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Gold Royalty (GROY)
:GROY
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Gold Royalty
(GROY)
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Rating:53Neutral
Price Target:
$4.00
▼(-9.09% Downside)
Gold Royalty's stock score is primarily influenced by its stable financial structure and positive technical indicators. However, significant profitability challenges and a negative P/E ratio weigh heavily on the overall score.
Positive Factors
Revenue Growth
The company has demonstrated a positive revenue growth rate of 16.87% in the TTM, indicating an upward trajectory in sales, which supports long-term business expansion.
Cash Flow Improvement
Improved free cash flow growth enhances liquidity and provides financial flexibility, enabling the company to invest in new opportunities and manage debt effectively.
Stable Balance Sheet
A stable balance sheet with low leverage provides financial stability and reduces risk, supporting long-term sustainability and the ability to weather economic fluctuations.
Negative Factors
Profitability Challenges
Ongoing profitability challenges with negative margins indicate operational inefficiencies, which could hinder long-term growth and shareholder value creation.
Negative Return on Equity
Negative return on equity suggests that the company is not generating sufficient profit from its equity base, which could impact investor confidence and future capital raising.
Cash Flow to Net Income Ratio
A cash flow to net income ratio below 1 indicates that operating cash flows are not fully covering net losses, which may affect the company's ability to sustain operations without external financing.
Gold Royalty (GROY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$982.85M
Dividend YieldN/A
Average Volume (3M)2.95M
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth86.30%
EPS Growth74.16%
CountryUS
Employees13
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)0.00
Shares Outstanding223,375,630
10 Day Avg. Volume2,086,262
30 Day Avg. Volume2,954,415
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)0.35
Price to Sales (P/S)19.10
P/FCF Ratio-4.43
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$5.21Price Target Upside18.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Gold Royalty Business Overview & Revenue Model
Company DescriptionGold 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 MoneyGold Royalty generates revenue through its royalty and streaming agreements, which provide the company with a percentage of the revenue or production from mines operated by other companies. This model allows GROY to earn income from gold production without the operational costs and risks associated with mining. Key revenue streams include upfront payments made by mining companies in exchange for the right to purchase gold at a predetermined price or a fixed percentage of the production. Additionally, Gold Royalty may enter into strategic partnerships with mining companies to expand its portfolio and enhance its cash flow. The effectiveness of its revenue model is bolstered by the volatility of gold prices, as higher prices can significantly increase the company's earnings from its existing royalty agreements.
Gold Royalty Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, such as record revenue and positive free cash flow, alongside effective strategies for debt reduction. However, some challenges were noted, including reduced guidance at the Vareš mine and temporary revenue declines at certain assets. Overall, the positive aspects and strategic outlook outweigh the challenges.Q2-2025 Updates
Positive Updates
Record Quarterly Revenue and Adjusted EBITDA
Gold Royalty Corp. achieved record quarterly revenue and adjusted EBITDA of $2.4 million, a nearly 50% increase compared to the previous quarter.
Positive Free Cash Flow
The company reported positive free cash flow for the quarter, primarily due to contributions from the Vareš and Côté Gold Mines and strong gold prices.
Successful Ramp-up of Key Assets
Commercial production was achieved at the Vareš mine on July 1, and Côté achieved nameplate throughput ahead of schedule, contributing over $1 million in revenue.
Debt Reduction Strategy
Gold Royalty Corp. aims to be net debt-free by the end of 2026, focusing on debt reduction while considering capital returns to shareholders.
Negative Updates
Reduced Guidance at Vareš Mine
Adriatic Metals reduced its full year 2025 guidance for the Vareš mine, leading to a potential shortfall in expected production.
Temporary Revenue Decline at Canadian Malartic
The Canadian Malartic mine generated only $18,000 in revenue for the second quarter due to mine sequencing issues.
Uncertain Revenue from Jerritt Canyon
The company does not expect further revenues from Jerritt Canyon this year unless the mine restarts, following a settlement of $0.3 million.
