Royal Gold (RGLD) AI Stock Analysis

• Market Cap: $12.05B
• Dividend Yield: 0.97%
• Average Volume (3M): 818.64K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.52
• Revenue Growth: 30.15%
• EPS Growth: 86.71%
• Country: US
• Employees: 30
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Gold
• EPS (TTM): 1.81
• Shares Outstanding: 65,831,055
• 10 Day Avg. Volume: 685,638
• 30 Day Avg. Volume: 818,640
• 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: 0.95
• Enterprise Value/Revenue: 14.44
• Enterprise Value/Gross Profit: 17.36
• Enterprise Value/Ebitda: 17.54
• 1Y Price Target: $212.50
• Price Target Upside: 17.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: ―

Royal Gold demonstrates strong financial health with robust revenue growth and a debt-free balance sheet. Positive technical indicators and strategic executive agreements further bolster confidence. While the P/E ratio suggests a premium valuation, the company's consistent dividend increases and positive earnings call sentiment support a favorable outlook. Overall, Royal Gold is well-positioned within the mining industry, with strengths outweighing minor risks.

Positive Factors

Asset Diversification

The acquisition of Sandstorm Gold and Horizon Copper is expected to increase asset diversification and maintain a strong cash balance for future transactions.

Earnings Performance

Royal Gold reported a strong Q1, beating earnings on lower-than-expected costs and taxes.

Growth Potential

Royal Gold has outpaced peers in building up its streaming and royalty portfolio, showing strong recent growth.

Negative Factors

2025 Production Guidance

The 2025 gold sales guidance was lower than expected, with a range of 210-230koz falling short of the 244koz estimate.

Growth Outlook

Royal Gold does have the lowest forward-looking growth in the coverage, with a modest current growth outlook compared to peers.

Project Execution Risk

The development-asset heavy portfolio mix from the acquisitions introduces additional risk around project execution and higher jurisdictional risk.

Royal Gold Business Overview & Revenue Model

Company Description

Royal Gold, Inc., together with its subsidiaries, acquires and manages precious metal streams, royalties, and related interests. It focuses on acquiring stream and royalty interests or to finance projects that are in production or in development stage in exchange for stream or royalty interests, which primarily consists of gold, silver, copper, nickel, zinc, lead, and cobalt. As of June 30, 2022, the Company owned interests in 185 properties on five continents, including interests on 41 producing mines and 19 development stage projects. Its stream and royalty interests on properties are located in the United States, Canada, Chile, the Dominican Republic, Australia, Africa, Mexico, and internationally. Royal Gold, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.

How the Company Makes Money

Royal Gold generates revenue through its streaming and royalty agreements with mining companies. Under these agreements, Royal Gold provides capital to mining companies for the development of mining projects in exchange for a percentage of the mine's future production at a fixed, below-market price, or a percentage of revenue. The company earns income primarily from the sale of the metals it receives through these agreements at market prices, which can be significantly higher than the fixed costs. Additionally, Royal Gold benefits from increases in metal prices and production levels at the mines in which it holds interests. Key revenue streams for the company include royalties, which are calculated as a percentage of revenue from the mine, and streams, which involve purchasing a portion of the mine's production at a discounted rate. The company also seeks to diversify its portfolio by entering into agreements with multiple mining operators across different geographic locations and maintaining a focus on high-quality, long-life assets. Significant partnerships with established mining companies and a disciplined approach to investment further contribute to Royal Gold's earnings and growth potential.

Royal Gold Financial Statement Overview

Summary

Royal Gold exhibits strong financial performance with robust revenue and profit growth. The company maintains a debt-free balance sheet, enhancing its financial stability. Strong cash flow generation supports ongoing operations and potential future investments, positioning the company well within the mining industry.

Income Statement

Royal Gold has demonstrated strong growth in its income statement metrics. The gross profit margin increased, indicating improved operational efficiency. Revenue grew significantly by 18.77% from 2023 to 2024, showcasing robust growth in a competitive mining sector. Net profit margin also improved, suggesting effective cost management and operational strategies. Both EBIT and EBITDA margins are strong, reflecting efficient earnings generation.

Balance Sheet

The balance sheet reflects a strong financial position with zero debt as of 2024, which is a positive indicator of financial health and low leverage risk. The company's equity ratio is high, indicating a solid capital structure. Return on equity showed an impressive increase to 10.64%, highlighting effective use of equity to generate profits. The absence of debt reduces financial risk, enhancing stability.

