Scully Royalty (SRL) AI Stock Analysis

• Market Cap: $83.00M
• Dividend Yield: 4.64%
• Average Volume (3M): 5.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -36.67%
• EPS Growth: -1568.10%
• Country: US
• Employees: 71
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 14,822,251
• 10 Day Avg. Volume: 2,062
• 30 Day Avg. Volume: 5,193
• PEG Ratio: <0.01
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 5.59
• P/FCF Ratio: -6.23
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $6.50 ▲(16.07% Upside)

The overall stock score of 55 reflects significant financial challenges, particularly in terms of revenue contraction and negative cash flow. While technical indicators show short-term bullish momentum, the long-term outlook remains cautious due to financial instability. The valuation is impacted by a negative P/E ratio, though the dividend yield offers some investor appeal.

Positive Factors

Strong Equity Position

A strong equity position with a 69% equity ratio provides financial stability and reduces reliance on debt, enhancing long-term resilience.

Limited Leverage

Limited leverage reduces financial risk and interest burden, providing flexibility in capital allocation and investment opportunities.

Strategic Partnerships

Collaborations with established firms can lead to increased production efficiency and market access, supporting long-term revenue growth.

Negative Factors

Revenue Contraction

A 35.8% revenue contraction indicates challenges in maintaining market share and demand, potentially impacting future growth prospects.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and cash burn, which can strain liquidity and limit reinvestment in growth.

Profitability Challenges

Significant net losses highlight issues in cost management and revenue generation, affecting long-term profitability and shareholder value.

Scully Royalty Business Overview & Revenue Model

Company Description

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. The company was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. Scully Royalty Ltd. was incorporated in 2017 and is based in Central, Hong Kong.

How the Company Makes Money

Scully Royalty generates revenue primarily through royalty payments from the production of oil and gas on its leased properties. The company holds interests in various mineral rights that allow it to earn a percentage of the profits from the extraction of these resources. Key revenue streams include royalties from oil and gas production, lease agreements with exploration and production companies, and potentially revenue from joint ventures in resource development. Strategic partnerships with established energy companies enhance SRL's earning potential, as these collaborations often lead to increased production efficiency and access to new markets. Additionally, fluctuations in oil and gas prices significantly affect the company's revenue, as higher commodity prices typically result in higher royalty income.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.30M	54.94M	63.69M	71.29M	59.43M
Gross Profit	28.24M	35.87M	33.81M	40.37M	32.56M
EBITDA	-9.31M	19.89M	-11.45M	30.50M	24.53M
Net Income	-20.59M	1.39M	-23.40M	7.56M	369.00K
Balance Sheet
Total Assets	438.10M	452.47M	475.48M	509.97M	509.13M
Cash, Cash Equivalents and Short-Term Investments	42.54M	91.21M	94.01M	74.13M	82.05M
Total Debt	36.55M	44.03M	43.35M	42.34M	43.66M
Total Liabilities	127.77M	122.80M	142.97M	137.43M	140.40M
Stockholders Equity	302.28M	322.46M	325.16M	365.60M	361.54M
Cash Flow
Free Cash Flow	-31.63M	26.00M	30.16M	-7.62M	-21.50M
Operating Cash Flow	-31.54M	26.18M	30.64M	-6.64M	-21.27M
Investing Cash Flow	2.76M	-6.31M	-4.68M	-971.00K	3.42M
Financing Cash Flow	-1.16M	-3.81M	-17.19M	-424.00K	-498.00K

Scully Royalty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 5.6 is below the 20-day moving average (MA) of 5.86, below the 50-day MA of 5.88, and below the 200-day MA of 6.52, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 24.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRL.

Scully Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIEB	69 Neutral	$125.32M	17.03	8.43%	―	8.47%	-32.22%
WHG	69 Neutral	$159.19M	20.67	5.99%	3.69%	4.03%	151.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HGBL	58 Neutral	$50.38M	14.66	4.65%	―	0.02%	-68.55%
SRL	55 Neutral	$83.00M	―	―	4.64%	-36.67%	-1568.10%