Scully Royalty (SRL) AI Stock Analysis

• Market Cap: $137.80M
• Dividend Yield: 3.83%
• Average Volume (3M): 5.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• 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: 15,226,351
• 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): 5.32
• P/FCF Ratio: -6.23
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 5.41
• Enterprise Value/Gross Profit: 16.50
• Enterprise Value/Ebitda: 27.95
• 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: 54 Neutral
• Price Target: $9.50 ▲(20.41% Upside)

The score is held back primarily by deteriorating fundamentals—sharp revenue contraction, a swing to a large net loss, and negative operating/free cash flow—despite a comparatively solid equity-heavy balance sheet. Technical indicators are moderately supportive with the stock trading above major moving averages and a positive MACD, while valuation is mixed due to a negative P/E offset partly by a ~3.1% dividend yield.

Positive Factors

Royalty Business Model

A royalty model gives Scully structurally lower capital intensity and operating leverage versus producers. Long‑lived royalty contracts and partnerships with operators can deliver recurring cash flows tied to production and commodity prices, supporting sustainable income generation over months.

Scully Mine Minimum Royalty Support

Having a core asset that provides majority revenue with minimum annual royalty payments creates a durable revenue floor. The mine's 2024 recapitalization and new operating arrangements reduce near‑term production risk, helping stabilize royalty inflows while broader commodity cycles normalize.

Equity‑Heavy Balance Sheet

A high equity ratio and low leverage provide financial flexibility and resilience. This structural balance‑sheet strength lowers refinancing risk, supports negotiating room with counterparties, and gives the company capacity to withstand near‑term cash shortfalls or pursue strategic moves without heavy debt reliance.

Negative Factors

Revenue Contraction and Profitability Loss

A ~36% revenue decline and a swing to a multi‑million dollar loss reflect durable demand or operator issues reducing royalty receipts. Negative EBITDA signals operations are not covering core costs, pressuring margins and limiting the company's ability to self‑fund capital, dividends, or restructuring over the medium term.

Operating Cash Flow and Liquidity Drain

A sharp swing to negative OCF and shrinking cash reserves indicate the company is burning cash to run operations. Persistent negative free cash flow erodes liquidity, limiting capacity to cover obligations or invest, and may force asset sales or external financing that change long‑term capital structure and strategy.

Governance and Leadership Instability

A contested shareholder fight, wholesale board replacement and immediate CEO removal create structural governance risk. Leadership turnover and potential litigation can disrupt strategy execution, delay operational decisions, and unsettle counterparties and lenders, increasing uncertainty across the business for months.

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 the collection of royalties from its mineral and royalty interests. These royalties are earned from companies that extract oil, gas, and minerals from properties in which SRL holds interests. The company benefits from an increase in commodity prices, as higher market prices translate to increased production and, consequently, higher royalty revenues. Additionally, SRL may engage in joint ventures or partnerships with exploration and production companies, which can provide upfront payments or additional revenue-sharing agreements. Key partnerships with established operators in the resource sector further enhance SRL's potential earnings by ensuring operational efficiency and sustained production levels.

Scully Royalty Financial Statement Overview

Summary

Weak operating results dominate: revenue fell sharply (~36% YoY) and net income swung to a sizable loss in 2024, with negative EBITDA. Cash flow deteriorated materially, with operating cash flow turning strongly negative and free cash flow negative. The balance sheet is a relative offset with a strong equity ratio and low leverage, but cash reserves declined significantly, pressuring liquidity.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.05M	37.06M	53.96M	65.73M	72.47M	56.58M
Gross Profit	12.15M	14.20M	28.39M	25.26M	31.14M	17.40M
EBITDA	7.17M	-9.77M	19.53M	-11.82M	31.01M	23.35M
Net Income	-2.67M	-21.61M	1.37M	-24.15M	7.69M	351.28K
Balance Sheet
Total Assets	435.19M	438.10M	452.47M	475.48M	509.97M	509.13M
Cash, Cash Equivalents and Short-Term Investments	25.42M	42.54M	91.21M	94.01M	74.13M	82.05M
Total Debt	39.39M	36.55M	44.03M	43.35M	42.34M	43.66M
Total Liabilities	124.67M	127.77M	122.80M	142.97M	137.43M	140.40M
Stockholders Equity	302.12M	302.28M	322.46M	325.16M	365.60M	361.54M
Cash Flow
Free Cash Flow	-13.08M	-31.63M	26.00M	30.16M	-7.62M	-21.50M
Operating Cash Flow	-12.90M	-31.54M	26.18M	30.64M	-6.64M	-21.27M
Investing Cash Flow	4.32M	2.76M	-6.31M	-4.68M	-971.00K	3.42M
Financing Cash Flow	-5.01M	-1.16M	-3.81M	-17.19M	-424.00K	-498.00K

Scully Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.89
• 50DMA: Positive
• 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 7.89 is below the 20-day moving average (MA) of 8.37, above the 50-day MA of 7.23, and above the 200-day MA of 6.42, indicating a bullish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 60.72 is Neutral, neither overbought nor oversold. The STOCH value of 59.53 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
WHG	73 Outperform	$172.26M	22.37	5.99%	3.32%	4.03%	151.19%
SIEB	72 Outperform	$120.07M	16.32	8.43%	―	8.47%	-32.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HGBL	63 Neutral	$47.60M	15.87	4.65%	―	0.02%	-68.55%
DOMH	61 Neutral	$63.43M	0.71	-29.28%	―	―	―
SRL	54 Neutral	$137.80M	-69.46	―	3.83%	-36.67%	-1568.10%

Scully Royalty Corporate Events

Scully Royalty Overhauls Board and Committees After December Shareholder Vote

Scully Royalty Ltd., a foreign private issuer listed in the United States, reported corporate governance changes following its December 2025 annual general meeting of shareholders. The company did not provide additional details about its operating industry or primary business activities in the filing.

