RE Royalties (RE) AI Stock Analysis

• Market Cap: $12.58M
• Dividend Yield: 16%
• Average Volume (3M): 52.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• 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: 43,376,804
• 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): 10.71
• P/FCF Ratio: -2.13
• Enterprise Value/Market Cap: 4.72
• Enterprise Value/Revenue: 7.68
• Enterprise Value/Gross Profit: 9.63
• Enterprise Value/Ebitda: -11.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: C$0.50 ▲(100.00% Upside)

The overall stock score is primarily influenced by the company's financial performance, which is weak due to high leverage and negative profitability. Technical analysis indicates a bearish trend, further weighing down the score. The high dividend yield provides some support but is overshadowed by the financial risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for RE's financial solutions in renewable energy, supporting long-term business expansion.

Business Model

The innovative business model aligns investor interests with project success, providing stable income streams as renewable projects grow.

Industry Position

Positioning in the growing renewable energy sector offers structural growth opportunities as global demand for clean energy rises.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in new projects.

Profitability Challenges

Ongoing profitability issues highlight difficulties in managing costs, which may hinder long-term financial sustainability and growth.

Cash Flow Issues

Weak cash flow position suggests potential liquidity challenges, affecting the company's ability to fund operations and growth initiatives.

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

RE Royalties is experiencing robust revenue growth, yet it faces significant profitability and leverage challenges. The high debt levels and negative margins suggest financial instability, while the cash flow situation raises concerns about liquidity. The company needs to focus on improving operational efficiency and managing its debt to enhance financial health.

Income Statement

RE Royalties shows a significant revenue growth rate of 73.9% in the TTM, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The consistent negative margins highlight ongoing challenges in managing costs and achieving operational efficiency.

Balance Sheet

The company's balance sheet reflects high leverage with a debt-to-equity ratio of 17.99 in the TTM, suggesting significant financial risk. The negative return on equity indicates that the company is not generating positive returns for shareholders. The equity ratio is low, further emphasizing the reliance on debt financing.

Cash Flow

Cash flow analysis reveals a challenging situation with negative free cash flow and a low operating cash flow to net income ratio. Although there is a positive free cash flow growth rate, the overall cash flow position remains weak, indicating potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.74M	8.59M	9.81M	4.24M	1.93M	2.37M
Gross Profit	6.17M	7.70M	9.45M	3.89M	1.63M	2.09M
EBITDA	-5.40M	-5.02M	1.52M	1.61M	-1.01M	124.32K
Net Income	-10.02M	-9.27M	-1.81M	-433.82K	-2.13M	-446.65K
Balance Sheet
Total Assets	50.27M	53.81M	53.98M	42.61M	35.19M	27.61M
Cash, Cash Equivalents and Short-Term Investments	6.54M	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	45.86M	46.81M	36.89M	22.22M	20.79M	10.60M
Stockholders Equity	2.46M	5.20M	15.33M	19.78M	14.41M	17.01M
Cash Flow
Free Cash Flow	-14.03M	-8.73M	-4.68M	-12.50M	-8.92M	-3.72M
Operating Cash Flow	1.55M	2.50M	792.29K	141.56K	143.31K	908.48K
Investing Cash Flow	-8.95M	-1.86M	-3.59M	-17.40M	616.21K	-2.76M
Financing Cash Flow	850.38K	1.24M	9.87M	4.36M	7.64M	9.52M

RE Royalties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 0.25 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.30, and below the 200-day MA of 0.40, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 30.85 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 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
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
REVV	59 Neutral	C$12.89M	-3.19	-69.20%	―	-31.40%	-354.49%
SXI	58 Neutral	―	―	―	―	1.97%	16.73%
WEB	54 Neutral	C$63.96M	3.86	42.58%	―	―	-51.92%
GIP	50 Neutral	C$68.32M	-3.28	-23.88%	―	-19.22%	11.82%
RE	42 Neutral	$12.58M	-1.25	-136.45%	16.00%	155.71%	-375.75%
GRB	35 Underperform	C$15.44M	-2.83	-99.46%	―	―	-54.37%

RE Royalties Corporate Events

RE Royalties Ltd. Reports First Half 2025 Earnings

RE Royalties Ltd. is a Canadian company specializing in acquiring revenue-based royalties from renewable energy generation facilities and clean energy technologies, providing non-dilutive financing solutions to companies in the renewable energy sector. In its latest earnings report for the first half of 2025, RE Royalties Ltd. highlighted a decrease in total assets from $53.8 million in 2024 to $50.3 million in 2025, alongside a net loss of $1.04 million compared to a net income of $1,575 in the same period last year. The company reported a total revenue of $3.6 million for the six months ended June 30, 2025, a decrease from $4.5 million in the previous year, with notable contributions from royalty and energy revenues. Despite the decline in revenue, the company has continued to invest in its portfolio, including a significant transaction with Clear Blue Technologies and a new secured loan agreement with Revolve Renewable Power Corp. Looking forward, RE Royalties Ltd. remains focused on expanding its portfolio and enhancing its financial performance through strategic investments and partnerships in the renewable energy sector.

RE Royalties Cancels Equity Offering Amid Early Loan Repayments

RE Royalties Ltd. has canceled its previously announced non-brokered private placement offering due to early loan repayments from clients and recent share price volatility. Despite interest from new investors, the company decided that proceeding with the offering would not benefit shareholders. The early repayments have left the company well-capitalized, allowing it to explore new investment opportunities and meet upcoming bond maturities, with a focus on unlocking shareholder value.

The most recent analyst rating on (TSE:RE) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on RE Royalties stock, see the TSE:RE Stock Forecast page.

RE Royalties Closes Fully Subscribed $3.4 Million Financing Offering

RE Royalties Ltd. announced the closing of its fully subscribed non-brokered private placement offering, raising up to $3.4 million through the issuance of 10,625,000 units at $0.32 per unit. Each unit includes a common share and a warrant, with proceeds intended for working capital and general corporate purposes. This financing move strengthens the company’s financial position and supports its growth strategy in the renewable energy sector.

The most recent analyst rating on (TSE:RE) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on RE Royalties stock, see the TSE:RE Stock Forecast page.

RE Royalties Launches $3.4 Million Equity Offering to Bolster Renewable Energy Investments

RE Royalties Ltd. announced a non-brokered private placement offering of up to 10,625,000 units at $0.32 per unit, aiming to raise $3,400,000. This offering will support the company’s working capital and general corporate purposes, potentially enhancing its market position in the renewable energy sector. The units, consisting of common shares and purchase warrants, will be offered under specific exemptions and are not subject to resale restrictions in Canada. The offering’s success depends on receiving necessary approvals, including from the TSX Venture Exchange.

The most recent analyst rating on (TSE:RE) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on RE Royalties stock, see the TSE:RE Stock Forecast page.

RE Royalties Declares Second Quarter Dividend for 2025

RE Royalties Ltd. has announced a cash distribution of $0.01 per common share for the second quarter of 2025, with a cumulative dividend of $0.02 per share for the fiscal year. This decision reflects the company’s resilience and commitment to sustainable revenue growth and consistent cash flow, supported by recent investments and ongoing due diligence on new opportunities.

The most recent analyst rating on (TSE:RE) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on RE Royalties stock, see the TSE:RE Stock Forecast page.