ROYAL GOLD INC (RGLD) Stock Fundamental Analysis
NASDAQ:RGLD - Nasdaq - US7802871084 - Common Stock
We assign a fundamental rating of 7 out of 10 to RGLD. RGLD was compared to 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 is not valued too expensively and it also shows a decent growth rate. This makes RGLD very considerable 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.
Each year in the past 5 years RGLD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RGLD (8.70%) is better than 85.71% of its industry peers.
RGLD's Return On Equity of 9.46% is fine compared to the rest of the industry. RGLD outperforms 75.51% of its industry peers.
RGLD has a better Return On Invested Capital (10.12%) than 85.03% of its industry peers.
RGLD had an Average Return On Invested Capital over the past 3 years of 8.42%. This is in line with the industry average of 8.76%.
The last Return On Invested Capital (10.12%) for RGLD is above the 3 year average (8.42%), which is a sign of increasing profitability.
| 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 97.28% of its industry peers.
In the last couple of years the Profit Margin of RGLD has remained more or less at the same level.
The Operating Margin of RGLD (56.18%) is better than 97.96% of its industry peers.
RGLD's Operating Margin has improved in the last couple of years.
RGLD's Gross Margin of 84.94% is amongst the best of the industry. RGLD outperforms 100.00% of its industry peers.
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 | 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.
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
Compared to 1 year ago, RGLD has an improved debt to assets ratio.
2.2 Solvency
RGLD has an Altman-Z score of 21.75. 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 21.75, RGLD belongs to the top of the industry, outperforming 88.44% 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 | 21.75 |
ROIC/WACC0.9
WACC11.24%
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 has a Current ratio (2.34) which is comparable to the rest of the industry.
RGLD has a Quick Ratio of 2.21. This indicates that RGLD is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of RGLD (2.21) is better than 65.31% 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.
The Earnings Per Share has been growing by 15.06% on average over the past years. This is quite good.
RGLD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.69%.
RGLD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.70% yearly.
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 Y46.97%
EPS Next 2Y39.02%
EPS Next 3Y25.46%
EPS Next 5Y8.78%
Revenue Next Year20.11%
Revenue Next 2Y22.29%
Revenue Next 3Y15.54%
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
Based on the Price/Earnings ratio of 30.25, the valuation of RGLD can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as RGLD.
RGLD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.94, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.19 indicates a rather expensive 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.
When comparing the Price/Forward Earnings ratio of RGLD to the average of the S&P500 Index (24.11), we can say RGLD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.25 | ||
| Fwd PE | 20.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RGLD is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGLD indicates a somewhat cheap valuation: RGLD is cheaper than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21 | ||
| EV/EBITDA | 17.05 |
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 25.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)2.01
EPS Next 2Y39.02%
EPS Next 3Y25.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, RGLD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.22, RGLD pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.30, RGLD pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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.
RGLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.04%
EPS Next 2Y39.02%
EPS Next 3Y25.46%
ROYAL GOLD INC
NASDAQ:RGLD (1/17/2025, 8:24:25 PM)
After market: 138.54 0 (0%)138.54
+0.24 (+0.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change-0.07%
Ins Owners0.31%
Ins Owner Change-0.43%
Market Cap9.11B
Analysts74.44
Price Target173.68 (25.36%)
Short Float %2.06%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend1.5
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)0.81%
PT rev (3m)7.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.19%
EPS NY rev (1m)0%
EPS NY rev (3m)7.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.25 | ||
| Fwd PE | 20.19 | ||
| P/S | 13.61 | ||
| P/FCF | 21 | ||
| P/OCF | 18.61 | ||
| P/B | 3 | ||
| P/tB | 3 | ||
| EV/EBITDA | 17.05 |
EPS(TTM)4.58
EY3.31%
EPS(NY)6.86
Fwd EY4.95%
FCF(TTM)6.6
FCFY4.76%
OCF(TTM)7.44
OCFY5.37%
SpS10.18
BVpS46.21
TBVpS46.21
PEG (NY)0.64
PEG (5Y)2.01
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 | 21.75 |
F-Score9
WACC11.24%
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 Y46.97%
EPS Next 2Y39.02%
EPS Next 3Y25.46%
EPS Next 5Y8.78%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y6.69%
Revenue growth 5Y5.7%
Sales Q2Q%39.84%
Revenue Next Year20.11%
Revenue Next 2Y22.29%
Revenue Next 3Y15.54%
Revenue Next 5Y10.08%
EBIT growth 1Y24.8%
EBIT growth 3Y14.84%
EBIT growth 5Y12.95%
EBIT Next Year91.96%
EBIT Next 3Y34.83%
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%