Company Guidance
During the Gold Royalty Corp. second-quarter 2025 earnings call, the company reported record quarterly revenue, adjusted EBITDA, and operating cash flow, marking a significant inflection point as they achieved positive free cash flow. Adjusted EBITDA reached $2.4 million, a 50% increase from the previous quarter, while total revenue, including land agreement proceeds and interest, stood at $4.4 million, translating to 1,346 gold equivalent ounces. The company discussed key asset developments, including the Vareš mine's commercial production starting July 1, Côté's processing plant reaching nameplate capacity, and Borborema's progression towards commercial production. Gold Royalty aims to be net debt-free by the end of 2026, focusing on debt reduction, capital returns, and strategic growth opportunities. The company maintains a full-year guidance of 5,700 to 7,000 GEO in 2025 and a five-year outlook of 23,000 to 28,000 GEO.Gold Royalty Financial Statement Overview
Summary
Gold Royalty shows revenue growth and improved cash flow generation, but persistent net losses and negative free cash flow impact profitability. A strong balance sheet provides stability, yet achieving sustainable profitability is crucial for long-term success.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.46M | 10.10M | 3.05M | 3.94M | 191.99K | 0.00 |
| Gross Profit | 10.18M | 6.63M | 1.56M | 2.19M | 23.33K | ― |
| EBITDA | 5.30M | 1.94M | -7.76M | -15.57M | -9.92M | -140.58K |
| Net Income | -6.40M | -3.41M | -26.76M | -17.35M | -17.43M | -140.63K |
Balance Sheet | ||||||
| Total Assets | 740.52M | 737.51M | 690.99M | 688.61M | 279.50M | 55.46K |
| Cash, Cash Equivalents and Short-Term Investments | 5.66M | 2.48M | 1.78M | 14.25M | 11.02M | 37.54K |
| Total Debt | 50.92M | 50.00M | 33.06M | 9.66M | 47.61K | 0.00 |
| Total Liabilities | 180.52M | 179.21M | 170.04M | 152.40M | 54.18M | 196.38K |
| Stockholders Equity | 560.00M | 558.30M | 520.95M | 536.22M | 225.32M | -140.93K |
Cash Flow | ||||||
| Free Cash Flow | 5.55M | -43.55M | -36.62M | -38.97M | -22.93M | ― |
| Operating Cash Flow | 6.00M | 2.54M | -7.92M | -19.26M | -11.95M | ― |
| Investing Cash Flow | -1.65M | -44.07M | -33.56M | 10.58M | -69.17M | 0.00 |
| Financing Cash Flow | -2.38M | 42.35M | 37.08M | 5.83M | 90.95M | 37.54K |
Gold Royalty Technical Analysis
Positive
4.40
Price Trends
3.92
Positive
3.77
Positive
2.90
Positive
Market Momentum
0.10
Negative
62.24
Neutral
95.42
Negative
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 4.4 is above the 20-day moving average (MA) of 4.14, above the 50-day MA of 3.92, and above the 200-day MA of 2.90, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.24 is Neutral, neither overbought nor oversold. The STOCH value of 95.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GROY.
Gold Royalty Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $939.68M | -11.72 | -28.98% | ― | 11.32% | 61.60% | |
54 Neutral | $148.82M | -2.68 | -92.98% | ― | -15.35% | 30.92% | |
53 Neutral | $982.85M | -117.02 | -1.14% | ― | 86.30% | 74.16% | |
48 Neutral | $2.17B | -16.06 | -374.60% | ― | ― | 40.02% |
* Basic Materials Sector Average
GROY
Gold Royalty
4.40
3.19
263.64%
CMP
Compass Minerals International
22.47
9.40
71.92%
USAU
US Gold
20.68
14.38
228.25%
GORO
Gold Resource
0.92
0.62
206.67%
HYMC
Hycroft Mining Holding
26.18
24.15
1189.66%
DC
Dakota Gold Corp
5.82
3.54
155.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.