Cash Flow

Royal Gold's cash flow statement reveals a positive trajectory in free cash flow, which grew by 3.35% from 2023 to 2024, indicating improved cash generation capability. The operating cash flow to net income ratio is strong, signifying efficient conversion of profits into cash. However, the free cash flow to net income ratio remains stable, suggesting consistent cash flow management despite fluctuations in capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	794.12M	712.77M	598.42M	596.18M	645.17M	615.86M
Gross Profit	660.49M	615.26M	507.90M	501.54M	546.70M	332.65M
EBITDA	654.02M	574.33M	468.14M	466.93M	517.40M	529.63M
Net Income	449.50M	332.02M	239.44M	238.98M	274.04M	302.53M
Balance Sheet
Total Assets	3.57B	3.39B	3.36B	3.53B	2.76B	2.65B
Cash, Cash Equivalents and Short-Term Investments	248.18M	195.50M	104.17M	118.59M	143.55M	225.92M
Total Debt	0.00	0.00	251.61M	571.57M	0.00	0.00
Total Liabilities	253.49M	260.92M	460.42M	781.05M	155.82M	148.19M
Stockholders Equity	3.31B	3.12B	2.89B	2.74B	2.59B	2.49B
Cash Flow
Free Cash Flow	345.59M	426.94M	413.11M	-504.81M	61.49M	239.00M
Operating Cash Flow	566.88M	529.50M	415.79M	417.35M	461.87M	407.15M
Investing Cash Flow	-221.39M	-77.68M	-2.83M	-922.88M	-416.97M	-116.74M
Financing Cash Flow	-171.54M	-360.49M	-427.38M	480.57M	-283.21M	-383.63M

Royal Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 180.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGLD, the sentiment is Positive. The current price of 180.46 is above the 20-day moving average (MA) of 174.00, above the 50-day MA of 166.80, and above the 200-day MA of 159.35, indicating a bullish trend. The MACD of 4.45 indicates Negative momentum. The RSI at 63.85 is Neutral, neither overbought nor oversold. The STOCH value of 75.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGLD.

Royal Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFI	79 Outperform	$30.51B	16.33	35.09%	1.63%	49.62%	195.39%
RGLD	78 Outperform	$12.05B	26.79	14.32%	0.97%	30.15%	86.71%
HMY	78 Outperform	$8.87B	11.21	32.05%	1.23%	29.08%	70.63%
NEM	78 Outperform	$83.33B	13.62	20.26%	1.34%	39.02%	―
AU	73 Outperform	$29.28B	24.91	19.42%	2.79%	26.43%	―
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
SBSW	56 Neutral	$5.92B	―	-8.31%	―	6.27%	93.14%

Royal Gold Corporate Events

Royal Gold Revises Executive Employment Contract

On April 16, 2025, RGLD Gold AG, a subsidiary of Royal Gold, Inc., revised the employment contract of Daniel Breeze, Senior Vice President of Corporate Development. The new contract includes a base salary of CHF 458,000, eligibility for bonuses and equity awards, and severance terms, while prohibiting competition and solicitation post-termination, reflecting the company’s commitment to retaining key talent and ensuring stability in its leadership team.

Spark’s Take on RGLD Stock

According to Spark, TipRanks’ AI Analyst, RGLD is a Outperform.

Royal Gold demonstrates strong financial health with robust revenue growth and a debt-free balance sheet. Positive technical indicators and strategic executive agreements further bolster confidence. While the P/E ratio suggests a premium valuation, the company’s consistent dividend increases and positive earnings call sentiment support a favorable outlook. Overall, Royal Gold is well-positioned within the mining industry, with strengths outweighing minor risks.

To see Spark’s full report on RGLD stock, click here.

Royal Gold Announces New Executive Agreements for Stability

On March 17, 2025, Royal Gold, Inc. announced new employment and restrictive covenants agreements with key executives, including the President and CEO, CFO, and Senior Vice Presidents. These agreements, replacing previous ones, outline salary structures, participation in incentive programs, and severance terms, while also imposing non-compete clauses for 12 months post-employment. The move is aimed at ensuring leadership stability and aligning executive incentives with company performance, potentially impacting the company’s operational continuity and stakeholder confidence.

Royal Gold Releases 2025 Financial Guidance Overview

On March 13, 2025, Royal Gold, Inc. announced its guidance for the 2025 calendar year, detailing expected sales volumes for gold, silver, copper, and other metals, as well as projections for depletion, depreciation, and amortization expenses, and effective tax rates. The company anticipates that gold, silver, and copper will provide the majority of its revenue, with sales volumes expected to be split between the first and second halves of the year. Key assumptions include a lag in gold deliveries from Mount Milligan, ongoing ramp-up at the Pueblo Viejo mine, and increased production at Andacollo due to improved water availability. The guidance reflects adjustments based on management’s experience and forecasts from operating partners, with no new acquisitions factored into the projections.

Kevin McArthur Resigns from Royal Gold Board

Kevin McArthur has announced his resignation from Royal Gold, Inc.’s Board of Directors, effective at the conclusion of the company’s annual stockholders meeting on May 22, 2025, as he prepares to take on the role of chairman of the board at First Quantum Minerals Ltd on May 8, 2025. Royal Gold’s Board of Directors will start a search to find a replacement for McArthur, highlighting the company’s focus on maintaining strong leadership amid this transition.