Deterra Royalties Limited
Deterra Royalties Limited Fundamental Analysis
Deterra Royalties Limited (DETRF) shows moderate financial fundamentals with a PE ratio of 13.12, profit margin of 65.67%, and ROE of 1.36%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 9.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DETRF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDETRF demonstrates superior asset utilization.
Valuation Score
ExcellentDETRF trades at attractive valuation levels.
Growth Score
ModerateDETRF shows steady but slowing expansion.
Financial Health Score
ModerateDETRF shows balanced financial health with some risks.
Profitability Score
ExcellentDETRF achieves industry-leading margins.
Key Financial Metrics
Is DETRF Expensive or Cheap?
P/E Ratio
DETRF trades at 13.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DETRF's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values Deterra Royalties Limited at 16.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.57 times EBITDA. This is generally considered low.
How Well Does DETRF Make Money?
Net Profit Margin
For every $100 in sales, Deterra Royalties Limited keeps $65.67 as profit after all expenses.
Operating Margin
Core operations generate 93.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.36 in profit for every $100 of shareholder equity.
ROA
Deterra Royalties Limited generates $47.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Deterra Royalties Limited generates strong operating cash flow of $172.61M, reflecting robust business health.
Free Cash Flow
Deterra Royalties Limited generates strong free cash flow of $172.60M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
DETRF converts 7.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
16.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
13.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.36
vs 25 benchmark
ROA
Return on assets percentage
0.48
vs 25 benchmark
ROCE
Return on capital employed
0.69
vs 25 benchmark
How DETRF Stacks Against Its Sector Peers
| Metric | DETRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.12 | 27.01 | Better (Cheaper) |
| ROE | 135.85% | 949.00% | Weak |
| Net Margin | 65.67% | -16159.00% (disorted) | Strong |
| Debt/Equity | 1.13 | 0.48 | Weak (High Leverage) |
| Current Ratio | 13.29 | 4.42 | Strong Liquidity |
| ROA | 47.73% | -6411.00% (disorted) | Strong |
DETRF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Deterra Royalties Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.30%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
65.07%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
64.04%
Industry Style: Cyclical, Commodity, Value
High Growth