OR Royalties Inc.
OR Royalties Inc. Fundamental Analysis
OR Royalties Inc. (OR) shows moderate financial fundamentals with a PE ratio of 48.75, profit margin of 74.05%, and ROE of 14.47%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 4.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.8/100 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 OR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOR demonstrates superior asset utilization.
Valuation Score
ModerateOR shows balanced valuation metrics.
Growth Score
WeakOR faces weak or negative growth trends.
Financial Health Score
ExcellentOR maintains a strong and stable balance sheet.
Profitability Score
ModerateOR maintains healthy but balanced margins.
Key Financial Metrics
Is OR Expensive or Cheap?
P/E Ratio
OR trades at 48.75 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, OR's PEG of 0.69 indicates potential undervaluation.
Price to Book
The market values OR Royalties Inc. at 5.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 37.30 times EBITDA. This signals the market has high growth expectations.
How Well Does OR Make Money?
Net Profit Margin
For every $100 in sales, OR Royalties Inc. keeps $74.05 as profit after all expenses.
Operating Margin
Core operations generate 71.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.47 in profit for every $100 of shareholder equity.
ROA
OR Royalties Inc. generates $10.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
OR Royalties Inc. generates strong operating cash flow of $277.93M, reflecting robust business health.
Free Cash Flow
OR Royalties Inc. generates strong free cash flow of $241.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.28 in free cash annually.
FCF Yield
OR converts 2.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
36.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.006
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How OR Stacks Against Its Sector Peers
| Metric | OR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.75 | 27.41 | Worse (Expensive) |
| ROE | 14.47% | 859.00% | Weak |
| Net Margin | 74.05% | -120873.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 4.53 | 4.80 | Strong Liquidity |
| ROA | 10.74% | -3590.00% (disorted) | Strong |
OR outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews OR Royalties Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-47.44%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
107.50%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
79.58%
Industry Style: Cyclical, Commodity, Value
High Growth