EMX Royalty (EMX) AI Stock Analysis

• Market Cap: C$356.37M
• Dividend Yield: N/A
• Average Volume (3M): 42.55K
• Price to Earnings (P/E): 737.8
• Beta (1Y): 0.86
• Revenue Growth: 11.11%
• EPS Growth: N/A
• Country: CA
• Employees: 49
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Industrial Materials
• EPS (TTM): 0.01
• Shares Outstanding: 107,992,320
• 10 Day Avg. Volume: 55,334
• 30 Day Avg. Volume: 42,547
• PEG Ratio: -7.56
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.01
• 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: C$5.68
• Price Target Upside: 72.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: C$3.50 ▲(6.06%Upside)

EMX Royalty's overall score is influenced by solid technical indicators and positive corporate events that boost sentiment and market perception. However, high valuation concerns and financial performance challenges, including cash flow issues and negative profitability, temper the overall outlook.

Positive Factors

Revenue Growth

The company posted $8.4M in total revenue, which is an increase compared to 1Q24, reflecting ongoing growth in revenue year over year.

Share Repurchase

Management repurchased about 1.5M common shares during the quarter and an additional 1.2M after quarter-end, showing a commitment to returning capital to shareholders.

Negative Factors

Discount Rate Impact

The decreased price target results from updates to reflect increases in discount rates applied across EMX's asset base.

Sales Forecast

Management expects sales for the year to fall into a range of 10,000 — 12,000 Gold Equivalent Ounces (GEOs), indicating a small decrease compared to previous guidance.

EMX Royalty Business Overview & Revenue Model

Company Description

EMX Royalty (EMX) is a company that operates in the natural resources sector, focusing primarily on acquiring and managing royalty and mineral properties. The company's core business involves generating revenue through royalties derived from mining operations, as well as strategic investments in mineral assets. EMX Royalty leverages its extensive geological expertise and industry knowledge to identify, acquire, and manage a diversified portfolio of mineral royalty interests and exploration properties across the globe.

How the Company Makes Money

EMX Royalty makes money primarily through a royalty revenue model, where it earns income from royalties on mineral production from mining properties in which it holds an interest. These royalties are typically structured as a percentage of the revenue or profit generated from the mineral production at these sites. Additionally, EMX generates income through strategic investments and sales of mineral properties, as well as through partnership agreements with mining companies. Such partnerships often involve EMX acquiring interests in exploration and development projects in exchange for providing funding, expertise, or other resources. These diversified revenue streams allow EMX to benefit from various stages of the mining lifecycle, from exploration to production.

EMX Royalty Financial Statement Overview

Summary

EMX Royalty shows mixed financial health, with strong asset management and moderate leverage. However, challenges persist in revenue growth and profitability, as indicated by negative net income and declining cash flows.

Income Statement

EMX Royalty's revenue has shown volatility, with a decline observed in the latest year. The gross profit margin improved to 72.07%, up from 45.58% a year prior, indicating better cost management. However, net profit remained negative, reflecting ongoing profitability challenges. The EBIT margin at 4.05% is low but positive, suggesting marginal operational efficiency improvements.

Balance Sheet

The company's balance sheet shows moderate stability with a debt-to-equity ratio of 0.30, highlighting manageable leverage. Stockholders' equity forms a significant portion of total assets, with an equity ratio of 73.59%. These factors demonstrate a solid capital structure, though profitability remains a concern with negative return on equity.

Cash Flow

Operating cash flow decreased significantly, and free cash flow saw a sharp decline of 77.30%. The operating cash flow to net income ratio is negative, indicating cash flow issues. However, free cash flow remains positive, suggesting some capacity to fund operations without additional financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.80M	27.38M	16.50M	2.93M	1.16M
	Gross Profit
17.16M	12.48M	1.77M	-7.06M	-6.41M
	EBIT
964.00K	2.95M	-1.97M	―	―
	EBITDA
10.78M	6.92M	3.81M	-9.54M	-8.44M
	Net Income Common Stockholders
-3.29M	-4.63M	3.35M	―	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.12M	26.73M	25.92M	31.85M	54.25M
	Total Assets
156.90M	158.57M	168.83M	164.56M	80.73M
	Total Debt
34.55M	32.75M	40.49M	50.52M	0.00
	Net Debt
8.28M	12.65M	24.98M	30.74M	-41.11M
	Total Liabilities
41.42M	38.13M	45.63M	55.53M	4.06M
	Stockholders Equity
115.48M	120.44M	123.20M	109.03M	76.66M
Cash Flow		Free Cash Flow
3.32M	14.61M	15.55M	―	―
	Operating Cash Flow
6.82M	14.78M	16.73M	―	―
	Investing Cash Flow
6.35M	8.83M	-19.98M	―	―
	Financing Cash Flow
-6.86M	-12.12M	-526.00K	58.65M	1.69M

