Gold Royalty Corp. Fundamental Analysis (AMEX: GROY)
Gold Royalty Corp. (AMEX: GROY) shows weak financial fundamentals with a PE ratio of 730.85, profit margin of 6.65%, and ROE of 0.22%. The company generates $0.0B in annual revenue with strong year-over-year growth of 54.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.6/100 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 GROY's fundamental strength across five key dimensions:
Efficiency Score
WeakGROY struggles to generate sufficient returns from assets.
Valuation Score
ModerateGROY shows balanced valuation metrics.
Growth Score
ModerateGROY shows steady but slowing expansion.
Financial Health Score
ExcellentGROY maintains a strong and stable balance sheet.
Profitability Score
WeakGROY struggles to sustain strong margins.
Key Financial Metrics
Is GROY Expensive or Cheap?
P/E Ratio
GROY trades at 730.85 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GROY's PEG of -1.08 indicates potential undervaluation.
Price to Book
The market values Gold Royalty Corp. at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 62.09 times EBITDA. This signals the market has high growth expectations.
How Well Does GROY Make Money?
Net Profit Margin
For every $100 in sales, Gold Royalty Corp. keeps $6.65 as profit after all expenses.
Operating Margin
Core operations generate 22.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.22 in profit for every $100 of shareholder equity.
ROA
Gold Royalty Corp. generates $0.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gold Royalty Corp. generates strong operating cash flow of $10.81M, reflecting robust business health.
Free Cash Flow
Gold Royalty Corp. generates weak or negative free cash flow of $-96.80M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.42 in free cash annually.
FCF Yield
GROY converts -12.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
730.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
35.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.002
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How GROY Stacks Against Its Sector Peers
| Metric | GROY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 730.85 | 27.37 | Worse (Expensive) |
| ROE | 0.22% | 1190.00% | Weak |
| Net Margin | 6.65% | 204.00% | Weak |
| Debt/Equity | 0.00 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 4.80 | 3.14 | Strong Liquidity |
| ROA | 0.18% | 2758.00% | Weak |
GROY outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gold Royalty Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1459.11%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
95.46%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
109.90%
Industry Style: Cyclical, Commodity, Value
High Growth