ROYAL GOLD INC (RGLD) Stock Fundamental Analysis
NASDAQ:RGLD - Nasdaq - US7802871084 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to RGLD. RGLD was compared to 150 industry peers in the Metals & Mining industry. RGLD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RGLD has a correct valuation and a medium growth rate. 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.
In the past 5 years RGLD has always been profitable.
RGLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RGLD has a Return On Assets of 9.79%. This is amongst the best in the industry. RGLD outperforms 88.11% of its industry peers.
Looking at the Return On Equity, with a value of 10.65%, RGLD is in the better half of the industry, outperforming 79.02% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.60%, RGLD belongs to the top of the industry, outperforming 86.01% of the companies in the same industry.
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 8.84%.
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
RGLD has a Profit Margin of 46.15%. This is amongst the best in the industry. RGLD outperforms 97.20% of its industry peers.
RGLD's Profit Margin has improved in the last couple of years.
RGLD has a Operating Margin of 59.76%. This is amongst the best in the industry. RGLD outperforms 97.90% of its industry peers.
RGLD's Operating Margin has improved in the last couple of years.
RGLD has a better Gross Margin (85.52%) than 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 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 23.05. This indicates that RGLD is financially healthy and has little risk of bankruptcy at the moment.
RGLD has a better Altman-Z score (23.05) than 87.41% 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 | 23.05 |
ROIC/WACC1
WACC10.61%
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.
With a decent Current ratio value of 3.23, RGLD is doing good in the industry, outperforming 66.43% of the companies in the same industry.
A Quick Ratio of 3.08 indicates that RGLD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.08, RGLD is in the better half of the industry, outperforming 74.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
RGLD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.17%, 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 18.78% in the past year. This is quite good.
The Revenue has been growing by 11.20% on average over the past years. This is quite good.
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
Based on estimates for the next years, RGLD will show a small growth in Earnings Per Share. The EPS will grow by 0.69% on average per year.
Based on estimates for the next years, RGLD will show a small growth in Revenue. The Revenue will grow by 0.86% on average per year.
EPS Next Y25.04%
EPS Next 2Y16.35%
EPS Next 3Y12.02%
EPS Next 5Y0.69%
Revenue Next Year19.64%
Revenue Next 2Y14.08%
Revenue Next 3Y0.86%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RGLD is valuated quite expensively with a Price/Earnings ratio of 28.22.
62.24% of the companies in the same industry are more expensive than RGLD, based on the Price/Earnings ratio.
RGLD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
RGLD is valuated rather expensively with a Price/Forward Earnings ratio of 22.57.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGLD is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, RGLD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.22 | ||
| Fwd PE | 22.57 |
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 74.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.87 | ||
| EV/EBITDA | 17.09 |
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 12.02% in the coming years.
PEG (NY)1.13
PEG (5Y)0.95
EPS Next 2Y16.35%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
RGLD has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.16, RGLD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, RGLD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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.
RGLD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
The dividend of RGLD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.7%
EPS Next 2Y16.35%
EPS Next 3Y12.02%
148.45
-3.79 (-2.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change2.51%
Ins Owners0.31%
Ins Owner Change-0.4%
Market Cap9.76B
Analysts77.65
Price Target175.44 (18.18%)
Short Float %2.01%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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)1.01%
PT rev (3m)5.29%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)2.35%
Revenue NQ rev (1m)-8.52%
Revenue NQ rev (3m)-9.63%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.22 | ||
| Fwd PE | 22.57 | ||
| P/S | 13.57 | ||
| P/FCF | 22.87 | ||
| P/OCF | 18.44 | ||
| P/B | 3.13 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 17.09 |
EPS(TTM)5.26
EY3.54%
EPS(NY)6.58
Fwd EY4.43%
FCF(TTM)6.49
FCFY4.37%
OCF(TTM)8.05
OCFY5.42%
SpS10.94
BVpS47.43
TBVpS47.43
PEG (NY)1.13
PEG (5Y)0.95
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 | 23.05 |
F-Score9
WACC10.61%
ROIC/WACC1
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 Y25.04%
EPS Next 2Y16.35%
EPS Next 3Y12.02%
EPS Next 5Y0.69%
Revenue 1Y (TTM)18.78%
Revenue growth 3Y5.31%
Revenue growth 5Y11.2%
Sales Q2Q%32.68%
Revenue Next Year19.64%
Revenue Next 2Y14.08%
Revenue Next 3Y0.86%
Revenue Next 5YN/A
EBIT growth 1Y41.74%
EBIT growth 3Y12.28%
EBIT growth 5Y25.03%
EBIT Next Year70.06%
EBIT Next 3Y17.29%
EBIT Next 5Y9.31%
FCF growth 1Y3.35%
FCF growth 3Y21.32%
FCF growth 5Y11.11%
OCF growth 1Y27.35%
OCF growth 3Y9.15%
OCF growth 5Y15.9%