NasdaqGS:RGLD

Stock Analysis Report

Executive Summary

Royal Gold, Inc., together with its subsidiaries, acquires and manages precious metal streams, royalties, and related interests.

Rewards

Trading at 5.8% below its fair value

Earnings are forecast to grow 15.44% per year

Became profitable this year

Pays a reliable dividend of 1%

Risk Analysis

No risks detected for RGLD from our risk checks.


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Royal Gold's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RGLD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

RGLD

-5.3%

US Metals and Mining

-2.7%

US Market


1 Year Return

37.5%

RGLD

6.2%

US Metals and Mining

21.2%

US Market

Return vs Industry: RGLD exceeded the US Metals and Mining industry which returned 17.5% over the past year.

Return vs Market: RGLD exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

RGLDIndustryMarket
7 Day1.3%-5.3%-2.7%
30 Day-6.0%-7.5%0.09%
90 Day-5.6%1.4%6.9%
1 Year38.9%37.5%9.3%6.2%23.8%21.2%
3 Year69.5%63.8%-3.6%-8.8%48.1%38.6%
5 Year69.7%58.8%27.2%17.3%72.5%53.4%

Price Volatility Vs. Market

How volatile is Royal Gold's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Royal Gold undervalued compared to its fair value and its price relative to the market?

7.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RGLD ($114.09) is trading below our estimate of fair value ($121.09)

Significantly Below Fair Value: RGLD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RGLD is poor value based on its PE Ratio (49.2x) compared to the Metals and Mining industry average (11.4x).

PE vs Market: RGLD is poor value based on its PE Ratio (49.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RGLD is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: RGLD is overvalued based on its PB Ratio (3.4x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGLD's forecast earnings growth (15.4% per year) is above the savings rate (1.7%).

Earnings vs Market: RGLD's earnings (15.4% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: RGLD's earnings are forecast to grow, but not significantly.

Revenue vs Market: RGLD's revenue (8.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: RGLD's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RGLD's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Royal Gold performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGLD has high quality earnings.

Growing Profit Margin: RGLD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RGLD's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: RGLD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RGLD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7.6%).


Return on Equity

High ROE: RGLD's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Royal Gold's financial position?


Financial Position Analysis

Short Term Liabilities: RGLD's short term assets ($164.2M) exceed its short term liabilities ($32.4M).

Long Term Liabilities: RGLD's short term assets ($164.2M) do not cover its long term liabilities ($293.2M).


Debt to Equity History and Analysis

Debt Level: RGLD's debt to equity ratio (7.4%) is considered satisfactory.

Reducing Debt: RGLD's debt to equity ratio has reduced from 13.2% to 7.4% over the past 5 years.

Debt Coverage: RGLD's debt is well covered by operating cash flow (170%).

Interest Coverage: RGLD's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: RGLD has a low level of unsold assets or inventory.

Debt Coverage by Assets: RGLD's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Royal Gold's current dividend yield, its reliability and sustainability?

0.98%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: RGLD's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: RGLD's dividend (1%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: RGLD's dividends per share have been stable in the past 10 years.

Growing Dividend: RGLD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.1%), RGLD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RGLD's dividends in 3 years are forecast to be well covered by earnings (38.1% payout ratio).


Next Steps

Management

What is the CEO of Royal Gold's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Bill Heissenbuttel (54yo)

0yrs

Tenure

US$1,784,714

Compensation

Mr. William H. Heissenbuttel, also known as Bill, serves as President, Chief Executive Officer and Director of Royal Gold, Inc. since January 02, 2020. Mr. Heissenbuttel was the Chief Financial Officer and ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD1.78M) is below average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

4.2yrs

Average Tenure

50yo

Average Age

Experienced Management: RGLD's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

