Deterra Royalties Ltd (DRR) AI Stock Analysis

• Market Cap: AU$2.12B
• Dividend Yield: 5.5%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.01
• Revenue Growth: 6.54%
• EPS Growth: 0.48%
• Country: AU
• Employees: 11
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.18
• Shares Outstanding: 529,131,600
• 10 Day Avg. Volume: 2,025,647
• 30 Day Avg. Volume: 1,607,429
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$4.27
• Price Target Upside: 6.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: AU$4.50 ▲(12.50% Upside)

Deterra Royalties Ltd's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust revenue growth and high profitability margins are complemented by a balanced technical outlook. Valuation metrics suggest the stock is fairly priced, with an attractive dividend yield. Despite some challenges noted in the earnings call, the overall sentiment remains positive.

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 makes money by earning royalties from its interests in mining projects. The company's primary revenue stream comes from its royalty agreements with mining operators, where it receives a percentage of the revenue or profit generated from the sale of minerals extracted from the land over which it holds royalty rights. One significant partnership contributing to its earnings is its royalty interest in the Mining Area C iron ore project operated by BHP Group. This arrangement allows Deterra to benefit from the production volume and pricing of iron ore, providing a stable and predictable income source. Additionally, Deterra may seek to expand its royalty portfolio to include other mineral resources, thereby diversifying its revenue streams.

Deterra Royalties Ltd Financial Statement Overview

Summary

Deterra Royalties Ltd shows strong financial health with impressive profitability and cash generation. Revenue growth is robust at 12.65%, and the company maintains high margins, although the slight decrease in net profit margin and high leverage are areas to monitor. The balance sheet reflects high leverage, but strong return on equity and cash flow metrics provide a solid foundation.

Income Statement

Deterra Royalties Ltd has demonstrated strong revenue growth with a 12.65% increase in the latest year, indicating robust demand for its offerings. The company maintains excellent profitability with a gross profit margin of 100% and a net profit margin of 59.1%, showcasing efficient cost management. EBIT and EBITDA margins are also high at 91.75% and 94.15%, respectively, reflecting strong operational efficiency. However, the net profit margin has slightly decreased from the previous year, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.37, indicating significant leverage, which could pose a risk if not managed properly. However, the return on equity is strong at 124.90%, suggesting that the company is effectively using its equity base to generate profits. The equity ratio is not provided, but the high leverage warrants caution despite the strong ROE.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth, but the company maintains a healthy operating cash flow to net income ratio of 37.52, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also robust at 98.57%, suggesting effective conversion of profits into cash. Despite the decline in free cash flow growth, the overall cash flow position remains solid.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	263.43M	263.43M	240.51M	229.26M	265.15M	145.21M
Gross Profit	253.88M	263.43M	231.43M	220.34M	257.12M	140.24M
EBITDA	249.13M	248.03M	225.56M	219.34M	256.78M	140.37M
Net Income	155.69M	155.69M	154.89M	152.46M	178.46M	94.26M
Balance Sheet
Total Assets	502.37M	502.37M	101.29M	115.19M	153.49M	89.09M
Cash, Cash Equivalents and Short-Term Investments	24.39M	24.39M	31.06M	29.49M	27.46M	24.21M
Total Debt	295.40M	295.40M	497.00K	186.00K	248.00K	311.00K
Total Liabilities	377.71M	377.71M	20.94M	23.05M	34.87M	27.37M
Stockholders Equity	124.66M	124.66M	80.35M	92.14M	118.63M	61.72M
Cash Flow
Free Cash Flow	135.35M	132.95M	170.09M	182.23M	127.81M	82.12M
Operating Cash Flow	135.36M	134.88M	170.18M	182.32M	127.81M	82.17M
Investing Cash Flow	-267.73M	-267.73M	-88.00K	-89.00K	-10.00K	-24.45M
Financing Cash Flow	125.82M	126.30M	-168.52M	-180.20M	-124.56M	-33.51M

Deterra Royalties Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DRR, the sentiment is Neutral. The current price of 4 is below the 20-day moving average (MA) of 4.14, below the 50-day MA of 4.15, and above the 200-day MA of 3.77, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 20.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	77 Outperform	AU$2.12B	13.59	151.89%	5.50%	6.54%	0.48%
ILU	71 Outperform	AU$2.83B	14.90	9.80%	0.91%	-4.84%	-30.61%
NIC	55 Neutral	AU$3.17B	-12.76	-7.97%	5.48%	-2.30%	-234.27%
BOE	52 Neutral	AU$879.63M	-25.51	―	―	―	-164.37%
IGO	47 Neutral	AU$3.87B	-4.05	-45.62%	5.09%	-37.23%	-32433.33%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Deterra Royalties Ltd Corporate Events

Deterra Royalties Reports Strong June Quarter with Strategic Expansion into Lithium

Deterra Royalties Ltd reported a strong performance for the June 2025 quarter, with a 44% increase in portfolio revenue to $89.1 million. This growth was driven by record production and sales volumes at the Mining Area C, resulting in a $20 million capacity payment, and a significant increase in net realised margins from gold offtakes. The company’s strategic expansion into lithium, through the Thacker Pass project, is expected to provide a long-term revenue stream, capitalizing on the anticipated growth in global lithium demand. The robust financial results and strategic initiatives underscore Deterra’s strong market positioning and commitment to shareholder value creation.

The most recent analyst rating on (AU:DRR) stock is a Hold with a A$4.35 price target. To see the full list of analyst forecasts on Deterra Royalties Ltd stock, see the AU:DRR Stock Forecast page.

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.