RE Royalties (RE) AI Stock Analysis

• Market Cap: C$16.76M
• Dividend Yield: 15.09%
• Average Volume (3M): 52.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 155.71%
• EPS Growth: -375.75%
• Country: CA
• Employees: 9
• Sector: Utilities
• Sector Strength: 65
• Industry: Financial - Conglomerates
• EPS (TTM): -0.02
• Shares Outstanding: 43,521,970
• 10 Day Avg. Volume: 39,412
• 30 Day Avg. Volume: 52,175
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 2.17
• P/FCF Ratio: -2.13
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: C$0.31 ▲(3.33% Upside)
• Action: Reiterated Date: 01/10/26
• Date: Action: Reiterated 01/10/26

The score is held down primarily by poor financial performance (ongoing losses, leverage, and cash flow strain). Technical indicators provide some near-term support, and the high dividend yield helps, but valuation remains constrained by unprofitable earnings (negative P/E).

Positive Factors

Royalty-based revenue model

The royalty model generates income as financed projects produce and sell energy, creating a predictable, usage-linked revenue stream. That structure shifts operating execution risk to developers, supports steady cash receipts over project lifecycles, and remains durable as long as assets operate.

Exposure to renewable energy growth

RE's focus on solar and wind places it in a structural growth market driven by decarbonization and electrification. That persistent demand underpins a long-term pipeline for financing and royalties, supporting deal flow and portfolio diversification across regions and technologies.

Relatively high gross profit margins

Higher gross margins indicate attractive project-level economics for financed assets and suggest the core royalties capture value before overhead and financing costs. If operating and financing expenses are disciplined, this base could convert to improved operating leverage over the medium term.

Negative Factors

Persistent operating losses

Ongoing negative net margins and recurring operating losses erode equity and limit the company's ability to self-fund growth or absorb shocks. Persistent unprofitability increases dependence on external capital and makes improving long-term returns contingent on material margin or revenue reversals.

High leverage and low equity ratio

Significant leverage raises default and refinancing risk, reduces financial flexibility to fund new royalty deals, and magnifies earnings volatility from interest costs. A weak equity base constrains balance-sheet capacity and can force dilutive or costly financing when scaling the portfolio.

Weak cash flow conversion

Poor conversion of earnings into operating cash and negative FCF growth limit the company's ability to service debt, pay distributions, or reinvest without external funding. For a royalty financier, timing mismatches and collection risk can materially impair liquidity and long-term sustainability.

RE Royalties Business Overview & Revenue Model

Company Description

RE Royalties Ltd. engages in the acquisition of revenue-based royalties from renewable energy generation facilities and other clean energy technologies by providing a non-dilutive royalty financing solution to privately held and publicly traded renewable energy generation and development companies, and clean energy technology companies. As of April 25, 2022, it owned a portfolio 104 royalties on solar, wind, hydro, battery storage, and renewable natural gas projects in Canada, Europe, and the United States. The company is headquartered in Vancouver, Canada.

How the Company Makes Money

RE Royalties generates revenue primarily through its innovative royalty agreements, which allow the company to earn a percentage of the revenue generated by the renewable energy projects it finances. This model provides a steady income stream as the projects produce energy and sell it to the grid. Additionally, the company may engage in partnerships with renewable energy developers and operators, further expanding its portfolio and revenue potential. By investing in a range of projects across North America and other regions, RE diversifies its income sources while capitalizing on the growing demand for clean energy solutions.

RE Royalties Financial Statement Overview

Summary

Weak fundamentals: declining revenue trend, persistent losses (negative net margins and negative EBIT/EBITDA), high leverage (high debt-to-equity and low equity ratio), and challenged cash generation (negative free cash flow growth and weak conversion of earnings to cash).

Income Statement

RE Royalties has experienced declining revenue growth, with a negative trend in recent periods. The company shows a consistent pattern of negative net profit margins, indicating ongoing losses. Gross profit margins are relatively high, but the negative EBIT and EBITDA margins highlight operational inefficiencies and challenges in achieving profitability.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the company's inability to generate positive returns for shareholders. The equity ratio is low, suggesting limited financial stability and reliance on debt financing.

