ROYAL GOLD INC (RGLD)
US7802871084 - Common Stock
Overall RGLD gets a fundamental rating of 6 out of 10. We evaluated RGLD against 157 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
RGLD had positive earnings in the past year.
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
RGLD's Return On Assets of 7.36% is amongst the best of the industry. RGLD outperforms 82.17% of its industry peers.
RGLD has a Return On Equity of 8.10%. This is in the better half of the industry: RGLD outperforms 75.16% of its industry peers.
The Return On Invested Capital of RGLD (8.88%) is better than 80.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RGLD is in line with the industry average of 8.23%.
The last Return On Invested Capital (8.88%) for RGLD is above the 3 year average (8.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.36% | ||
| ROE | 8.1% | ||
| ROIC | 8.88% |
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 has a better Profit Margin (39.14%) than 97.45% of its industry peers.
RGLD's Profit Margin has been stable in the last couple of years.
RGLD's Operating Margin of 52.57% is amongst the best of the industry. RGLD outperforms 97.45% of its industry peers.
In the last couple of years the Operating Margin of RGLD has grown nicely.
RGLD has a better Gross Margin (84.52%) 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 | 52.57% | ||
| PM (TTM) | 39.14% | ||
| GM | 84.52% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RGLD is destroying value.
The number of shares outstanding for RGLD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RGLD has more shares outstanding
RGLD has a better debt/assets ratio than last year.
2.2 Solvency
RGLD has an Altman-Z score of 21.02. This indicates that RGLD is financially healthy and has little risk of bankruptcy at the moment.
RGLD's Altman-Z score of 21.02 is amongst the best of the industry. RGLD outperforms 84.71% 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 | 0.13 | ||
| Altman-Z | 21.02 |
ROIC/WACC0.9
WACC9.88%
2.3 Liquidity
A Current Ratio of 1.09 indicates that RGLD should not have too much problems paying its short term obligations.
The Current ratio of RGLD (1.09) is worse than 84.08% of its industry peers.
RGLD has a Quick Ratio of 1.00. This is a normal value and indicates that RGLD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RGLD (1.00) is worse than 71.97% of its industry peers.
The current and quick ratio evaluation for RGLD is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
RGLD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.85%, which is quite good.
The Earnings Per Share has been growing by 15.06% on average over the past years. This is quite good.
RGLD shows a small growth in Revenue. In the last year, the Revenue has grown by 0.90%.
RGLD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.70% yearly.
EPS 1Y (TTM)11.85%
EPS 3Y13.94%
EPS 5Y15.06%
EPS Q2Q%42.05%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y6.69%
Revenue growth 5Y5.7%
Sales Q2Q%20.86%
3.2 Future
Based on estimates for the next years, RGLD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.78% on average per year.
The Revenue is expected to grow by 10.08% on average over the next years. This is quite good.
EPS Next Y36.33%
EPS Next 2Y30.78%
EPS Next 3Y20.85%
EPS Next 5Y8.78%
Revenue Next Year15.58%
Revenue Next 2Y20.58%
Revenue Next 3Y13.46%
Revenue Next 5Y10.08%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 39.04, RGLD can be considered very expensive at the moment.
RGLD's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 30.69, RGLD is valued a bit more expensive.
The Price/Forward Earnings ratio is 24.89, which indicates a rather expensive current 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, RGLD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.04 | ||
| Fwd PE | 24.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RGLD.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGLD indicates a somewhat cheap valuation: RGLD is cheaper than 77.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.91 | ||
| EV/EBITDA | 21.09 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as RGLD's earnings are expected to grow with 20.85% in the coming years.
PEG (NY)1.07
PEG (5Y)2.59
EPS Next 2Y30.78%
EPS Next 3Y20.85%
5. Dividend
5.1 Amount
RGLD has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
RGLD's Dividend Yield is a higher than the industry average which is at 2.84.
With a Dividend Yield of 1.06, RGLD pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
On average, the dividend of RGLD grows each year by 8.88%, 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)8.88%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
42.37% of the earnings are spent on dividend by RGLD. This is a bit on the high side, but may be sustainable.
The dividend of RGLD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.37%
EPS Next 2Y30.78%
EPS Next 3Y20.85%
ROYAL GOLD INC
NASDAQ:RGLD (10/30/2024, 8:00:02 PM)
After market: 151.1 0 (0%)151.1
-2.51 (-1.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.04 | ||
| Fwd PE | 24.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.07
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.36% | ||
| ROE | 8.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 52.57% | ||
| PM (TTM) | 39.14% | ||
| GM | 84.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.85%
EPS 3Y13.94%
EPS 5Y
EPS Q2Q%
EPS Next Y36.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.9%
Revenue growth 3Y6.69%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y