RE Royalties (RE) AI Stock Analysis

• Market Cap: $19.95M
• Dividend Yield: 11.94%
• Average Volume (3M): 11.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -22.97%
• EPS Growth: -252.29%
• Country: CA
• Employees: 9
• Sector: Utilities
• Sector Strength: 66
• Industry: Renewable Utilities
• EPS (TTM): N/A
• Shares Outstanding: 43,376,804
• 10 Day Avg. Volume: 13,480
• 30 Day Avg. Volume: 11,097
• PEG Ratio: 0.57
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.09
• 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

• Rating: 56 Neutral
• Price Target: C$0.50 ▲(8.70%Upside)

The overall stock score reflects financial challenges, with profitability and cash flow constraints being significant concerns. However, strategic investments in renewable projects and a high dividend yield provide some optimism for future growth. Technical indicators suggest moderate momentum, supporting a balanced outlook.

RE Royalties Business Overview & Revenue Model

Company Description

RE Royalties (RE) is a pioneering company in the renewable energy sector that focuses on providing innovative financing solutions. The company specializes in acquiring and managing a portfolio of royalty interests in renewable energy projects, including solar, wind, and hydroelectric ventures. By leveraging its expertise in the energy market, RE Royalties offers financial flexibility and stability to project developers, enabling the growth and expansion of clean energy initiatives.

How the Company Makes Money

RE Royalties makes money primarily through the acquisition of royalty interests in renewable energy projects. The company invests capital in exchange for a percentage of the revenue generated by these projects over time. This revenue model allows RE Royalties to earn recurring income as the projects produce and sell renewable energy. Additionally, the company may form strategic partnerships with energy developers and operators, which can enhance its investment opportunities and revenue potential. By focusing on projects with strong long-term cash flow prospects, RE Royalties aims to generate stable and predictable returns for its investors.

RE Royalties Financial Statement Overview

Summary

RE Royalties faces financial instability characterized by inconsistent revenue performance, high leverage, and cash flow constraints. The company's profitability remains a concern with negative net income and margins. Strategic focus on improving operational efficiency and cash management is essential to enhance financial health.

Income Statement

The company has experienced fluctuating revenue growth with a significant revenue increase in 2022, followed by a decline in 2023. Gross profit margins have been relatively stable, but net income margins remain negative, indicating ongoing profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and high operating costs.

Balance Sheet

The balance sheet shows high leverage with a significant increase in total debt over the years, leading to a high debt-to-equity ratio. Stockholders' equity has decreased substantially, impacting the equity ratio negatively. Return on equity is negative, indicating poor returns for shareholders.

Cash Flow

The company struggles with negative free cash flow due to high capital expenditures, impacting liquidity. Operating cash flow has shown some improvement but remains insufficient to cover net income, resulting in low cash flow ratios. Free cash flow to net income ratios are unfavorable, reflecting cash constraints.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.59M	9.81M	867.51K	1.93M	2.37M
Gross Profit	7.70M	9.45M	522.70K	1.63M	2.09M
EBITDA	-5.40M	1.52M	1.50M	-799.75K	751.47K
Net Income	-9.27M	-3.12M	-726.19K	-2.13M	-446.65K
Balance Sheet
Total Assets	53.81M	53.98M	42.61M	35.19M	27.61M
Cash, Cash Equivalents and Short-Term Investments	16.55M	14.44M	7.58M	20.10M	2.62M
Total Debt	44.51M	36.28M	21.56M	20.60M	10.51M
Total Liabilities	46.81M	36.89M	22.22M	20.79M	10.60M
Stockholders Equity	5.20M	15.33M	19.78M	14.41M	17.01M
Cash Flow
Free Cash Flow	-8.73M	-4.68M	-13.86M	-8.92M	-3.72M
Operating Cash Flow	2.50M	792.29K	-1.22M	143.31K	908.48K
Investing Cash Flow	-1.86M	-3.59M	-17.39M	616.21K	-2.76M
Financing Cash Flow	1.24M	12.56M	5.71M	7.64M	9.52M

RE Royalties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RE, the sentiment is Negative. The current price of 0.46 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.47, and above the 200-day MA of 0.46, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RE.

RE Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REVV	62 Neutral	C$14.18M	6.53	73.47%	―	371.84%	―
Sector *	61 Neutral	C$4.82B	-11.45	-12.21%	4.50%	11.13%	-68.91%
RE	56 Neutral	$19.95M	―	-103.52%	11.94%	-22.97%	-252.29%
WEB	54 Neutral	C$61.64M	3.17	43.72%	―	―	-37.73%
GIP	50 Neutral	C$79.10M	―	-24.89%	―	-13.68%	-1548.28%
SXI	45 Neutral	C$11.67M	―	-27.97%	―	1.97%	16.73%
GRB	35 Underperform	C$17.23M	―	-90.04%	―	-100.00%	-14.57%

RE Royalties Corporate Events

RE Royalties Reports Fiscal 2024 Results and Strategic Investments

RE Royalties Ltd. announced its fiscal 2024 year-end results, highlighting a transitionary year with the addition of new battery and solar assets in Ontario, and new loan and royalty investments. The company successfully reinvested in new opportunities despite some client refinancing delays, and anticipates increased revenues and cash flow from a new acquisition loan in the current fiscal year. Key business highlights include agreements to support solar and hydro projects in Canada and the Maldives, with secured loans and revenue royalties expected to generate stable cash flows.

RE Royalties Declares 25th Consecutive Quarterly Dividend

RE Royalties Ltd. announced a cash distribution of $0.01 per common share for the first quarter of 2025, marking its 25th consecutive quarterly dividend, which underscores the company’s strong and consistent business model. This announcement, along with a recent letter of intent to finance a wind project, positions RE Royalties to continue its growth in revenue, income, and cash flows, reinforcing its strategic positioning in the renewable energy sector.