Royal Gold Inc

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RGLD : NASDAQ : Basic Materials
$68.78 | %
Today's Range: 67.62 - 69.78
Avg. Daily Volume: 755300.0
01/20/17 - 4:00 PM ET

Financial Analysis


ROYAL GOLD INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged 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 6.96 which clearly shows the ability to cover any short-term cash needs. RGLD managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.28% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)117.9574.06
EBITDA ($mil)80.9948.33
EBIT ($mil)40.8921.19
Net Income ($mil)29.79-45.05


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)133.04104.31
Total Assets ($mil)3148.593228.7
Total Debt ($mil)674.03674.78
Equity ($mil)2244.822297.35


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin80.3682.37
EBITDA Margin68.6665.26
Operating Margin34.6728.61
Sales Turnover0.130.09
Return on Assets-0.07-0.36
Return on Equity-0.1-0.51
Debt Q1 FY17 Q1 FY16
Current Ratio7.55.62
Debt/Capital0.230.23
Interest Expense5.85.6
Interest Coverage7.053.78


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)65.1465.07
Div / share0.230.22
EPS0.46-0.69
Book value / share34.4635.31
Institutional Own % n/a n/a
Avg Daily Volume754665.0697225.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.93 indicates a discount versus the S&P 500 average of 2.84 and a discount versus the industry average of 2.00. 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 NM Peers 470.61   RGLD 19.48 Peers 11.61

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

RGLD's P/E is negative making this valuation measure meaningless.

 

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 31.03 Peers 27.19   RGLD NA Peers 1.00

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.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RGLD 1.93 Peers 2.00   RGLD 83.34 Peers -45.01

Average. 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 valuation on par with 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 10.74 Peers 3.14   RGLD 42.61 Peers -10.68

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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