Gold Royalty (GROY) AI Stock Analysis

• Market Cap: $415.99M
• Dividend Yield: N/A
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 99.94%
• EPS Growth: 88.73%
• Country: US
• Employees: 13
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Other Precious Metals
• EPS (TTM): -0.01
• Shares Outstanding: 170,487,290
• 10 Day Avg. Volume: 1,188,704
• 30 Day Avg. Volume: 2,026,559
• PEG Ratio: N/A
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.50
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 13.38
• Enterprise Value/Gross Profit: 64.89
• Enterprise Value/Ebitda: -75.13
• 1Y Price Target: $3.56
• Price Target Upside: 45.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: $2.50 ▲(2.46%Upside)

Gold Royalty's overall stock score reflects its strong technical trends and promising growth prospects highlighted in the earnings call. However, persistent profitability challenges and valuation concerns weigh on the score, despite a solid balance sheet.

Positive Factors

Asset Location

Majority of assets located in geopolitically safe jurisdictions and either cash flowing or in the development phase of their life cycle.

Gold Pricing

Spot gold prices are close to an all-time high, even as GROY generally only has very small cash costs for ounces from its stream.

Production Growth

Analyst expects the company's production guidance to be met, with the possibility of exceeding expectations as several projects continue their ramp up.

Negative Factors

Inflationary Environment

Revised estimates account for the ongoing inflationary environment, continued investment in safe-haven assets, and recessionary concerns.

Gold Royalty Business Overview & Revenue Model

Company Description

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 attractive returns for its investors. The company's portfolio consists of net smelter return royalties ranging from 0.5% to 2.0% on 17 gold properties located in the Americas. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Gold Royalty makes money primarily through its portfolio of royalty and streaming agreements with mining companies. The company earns revenue by receiving either a fixed percentage of the revenue from the sale of minerals extracted from the mines or by acquiring a portion of the actual physical production at a predetermined, often discounted, price. Key revenue streams include royalties, where Gold Royalty is entitled to a portion of the revenues from the mineral sales, and streaming agreements, which allow the company to purchase a portion of the mine's future production at a set price. Significant partnerships with established mining operators enhance its revenue potential, as these collaborations provide steady income streams and reduce operational risks typically associated with direct mining investments.

Gold Royalty Financial Statement Overview

Summary

Gold Royalty demonstrates positive revenue growth and improved cash flow generation. However, persistent net losses and negative free cash flow indicate challenges in achieving profitability despite a solid balance sheet.

Income Statement

Gold Royalty's income statement shows a positive trend in revenue growth, with a significant increase from previous periods. However, the company continues to operate at a net loss, highlighting challenges in achieving profitability. The negative EBIT margin suggests operational inefficiencies, and although EBITDA is positive, the margins remain thin. Improvement in gross profit margin is a positive note, but the concern over sustained net losses impacts the overall score.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity remains negative due to net losses, but the company's asset base and equity position provide a solid foundation for future growth if profitability is achieved.

Cash Flow

Cash flow analysis reveals substantial improvements in operating cash flow, with a positive operating cash flow to net income ratio indicating better cash generation capabilities. However, free cash flow remains negative, largely due to high capital expenditures. The ability to generate positive operating cash flow is promising, but the reliance on financing to cover cash outflows suggests potential liquidity risks.

Breakdown	Dec 2024	Dec 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	10.10M	3.05M	3.94M	191.99K	0.00
Gross Profit	6.63M	1.56M	2.19M	23.33K	―
EBITDA	1.94M	-7.76M	-15.57M	-9.92M	-140.58K
Net Income	-3.41M	-26.76M	-17.35M	-17.43M	-140.63K
Balance Sheet
Total Assets	737.51M	690.99M	688.61M	279.50M	55.46K
Cash, Cash Equivalents and Short-Term Investments	2.48M	1.78M	14.25M	11.02M	37.54K
Total Debt	50.00M	33.06M	9.66M	47.61K	0.00
Total Liabilities	179.21M	170.04M	152.40M	54.18M	196.38K
Stockholders Equity	558.30M	520.95M	536.22M	225.32M	-140.93K
Cash Flow
Free Cash Flow	-43.55M	-36.62M	-38.97M	-22.93M	―
Operating Cash Flow	2.54M	-7.92M	-19.26M	-11.95M	―
Investing Cash Flow	-44.07M	-33.56M	10.58M	-69.17M	0.00
Financing Cash Flow	42.35M	37.08M	5.83M	90.95M	37.54K

Gold Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.44
• 50DMA: Positive
• 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 GROY, the sentiment is Positive. The current price of 2.44 is above the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.03, and above the 200-day MA of 1.54, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 70.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GROY.

Gold Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GROY	61 Neutral	$415.99M	―	-0.60%	―	99.94%	88.73%
Sector *	44 Neutral	C$967.00M	-6.65	-13.73%	2.47%	17.55%	-32.57%
USAU	―	$159.01M	―	-92.39%	―	―	―
CMCL	74 Outperform	$404.23M	15.63	11.16%	2.67%	29.36%	707.68%
IDR	62 Neutral	$268.62M	31.56	26.95%	―	67.42%	137.01%
MUX	60 Neutral	$593.86M	3.61	-6.15%	―	-2.18%	-137.21%
GORO	52 Neutral	$85.25M	―	-103.61%	―	-34.57%	-238.18%