Royal Gold, Inc. (RGLD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Caledonia Mining Corp. Plc

Newmont Corp.

Coeur Mining, Inc.

Hecla Mining Co.

Royal Gold, Inc.

McEwen Mining, Inc.

Perpetua Resources Corp.

Gatos Silver, Inc.

Dakota Gold Corp.

Contango ORE, Inc.

U.S. GoldMining, Inc.

Why is Royal Gold, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 704.84 MM
DIVIDEND PER SHARE(HY) Highest at USD 11.61
NET SALES(Q) Highest at USD 375.32 MM

With ROCE of 8.50%, it has a very expensive valuation with a 2.80 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 45.54%, its profits have risen by 47.5% ; the PEG ratio of the company is 2.9

High Institutional Holdings at 88.13%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Market Beating performance in long term as well as near term

Along with generating 45.54% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Royal Gold, Inc. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Royal Gold, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Royal Gold, Inc.

39.16%

2.12

38.78%

S&P 500

16.41%

0.85

19.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.62%

EBIT Growth (5y)

27.11%

EBIT to Interest (avg)

67.17

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.20

Tax Ratio

16.18%

Dividend Payout Ratio

27.23%

Pledged Shares

Institutional Holding

88.13%

ROCE (avg)

11.66%

ROE (avg)

9.69%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.97

EV to EBIT

32.94

EV to EBITDA

26.01

EV to Capital Employed

2.80

EV to Sales

21.24

PEG Ratio

2.90

Dividend Yield

41.97%

ROCE (Latest)

8.50%

ROE (Latest)

6.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 704.84 MM

DIVIDEND PER SHARE(HY)

Highest at USD 11.61

NET SALES(Q)

Highest at USD 375.32 MM

OPERATING PROFIT(Q)

Highest at USD 304.61 MM

-20What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 16.3 times

RAW MATERIAL COST(Y)

Grown by 8.29% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 9.77 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.61 times

INTEREST(Q)

Highest at USD 12.08 MM

NET PROFIT(Q)

Lowest at USD 102.16 MM

EPS(Q)

Lowest at USD 1.16

Here's what is working for Royal Gold, Inc.

Net Sales

At USD 375.32 MM has Grown at 75.04%

over average net sales of the previous four periods of USD 214.43 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (USD MM)

Operating Cash Flow

Highest at USD 704.84 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 11.61 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 375.32 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 304.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Depreciation

Highest at USD 80.03 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 80.03 MM has Grown at 143.23%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Royal Gold, Inc.

Interest

At USD 12.08 MM has Grown at 40.24%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 16.3 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at USD 12.08 MM

in the last five periods and Increased by 40.24% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

Lowest at USD 102.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 9.77 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 11.61 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 8.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales