Scully Royalty (SRL) AI Stock Analysis

• Market Cap: $114.13M
• Dividend Yield: 3.44%
• Average Volume (3M): 4.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -14.96%
• EPS Growth: 27.99%
• Country: US
• Employees: 72
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Capital Markets
• EPS (TTM): -0.96
• Shares Outstanding: 14,822,251
• 10 Day Avg. Volume: 3,569
• 30 Day Avg. Volume: 4,712
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.06
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Scully Royalty's strong technical momentum and solid balance sheet are offset by challenges in revenue decline and negative earnings, reflected in its low P/E ratio. The stock appears technically strong but carries risks related to its financial performance and valuation.

Scully Royalty Business Overview & Revenue Model

Company Description

Scully Royalty Ltd. (SRL) is a diversified company engaged in various sectors including industrial, mineral, and financial services. The company's core operations revolve around managing and acquiring royalties and other interests in resource projects, providing financial services, and investing in industrial activities. It operates globally, leveraging its expertise in resource management and financial services to create value across its business segments.

How the Company Makes Money

Scully Royalty Ltd. primarily makes money through its diverse portfolio of royalties and interests in natural resource projects. The company earns revenue by collecting royalties from mining operations, where it holds interests, which provides a steady income stream based on production output and commodity prices. Additionally, SRL engages in financial services, offering lending and investment solutions, which generate interest and investment income. The company also invests in industrial activities, deriving earnings from its operational involvement and strategic investments in various industrial sectors. Key factors contributing to its earnings include commodity market trends, effective management of its investment portfolio, and strategic partnerships in resource and industrial sectors.

Scully Royalty Financial Statement Overview

Summary

The company shows operational efficiency and a strong balance sheet with low leverage, but struggles with declining revenue and low profitability metrics. Positive cash flow is a plus, yet growth is stagnant.

Income Statement

The income statement shows a mixed performance with declining revenue over the past two years. The gross profit margin stands at 61.42%, indicating efficient cost management relative to revenue. However, the net profit margin is low at 2.53% due to significant declines in revenue and net income. The EBIT and EBITDA margins are at 17.42% and 36.19%, respectively, showing decent profitability from operations. Overall, while the company maintains operational efficiency, revenue trends and profitability need improvement.

Balance Sheet

The balance sheet indicates strong equity with a debt-to-equity ratio of 0.14, reflecting low financial leverage. The equity ratio is high at 71.25%, signifying robust equity capital backing the assets. Return on equity (ROE) is low at 0.43%, suggesting the company is not effectively generating high returns on its equity base. While the balance sheet is solid with low leverage, improvements in asset utilization and profitability are needed to enhance returns.

Cash Flow

Cash flow analysis reveals positive operating cash flow of $26.18 million, which is a healthy sign. Free cash flow is consistent at $26.00 million, although it shows a decline from the previous year. The operating cash flow to net income ratio is high, indicating good cash generation relative to net earnings. However, the free cash flow growth rate is negative, suggesting challenges in growing cash reserves. Overall, cash flow is positive but requires stabilization and growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
46.53M	54.94M	63.69M	71.29M	59.43M	113.27M
	Gross Profit
22.47M	33.75M	33.81M	40.37M	32.56M	16.71M
	EBIT
-4.98M	9.57M	5.33M	16.73M	12.66M	-5.87M
	EBITDA
29.04M	19.89M	-11.45M	27.75M	24.53M	-7.25M
	Net Income Common Stockholders
-4.85M	1.39M	-23.40M	7.56M	369.00K	-18.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
110.50M	91.21M	94.01M	74.13M	82.05M	92.45M
	Total Assets
439.01M	452.47M	475.48M	509.97M	509.13M	503.35M
	Total Debt
11.21M	44.03M	43.35M	42.34M	43.66M	40.55M
	Net Debt
-87.88M	-34.22M	-20.36M	-12.54M	-19.89M	-37.72M
	Total Liabilities
68.29M	122.80M	142.97M	137.43M	140.40M	141.34M
	Stockholders Equity
370.71M	322.46M	325.16M	365.60M	361.54M	353.61M
Cash Flow		Free Cash Flow
-20.90M	26.00M	30.16M	-7.62M	-21.50M	-10.53M
	Operating Cash Flow
-20.65M	26.18M	30.64M	-6.64M	-21.27M	-9.81M
	Investing Cash Flow
-3.40M	-6.31M	-4.68M	-971.00K	3.42M	-10.20M
	Financing Cash Flow
-452.01K	-3.81M	-17.19M	-424.00K	-498.00K	34.79M

Scully Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.70
• 50DMA: Negative
• 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 SRL, the sentiment is Positive. The current price of 7.7 is below the 20-day moving average (MA) of 7.77, below the 50-day MA of 7.85, and above the 200-day MA of 7.58, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 49.03 is Neutral, neither overbought nor oversold. The STOCH value of 42.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRL.

Scully Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSB	80 Outperform	$367.75M	3.91	157.81%	25.27%	577.43%	714.84%
RIO	74 Outperform	$97.72B	8.01	20.93%	6.48%	-0.81%	14.59%
BHP	71 Outperform	$123.78B	11.01	26.13%	4.97%	-3.15%	54.08%
VALE	68 Neutral	$40.40B	6.85	15.98%	7.66%	-9.59%	-25.35%
SRL	63 Neutral	$114.13M	―	-6.15%	3.44%	-14.96%	27.99%
Sector *	63 Neutral	$12.32B	9.52	7.97%	79.23%	12.77%	-4.57%
CLF	41 Neutral	$3.91B	―	-10.36%	―	-12.78%	-301.57%