ROYAL GOLD INC (RGLD) Stock Analysis
ROYAL GOLD INC (RGLD) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
ROYAL GOLD INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 68.4% | Strong cash generation |
| Debt/Equity | 0.1x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 68.4% provides financial flexibility for growth and shareholder returns.
Explore ROYAL GOLD INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: ROYAL GOLD INC earns N/A ROIC
ROYAL GOLD INC's trailing-twelve-month ROIC of N/A (sector median: 12.6%). Source: 10-Q filed 2025-11-06.
| Metric | RGLD | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 12.6% |
| Return on Equity (ROE) | 12.4% | Adequate | Moderate equity returns |
Cash Flow: ROYAL GOLD INC generates $704.8M FCF at 68.4% margin, positive NaN/8 quarters
ROYAL GOLD INC generated $704.8M in free cash flow (TTM), a 68.4% FCF margin, a margin that ranks Top 5% in Real Estate. Operating cash flow exceeds net income by 1.5x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | RGLD | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 68.4% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $704.8M | Good | Positive cash generation |
| OCF/Net Income | 1.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: ROYAL GOLD INC at 0.1x leverage
ROYAL GOLD INC's debt-to-equity ratio of 0.1x reflects conservative leverage. Total debt of $895.4M offset by $233.7M in cash. Source: 10-Q filed 2025-11-06.
| Metric | RGLD | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.1x | Excellent | Conservative capital structure |
| Net Cash Position | $-661.7M | Adequate | Net debt position |
Valuation: ROYAL GOLD INC trades at 33.2x earnings
ROYAL GOLD INC trades at a P/E of 33.2x. Free cash flow yield of 4.6% reflects market expectations for growth.
| Metric | RGLD | Rating | Context |
|---|---|---|---|
| P/E Ratio | 33.2x | Adequate | Premium valuation |
| EV/Sales | 15.1x | Warning | Growth premium priced in |
| FCF Yield | 4.6% | Good | Lower cash yield |
| Dividend Yield | 0.8% | Adequate | Growth focus over income |
Capital Allocation: ROYAL GOLD INC returns 0.8% shareholder yield
ROYAL GOLD INC's total shareholder yield is 0.8% (dividends 0.8% + buybacks). Source: 10-Q filed 2025-11-06.
| Metric | RGLD | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.8% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $129.1M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 68.4% | Top 5% | - |
| Return on Equity (ROE) | 12.4% | Top 25% | 5.4x above |
| P/E Ratio | 33.2x | N/A | - |
Financial Scorecard
| Metric | RGLD | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 68.4% | Excellent | Top 5% of sector (median: 0.0%) |
| Debt to Equity Ratio | 12.5% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 33.2x | Adequate | Growth premium |
| Free Cash Flow Yield | 4.6% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is ROYAL GOLD INC's Return on Invested Capital (ROIC)?
ROYAL GOLD INC (RGLD) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 12.6%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is ROYAL GOLD INC's Free Cash Flow Margin?
ROYAL GOLD INC (RGLD) has a free cash flow margin of 68.4%, generating $704.8 million in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is ROYAL GOLD INC stock overvalued or undervalued?
ROYAL GOLD INC (RGLD) trades at a P/E ratio of 33.2x, which is above the sector median of N/A. The EV/Sales multiple is 15.1x. Free cash flow yield is 4.6%, which is in line with market averages.
Q: Does ROYAL GOLD INC pay a dividend?
ROYAL GOLD INC (RGLD) currently pays a dividend yield of 0.8%. Including share buybacks, the total shareholder yield is 0.8%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is ROYAL GOLD INC's revenue and earnings growth?
ROYAL GOLD INC (RGLD) grew revenue by 43.2% year-over-year. Earnings per share increased by 32.7% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does ROYAL GOLD INC compare to competitors in Real Estate?
Compared to other companies in Real Estate, ROYAL GOLD INC (RGLD) shows: ROIC of N/A is below the sector median of 12.6% (NaNx median). FCF margin of 68.4% exceeds the sector median of 0.0% (Top 5% of sector). These rankings are based on MetricDuck's analysis of all Real Estate companies with available SEC filings.
Q: What warning signs should I watch for with ROYAL GOLD INC?
ROYAL GOLD INC (RGLD) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.