NasdaqGS:RGLD

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RGLD's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-7.5%

RGLD

-1.2%

US Metals and Mining

-0.06%

US Market


1 Year Return

-5.0%

RGLD

27.2%

US Metals and Mining

19.0%

US Market

Return vs Industry: RGLD underperformed the US Metals and Mining industry which returned 27.2% over the past year.

Return vs Market: RGLD underperformed the US Market which returned 19% over the past year.


Shareholder returns

RGLDIndustryMarket
7 Day-7.5%-1.2%-0.06%
30 Day-10.2%6.4%4.4%
90 Day-19.0%10.6%6.3%
1 Year-4.0%-5.0%30.0%27.2%21.7%19.0%
3 Year31.1%26.9%25.5%17.2%46.4%36.7%
5 Year224.5%204.9%137.4%114.9%91.0%69.9%

Long-Term 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?

30.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RGLD ($109.6) is trading above our estimate of fair value ($71.91)

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


Price To Earnings Ratio

PE vs Industry: RGLD is poor value based on its PE Ratio (30.5x) compared to the US Metals and Mining industry average (19.3x).

PE vs Market: RGLD is poor value based on its PE Ratio (30.5x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: RGLD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RGLD is overvalued based on its PB Ratio (3.1x) 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 5 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGLD's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: RGLD's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: RGLD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RGLD's revenue (8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: RGLD's revenue (8% 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 (9.2%).


Next Steps

Past Performance

How has Royal Gold performed over the past 5 years?

41.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGLD has high quality earnings.

Growing Profit Margin: RGLD's current net profit margins (45.1%) are higher than last year (34.1%).


Past Earnings Growth Analysis

Earnings Trend: RGLD has become profitable over the past 5 years, growing earnings by 41.5% per year.

Accelerating Growth: RGLD's earnings growth over the past year (57.8%) exceeds its 5-year average (41.5% per year).

Earnings vs Industry: RGLD earnings growth over the past year (57.8%) exceeded the Metals and Mining industry -12.4%.


Return on Equity

High ROE: RGLD's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Royal Gold's financial position?


Financial Position Analysis

Short Term Liabilities: RGLD's short term assets ($469.8M) exceed its short term liabilities ($56.1M).

Long Term Liabilities: RGLD's short term assets ($469.8M) exceed its long term liabilities ($377.8M).


Debt to Equity History and Analysis

Debt Level: RGLD's debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: RGLD's debt to equity ratio has reduced from 28.6% to 11.5% over the past 5 years.

Debt Coverage: RGLD's debt is well covered by operating cash flow (134.3%).

Interest Coverage: RGLD's interest payments on its debt are well covered by EBIT (30.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.09%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RGLD's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: RGLD's dividend (1.09%) is low compared to the top 25% of dividend payers in the US market (4.15%).


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 (31.7%), RGLD's dividend payments are 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?

0.8yrs

Average management tenure


CEO

Bill Heissenbuttel (55 yo)

0.83

Tenure

US$2,403,556

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 ($USD2.40M) is below average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Heissenbuttel
President0.83yrUS$2.40m0.12%
$ 8.3m
Paul Libner
CFO & Treasurer0.83yrUS$968.02k0.020%
$ 1.5m
Mark Isto
Executive VP & COO4.42yrsUS$1.73m0.020%
$ 1.4m
Randy Shefman
VP & General Counsel0.83yrUS$891.43k0.011%
$ 776.5k
Daniel Breeze
Vice President of Corporate Development at RGLD Gold AG2.17yrsUS$1.28m0%
$ 0
Alistair Baker
Vice President of Investor Relations & Business Developmentno datano datano data
Margaret McCandless
Assistant General Counselno datano data0.0017%
$ 123.0k

0.8yrs

Average Tenure

47yo

Average Age

Experienced Management: RGLD's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Heissenbuttel
President0.83yrUS$2.40m0.12%
$ 8.3m
Jamie Sokalsky
Independent Director5.25yrsUS$247.62k0.014%
$ 1.0m
Sybil Veenman
Independent Director3.83yrsUS$262.62k0.0023%
$ 164.7k
William Hayes
Independent Chairman of the Board6.5yrsUS$377.62k0.013%
$ 962.1k
Christopher M. Thompson
Independent Director6.5yrsUS$247.62k0.062%
$ 4.4m
Ronald Vance
Independent Director7.58yrsUS$277.62k0.011%
$ 820.4k
C. McArthur
Independent Director6.67yrsUS$262.62k0.016%
$ 1.2m
Fabiana Chubbs
Independent Directorno datano datano data

6.5yrs

Average Tenure

64yo

Average Age

Experienced Board: RGLD's board of directors are considered experienced (6.5 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

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$7.190b
  • Shares outstanding: 65.60m
  • Website: https://www.royalgold.com

Number of Employees


Location

  • Royal Gold, Inc.
  • 1144 15th Street
  • Suite 2500
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 00:09
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


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.