Royal Gold, Inc.
Royal Gold, Inc. Fundamental Analysis
Royal Gold, Inc. (RGLD) shows moderate financial fundamentals with a PE ratio of 49.20, profit margin of 45.33%, and ROE of 10.92%. The company generates $0.8B in annual revenue with strong year-over-year growth of 19.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.2/100 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 RGLD's fundamental strength across five key dimensions:
Efficiency Score
WeakRGLD struggles to generate sufficient returns from assets.
Valuation Score
ModerateRGLD shows balanced valuation metrics.
Growth Score
ExcellentRGLD delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRGLD maintains a strong and stable balance sheet.
Profitability Score
WeakRGLD struggles to sustain strong margins.
Key Financial Metrics
Is RGLD Expensive or Cheap?
P/E Ratio
RGLD trades at 49.20 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RGLD's PEG of -7.47 indicates potential undervaluation.
Price to Book
The market values Royal Gold, Inc. at 3.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 35.27 times EBITDA. This signals the market has high growth expectations.
How Well Does RGLD Make Money?
Net Profit Margin
For every $100 in sales, Royal Gold, Inc. keeps $45.33 as profit after all expenses.
Operating Margin
Core operations generate 62.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.92 in profit for every $100 of shareholder equity.
ROA
Royal Gold, Inc. generates $4.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Royal Gold, Inc. generates strong operating cash flow of $575.19M, reflecting robust business health.
Free Cash Flow
Royal Gold, Inc. generates weak or negative free cash flow of $-375.08M, restricting financial flexibility.
FCF Per Share
Each share generates $-5.72 in free cash annually.
FCF Yield
RGLD converts -2.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
18.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How RGLD Stacks Against Its Sector Peers
| Metric | RGLD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.20 | 27.41 | Worse (Expensive) |
| ROE | 10.92% | 859.00% | Weak |
| Net Margin | 45.33% | -120873.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 3.12 | 4.80 | Strong Liquidity |
| ROA | 4.89% | -3590.00% (disorted) | Weak |
RGLD outperforms its industry in 3 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 Royal Gold, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.67%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
66.18%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
55.04%
Industry Style: Cyclical, Commodity, Value
High Growth