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Royal Gold Inc
RGLD : NASDAQ : Basic Materials
$63.56 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 766,600
03/30/15 - 3:59 PM ET

Financial Analysis


ROYAL GOLD INC's gross profit margin for the second quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ROYAL GOLD INC is extremely liquid. Currently, the Quick Ratio is 37.82 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)61.352.79
EBITDA ($mil)18.2645.59
EBIT ($mil)-2.0222.92
Net Income ($mil)-6.5510.67


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)675.13659.29
Total Assets ($mil)2862.592889.2
Total Debt ($mil)316.87306.98
Equity ($mil)2340.682347.83


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin43.6695.19
EBITDA Margin29.7886.36
Operating Margin-3.343.41
Sales Turnover0.090.08
Return on Assets1.71.48
Return on Equity2.081.83
Debt Q2 FY15 Q2 FY14
Current Ratio38.6230.11
Debt/Capital0.120.12
Interest Expense5.55.3
Interest Coverage-0.374.32


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)65.0364.93
Div / share0.430.41
EPS-0.10.16
Book value / share35.9936.16
Institutional Own % n/a n/a
Avg Daily Volume766189.0891637.0

Valuation


HOLD. ROYAL GOLD INC's P/E ratio indicates a significant premium compared to an average of 25.74 for the Metals & Mining industry and a significant premium compared to the S&P 500 average of 19.41. Conducting a second comparison, its price-to-book ratio of 1.79 indicates a discount versus the S&P 500 average of 2.74 and a premium versus the industry average of 1.47. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ROYAL GOLD INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RGLD 84.61 Peers 25.74   RGLD 26.25 Peers 8.57

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

RGLD is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

RGLD is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RGLD 40.19 Peers 25.60   RGLD 4.17 Peers 0.83

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

RGLD is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

RGLD trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RGLD 1.79 Peers 1.47   RGLD 16.92 Peers 97.18

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RGLD is trading at a premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, RGLD is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RGLD 16.19 Peers 2.27   RGLD 7.25 Peers 36.18

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RGLD is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RGLD significantly trails its peers on the basis of sales growth

 

 

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