
5.1 Amount
RGLD has a Yearly Dividend Yield of 1.20%.
Compared to an average industry Dividend Yield of 2.98, RGLD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, RGLD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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.
RGLD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y37.77%
EPS Next 3Y24.53%
ROYAL GOLD INC
NASDAQ:RGLD (12/20/2024, 8:00:01 PM)
After market: 133.81 0 (0%)133.81
-0.29 (-0.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.55%
Inst Owner Change0.4%
Ins Owners3.49%
Ins Owner Change-0.3%
Market Cap8.80B
Analysts74.44
Price Target172.29 (28.76%)
Short Float %2.19%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)3.39%
PT rev (3m)6.11%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)11.19%
EPS NY rev (1m)2.11%
EPS NY rev (3m)7.29%
Revenue NQ rev (1m)-1.21%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)3.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.22 | ||
| Fwd PE | 19.86 | ||
| P/S | 13.14 | ||
| P/FCF | 20.28 | ||
| P/OCF | 17.97 | ||
| P/B | 2.9 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 16.49 |
EPS(TTM)4.58
EY3.42%
EPS(NY)6.74
Fwd EY5.04%
FCF(TTM)6.6
FCFY4.93%
OCF(TTM)7.44
OCFY5.56%
SpS10.18
BVpS46.21
TBVpS46.21
PEG (NY)0.63
PEG (5Y)1.94
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 | 21.08 |
F-Score9
WACC11.2%
ROIC/WACC0.9
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 Y46.27%
EPS Next 2Y37.77%
EPS Next 3Y24.53%
EPS Next 5Y8.78%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y6.69%
Revenue growth 5Y5.7%
Sales Q2Q%39.84%
Revenue Next Year19.93%
Revenue Next 2Y22.17%
Revenue Next 3Y15.23%
Revenue Next 5Y10.08%
EBIT growth 1Y24.8%
EBIT growth 3Y14.84%
EBIT growth 5Y12.95%
EBIT Next Year90.76%
EBIT Next 3Y33.43%
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%