Royal Gold Inc

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RGLD : NASDAQ : Basic Materials
$67.23 | %
Today's Range: 66.81 - 68.08
Avg. Daily Volume: 627600.0
03/24/17 - 4:00 PM ET

Financial Analysis


ROYAL GOLD INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ROYAL GOLD INC is extremely liquid. Currently, the Quick Ratio is 5.56 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 1.80% 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 FY17 Q2 FY16
Net Sales ($mil)106.9698.12
EBITDA ($mil)74.067.19
EBIT ($mil)34.4826.79
Net Income ($mil)28.0615.11


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)83.99117.6
Total Assets ($mil)3160.243223.27
Total Debt ($mil)677.43677.49
Equity ($mil)2259.732301.16


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin78.5575.98
EBITDA Margin69.1868.48
Operating Margin32.2427.3
Sales Turnover0.130.1
Return on Assets0.330.3
Return on Equity0.470.43
Debt Q2 FY17 Q2 FY16
Current Ratio6.17.94
Debt/Capital0.230.23
Interest Expense5.95.7
Interest Coverage5.844.7


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)65.1765.08
Div / share0.00.0
EPS0.430.23
Book value / share34.6835.36
Institutional Own % n/a n/a
Avg Daily Volume655191.0779584.0

Valuation


HOLD. ROYAL GOLD INC's P/E ratio indicates a significant premium compared to an average of 73.12 for the Metals & Mining industry and a significant premium compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 1.87 indicates a discount versus the S&P 500 average of 2.98 and a discount versus the industry average of 1.96. 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 381.18 Peers 73.12   RGLD 17.58 Peers 10.51

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 34.93 Peers 21.03   RGLD NM Peers 0.56

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.

RGLD's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RGLD 1.87 Peers 1.96   RGLD 13.33 Peers 235.45

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.

 

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 10.24 Peers 3.04   RGLD 28.96 Peers 1.90

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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