TSXV:RE

Stock Analysis Report

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Executive Summary

RE Royalties Ltd. provides royalty financing solutions to renewable energy generation and development companies. More Details


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

REIndustryMarket
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 Year27.2%22.7%67.4%61.0%5.8%2.1%
3 Yearn/a147.9%114.8%13.9%3.1%
5 Yearn/a251.3%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

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

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

NamePositionTenureCompensationOwnership
Bernard Tan
CEO & Director2.17yrsCA$75.00k6.38%
CA$ 2.9m
Luqman Khan
Chief Financial Officer2.17yrsCA$26.00k0.60%
CA$ 270.0k
Peter Leighton
Chief Operating Officer2.17yrsCA$150.00kno data
Bryce Anderson
Vice Presidentno datano data0.15%
CA$ 67.5k
Talia Beckett
Vice President of Communications & Sustainabilityno datano datano data
Alistair Howard
Vice President of Corporate Developmentno datano datano data
Trevor Thomas
Corporate Secretaryno datano datano data

2.2yrs

Average Tenure

Experienced Management: RE's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bernard Tan
CEO & Director2.17yrsCA$75.00k6.38%
CA$ 2.9m
Rene Carrier
Independent Director2.17yrsCA$18.33k0.60%
CA$ 270.0k
Gordon Fretwell
Independent Director1.92yrsCA$14.17k0.30%
CA$ 135.0k
Paul Larkin
Independent Director2.17yrsCA$18.33k1.74%
CA$ 783.0k
Marchand Snyman
Chairman of the Boardno dataCA$37.50k0.075%
CA$ 33.8k
Jill Leversage
Independent Director2.17yrsCA$18.33k0.090%
CA$ 40.5k
Stephen Cheeseman
Independent Director1.92yrsCA$18.33k1.44%
CA$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RETSXV (TSX Venture Exchange)YesCommon SharesCACADNov 2018
RROY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 00:20
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.