Cash Flow

RE Royalties faces challenges in cash flow management, with negative free cash flow growth and a high free cash flow to net income ratio, indicating cash flow issues relative to earnings. The operating cash flow to net income ratio is low, further emphasizing difficulties in converting earnings into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Dec 2021	Mar 2021
Income Statement
Total Revenue	7.60M	8.59M	9.81M	4.24M	1.93M	2.37M
Gross Profit	5.88M	7.70M	9.45M	3.89M	1.63M	2.09M
EBITDA	-5.62M	-5.02M	1.52M	1.61M	-1.01M	124.32K
Net Income	-10.30M	-9.27M	-1.81M	-433.82K	-2.13M	-446.65K
Balance Sheet
Total Assets	49.53M	53.81M	53.98M	42.61M	35.19M	27.61M
Cash, Cash Equivalents and Short-Term Investments	11.71M	16.55M	14.44M	7.58M	20.10M	11.70M
Total Debt	44.33M	44.51M	36.28M	21.56M	20.60M	10.51M
Total Liabilities	45.99M	46.81M	36.89M	22.22M	20.79M	10.60M
Stockholders Equity	1.44M	5.20M	15.33M	19.78M	14.41M	17.01M
Cash Flow
Free Cash Flow	-2.73M	-8.73M	-4.68M	-12.50M	-8.92M	-3.72M
Operating Cash Flow	1.87M	2.50M	792.29K	141.56K	143.31K	908.48K
Investing Cash Flow	-104.17K	-1.86M	-3.59M	-17.40M	616.21K	-2.76M
Financing Cash Flow	-8.63M	1.24M	9.87M	4.36M	7.64M	9.52M

RE Royalties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RE, the sentiment is Positive. The current price of 0.3 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.33, and below the 200-day MA of 0.35, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.47 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RE.

RE Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RE	47 Neutral	C$16.76M	-5.25	-136.45%	15.09%	155.71%	-375.75%
REVV	46 Neutral	C$15.93M	-5.14	-69.20%	―	-31.40%	-354.49%
GIP	45 Neutral	C$51.89M	-4.88	-24.57%	―	-19.22%	11.82%
FNQ	45 Neutral	C$8.25M	-3.70	59.73%	―	114.52%	50.00%
PRME	44 Neutral	C$18.55M	-9.93	37.67%	―	―	-551.58%
GRB	42 Neutral	C$20.43M	-2.94	-181.42%	―	―	-37.48%

RE Royalties Corporate Events

RE Royalties Grants Stock Options and RSUs in Annual Equity Compensation Review

RE Royalties Ltd. has approved its annual equity-based compensation awards, granting 1,195,000 stock options and 800,000 restricted share units to directors, officers, employees and consultants. The options, priced at CAD $0.30 and exercisable over three years, along with the RSUs, are intended to align management and staff incentives with shareholder interests and support the company’s ongoing growth strategy in the renewable energy royalty market.

The most recent analyst rating on (TSE:RE) stock is a Hold with a C$0.30 price target. To see the full list of analyst forecasts on RE Royalties stock, see the TSE:RE Stock Forecast page.

RE Royalties to Invest Up to US$9 Million in Solaris Distributed Solar Portfolios

RE Royalties Ltd. has signed a definitive agreement to invest up to US$9 million in Solaris Energy Inc., securing royalty interests over two portfolios of distributed generation solar projects across multiple U.S. states. The deal includes an initial US$4.8 million royalty purchase on a first portfolio of 15 projects, funded in stages as development and construction milestones are met, and a second portfolio of nine projects subject to further due diligence. By partnering with Solaris, which has a U.S. commercial and community solar pipeline valued at more than US$400 million, RE Royalties deepens its exposure to the commercial and industrial distributed generation market, enhances its pipeline of long-term cash-generating clean energy royalties, and supports Solaris’s ability to unlock scarce sponsor equity and streamline financing for its expanding solar and storage portfolio.

The most recent analyst rating on (TSE:RE) stock is a Hold with a C$0.23 price target. To see the full list of analyst forecasts on RE Royalties stock, see the TSE:RE Stock Forecast page.

RE Royalties Expands Renewable Investments and Strengthens Leadership

RE Royalties Ltd. has announced several strategic updates, including $50 million in letters of intent for new investments in renewable energy projects across the United States, the Maldives, and Canada. The company has extended a secured loan with Powerbank Corporation, increased the interest and royalty rates, and substantially repaid its Series 1 Green Bonds, highlighting its commitment to mobilizing private capital for climate-aligned projects. Additionally, the company has appointed Alexa Blain to its Board of Directors, bringing her extensive experience in impact asset management and finance.

The most recent analyst rating on (TSE:RE) stock is a Hold with a C$0.23 price target. To see the full list of analyst forecasts on RE Royalties stock, see the TSE:RE Stock Forecast page.