Capitalcube gives Royal Gold, Inc. a score of 59.
Our analysis is based on comparing Royal Gold, Inc. with the following peers – Newmont Mining Corporation, Goldcorp Inc., Barrick Gold Corporation, Silver Wheaton Corp., Coeur Mining, Inc., Vale S.A. Sponsored ADR and Teck Resources Limited Class B (NEM-US, GG-US, ABX-US, SLW-US, CDE-US, VALE-US and TECK-US).
Royal Gold, Inc. has a fundamental score of 59 and has a relative valuation of OVERVALUED.
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- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- It currently trades at a Price/Book ratio of (1.98).
- The market expects faster earnings growth from RGLD-US than from its peers and also a turnaround in its current ROE.
- RGLD-US‘s relatively low net margins and poor asset turns suggest a problematic operating strategy.
- Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
- Over the last five years, RGLD-US‘s return on assets has eroded from above median to below median among its peers suggesting declining relative operating performance.
- Company appears to give away relatively high gross margins to relatively high operating costs suggesting a differentiated product portfolio with low pre-tax margins relative to peers.
- Compared with the peers chosen, RGLD-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
- The company’s level of capital investment seems appropriate to support the company’s growth.
- RGLD-US has some amount of debt capacity available.
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Leverage & Liquidity
RGLD-US has some amount of debt capacity available.
- With debt at a relatively low 14.19% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 20.72%), and a reasonable interest coverage level of 3.60x, RGLD-US has a fair amount of debt capacity available.
- All 7 peers for the company have an outstanding debt balance.
RGLD-US has maintained its Quick & Able profile from the recent year-end.
- RGLD-US‘s interest coverage has increased 0.51 points from last year’s low but is still below its five-year average interest coverage of 8.01.
- The increase in its interest coverage to 3.60x from 3.09x (in 2016) was also accompanied by an increase in its peer median during this period to 3.81x from 3.11x.
- RGLD-US‘s debt-EV is its highest relative to the last five years and compares to a low of 6.37% in 2012.
- Though its debt-EV increased to 14.19% from 11.49% (in 2016), its peer median remained relatively stable during this period at 20.72%.
- Relative to peers, debt-EV rose 2.69 percentage points.
Access the detailed analysis for Royal Gold, Inc.
Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|Newmont Mining Corporation||22.67||3.09||4.03||68.47|
|Barrick Gold Corporation||25.89||2.97||4.15||43.31|
|Silver Wheaton Corp.||12.42||6.72||10.27||43.38|
|Coeur Mining, Inc.||14.85||4.1||2.65||85.93|
|Vale S.A. Sponsored ADR||57.65||1.9||3.34||40.13|
|Teck Resources Limited Class B||29.53||1.87||4.91||51.11|
|Royal Gold, Inc.||14.19||6.1||3.6||40.94|
|Best In Class||12.42||6.72||10.27||85.93|
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Royal Gold, Inc. engages in the investment, acquisition and management of precious metals royalties and streams. It operates through two business segments: Acquisition and Management of Royalty Interests and Acquisition and Management of Stream Interests. The company was founded on January 5, 1981 and is headquartered in Denver, CO.
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