Executive Summary
RE Royalties Ltd. provides royalty financing solutions to renewable energy generation and development companies. More Details
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Adequate balance sheet with questionable track record.
Share Price & News
How has RE Royalties's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RE is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: RE's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-6.9%
RE
-0.1%
CA Renewable Energy
0.7%
CA Market
1 Year Return
22.7%
RE
61.0%
CA Renewable Energy
2.1%
CA Market
Return vs Industry: RE underperformed the Canadian Renewable Energy industry which returned 59.2% over the past year.
Return vs Market: RE exceeded the Canadian Market which returned 2% over the past year.
Shareholder returns
| RE | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.9% | -0.1% | 0.7% |
| 30 Day | -5.6% | 14.8% | 4.6% |
| 90 Day | -6.3% | 25.0% | 13.5% |
| 1 Year | 27.2%22.7% | 67.4%61.0% | 5.8%2.1% |
| 3 Year | n/a | 147.9%114.8% | 13.9%3.1% |
| 5 Year | n/a | 251.3%174.6% | 67.3%41.6% |
Long-Term Price Volatility Vs. Market
How volatile is RE Royalties's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
RE Royalties Ltd.'s (CVE:RE) On An Uptrend But Financial Prospects Look Pretty Weak: Is The Stock Overpriced?7 months ago | Simply Wall St
The RE Royalties (CVE:RE) Share Price Has Gained 31% And Shareholders Are Hoping For More9 months ago | Simply Wall St
Can We See Significant Insider Ownership On The RE Royalties Ltd. (CVE:RE) Share Register?Valuation
Is RE Royalties undervalued compared to its fair value and its price relative to the market?
195.09x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RE (CA$1.35) is trading above our estimate of fair value (CA$0.23)
Significantly Below Fair Value: RE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RE is poor value based on its PE Ratio (195.1x) compared to the CA Renewable Energy industry average (19.6x).
PE vs Market: RE is poor value based on its PE Ratio (195.1x) compared to the Canadian market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate RE's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RE's PB Ratio (2.5x) is in line with the CA Renewable Energy industry average.
Next Steps
Future Growth
How is RE Royalties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
33.6%
Forecasted Utilities industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RE Royalties has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine RE Royalties's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- RE Royalties competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Utilities industry.
Past Performance
How has RE Royalties performed over the past 5 years?
0.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RE has a high level of non-cash earnings.
Growing Profit Margin: RE became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: RE has become profitable over the past 5 years, growing earnings by 0.8% per year.
Accelerating Growth: RE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: RE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (20.7%).
Return on Equity
High ROE: RE's Return on Equity (1.3%) is considered low.
Next Steps
Financial Health
How is RE Royalties's financial position?
Financial Position Analysis
Short Term Liabilities: RE's short term assets (CA$19.4M) exceed its short term liabilities (CA$594.4K).
Long Term Liabilities: RE's short term assets (CA$19.4M) exceed its long term liabilities (CA$1.9M).
Debt to Equity History and Analysis
Debt Level: RE's debt to equity ratio (14%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if RE's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: RE's debt is well covered by operating cash flow (45.4%).
Interest Coverage: Insufficient data to determine if RE's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is RE Royalties's current dividend yield, its reliability and sustainability?
2.96%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: RE's dividend (2.96%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: RE's dividend (2.96%) is low compared to the top 25% of dividend payers in the Canadian market (5%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, RE has been paying a dividend for less than 10 years.
Growing Dividend: RE has only been paying a dividend for 2 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (578%), RE's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Bernard Tan (44 yo)
2.17yrs
Tenure
CA$75,000
Compensation
Mr. Bernard Tan MBA, B.Comm, CA served as Chief Financial Officer at Hunter Dickinson Inc. until December 2015. Mr. Tan manages accounting, regulatory and securities compliance, reporting, treasury and tax...
CEO Compensation Analysis
Compensation vs Market: Bernard's total compensation ($USD59.32K) is below average for companies of similar size in the Canadian market ($USD153.63K).
Compensation vs Earnings: Bernard's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.17yrs | CA$75.00k | 6.38% CA$ 2.9m | |
| Chief Financial Officer | 2.17yrs | CA$26.00k | 0.60% CA$ 270.0k | |
| Chief Operating Officer | 2.17yrs | CA$150.00k | no data | |
| Vice President | no data | no data | 0.15% CA$ 67.5k | |
| Vice President of Communications & Sustainability | no data | no data | no data | |
| Vice President of Corporate Development | no data | no data | no data | |
| Corporate Secretary | no data | no data | no data |
2.2yrs
Average Tenure
Experienced Management: RE's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.17yrs | CA$75.00k | 6.38% CA$ 2.9m | |
| Independent Director | 2.17yrs | CA$18.33k | 0.60% CA$ 270.0k | |
| Independent Director | 1.92yrs | CA$14.17k | 0.30% CA$ 135.0k | |
| Independent Director | 2.17yrs | CA$18.33k | 1.74% CA$ 783.0k | |
| Chairman of the Board | no data | CA$37.50k | 0.075% CA$ 33.8k | |
| Independent Director | 2.17yrs | CA$18.33k | 0.090% CA$ 40.5k | |
| Independent Director | 1.92yrs | CA$18.33k | 1.44% CA$ 648.0k |
2.0yrs
Average Tenure
65.5yo
Average Age
Experienced Board: RE's board of directors are not considered experienced ( 2 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 3.5%.
Top Shareholders
Company Information
RE Royalties Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: RE Royalties Ltd.
- Ticker: RE
- Exchange: TSXV
- Founded: NaN
- Industry: Renewable Electricity
- Sector: Utilities
- Market Cap: CA$44.941m
- Shares outstanding: 33.29m
- Website: https://www.reroyalties.com
Number of Employees
Location
- RE Royalties Ltd.
- 1040 West Georgia Street
- 15th Floor
- Vancouver
- British Columbia
- V6E 4H1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RE | TSXV (TSX Venture Exchange) | Yes | Common Shares | CA | CAD | Nov 2018 |
| RROY.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Nov 2018 |
Biography
RE Royalties Ltd. provides royalty financing solutions to renewable energy generation and development companies. As of December 31, 2019, it owns a portfolio of 75 royalties from solar, wind, and hydro pro...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 00:20 |
| End of Day Share Price | 2021/01/20 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.