64yo

Average Age

Experienced Board: RGLD's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,351,31029 Aug 19
Tony Jensen
EntityIndividual
Shares10,032
Max PriceUS$134.70
SellUS$211,42328 Aug 19
Bruce Kirchhoff
EntityIndividual
Shares1,593
Max PriceUS$132.72
SellUS$180,18620 Aug 19
Bruce Kirchhoff
EntityIndividual
Shares1,417
Max PriceUS$127.16
SellUS$5,802,15614 Aug 19
Tony Jensen
EntityIndividual
Shares46,570
Max PriceUS$124.59
SellUS$2,296,12514 Aug 19
William Hayes
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares18,369
Max PriceUS$125.00
SellUS$182,90614 Jun 19
Ronald Vance
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,930
Max PriceUS$94.77
SellUS$2,989,84812 Jun 19
Tony Jensen
EntityIndividual
Shares31,936
Max PriceUS$93.62
SellUS$2,452,31407 Jun 19
Tony Jensen
EntityIndividual
Shares26,592
Max PriceUS$92.22

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bill Heissenbuttel (54yo)

    President

    • Compensation: US$1.78m
  • Mark Isto (59yo)

    Executive VP & COO

    • Tenure: 3.5yrs
    • Compensation: US$1.54m
  • Jason Hynes (41yo)

    Director of Business Development & Global Sales

    • Tenure: 6.5yrs
  • Paul Libner

    CFO & Treasurer

    • Dan Breeze (46yo)

      Vice President of Corporate Development at RGLD Gold AG

      • Tenure: 1.3yrs
      • Compensation: US$1.21m
    • Alistair Baker

      Director of Business Development

      • Tenure: 4.8yrs
    • Randy Shefman

      VP & General Counsel


      Board Members

      • Jamie Sokalsky (62yo)

        Independent Director

        • Tenure: 4.4yrs
        • Compensation: US$220.35k
      • Sybil Veenman (55yo)

        Independent Director

        • Tenure: 3yrs
        • Compensation: US$223.35k
      • Bill Hayes (74yo)

        Independent Chairman of the Board

        • Tenure: 5.7yrs
        • Compensation: US$356.35k
      • Chris Thompson (71yo)

        Independent Director

        • Tenure: 5.7yrs
        • Compensation: US$217.35k
      • Ron Vance (67yo)

        Independent Director

        • Tenure: 6.8yrs
        • Compensation: US$232.35k
      • Bill Heissenbuttel (54yo)

        President

        • Compensation: US$1.78m
      • C. McArthur (64yo)

        Independent Director

        • Tenure: 5.8yrs
        • Compensation: US$223.35k

      Company Information

      Royal Gold, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Royal Gold, Inc.
      • Ticker: RGLD
      • Exchange: NasdaqGS
      • Founded: 1981
      • Industry: Gold
      • Sector: Materials
      • Market Cap: US$7.489b
      • Shares outstanding: 65.59m
      • Website: https://www.royalgold.com

      Number of Employees


      Location

      • Royal Gold, Inc.
      • 1660 Wynkoop Street
      • Suite 1000
      • Denver
      • Colorado
      • 80202
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      RGLDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1981
      RG3DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1981
      0KXSLSE (London Stock Exchange)YesCommon StockGBUSDJun 1981
      RGLD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1981

      Biography

      Royal Gold, Inc., together with its subsidiaries, acquires and manages precious metal streams, royalties, and related interests. It focuses on acquiring stream and royalty interests or to finance projects that are in production or in development stage in exchange for stream or royalty interests, which primarily consists of gold, silver, copper, nickel, zinc, lead, cobalt, and molybdenum. As of June 30, 2019, the company owned interests in 186 properties on 5 continents, including interests on 41 producing mines and 16 development stage projects. Its principal producing stream and royalty interests on properties are located in the United States, Canada, Chile, the Dominican Republic, Ghana, and Mexico. The company also holds stream and royalty interests in mines and projects in other countries, including Argentina, Australia, Bolivia, Botswana, Brazil, Burkina Faso, Guatemala, Honduras, Macedonia, Nicaragua, Peru, Russia, Spain, and Tunisia. Royal Gold, Inc. was founded in 1981 and is based in Denver, Colorado. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/27 23:50
      End of Day Share Price2020/01/27 00:00
      Earnings2019/09/30
      Annual Earnings2019/06/30


      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.