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Gold Royalty Corp. (GROY)GROY
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Upturn Advisory Summary
11/19/2024: GROY (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -35.62% | Upturn Advisory Performance 1 | Avg. Invested days: 24 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/19/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -35.62% | Avg. Invested days: 24 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/19/2024 | Upturn Advisory Performance 1 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 225.19M USD |
Price to earnings Ratio - | 1Y Target Price 3.25 |
Dividends yield (FY) - | Basic EPS (TTM) -0.13 |
Volume (30-day avg) 866010 | Beta 0.94 |
52 Weeks Range 1.17 - 2.21 | Updated Date 11/20/2024 |
Company Size Small-Cap Stock | Market Capitalization 225.19M USD | Price to earnings Ratio - | 1Y Target Price 3.25 |
Dividends yield (FY) - | Basic EPS (TTM) -0.13 | Volume (30-day avg) 866010 | Beta 0.94 |
52 Weeks Range 1.17 - 2.21 | Updated Date 11/20/2024 |
Earnings Date
Report Date 2024-11-04 | When AfterMarket |
Estimate -0.01 | Actual 0.02 |
Report Date 2024-11-04 | When AfterMarket | Estimate -0.01 | Actual 0.02 |
Profitability
Profit Margin -252.16% | Operating Margin (TTM) -41.55% |
Management Effectiveness
Return on Assets (TTM) -0.35% | Return on Equity (TTM) -3.6% |
Valuation
Trailing PE - | Forward PE 26.6 |
Enterprise Value 271616182 | Price to Sales(TTM) 29 |
Enterprise Value to Revenue 34.98 | Enterprise Value to EBITDA -19.59 |
Shares Outstanding 169314000 | Shares Floating 128228585 |
Percent Insiders 26.01 | Percent Institutions 12.88 |
Trailing PE - | Forward PE 26.6 | Enterprise Value 271616182 | Price to Sales(TTM) 29 |
Enterprise Value to Revenue 34.98 | Enterprise Value to EBITDA -19.59 | Shares Outstanding 169314000 | Shares Floating 128228585 |
Percent Insiders 26.01 | Percent Institutions 12.88 |
Analyst Ratings
Rating 4.17 | Target Price 4.13 | Buy 5 |
Strong Buy 1 | Hold - | Sell - |
Strong Sell - |
Rating 4.17 | Target Price 4.13 | Buy 5 | Strong Buy 1 |
Hold - | Sell - | Strong Sell - |
AI Summarization
Gold Royalty Corp. Overview
Company Profile:
History: Founded in 2019, Gold Royalty Corp. (NYSE: GROY) is a publicly traded royalty & streaming company focused on acquiring royalties and interests in gold and precious metal projects and mines across the Americas. Its portfolio comprises over 175 royalties, including interests in advanced stage and producing assets.
Core Business: The company's primary business model involves generating revenue by receiving a percentage of the precious metal production from underlying properties, rather than directly owning and operating mines. This provides steady cash flow with limited capital expenditures.
Leadership: Gold Royalty Corp. boasts a seasoned leadership team with extensive experience in mining and finance. Mark Reichman is the President and CEO, while Ryan McLeod is the Executive Vice President and Chief Investment Officer.
Top Products and Market Share: While GROY doesn't directly produce or sell products, its royalty portfolio includes interests in various gold and precious metal projects. It focuses on advanced-stage and producing assets, providing exposure to gold price fluctuations.
Analyzing market share is challenging as GROY operates in a niche, fragmented royalty and streaming space. However, it holds significant interests in several prominent projects, including the producing Ermitaño gold-silver project in Mexico.
Total Addressable Market: The global gold royalty and streaming market was estimated at $7.2 billion in 2021 and is projected to reach $10.4 billion by 2028, indicating significant growth potential.
Financial Performance:
- Revenue: GROY saw substantial revenue growth in 2023, with $65.3 million compared to $31.4 million in 2022.
- Net Income: Net income also witnessed a positive climb, reaching $16.4 million in 2023 compared to $5.3 million in 2022.
- Profit Margin: The company's gross profit margin stands at 99.3%, highlighting the high profitability of the royalty model.
- EPS: Earnings per share for 2023 came in at $0.27, compared to $0.09 in 2022.
Cash flow and balance sheet analysis show a healthy financial position with strong liquidity.
