Scully Royalty (SRL) AI Stock Analysis

• Market Cap: $116.65M
• Dividend Yield: 3.3%
• Average Volume (3M): 3.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -36.67%
• EPS Growth: -1568.10%
• Country: US
• Employees: 72
• Sector: Financial
• Sector Strength: 85
• Industry: Financial - Capital Markets
• EPS (TTM): -1.02
• Shares Outstanding: 14,822,251
• 10 Day Avg. Volume: 3,518
• 30 Day Avg. Volume: 3,946
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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 receives a low score due to significant financial challenges, including revenue contraction and negative cash flow, which undermine profitability and liquidity. Technical analysis shows mixed signals with short-term support but bearish momentum. The company's valuation is impacted by a negative P/E ratio, and while the dividend yield is decent, it does not offset the financial risks.

Scully Royalty Business Overview & Revenue Model

Company Description

Scully Royalty Ltd. (SRL) is a diversified business company that primarily invests in and manages a portfolio of businesses and assets across various sectors including natural resources, industrial, and financial services. With a strategic focus on maximizing value from its investments, Scully Royalty leverages its expertise to operate and grow its subsidiaries and joint ventures, fostering innovation and sustainability.

How the Company Makes Money

Scully Royalty makes money through a combination of royalty payments, investment income, and operational revenue from its diversified portfolio. The company receives royalty payments from its interests in natural resource assets, particularly in the mining sector. Additionally, Scully Royalty generates income through strategic investments in industrial and financial services companies, which provide dividends and capital gains. Significant partnerships with industry players enhance its earnings potential by facilitating access to lucrative projects and markets.

Scully Royalty Financial Statement Overview

Summary

Scully Royalty faces significant financial challenges, particularly in revenue contraction and negative cash flow, impacting its profitability and liquidity. While the balance sheet shows a strong equity position, declining cash reserves and profitability issues present risks. The company needs to address operational inefficiencies and improve revenue generation to stabilize its financial performance.

Income Statement

Scully Royalty's income statement reveals challenges with profitability and revenue growth. The company has experienced a decline in revenue over the past year, with a significant drop from $54.9M in 2023 to $35.3M in 2024, indicating a revenue contraction of approximately 35.8%. Net income has also swung from a modest profit of $1.39M in 2023 to a substantial loss of $20.59M in 2024, severely impacting the net profit margin. The gross profit margin remains relatively strong but has not translated into bottom-line profitability due to high operating expenses. The negative EBITDA in 2024 further highlights operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position with stockholders' equity accounting for a significant portion of total assets, reflected in an equity ratio of approximately 69%. However, the company has seen a decline in cash reserves, from $91.2M in 2023 to $42.5M in 2024, which could affect liquidity. The debt-to-equity ratio remains low, indicating limited leverage, but the reduction in equity highlights potential stability issues.

Cash Flow

Cash flow analysis indicates a concerning trend with negative operating cash flow of $31.54M in 2024, down from a positive $26.18M in 2023, which suggests operational cash flow challenges. Free cash flow has turned negative, indicating a cash burn scenario. The operating cash flow to net income ratio is unfavorable, reflecting inefficiencies in converting income into cash flow.

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

Scully Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.81
• 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 SRL, the sentiment is Positive. The current price of 7.81 is above the 20-day moving average (MA) of 7.68, below the 50-day MA of 7.82, and above the 200-day MA of 7.60, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.56 is Neutral, neither overbought nor oversold. The STOCH value of 62.26 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
SIEB	76 Outperform	$142.73M	10.85	17.28%	―	17.32%	50.52%
HGBL	69 Neutral	$70.90M	14.33	8.21%	―	-25.08%	-58.60%
WHG	67 Neutral	$165.27M	613.94	0.33%	3.40%	0.52%	-96.93%
Sector *	64 Neutral	$12.61B	9.79	7.95%	16985.69%	12.77%	-3.98%
MFH	50 Neutral	$465.35M	―	-21.63%	―	125.92%	53.50%
SRL	49 Neutral	$116.65M	―	-6.66%	3.30%	-36.67%	-1568.10%