Nomad Royalty (TSX:NSR) - Share price, News & Analysis

NSR fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	2/6
Financial Health	3/6
Dividends	1/6

NSR Stock Overview

Nomad Royalty Company Ltd. operates as a gold and silver royalty company that purchases rights to the gold or silver produced from a mine.

Rewards

Trading at 75.7% below our estimate of its fair value

Earnings are forecast to grow 60.06% per year

Risk Analysis

Dividend of 2.05% is not well covered by earnings or forecast to be in the next 3 years

Profit margins (4.9%) are lower than last year (62.6%)

Shareholders have been diluted in the past year

Nomad Royalty Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nomad Royalty
Historical stock prices
Current Share Price	CA$9.65
52 Week High	CA$11.04
52 Week Low	CA$7.34
Beta	0.93
1 Month Change	-3.40%
3 Month Change	-0.41%
1 Year Change	9.04%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-21.55%

Shareholder Returns

	NSR	CA Metals and Mining	CA Market
7D	-3.1%	-4.9%	0.3%
1Y	9.0%	-12.7%	-4.0%

Return vs Industry: NSR exceeded the Canadian Metals and Mining industry which returned -12.7% over the past year.

Return vs Market: NSR exceeded the Canadian Market which returned -4% over the past year.

Price Volatility

Is NSR's price volatile compared to industry and market?
NSR volatility
NSR Average Weekly Movement	6.9%
Metals and Mining Industry Average Movement	10.9%
Market Average Movement	10.0%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: NSR is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NSR's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	6	Vincent Metcalfe	https://nomadroyalty.com

Nomad Royalty Company Ltd. operates as a gold and silver royalty company that purchases rights to the gold or silver produced from a mine. The company owns a portfolio of 22 royalty, stream, and other interests. Nomad Royalty Company Ltd.

Nomad Royalty Fundamentals Summary

How do Nomad Royalty's earnings and revenue compare to its market cap?
NSR fundamental statistics
Market Cap	US$459.17m
Earnings (TTM)	US$1.54m
Revenue (TTM)	US$31.28m

298.2x

P/E Ratio

14.7x

P/S Ratio

Is NSR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NSR income statement (TTM)
Revenue	US$31.28m
Cost of Revenue	US$3.97m
Gross Profit	US$27.31m
Other Expenses	US$25.77m
Earnings	US$1.54m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.025
Gross Margin	87.30%
Net Profit Margin	4.92%
Debt/Equity Ratio	16.0%

How did NSR perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

612%

Payout Ratio

Does NSR pay a reliable dividends?

See NSR dividend history and benchmarks

When do you need to buy NSR by to receive an upcoming dividend?
Nomad Royalty dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Jul 15 2022
Days until Ex dividend	2 days
Days until Dividend pay date	18 days

Does NSR pay a reliable dividends?

See NSR dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is NSR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NSR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NSR. This is calculated by dividing NSR's market cap by their current preferred multiple.
What is NSR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$459.17m

NSR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	16.3x
Enterprise Value/EBITDA	27x
PEG Ratio	5x

Price to Sales Ratio vs Peers

How does NSR's PS Ratio compare to its peers?

NSR PS Ratio vs Peers

The above table shows the PS ratio for NSR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	44.4x

Forward PS

Price-To-Sales vs Peers: NSR is good value based on its Price-To-Sales Ratio (14.7x) compared to the peer average (44.4x).

Price to Earnings Ratio vs Industry

How does NSR's PE Ratio compare vs other companies in the Canadian Metals and Mining Industry?

Price-To-Sales vs Industry: NSR is expensive based on its Price-To-Sales Ratio (14.7x) compared to the Canadian Metals and Mining industry average (2.6x)

Price to Sales Ratio vs Fair Ratio

What is NSR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NSR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	14.7x
Fair PS Ratio	10.3x

Price-To-Sales vs Fair Ratio: NSR is expensive based on its Price-To-Sales Ratio (14.7x) compared to the estimated Fair Price-To-Sales Ratio (10.3x).

Share Price vs Fair Value

What is the Fair Price of NSR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NSR (CA$9.65) is trading below our estimate of fair value (CA$39.68)

Significantly Below Fair Value: NSR is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: NSR is poor value based on its PEG Ratio (5x)

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Future Growth

How is Nomad Royalty forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

60.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSR's forecast earnings growth (60.1% per year) is above the savings rate (1.6%).

Earnings vs Market: NSR's earnings (60.1% per year) are forecast to grow faster than the Canadian market (8.2% per year).

High Growth Earnings: NSR's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NSR's revenue (20.5% per year) is forecast to grow faster than the Canadian market (7% per year).

High Growth Revenue: NSR's revenue (20.5% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NSR's Return on Equity is forecast to be low in 3 years time (4.1%).

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Past Performance

How has Nomad Royalty performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

17.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NSR has high quality earnings.

Growing Profit Margin: NSR's current net profit margins (4.9%) are lower than last year (62.6%).

Past Earnings Growth Analysis

Earnings Trend: NSR's earnings have grown by 17.8% per year over the past 5 years.

Accelerating Growth: NSR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NSR had negative earnings growth (-91.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (-5.8%).

Return on Equity

High ROE: NSR's Return on Equity (0.5%) is considered low.

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Financial Health

How is Nomad Royalty's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NSR's short term assets ($27.7M) exceed its short term liabilities ($16.0M).

Long Term Liabilities: NSR's short term assets ($27.7M) do not cover its long term liabilities ($41.8M).

Debt to Equity History and Analysis

Debt Level: NSR's net debt to equity ratio (9.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NSR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NSR's debt is well covered by operating cash flow (26.9%).

Interest Coverage: NSR's interest payments on its debt are not well covered by EBIT (1.4x coverage).

Balance Sheet

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Dividend

What is Nomad Royalty current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.05%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: NSR's dividend (2.05%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: NSR's dividend (2.05%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NSR has been paying a dividend for less than 10 years.

Growing Dividend: NSR's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (611.9%), NSR's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: NSR is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure

CEO

Vincent Metcalfe (36 yo)

2.42yrs

Tenure

US$1,006,748

Compensation

Mr. Vincent Metcalfe is the Founder and serves as Chief Executive Officer and Director Nomad Royalty Company Ltd since 2020 and is its Chair. He had been Chief Executive Officer of Guerrero Ventures Inc. s...

CEO Compensation Analysis

Compensation vs Market: Vincent's total compensation ($USD1.01M) is about average for companies of similar size in the Canadian market ($USD1.24M).

Compensation vs Earnings: Vincent's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: NSR's management team is not considered experienced ( 2 years average tenure), which suggests a new team.

Board Members

Experienced Board: NSR's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31