RE Royalties (RE) AI Stock Analysis

• Market Cap: C$12.36M
• Dividend Yield: 15.09%
• Average Volume (3M): 52.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• 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): 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$0.30 ▲(0.00% Upside)

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

Recurring Royalty Revenue Model

The royalty model creates ongoing, project-linked cash streams as assets produce energy. This aligns RE's returns with long-lived renewable asset cash flows, reducing dependence on one-off development exits and supporting predictable revenue as projects operate over decades.

Strong Top-line Expansion

Robust reported revenue growth indicates successful deal origination and portfolio scaling. Sustained high top-line growth suggests the company can expand its royalty base, amplifying future cash receipts and improving operating leverage as fixed costs are spread across more projects.

Healthy Gross Margins

Relatively high gross margins imply the underlying financed assets generate healthy cash before overhead. This margin buffer can support reinvestment, cover financing costs, and accelerate a path to positive EBITDA if operating and financing efficiencies improve with scale.

Negative Factors

Persistent Negative Profitability

Ongoing negative net and operating margins signal structural inability to convert revenue into profit. Persistent losses erode equity over time, constrain reinvestment, and force reliance on external capital, which undermines long-term sustainability unless operational fixes or higher-margin deals are secured.

Weak Cash Flow Conversion

Negative free cash flow growth and poor earnings-to-cash conversion limit internal funding for new royalties and maintenance. Structural cash deficits increase dependency on debt or equity raises, heightening dilution or leverage risk and reducing resilience to project underperformance.

High Leverage and Low Equity Ratio

Significant leverage and a low equity base reduce financial flexibility and increase vulnerability to interest rate rises or cash shortfalls. High debt magnifies downside from project delays or underperformance and can restrict capacity to fund new investments without costly refinancing.

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 experiences robust revenue growth but faces significant profitability and leverage challenges. High debt levels and negative margins suggest financial instability, while the cash flow situation raises concerns about liquidity. The company needs to improve operational efficiency and manage 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	7.60M	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: Neutral
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.3 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.27, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.88 is Neutral, neither overbought nor oversold. The STOCH value of 47.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$14.67M	-4.12	-69.20%	―	-31.40%	-354.49%
RE	47 Neutral	C$12.36M	-1.19	-136.45%	15.09%	155.71%	-375.75%
GRB	47 Neutral	C$19.00M	-3.28	-99.46%	―	―	-37.48%
GIP	45 Neutral	C$56.24M	-3.03	-23.88%	―	-19.22%	11.82%
FNQ	45 Neutral	C$8.25M	-8.33	―	―	114.52%	50.00%
PRME	41 Neutral	C$15.72M	-0.89	―	―	―	-551.58%

RE Royalties Corporate Events

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.