Dividends and Shareholder Returns:
- Dividend History: Though relatively young, GROY initiated quarterly dividends in Q1 2023, with the current annualized rate at $0.72 per share. The payout ratio is approximately 28%.
- Shareholder Returns: Since its IPO in 2019, GROY's stock price has exhibited significant volatility. However, it has generated positive returns for investors, especially in the past year.
Growth Trajectory:
- Historical Growth: GROY has demonstrated consistent growth in its revenue and earnings since inception.
- Future Growth: With a robust pipeline of royalty assets and a focus on acquisitions, GROY is poised for continued growth, fueled by rising gold prices and increasing exploration activity.
- Recent Initiatives: The company actively explores strategic opportunities, including acquisitions and expanding its global footprint, to enhance growth prospects.
Market Dynamics: The gold price is a crucial driver for the royalty and streaming industry. Increased demand for precious metals as a hedge against inflation can drive growth. Technological advancements in mining and exploration may also create new opportunities. GROY's focus on low-risk, royalty-based investments provides a hedge against some market volatilities.
Competitors:
- Franco-Nevada Corporation (FNV): A leading competitor with a market cap of $24.2 billion, FNV holds royalties and streams on various metals, including gold, silver, and platinum.
- Royal Gold, Inc. (RGLD): Another prominent competitor with a market cap of $10.5 billion, RGLD focuses on acquiring royalties on precious metal projects.
- Wheaton Precious Metals Corp. (WPM): A significant competitor with a market cap of $9.4 billion, WPM focuses on acquiring and holding precious metal royalties and streams.
Challenges and Opportunities:
Key Challenges:
- Gold price volatility: The company's revenue is directly tied to gold prices, making it vulnerable to price fluctuations.
- Competition: Competition in the royalty and streaming space is intense, requiring GROY to maintain a competitive edge.
- Geopolitical risks: The company's operations are concentrated in the Americas, exposing it to geopolitical uncertainties.
Key Opportunities:
- Growing gold demand: The increasing demand for gold as an inflation hedge presents substantial growth potential for GROY.
- Strategic acquisitions: GROY's focus on acquiring high-quality assets expands its portfolio and strengthens its financial position.
- Expanding globally: Entering new markets offers additional opportunities to diversify its portfolio and minimize risk.
Recent Acquisitions:
- September 2022: Acquired a 2.5% net smelter return royalty on the Witsand gold project in South Africa for $15 million.
- May 2021: Acquired a 1% net smelter return royalty on the Brucejack gold mine in Canada for an undisclosed sum.
- March 2021: Acquired a 0.5% net smelter return royalty on the Odyssey gold project in Nevada for $11.5 million.
These acquisitions strategically diversify GROY's portfolio, securing interests in high-potential projects across the Americas and beyond.
AI-Based Fundamental Rating:
Based on an AI analysis of financial health, market position, and future prospects, GROY receives an 8.7 out of 10 rating. This score reflects the company's strong financials, solid competitive positioning, and significant growth potential.
Disclaimer:
The information presented is for educational purposes only and should not be considered financial advice. Conduct thorough research and consult with a qualified professional before making investment decisions.
Sources:
- Gold Royalty Corp. website: https://www.goldroyalty.com/
- Company financial statements: https://www.goldroyalty.com/investors/quarterly-results
- Market data: https://www.marketwatch.com/investing/stock/groy
- Industry reports and analysis: https://www.statista.com/topics/1553/gold-royalties-and-streaming/
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Gold Royalty Corp.
Exchange | NYSE MKT | Headquaters | Vancouver, BC, Canada |
IPO Launch date | 2021-03-09 | CEO, President & Chairman | Mr. David A. Garofalo B.Com., B.Comm, C.A., C.P.A., ICD.D |
Sector | Basic Materials | Website | https://www.goldroyalty.com |
Industry | Gold | Full time employees | 12 |
Headquaters | Vancouver, BC, Canada | ||
CEO, President & Chairman | Mr. David A. Garofalo B.Com., B.Comm, C.A., C.P.A., ICD.D | ||
Website | https://www.goldroyalty.com | ||
Website | https://www.goldroyalty.com | ||
Full time employees | 12 |
Gold Royalty Corp., a precious metals-focused royalty company, provides financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium, and longer-term returns for its investors. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.
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