At the annual general meeting held on December 27, 2025, shareholders voted out the prior board of directors by withholding majority support and elected a new slate consisting of Jerrod Freund, Mark Holliday, Alan Howe, Nimesh Patel and Skyler Wichers, who have begun pursuing a transition plan for the company. At a subsequent board meeting on December 28, 2025, the new board appointed Wichers as chairman and reconstituted key committees: the audit committee now comprises Freund, Holliday and Howe (chair), the compensation committee includes Freund, Patel (chair) and Wichers, and the nominating and governance committee consists of Holliday (chair), Howe and Wichers, signaling a broad reset of the company’s governance structure and strategic oversight.

The most recent analyst rating on (SRL) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Scully Royalty stock, see the SRL Stock Forecast page.

Scully Royalty’s New Board Fires CEO Samuel Morrow After Contentious Power Struggle

On January 12, 2026, MILFAM LLC announced that the newly elected board of directors of Scully Royalty Ltd., which gained control following the December 27, 2025 annual general meeting, has terminated for cause CEO, CFO and President Samuel Morrow and revoked all of his authority over the company and its subsidiaries, with the board assuming day‑to‑day operations while it searches for new executive leadership. The move follows a contested transition in which the outgoing directors and Morrow reportedly refused to recognize or cooperate with the new board despite it securing support from shareholders representing about 59% of outstanding shares, and the new chairman, Skyler Wichers, signaled that the board is prepared to pursue litigation to enforce the shareholder mandate and will review company operations, including existing litigation with Raiffeisen Bank International, in a bid to reassert control, protect shareholder interests and reset governance after a period of internal conflict.

The most recent analyst rating on (SRL) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Scully Royalty stock, see the SRL Stock Forecast page.

Scully Royalty Outlines Scully Mine Recapitalization and Moves to Simplify European Banking Unit

In a management discussion and analysis for the six months ended June 30, 2025, filed on December 31, 2025, Scully Royalty Ltd. detailed the composition and performance drivers of its business, highlighting the central role of its net revenue royalty interest in the Scully iron ore mine in Newfoundland and Labrador, which generated the majority of its 2024 revenue and represents a major share of its asset base, backed by minimum annual royalty payments and production routed to the seaborne iron ore market via Quebec. The company also outlined the status of the Scully Mine’s operator, which entered restructuring proceedings in October 2023 and completed a recapitalization transaction in September 2024 involving a significant equity injection and new operating arrangements, and disclosed that in December 2025 it decided to convert its European regulated banking subsidiary into an unregulated entity, in a move aimed at streamlining costs and simplifying its corporate structure, pending regulatory approval.

The most recent analyst rating on (SRL) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Scully Royalty stock, see the SRL Stock Forecast page.

Scully Royalty Reasserts Control as It Postpones AGM Amid MILFAM Dispute

On December 29, 2025, Scully Royalty Ltd. announced that its board of directors had postponed the company’s annual general meeting of shareholders, following an earlier December 24, 2025 notice, to allow time for a hearing before the Cayman Islands Court of Appeal regarding the validity of director nominations submitted by shareholder MILFAM LLC. The company stated it considers MILFAM’s attempt to proceed unilaterally with the meeting and install its own nominees as directors to be invalid, confirmed that the postponed meeting has not yet taken place and the current board remains in place, and urged shareholders to rely only on official company communications for information about the rescheduling—underscoring an ongoing governance dispute that may influence future control and strategic direction of the company.

The most recent analyst rating on (SRL) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Scully Royalty stock, see the SRL Stock Forecast page.

Scully Royalty Appeals Cayman Court Ruling and Briefly Delays Annual Meeting

On December 24, 2025, Scully Royalty Ltd. said it has appealed a December 19, 2025 ruling by the Grand Court of the Cayman Islands concerning whether the director nomination notice submitted by shareholder MILFAM LLC complied with the timing requirements set out in the company’s constitutional documents. The company also postponed its annual general meeting, originally scheduled for December 27, 2025, for a short period to allow the Cayman Islands Court of Appeal to hear the case, following a recommendation from its Compensation, Nominating and Corporate Governance Committee that a brief delay would reduce uncertainty, give shareholders more time to assess MILFAM’s nominations in light of the court process, and ensure the meeting is conducted in an orderly manner with full disclosure to support informed voting.

The most recent analyst rating on (SRL) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Scully Royalty stock, see the SRL Stock Forecast page.

Scully Royalty Ltd. Announces Annual General Meeting for December 2025

Scully Royalty Ltd., a company incorporated in the Cayman Islands, has announced its upcoming Annual General Meeting of Shareholders scheduled for December 27, 2025, in Hong Kong. The meeting will address key agenda items including the election of the board of directors and the ratification of AOGB CPA Limited as the company’s auditors for the fiscal year ending December 31, 2025. Shareholders are urged to participate in the decision-making process, with a record date set for November 24, 2025, to determine eligibility for voting. This meeting is crucial for stakeholders as it will shape the company’s governance and financial oversight for the coming year.

The most recent analyst rating on (SRL) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Scully Royalty stock, see the SRL Stock Forecast page.