RE Royalties (TSE:RE)
:RE
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RE Royalties
(RE)
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Rating:45Neutral
Price Target:
C$0.37
▲(23.67% Upside)
Action:Reiterated
Date:05/11/26
The score is primarily pressured by weak financial performance—sharp 2025 deterioration, negative equity, and persistent negative free cash flow—indicating elevated solvency and funding risk. Technical indicators are broadly neutral and do not offset fundamentals, while valuation is mixed: a very high dividend yield is outweighed by loss-making earnings and weak cash generation.
Positive Factors
Royalty-based recurring revenue
The company's core royalty financing model creates durable, contractually linked cash flows that scale with counterparties' sales. This asset-light approach can produce predictable recurring income and less operating capital intensity, supporting long-term cash generation if counterparties perform.
Negative Factors
Sharp 2025 revenue decline
A ~75% revenue drop and materially worse profitability in 2025 materially reduce royalty receipts and underpinning cash flows. Such a large contraction undermines predictability of recurring revenue, stresses covenant and payout capacity, and raises the bar for portfolio re-growth to restore fundamentals.
Read all positive and negative factors
Positive Factors
Negative Factors
Royalty-based recurring revenue
The company's core royalty financing model creates durable, contractually linked cash flows that scale with counterparties' sales. This asset-light approach can produce predictable recurring income and less operating capital intensity, supporting long-term cash generation if counterparties perform.
Read all positive factors
RE Royalties (RE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$17.41M
Dividend Yield15.09%
Average Volume (3M)52.17K
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth9.00%
EPS Growth5.38%
CountryCA
Employees9
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)-0.21
Shares Outstanding43,521,970
10 Day Avg. Volume39,412
30 Day Avg. Volume52,175
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)-1.85
Price to Sales (P/S)5.73
P/FCF Ratio-1.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 re...
How the Company Makes Money
RE Royalties primarily makes money by deploying capital (e.g., through royalty financing arrangements or by acquiring existing royalty interests) in return for ongoing cash payments that are typically calculated as a percentage of a counterparty’s...
RE Royalties Earnings Call Summary
Earnings Call Date:Dec 04, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jun 01, 2026
Earnings Call Sentiment Neutral
The call highlighted significant new investments and a strong cash position, as well as a notable increase in EBITDA and a reduced net loss. However, there were declines in revenue and gross profit compared to the prior year.Positive Updates
Successful Completion of Series 4 Green Bonds
Raised total gross proceeds of approximately $7 million, contributing to a healthy cash balance of approximately $20 million for future opportunities.
Negative Updates
Revenue and Income Decline
Revenue and income for Q3 2024 decreased by 12% compared to the prior year, with a 14% decrease over the 9 months ending September 30, 2024, due to lower finance income and a one-time royalty buyout in the prior year.
Read all updates
Q3-2024 Updates
Positive
Negative
Successful Completion of Series 4 Green Bonds
Raised total gross proceeds of approximately $7 million, contributing to a healthy cash balance of approximately $20 million for future opportunities.
Read all positive updates
Company Guidance
During the RE Royalties Q3 2024 earnings call, the company provided guidance on their financial performance and strategic investments. They reported a decrease in revenue and income by 12% to $1.7 million for the third quarter, attributed to early loan repayments from clients. However, EBITDA increased by $2.6 million compared to the previous year, reaching $1 million, due to the absence of a prior year's $3.1 million provision for expected credit loss. The company completed significant transactions, including a $10 million loan for solar projects in the Maldives and a $3 million loan for battery storage systems in Ontario, which are expected to bolster future revenues and cash flows. As of September 30, 2024, RE Royalties held cash and cash equivalents of $18.4 million, and they are actively evaluating additional investment opportunities to enhance their project pipeline.RE Royalties Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
10
Very Negative
Cash Flow
18
Very Negative
| Breakdown | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.89M | 8.59M | 9.81M | 4.24M | 1.93M |
| Gross Profit | -983.22K | 7.70M | 9.45M | 3.89M | 1.63M |
| EBITDA | -6.48M | -5.02M | 1.52M | 1.61M | -1.01M |
| Net Income | -8.87M | -9.27M | -1.81M | -433.82K | -2.13M |
Balance Sheet | |||||
| Total Assets | 31.63M | 53.81M | 53.98M | 42.61M | 35.19M |
| Cash, Cash Equivalents and Short-Term Investments | 2.75M | 16.55M | 14.44M | 7.58M | 20.10M |
| Total Debt | 34.60M | 44.51M | 36.28M | 21.56M | 20.60M |
| Total Liabilities | 35.74M | 46.81M | 36.89M | 22.22M | 20.79M |
| Stockholders Equity | -5.86M | 5.20M | 15.33M | 19.78M | 14.41M |
Cash Flow | |||||
| Free Cash Flow | -7.41M | -8.73M | -4.68M | -12.50M | -8.92M |
| Operating Cash Flow | -2.60M | 2.50M | 792.29K | 141.56K | 143.31K |
| Investing Cash Flow | 548.32K | -1.86M | -3.59M | -17.40M | 616.21K |
| Financing Cash Flow | -11.39M | 1.24M | 9.87M | 4.36M | 7.64M |
RE Royalties Technical Analysis
Positive
0.30
Price Trends
0.39
Positive
0.35
Positive
0.34
Positive
Market Momentum
<0.01
Negative
59.59
Neutral
70.83
Neutral
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 0.38, below the 50-day MA of 0.39, and below the 200-day MA of 0.34, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.59 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RE.
RE Royalties Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
48 Neutral | C$23.80M | -9.88 | -181.42% | ― | ― | 70.29% | |
46 Neutral | C$14.25M | -5.14 | -69.20% | ― | -35.26% | -811.11% | |
45 Neutral | C$17.41M | -1.22 | -136.45% | 15.09% | 9.00% | 5.38% | |
45 Neutral | C$51.89M | -4.88 | -24.57% | ― | -19.22% | 11.82% | |
44 Neutral | C$8.25M | -3.16 | 59.73% | ― | -21.50% | ― | |
44 Neutral | C$18.55M | -9.93 | 37.67% | ― | -84.31% | -199.44% |
* Utilities Sector Average
TSE:RE
RE Royalties
0.42
-0.04
-9.48%
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RE Royalties Corporate Events
Business Operations and Strategy
RE Royalties Launches Strategic Review to Maximize Shareholder Value
Positive
Mar 30, 2026
RE Royalties Ltd. has launched a formal strategic review to explore options to maximize shareholder value as it enters its 11th year of operations, mandating a special board committee to assess potential paths, including a sale, partnerships, or c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.