ROYAL GOLD INC (RGLD) Stock Fundamental Analysis
NASDAQ:RGLD - Nasdaq - US7802871084 - Common Stock - Currency: USD
Overall RGLD gets a fundamental rating of 7 out of 10. We evaluated RGLD against 152 industry peers in the Metals & Mining industry. RGLD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RGLD is not valued too expensively and it also shows a decent growth rate. These ratings would make RGLD suitable 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.
In the past 5 years RGLD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.79%, RGLD belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
RGLD has a Return On Equity of 10.65%. This is in the better half of the industry: RGLD outperforms 79.61% of its industry peers.
RGLD's Return On Invested Capital of 10.60% is amongst the best of the industry. RGLD outperforms 86.84% 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 8.57%.
The last Return On Invested Capital (10.60%) for RGLD is above the 3 year average (8.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 10.65% | ||
| ROIC | 10.6% |
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
With an excellent Profit Margin value of 46.15%, RGLD belongs to the best of the industry, outperforming 98.03% of the companies in the same industry.
In the last couple of years the Profit Margin of RGLD has grown nicely.
The Operating Margin of RGLD (59.76%) is better than 98.03% 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 85.52%, 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 | 59.76% | ||
| PM (TTM) | 46.15% | ||
| GM | 85.52% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RGLD is still creating some 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.
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.
2.2 Solvency
RGLD has an Altman-Z score of 27.60. This indicates that RGLD is financially healthy and has little risk of bankruptcy at the moment.
RGLD's Altman-Z score of 27.60 is amongst the best of the industry. RGLD outperforms 88.82% 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 | 27.6 |
ROIC/WACC1.04
WACC10.19%
2.3 Liquidity
RGLD has a Current Ratio of 3.23. This indicates that RGLD is financially healthy and has no problem in meeting its short term obligations.
RGLD's Current ratio of 3.23 is fine compared to the rest of the industry. RGLD outperforms 69.74% of its industry peers.
RGLD has a Quick Ratio of 3.08. This indicates that RGLD is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of RGLD (3.08) is better than 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.17% over the past year.
Measured over the past years, RGLD shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.76% on average per year.
RGLD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.78%.
Measured over the past years, RGLD shows a quite strong growth in Revenue. The Revenue has been growing by 11.20% on average per year.
EPS 1Y (TTM)48.17%
EPS 3Y13.16%
EPS 5Y29.76%
EPS Q2Q%71.58%
Revenue 1Y (TTM)18.78%
Revenue growth 3Y5.31%
Revenue growth 5Y11.2%
Sales Q2Q%32.68%
3.2 Future
The Earnings Per Share is expected to grow by 11.29% on average over the next years. This is quite good.
Based on estimates for the next years, RGLD will show a small growth in Revenue. The Revenue will grow by 6.16% on average per year.
EPS Next Y24.97%
EPS Next 2Y21.61%
EPS Next 3Y12.91%
EPS Next 5Y11.29%
Revenue Next Year15.99%
Revenue Next 2Y15.38%
Revenue Next 3Y8.95%
Revenue Next 5Y6.16%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.01, the valuation of RGLD can be described as expensive.
Based on the Price/Earnings ratio, RGLD is valued a bit cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, RGLD is valued at the same level.
With a Price/Forward Earnings ratio of 27.21, RGLD can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as RGLD.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, RGLD is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.01 | ||
| Fwd PE | 27.21 |
4.2 Price Multiples
RGLD's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RGLD is valued a bit cheaper than 69.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.57 | ||
| EV/EBITDA | 20.7 |
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 12.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)1.14
EPS Next 2Y21.61%
EPS Next 3Y12.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, RGLD is not a good candidate for dividend investing.
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 2.51, RGLD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
On average, the dividend of RGLD grows each year by 9.20%, 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)9.2%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
RGLD pays out 31.70% of its income as dividend. This is a sustainable payout ratio.
RGLD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.7%
EPS Next 2Y21.61%
EPS Next 3Y12.91%
178.87
-4.73 (-2.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners88.27%
Inst Owner Change0.94%
Ins Owners0.29%
Ins Owner Change0.63%
Market Cap11.77B
Analysts77.65
Price Target175.54 (-1.86%)
Short Float %2.37%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend1.6
Dividend Growth(5Y)9.2%
DP31.7%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.21%
Min EPS beat(2)7.66%
Max EPS beat(2)8.75%
EPS beat(4)3
Avg EPS beat(4)3.94%
Min EPS beat(4)-4.96%
Max EPS beat(4)8.75%
EPS beat(8)4
Avg EPS beat(8)2.9%
EPS beat(12)6
Avg EPS beat(12)2.26%
EPS beat(16)8
Avg EPS beat(16)1.43%
Revenue beat(2)2
Avg Revenue beat(2)4.64%
Min Revenue beat(2)2.62%
Max Revenue beat(2)6.67%
Revenue beat(4)2
Avg Revenue beat(4)1.07%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)6.67%
Revenue beat(8)4
Avg Revenue beat(8)0.88%
Revenue beat(12)6
Avg Revenue beat(12)0.76%
Revenue beat(16)8
Avg Revenue beat(16)0.66%
PT rev (1m)0.35%
PT rev (3m)1.07%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)-9.89%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-4.2%
Revenue NQ rev (1m)8.07%
Revenue NQ rev (3m)10.46%
Revenue NY rev (1m)-2.74%
Revenue NY rev (3m)-7.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.01 | ||
| Fwd PE | 27.21 | ||
| P/S | 16.36 | ||
| P/FCF | 27.57 | ||
| P/OCF | 22.23 | ||
| P/B | 3.77 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 20.7 |
EPS(TTM)5.26
EY2.94%
EPS(NY)6.57
Fwd EY3.67%
FCF(TTM)6.49
FCFY3.63%
OCF(TTM)8.05
OCFY4.5%
SpS10.93
BVpS47.39
TBVpS47.39
PEG (NY)1.36
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 10.65% | ||
| ROCE | 13% | ||
| ROIC | 10.6% | ||
| ROICexc | 11.27% | ||
| ROICexgc | 11.27% | ||
| OM | 59.76% | ||
| PM (TTM) | 46.15% | ||
| GM | 85.52% | ||
| FCFM | 59.35% |
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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 71.01% | ||
| Cap/Sales | 14.26% | ||
| Interest Coverage | 65.21 | ||
| Cash Conversion | 92.2% | ||
| Profit Quality | 128.59% | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.08 | ||
| Altman-Z | 27.6 |
F-Score9
WACC10.19%
ROIC/WACC1.04
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)48.17%
EPS 3Y13.16%
EPS 5Y29.76%
EPS Q2Q%71.58%
EPS Next Y24.97%
EPS Next 2Y21.61%
EPS Next 3Y12.91%
EPS Next 5Y11.29%
Revenue 1Y (TTM)18.78%
Revenue growth 3Y5.31%
Revenue growth 5Y11.2%
Sales Q2Q%32.68%
Revenue Next Year15.99%
Revenue Next 2Y15.38%
Revenue Next 3Y8.95%
Revenue Next 5Y6.16%
EBIT growth 1Y41.74%
EBIT growth 3Y12.28%
EBIT growth 5Y25.03%
EBIT Next Year59.58%
EBIT Next 3Y21.73%
EBIT Next 5Y14.53%
FCF growth 1Y3.35%
FCF growth 3Y21.32%
FCF growth 5Y11.11%
OCF growth 1Y27.35%
OCF growth 3Y9.15%
OCF growth 5Y15.9%