The Most Important Facts About Royal Gold

Royal Gold logged a -3.3% change during today's afternoon session, and is now trading at a price of $124.45 per share. The S&P 500 index moved -0.1% and the Nasdaq posted a 0.2% change. RGLD's trading volume is 412,475 compared to the stock's average volume of 463,165.

Royal Gold shares moved 29.4% over the last 52 weeks, with a high of $147.7 and a low of $84.54. During this time, the stock outperformed the S&P 500 index by 42.0%. As of January 2022, the company's 50-day average price is $110.0. Royal Gold, Inc., together with its subsidiaries, acquires and manages precious metal streams, royalties, and related interests. The mid-cap Basic Materials company has 29 full time employees and is based in Denver, CO. Royal Gold has returned a 1.9% dividend yield over the last 12 months.

Snapshot of the Company's Strong operating Margins with a Positive Growth Rate:

2019-06-30 2020-06-30 2021-06-30
Revenue (k) $423,056 $498,819 $615,856
Revenue Growth n/a 17.91% 23.46%
Gross Margins 42.2% 47.2% 54.0%
Gross Margins Growth n/a 11.85% 14.41%
Operating Margins 33.3% 40.2% 49.3%
Operating Margins Growth n/a 20.72% 22.64%
Earnings Per Share $1.43 $3.03 $4.6
EPS Growth n/a 111.89% 51.82%
Free Cash Flow (k) $252,111 $184,767 $239,004
FCF Growth n/a -26.71% 29.35%
Capital Expenditures (k) -$1,055 -$155,985 -$168,147
Net Debt / EBITDA 0.31 -0.05 -0.46

Royal Gold Is Too Expensive at Current Levels:

Compared to the Basic Materials sector's average of 8.57, Royal Gold has a trailing twelve month P/E ratio of 30.8 and, according to its EPS guidance of 3.91, an expected P/E ratio of 31.8. Royal Gold's PEG ratio is 0.62 based on its 49.67% average growth rate of historical and projected earnings per share. This suggests that company's shares are undervalued.

Royal Gold's P/B ratio is 3.0 compared to its sector average of 1.86. The company is likely overvalued in terms of its equity. The company's shares are currently trading 135.0% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 3.02 * 41.279) = $52.96

Royal Gold Is the Subject of Mixed Market Indicators:

13 analysts are following Royal Gold and have set target prices ranging from $92.27 to $150 per share. On average, they have given the company a rating of hold. At the current price of $124.45, RGLD is trading -5.68% away from its average analyst target price of $131.94 per share, implying an analyst consensus of some upside potential for the stock.

The company has an average amount of shares sold short since 5.6% of the company's shares are tied to short positions. Institutions own 82.7% of Royal Gold's shares, while the insider ownership rate stands at 0.27%. The biggest shareholder is Blackrock Inc. with a 10% stake in the company worth approximately $853,508,195.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.