Deterra Royalties Ltd (DRR) AI Stock Analysis

• Market Cap: AU$2.04B
• Dividend Yield: 4.66%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.97
• Revenue Growth: -10.00%
• EPS Growth: -16.51%
• Country: AU
• Employees: 11
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Industrial Materials
• EPS (TTM): 0.12
• Shares Outstanding: 528,918,300
• 10 Day Avg. Volume: 1,675,238
• 30 Day Avg. Volume: 1,237,728
• PEG Ratio: -1.41
• Price to Book (P/B): 20.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$4.17
• Price Target Upside: 8.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: AU$4.50 ▲(16.58%Upside)

Deterra Royalties Ltd's strong financial performance, characterized by high profitability and low leverage, is a key factor in its overall score. Technical analysis presents a neutral stance, while valuation metrics are attractive, offering a reasonable entry point for investors. Earnings call insights highlight operational strengths but also underline challenges with revenue impact from market conditions. The combined assessment positions the stock as a moderately attractive investment opportunity.

Deterra Royalties Ltd Business Overview & Revenue Model

Company Description

Deterra Royalties Limited operates as a royalty investment company in Australia. It is also involved in the management and growth of a portfolio of royalty assets across bulk commodities, base, and battery metals. The company holds interest in a portfolio of six royalties over the Mining Area C, Yoongarillup/Yalyalup, Eneabba, Wonnerup, and St Ives. Deterra Royalties Limited was incorporated in 2020 and is headquartered in Perth, Australia.

How the Company Makes Money

Deterra Royalties Ltd generates revenue primarily through its portfolio of royalty agreements. These agreements entitle the company to receive a percentage of the revenue or profit generated from the production of natural resources, such as iron ore, by mining companies. The royalties are typically structured as either a percentage of revenue (gross revenue royalties) or a percentage of profits (net profits interests), providing Deterra with a stable and predictable income stream. A key component of Deterra's revenue is its interest in the Mining Area C (MAC) royalty, derived from one of the world's largest iron ore operations owned by BHP Group. This royalty arrangement provides substantial earnings due to the scale and productivity of the mining operations. Additionally, Deterra may seek to expand its portfolio by acquiring new royalty interests, supported by its strong cash flow and industry relationships, thereby enhancing its revenue potential.

Deterra Royalties Ltd Financial Statement Overview

Summary

Deterra Royalties Ltd showcases robust profitability with high net margins and minimal leverage, indicating financial stability. However, inconsistent revenue growth and a decline in total assets suggest challenges in sustaining growth.

Income Statement

Deterra Royalties Ltd shows strong profitability with a consistent gross profit margin of 100% due to its business model. The company also maintains robust net profit margins, peaking at 64.40% in the latest year. Revenue growth, however, has been inconsistent, with a slight increase of 4.92% from the previous year following a decline from the earlier year, indicating some volatility in revenue generation. Overall, the company's income statement reflects strong profitability but some challenges in sustaining revenue growth year-over-year.

Balance Sheet

The company exhibits a strong balance sheet with a minimal debt-to-equity ratio, reflecting low leverage and financial stability. The equity ratio has slightly increased, indicating a solid equity base relative to assets. Return on equity (ROE) remains high at 192.78%, showcasing efficient use of equity to generate profits. However, a decrease in total assets and stockholders' equity over the years suggests the need for strategic growth investments.

Cash Flow

Deterra Royalties Ltd demonstrates strong cash flow management, with consistent free cash flow generation and a high operating cash flow to net income ratio of 1.10 in the latest period. The free cash flow to net income ratio also remains positive, highlighting effective conversion of profits into cash. Despite a decline in operating cash flow in the latest year, the company continues to maintain a healthy liquidity position.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	233.86M	240.51M	229.26M	265.15M	145.21M
Gross Profit	222.68M	231.43M	220.34M	257.12M	140.24M
EBITDA	220.39M	225.56M	219.34M	256.78M	140.37M
Net Income	140.08M	154.89M	152.46M	178.46M	94.26M
Balance Sheet
Total Assets	102.36M	101.29M	115.19M	153.49M	89.09M
Cash, Cash Equivalents and Short-Term Investments	24.94M	31.06M	29.49M	27.46M	24.21M
Total Debt	537.00K	497.00K	186.00K	248.00K	311.00K
Total Liabilities	20.04M	20.94M	23.05M	34.87M	27.37M
Stockholders Equity	82.32M	80.35M	92.14M	118.63M	61.72M
Cash Flow
Free Cash Flow	133.68M	170.09M	182.23M	127.81M	82.12M
Operating Cash Flow	133.68M	170.18M	182.32M	127.81M	82.17M
Investing Cash Flow	-265.81M	-88.00K	-89.00K	-10.00K	-24.45M
Financing Cash Flow	112.47M	-168.52M	-180.20M	-124.56M	-33.51M

Deterra Royalties Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DRR, the sentiment is Positive. The current price of 3.86 is above the 20-day moving average (MA) of 3.76, above the 50-day MA of 3.73, and above the 200-day MA of 3.72, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.95 is Neutral, neither overbought nor oversold. The STOCH value of 80.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DRR.

