RE

RE RoyaltiesTSXV:RE Stock Report

Market Cap

CA$36.6m

7D

-9.8%

1Y

-26.7%

Updated

18 Sep, 2021

Data

Company Financials
RE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends1/6

RE Overview

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

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 +/- 8% a week.

Volatility Over Time: RE's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-9.8%

RE

-0.8%

CA Renewable Energy

-0.6%

CA Market


1 Year Return

-26.7%

RE

19.2%

CA Renewable Energy

29.0%

CA Market

Return vs Industry: RE underperformed the Canadian Renewable Energy industry which returned 18.7% over the past year.

Return vs Market: RE underperformed the Canadian Market which returned 29.1% over the past year.


Shareholder returns

REIndustryMarket
7 Day-9.8%-0.8%-0.6%
30 Day6.8%3.3%1.5%
90 Day-6.0%3.9%2.3%
1 Year-24.3%-26.7%22.9%19.2%32.9%29.0%
3 Yearn/a123.7%95.6%32.4%19.9%
5 Yearn/a140.1%89.0%52.2%29.7%

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

RE Royalties Fundamentals Summary

How do RE Royalties's earnings and revenue compare to its market cap?
RE fundamental statistics
Market CapCA$36.62m
Earnings (TTM)-CA$2.02m
Revenue (TTM)CA$1.50m

24.4x

P/S Ratio

-18.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RE income statement (TTM)
RevenueCA$1.50m
Cost of RevenueCA$320.08k
Gross ProfitCA$1.18m
ExpensesCA$3.20m
Earnings-CA$2.02m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.061
Gross Margin78.69%
Net Profit Margin-134.30%
Debt/Equity Ratio71.3%

How did RE perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

-66%

Payout Ratio

Valuation

Is RE Royalties undervalued compared to its fair value and its price relative to the market?

2.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RE (CA$1.1) is trading above our estimate of fair value (CA$0.26)

Significantly Below Fair Value: RE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RE is unprofitable, so we can't compare its PE Ratio to the Canadian Renewable Energy industry average.

PE vs Market: RE is unprofitable, so we can't compare its PE Ratio to the Canadian market.


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 is good value based on its PB Ratio (2.4x) compared to the CA Renewable Energy industry average (2.5x).


Future Growth

How is RE Royalties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

60.2%

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.


Past Performance

How has RE Royalties performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RE is currently unprofitable.

Growing Profit Margin: RE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RE is unprofitable, and losses have increased over the past 5 years at a rate of 2.3% per year.

Accelerating Growth: Unable to compare RE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RE is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-25.1%).


Return on Equity

High ROE: RE has a negative Return on Equity (-13.05%), as it is currently unprofitable.


Financial Health

How is RE Royalties's financial position?


Financial Position Analysis

Short Term Liabilities: RE's short term assets (CA$26.6M) exceed its short term liabilities (CA$9.5M).

Long Term Liabilities: RE's short term assets (CA$26.6M) exceed its long term liabilities (CA$1.8M).


Debt to Equity History and Analysis

Debt Level: RE's debt to equity ratio (71.3%) is considered high.

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RE is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 29.3% per year.


Dividend

What is RE Royalties's current dividend yield, its reliability and sustainability?

3.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RE's dividend (3.64%) is higher than the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: RE's dividend (3.64%) is low compared to the top 25% of dividend payers in the Canadian market (4.46%).


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: RE is paying a dividend but the company is unprofitable.


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?

2.8yrs

Average management tenure


CEO

Bernard Tan (45 yo)

2.83yrs

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 ($USD58.83K) is below average for companies of similar size in the Canadian market ($USD161.56K).

Compensation vs Earnings: Bernard's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RE's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: RE's board of directors are not considered experienced ( 2.7 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 not been meaningfully diluted in the past year.


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$36.619m
  • Shares outstanding: 33.29m
  • Website: https://www.reroyalties.com

Number of Employees


Location

  • RE Royalties Ltd.
  • 1040 West Georgia Street
  • 14th Floor
  • Vancouver
  • British Columbia
  • V6E 4H1
  • Canada

Listings


Biography

RE Royalties Ltd. provides royalty financing solutions to renewable energy generation and development companies. As of March 31, 2021, it owned a portfolio of 83 royalties from solar, wind, and hydro proje...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 00:54
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.