EMX Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.30
• 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 TSE:EMX, the sentiment is Positive. The current price of 3.3 is above the 20-day moving average (MA) of 3.08, above the 50-day MA of 2.99, and above the 200-day MA of 2.61, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 63.15 is Neutral, neither overbought nor oversold. The STOCH value of 73.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EMX.

EMX Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMX	62 Neutral	C$356.37M	737.78	0.17%	―	11.11%	―
LUCA	56 Neutral	C$361.34M	37.31	-18.51%	―	100.84%	17.40%
Sector *	50 Neutral	$2.00B	-1.12	-21.15%	3.68%	2.69%	-30.65%
ERD	47 Neutral	C$375.57M	―	-16.90%	―	―	-1666.67%
WRN	46 Neutral	C$320.01M	―	-3.62%	―	―	-77.62%
EMO	42 Neutral	C$292.92M	―	-47.70%	―	―	51.26%
PMET	38 Underperform	C$331.03M	5,680.00	-2.20%	―	―	-2226.67%

EMX Royalty Corporate Events

EMX Royalty Expands Portfolio with Trench Gold Project Agreement

EMX Royalty Corporation has entered into an exploration and option agreement with Ridgeline Minerals for the Trench Gold Project in Nevada. This agreement allows EMX to receive cash and share payments over a five-year term, along with a 3% net smelter returns royalty and annual advanced royalty payments. The project, identified through EMX’s geochemical sampling, represents a strategic addition to EMX’s royalty portfolio, offering potential near-term cash flow and future exploration upside. The agreement also marks the fourth collaboration between EMX and Ridgeline, highlighting their ongoing efforts to develop prospective projects in Nevada.

The most recent analyst rating on (TSE:EMX) stock is a Buy with a C$4.25 price target. To see the full list of analyst forecasts on EMX Royalty stock, see the TSE:EMX Stock Forecast page.

EMX Royalty Strengthens Financial Position with Early Payment and Debt Reduction

EMX Royalty Corporation has received an early payment of $6.85 million from AbraSilver Resource Corp, reducing its original obligation and retaining a 1% NSR on AbraSilver’s Diablillos project in Argentina. The funds will be used to repay $10 million of EMX’s long-term debt, reducing its outstanding debt from $35 million to $25 million, which strengthens its financial position and enhances its market standing.

EMX Royalty Corporation Grants Security-Based Compensation to Align Interests

EMX Royalty Corporation has announced the grant of security-based compensation, including incentive stock options, restricted share units (RSUs), and deferred share units (DSUs) to its officers, directors, employees, and consultants. This move is part of the company’s equity incentive plan and aims to align the interests of its team with the company’s performance and growth objectives. The issuance of these securities is subject to certain restrictions and approvals, reflecting EMX’s strategic focus on enhancing shareholder value and operational milestones.

EMX Royalty Corporation Initiates New Share Repurchase Program

EMX Royalty Corporation has announced the commencement of a new Normal Course Issuer Bid (NCIB) following the successful completion of its previous NCIB. The new program allows the company to repurchase and cancel up to 5% of its issued and outstanding shares over a twelve-month period, aiming to enhance shareholder value and increase liquidity. The company will fund these purchases from available cash and has appointed National Bank Financial Inc. to facilitate the transactions. This move is expected to positively impact EMX’s market positioning by potentially increasing the value of its shares.

EMX Royalty Reports Record Revenue and Positive 2025 Outlook

EMX Royalty Corporation reported strong financial results for the year ending December 31, 2024, with record adjusted royalty revenue of $33.1 million, marking a 28% increase from the previous year. The company anticipates a positive outlook for 2025, driven by successful royalty expansions and a reduction in cash operating expenditures, positioning it for continued growth and financial flexibility.