Deterra Royalties Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRR	75 Outperform	AU$2.04B	14.57	152.73%	4.66%	-10.00%	-16.51%
Sector *	44 Neutral	C$979.74M	-6.70	-13.35%	2.68%	17.20%	-32.62%
ADMLF		$1.29B	―	-54.57%	―	―	―
BQSSF		$1.14B	22.62	-4.52%	―	―	―
ILKAF		$1.07B	7.21	10.39%	2.01%	―	―
IPGDF		$2.14B	1,408.33	-36.53%	12.28%	―	―
NIC	57 Neutral	AU$3.19B	17.84	-7.32%	4.11%	-6.64%	-209.78%

Deterra Royalties Ltd Corporate Events

Aware Super Becomes Substantial Holder in Deterra Royalties

Deterra Royalties Ltd has announced that Aware Super Pty Ltd, as trustee of Aware Super, has become a substantial holder with a 5.14% voting power in the company. This development indicates a significant interest from Aware Super in Deterra Royalties, potentially impacting the company’s shareholder dynamics and signaling confidence in its future prospects.

The most recent analyst rating on (AU:DRR) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Deterra Royalties Ltd stock, see the AU:DRR Stock Forecast page.

Cooper Investors Ceases Substantial Holding in Deterra Royalties

Cooper Investors Pty Limited has ceased to be a substantial holder of Deterra Royalties Ltd as of July 1, 2025. This change in substantial holding could impact Deterra’s shareholder structure and influence within the market, potentially affecting stakeholder interests and the company’s strategic direction.

The most recent analyst rating on (AU:DRR) stock is a Hold with a A$3.70 price target. To see the full list of analyst forecasts on Deterra Royalties Ltd stock, see the AU:DRR Stock Forecast page.

Deterra Royalties Director Increases Shareholding

Deterra Royalties Ltd has announced a change in the director’s interest, with Alexander Morrison acquiring 2,700 ordinary fully paid shares through an on-market trade. This acquisition reflects the director’s increased investment in the company, potentially signaling confidence in the company’s future performance and stability, which could positively impact stakeholders’ perception.

The most recent analyst rating on (AU:DRR) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Deterra Royalties Ltd stock, see the AU:DRR Stock Forecast page.

Deterra Royalties Reports Progress at Thacker Pass Lithium Project

Deterra Royalties Limited announced significant progress at the Thacker Pass Lithium Project in Nevada, USA, where it holds a 4.8% gross revenue royalty. The project, operated by Lithium Americas Corporation, has commenced major construction with substantial capital investments and plans for large-scale lithium carbonate production. This advancement underscores Deterra’s strategic position in the lithium market, potentially enhancing its revenue streams and market influence.

The most recent analyst rating on (AU:DRR) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Deterra Royalties Ltd stock, see the AU:DRR Stock Forecast page.

Cooper Investors Acquires Substantial Stake in Deterra Royalties

Deterra Royalties Limited has announced that Cooper Investors Pty Limited has become a substantial holder in the company as of May 13, 2025. Cooper Investors now holds 26,460,470 ordinary shares, representing a 5.0028% voting power in Deterra Royalties. This development indicates a significant investment by Cooper Investors, potentially impacting Deterra’s market positioning and stakeholder interests.

The most recent analyst rating on (AU:DRR) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on Deterra Royalties Ltd stock, see the AU:DRR Stock Forecast page.

Deterra Royalties Reports Revenue Growth and Strategic Milestones

Deterra Royalties Limited reported a 4% increase in portfolio revenue for the March 2025 quarter, driven by strong iron ore royalties from Mining Area C and record margins from gold offtakes. The company also highlighted the fully funded Phase 1 of the Thacker Pass Lithium Project, which is set to capitalize on the growing demand for lithium by 2027. These developments underscore Deterra’s strategic focus on building a diversified royalty portfolio, enhancing its industry positioning and providing stable returns for stakeholders.

Deterra Royalties Director Increases Shareholding

Deterra Royalties Ltd announced a change in the interest of its director, Leanne Heywood, who acquired 6,500 ordinary fully paid shares through on-market trades, increasing her indirect holdings to 8,000 shares. This acquisition reflects a strategic move by the director, potentially signaling confidence in the company’s future prospects and stability, which may positively influence stakeholder perceptions and market positioning.

Deterra Royalties Announces Change in Substantial Holder Interests

Deterra Royalties Ltd has announced a change in the interests of a substantial holder, with State Street Global Advisors Europe Limited and State Street Bank and Trust Company being key entities involved. This change in voting power and relevant interests could impact the company’s governance and decision-making processes, potentially influencing its strategic direction and stakeholder relations.

Deterra Royalties Ltd Appoints New Director with Significant Shareholding

Deterra Royalties Ltd has announced the appointment of Alexander Morrison as a director, effective April 16, 2025. Mr. Morrison holds 22,000 ordinary fully paid shares through the Alexander and Roberta Morrison Revocable Living Trust, indicating a significant personal investment in the company. This appointment could potentially influence the company’s strategic direction and stakeholder interests, given Mr. Morrison’s vested interest in the company’s performance.

Deterra Royalties Ltd Strengthens Board with New Appointments

Deterra Royalties Ltd has announced the appointment of Mr. Alex Morrison and Ms. Leanne Heywood as independent non-executive directors, effective April 16, 2025. These appointments are expected to strengthen the board’s expertise in royalties, mining capital allocation, and financial management, complementing the existing board members’ skills and aiding in succession planning. The new directors bring extensive experience from various roles in the mining sector, which could enhance Deterra’s strategic positioning and operational flexibility.