Royal Gold (RGLD) AI Stock Analysis

• Market Cap: $14.84B
• Dividend Yield: 1.02%
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.48
• Revenue Growth: 28.11%
• EPS Growth: 66.85%
• Country: US
• Employees: 30
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 2.06
• Shares Outstanding: 84,398,060
• 10 Day Avg. Volume: 1,119,593
• 30 Day Avg. Volume: 1,342,535
• PEG Ratio: 0.68
• Price to Book (P/B): 2.78
• Price to Sales (P/S): 12.15
• P/FCF Ratio: 20.28
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 16.14
• Enterprise Value/Gross Profit: 29.92
• Enterprise Value/Ebitda: 19.85
• 1Y Price Target: $243.38
• Price Target Upside: 38.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 7.96
• Revenue Forecast (FY): $1.01B

• 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

Revenue Growth

Strong revenue growth indicates effective business strategies and robust demand for Royal Gold's streaming and royalty agreements, supporting long-term financial stability.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial flexibility and reduces risk, allowing Royal Gold to capitalize on growth opportunities without financial strain.

Executive Stability

Stable leadership through new executive agreements aligns incentives with performance, fostering consistent strategic direction and operational continuity.

Negative Factors

Silver Sales Challenges

Lower silver sales highlight potential issues in production or market demand, which could impact revenue diversification and growth if not addressed.

Deferred Silver Deliveries

Deferred deliveries can delay revenue recognition and cash flow, affecting short-term financial performance and potentially straining operational resources.

Uncertainty in Key Asset Guidance

Uncertainty in production forecasts for key assets could lead to revenue volatility and impact long-term strategic planning and investor confidence.

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 2019
Income Statement
Total Revenue	855.95M	712.77M	598.42M	596.18M	645.17M	495.00M
Gross Profit	461.63M	615.26M	507.90M	501.54M	546.70M	411.11M
EBITDA	695.82M	574.33M	468.14M	466.93M	517.40M	375.72M
Net Income	485.06M	332.02M	239.44M	238.98M	274.04M	199.34M
Balance Sheet
Total Assets	4.47B	3.39B	3.36B	3.53B	2.76B	2.77B
Cash, Cash Equivalents and Short-Term Investments	172.85M	195.50M	104.17M	118.59M	143.55M	319.13M
Total Debt	770.20M	0.00	245.97M	571.57M	0.00	300.44M
Total Liabilities	1.05B	260.92M	460.42M	781.05M	155.82M	464.17M
Stockholders Equity	3.41B	3.12B	2.89B	2.74B	2.59B	2.27B
Cash Flow
Free Cash Flow	557.31M	426.94M	413.11M	-504.81M	61.49M	184.77M
Operating Cash Flow	604.19M	529.50M	415.79M	417.35M	461.87M	340.75M
Investing Cash Flow	-1.20B	-77.68M	-2.83M	-922.88M	-416.97M	-152.86M
Financing Cash Flow	644.64M	-360.49M	-427.38M	480.57M	-283.21M	11.76M

Royal Gold Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 175.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGLD, the sentiment is Neutral. The current price of 175.82 is below the 20-day moving average (MA) of 184.01, below the 50-day MA of 188.48, and above the 200-day MA of 170.40, indicating a neutral trend. The MACD of -5.34 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 26.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RGLD.

Royal Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEM	81 Outperform	$90.06B	12.83	22.84%	1.12%	26.25%	―
RGLD	78 Outperform	$14.84B	24.10	14.90%	1.02%	28.11%	66.85%
GFI	76 Outperform	$34.81B	18.51	35.09%	1.99%	49.62%	195.39%
HMY	73 Outperform	$10.46B	12.43	32.05%	1.27%	29.08%	72.12%
AU	70 Outperform	$34.23B	29.05	―	2.33%	26.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SBSW	53 Neutral	$7.77B	―	-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.