Gold Royalty (GROY) AI Stock Analysis

• Market Cap: $641.87M
• Dividend Yield: N/A
• Average Volume (3M): 3.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 90.37%
• EPS Growth: 94.00%
• Country: US
• Employees: 13
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): 0.00
• Shares Outstanding: 170,709,410
• 10 Day Avg. Volume: 4,818,446
• 30 Day Avg. Volume: 3,721,902
• PEG Ratio: 0.64
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 19.10
• P/FCF Ratio: -4.43
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 41.16
• Enterprise Value/Gross Profit: 59.49
• Enterprise Value/Ebitda: 203.37
• 1Y Price Target: $5.00
• Price Target Upside: 32.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: $4.00 ▲(6.38% Upside)

Gold Royalty's stock score is primarily driven by strong technical indicators and positive earnings call sentiment. However, financial performance and valuation concerns, particularly ongoing net losses and a negative P/E ratio, weigh down the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective execution of royalty agreements, supporting long-term business expansion.

Positive Free Cash Flow

Achieving positive free cash flow enhances financial flexibility and reduces reliance on external financing, improving long-term sustainability.

Debt Reduction Strategy

A clear strategy for debt reduction can strengthen the balance sheet, lower interest expenses, and increase financial stability over time.

Negative Factors

Persistent Net Losses

Ongoing net losses highlight challenges in achieving profitability, which can limit reinvestment opportunities and affect long-term growth.

Negative Free Cash Flow

Negative free cash flow, driven by high capital expenditures, suggests potential liquidity risks and reliance on external funding for operations.

Reduced Guidance at Vareš Mine

Reduced production guidance at a key asset can impact revenue expectations and highlight operational challenges, affecting future earnings potential.

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 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 Financial Statement Overview

Summary

Gold Royalty shows revenue growth and improved cash flow generation. However, persistent net losses and negative free cash flow highlight profitability challenges. A strong balance sheet provides stability, but achieving sustainable profitability is crucial.

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	10.35M	10.10M	3.05M	3.94M	191.99K	0.00
Gross Profit	7.16M	6.63M	1.56M	2.19M	23.33K	―
EBITDA	2.09M	1.94M	-7.76M	-15.57M	-9.92M	-140.58K
Net Income	-3.25M	-3.41M	-26.76M	-17.35M	-17.43M	-140.63K
Balance Sheet
Total Assets	739.88M	737.51M	690.99M	688.61M	279.50M	55.46K
Cash, Cash Equivalents and Short-Term Investments	3.35M	2.48M	1.78M	14.25M	11.02M	37.54K
Total Debt	51.77M	50.00M	33.06M	9.66M	47.61K	0.00
Total Liabilities	181.84M	179.21M	170.04M	152.40M	54.18M	196.38K
Stockholders Equity	558.05M	558.30M	520.95M	536.22M	225.32M	-140.93K
Cash Flow
Free Cash Flow	-42.64M	-43.55M	-36.62M	-38.97M	-22.93M	―
Operating Cash Flow	3.44M	2.54M	-7.92M	-19.26M	-11.95M	―
Investing Cash Flow	-47.21M	-44.07M	-33.56M	10.58M	-69.17M	0.00
Financing Cash Flow	45.18M	42.35M	37.08M	5.83M	90.95M	37.54K

Gold Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.76
• 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 3.76 is above the 20-day moving average (MA) of 3.70, above the 50-day MA of 3.67, and above the 200-day MA of 2.30, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 68.38 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	―	$641.87M	―	-0.33%	―	90.37%	94.00%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GORO	―	$100.17M	-1.73	-103.39%	―	-39.10%	9.45%
CMP	―	$716.63M	―	-40.17%	―	7.27%	27.35%
HYMC	―	$642.06M	-4.87	-374.60%	―	―	40.02%