RE Royalties (RE) AI Stock Analysis

• Market Cap: $15.18M
• Dividend Yield: 11.11%
• Average Volume (3M): 28.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: 169.04%
• EPS Growth: -111.53%
• Country: CA
• Employees: 9
• Sector: Utilities
• Sector Strength: 60
• Industry: Renewable Utilities
• EPS (TTM): -0.02
• Shares Outstanding: 43,376,804
• 10 Day Avg. Volume: 29,713
• 30 Day Avg. Volume: 28,971
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.91
• Enterprise Value/Revenue: 7.68
• Enterprise Value/Gross Profit: 9.63
• Enterprise Value/Ebitda: -10.27
• 1Y Price Target: $0.50
• Price Target Upside: 38.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: C$0.50 ▲(38.89% Upside)

The overall stock score is primarily influenced by financial instability due to high leverage and negative profitability. Technical indicators suggest a bearish trend, while the high dividend yield offers some appeal. The lack of earnings call and corporate events data limits further insights.

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 royalty agreements, where it receives a percentage of the revenue generated by the renewable energy projects it finances. This model allows the company to earn income as the projects produce energy and generate sales. Additionally, RE may engage in revenue-based financing, providing upfront capital in exchange for a share of the project's future earnings. Key revenue streams include ongoing royalty payments and potential returns from investment in various renewable energy projects. Partnerships with project developers and operators enhance its ability to identify and finance viable projects, contributing significantly to its earnings.

RE Royalties Financial Statement Overview

Summary

RE Royalties exhibits strong revenue growth but faces significant challenges with profitability, high leverage, and liquidity. The negative margins and high debt levels suggest financial instability, requiring improvements in operational efficiency and debt management.

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	1.74M	9.81M	867.51K	1.93M	2.37M
Gross Profit	6.17M	914.48K	9.45M	522.70K	1.63M	2.09M
EBITDA	-5.79M	-5.40M	1.52M	1.50M	-799.75K	751.47K
Net Income	-10.02M	-9.27M	-3.12M	-726.19K	-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	2.62M
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	-13.86M	-8.92M	-3.72M
Operating Cash Flow	1.55M	2.50M	792.29K	-1.22M	143.31K	908.48K
Investing Cash Flow	-8.95M	-1.86M	-3.59M	-17.39M	616.21K	-2.76M
Financing Cash Flow	850.38K	1.24M	12.56M	5.71M	7.64M	9.52M

RE Royalties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 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 0.36 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.41, and below the 200-day MA of 0.44, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.14 is Neutral, neither overbought nor oversold. The STOCH value of 47.36 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	$17.24B	18.03	5.54%	3.64%	6.63%	11.55%
REVV	59 Neutral	C$14.58M	5.97	73.47%	―	371.84%	―
SXI	58 Neutral		―		―	1.97%	16.73%
WEB	54 Neutral	C$56.39M	3.21	39.75%	―	―	-46.59%
GIP	50 Neutral	C$68.53M	―	-25.34%	―	-15.02%	-20.61%
RE	44 Neutral	$15.18M	―	-118.29%	11.11%	169.04%	-111.53%
GRB	35 Underperform	C$16.04M	―	-89.56%	―	―	-54.37%

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.