SIR Royalty Income Fund Fundamental Analysis (TSX: SRV-UN.TO)
SIR Royalty Income Fund Fundamental Analysis (TSX: SRV-UN.TO)
SIR Royalty Income Fund (TSX: SRV-UN.TO) shows moderate financial fundamentals with a PE ratio of 16.61, profit margin of 63.09%, and ROE of 9.50%. The company generates $0.0B in annual revenue with moderate year-over-year growth of 4.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.4/100 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 SRV-UN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakSRV-UN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSRV-UN.TO trades at attractive valuation levels.
Growth Score
WeakSRV-UN.TO faces weak or negative growth trends.
Financial Health Score
ModerateSRV-UN.TO shows balanced financial health with some risks.
Profitability Score
ModerateSRV-UN.TO maintains healthy but balanced margins.
Key Financial Metrics
Is SRV-UN.TO Expensive or Cheap?
P/E Ratio
SRV-UN.TO trades at 16.61 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SRV-UN.TO's PEG of -0.69 indicates potential undervaluation.
Price to Book
The market values SIR Royalty Income Fund at 1.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.23 times EBITDA. This signals the market has high growth expectations.
How Well Does SRV-UN.TO Make Money?
Net Profit Margin
For every $100 in sales, SIR Royalty Income Fund keeps $63.09 as profit after all expenses.
Operating Margin
Core operations generate 31.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.50 in profit for every $100 of shareholder equity.
ROA
SIR Royalty Income Fund generates $8.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SIR Royalty Income Fund generates strong operating cash flow of $10.25M, reflecting robust business health.
Free Cash Flow
SIR Royalty Income Fund generates strong free cash flow of $10.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.22 in free cash annually.
FCF Yield
SRV-UN.TO converts 7.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SRV-UN.TO Stacks Against Its Sector Peers
| Metric | SRV-UN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.61 | 25.50 | Better (Cheaper) |
| ROE | 9.50% | 964.00% | Weak |
| Net Margin | 63.09% | -4901.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 2.34 | Weak Liquidity |
| ROA | 8.93% | 322.00% | Weak |
SRV-UN.TO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SIR Royalty Income Fund's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
125.97%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
119.24%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
325.78%
Industry Style: Cyclical, Growth, Discretionary
High Growth