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Royal Gold Inc
RGLD : NASDAQ : Basic Materials
$41.74 | %
Today's Range: 39.02 - 41.80
Avg. Daily Volume: 1,180,500
02/12/16 - 4:00 PM ET

Financial Analysis


ROYAL GOLD INC's gross profit margin for the second quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. ROYAL GOLD INC is extremely liquid. Currently, the Quick Ratio is 7.47 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.68% 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 FY16 Q2 FY15
Net Sales ($mil)98.1261.3
EBITDA ($mil)67.5818.26
EBIT ($mil)27.17-2.02
Net Income ($mil)15.11-6.55


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)117.6675.13
Total Assets ($mil)3223.272862.59
Total Debt ($mil)677.49316.87
Equity ($mil)2301.162340.68


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin75.9843.66
EBITDA Margin68.8729.78
Operating Margin27.69-3.3
Sales Turnover0.10.09
Return on Assets0.31.7
Return on Equity0.432.08
Debt Q2 FY16 Q2 FY15
Current Ratio7.9438.62
Debt/Capital0.230.12
Interest Expense0.05.5
Interest Coverage0.0-0.37


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)65.0865.03
Div / share0.00.43
EPS0.23-0.1
Book value / share35.3635.99
Institutional Own % n/a n/a
Avg Daily Volume1155045.0910456.0

Valuation


SELL. ROYAL GOLD INC's P/E ratio indicates a significant premium compared to an average of 45.71 for the Metals & Mining industry and a significant premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 1.02 indicates a discount versus the S&P 500 average of 2.51 and a discount versus the industry average of 1.24. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, ROYAL GOLD INC seems to be trading 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 239.60 Peers 45.71   RGLD 14.22 Peers 6.82

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 26.33 Peers 39.30   RGLD 12.78 Peers 17.64

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

RGLD is trading at a valuation on par with its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RGLD 1.02 Peers 1.24   RGLD -80.27 Peers -137.42

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

RGLD is trading at a discount to its peers.

 

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

RGLD is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RGLD 7.31 Peers 2.10   RGLD 23.87 Peers -8.19

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

RGLD has a sales growth rate that significantly exceeds its peers.

 

 

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