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Scully Royalty Ltd (SRL)
:SRL
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Scully Royalty (SRL) AI Stock Analysis

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SRL

Scully Royalty

(NYSE:SRL)

Rating:45Neutral
Price Target:
$5.50
▼(-11.29%Downside)
Scully Royalty's overall stock score reflects significant financial difficulties, with major concerns around revenue contraction, negative cash flow, and poor technical performance. The valuation is further weakened by a negative P/E ratio, despite a decent dividend yield. The absence of positive earnings call data or corporate events provides no offsetting factors.

Scully Royalty (SRL) vs. SPDR S&P 500 ETF (SPY)

Scully Royalty Business Overview & Revenue Model

Company DescriptionScully 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 MoneyScully 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's financial performance is weak, with significant revenue contraction and negative cash flow impacting profitability and liquidity. Despite a strong equity position, declining cash reserves and operational inefficiencies present substantial risks.
Income Statement
45
Neutral
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
65
Positive
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue46.53M35.30M54.94M63.69M71.29M59.43M
Gross Profit22.47M28.24M35.87M33.81M40.37M32.56M
EBITDA29.04M-9.31M19.89M-11.45M27.75M24.53M
Net Income-4.85M-20.59M1.39M-23.40M7.56M369.00K
Balance Sheet
Total Assets433.14M438.10M452.47M475.48M509.97M509.13M
Cash, Cash Equivalents and Short-Term Investments46.16M42.54M91.21M94.01M74.13M82.05M
Total Debt36.27M36.55M44.03M43.35M42.34M43.66M
Total Liabilities121.15M127.77M122.80M142.97M137.43M140.40M
Stockholders Equity304.50M302.28M322.46M325.16M365.60M361.54M
Cash Flow
Free Cash Flow-20.90M-31.63M26.00M30.16M-7.62M-21.50M
Operating Cash Flow-20.65M-31.54M26.18M30.64M-6.64M-21.27M
Investing Cash Flow-3.40M2.76M-6.31M-4.68M-971.00K3.42M
Financing Cash Flow-452.01K-1.16M-3.81M-17.19M-424.00K-498.00K

Scully Royalty Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.20
Price Trends
50DMA
6.42
Negative
100DMA
7.11
Negative
200DMA
7.33
Negative
Market Momentum
MACD
-0.08
Negative
RSI
51.28
Neutral
STOCH
38.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRL, the sentiment is Neutral. The current price of 6.2 is above the 20-day moving average (MA) of 6.02, below the 50-day MA of 6.42, and below the 200-day MA of 7.33, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SRL.

Scully Royalty Risk Analysis

Scully Royalty disclosed 34 risk factors in its most recent earnings report. Scully Royalty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Scully Royalty Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$74.78M17.526.92%-16.82%-60.79%
70
Outperform
$162.85M8.8521.85%21.85%111.42%
67
Neutral
$167.52M622.300.33%3.36%0.52%-96.93%
65
Neutral
€12.58B12.486.83%3.84%15.23%6.82%
45
Neutral
$91.16M-6.66%4.23%-36.67%-1568.10%
40
Neutral
$133.74M-21.63%125.92%53.50%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SRL
Scully Royalty
6.15
-0.91
-12.89%
SIEB
Siebert Financial
4.03
2.33
137.06%
WHG
Westwood Holdings Group
17.86
5.11
40.08%
MFH
Mercurity Fintech Holding
2.00
0.02
1.01%
HGBL
Heritage Global
2.18
-0.20
-8.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025