SIR Royalty Income (SRV.UN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 8.2%
• Average Volume (3M): 4.11K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.43
• Revenue Growth: N/A
• EPS Growth: -62.68%
• Country: CA
• Employees: 5,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.13
• Shares Outstanding: 8,375,567
• 10 Day Avg. Volume: 4,856
• 30 Day Avg. Volume: 4,112
• PEG Ratio: -0.25
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 10.37
• P/FCF Ratio: 10.86
• 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: 68 Neutral
• Price Target: ―

SIR Royalty Income demonstrates strengths in valuation, with an attractive P/E ratio and high dividend yield, and technical indicators suggest positive short-term momentum. However, financial performance is mixed, with volatility in revenue and profits and ongoing financial outflows, which could affect future liquidity.

Positive Factors

Strong Equity Position

A strong equity position with no debt enhances financial stability and provides flexibility for future investments or expansions.

Stable Income Stream

The royalty-based revenue model ensures a stable income stream, aligning the fund's performance with the operational success of SIR Corp.'s restaurant brands.

Improved Cash Flow Generation

Improved cash flow generation indicates better operational efficiency, providing more resources for reinvestment or distribution to shareholders.

Negative Factors

Revenue Volatility

Revenue volatility can undermine financial predictability and may challenge the company's ability to maintain consistent growth and profitability.

Inconsistent Profit Margins

Fluctuating profit margins suggest challenges in cost management, which can impact long-term profitability and competitiveness.

Ongoing Financial Outflows

Persistent financial outflows may strain liquidity, limiting the company's ability to invest in growth opportunities or weather economic downturns.

SIR Royalty Income Business Overview & Revenue Model

Company Description

SIR Royalty Income Fund (SRV.UN) is a Canadian-based entity that primarily invests in the restaurant industry. The fund earns its income through its interest in SIR Corp., a privately-held company that owns and operates a portfolio of full-service restaurants across Canada. These establishments include popular brands like Jack Astor's Bar and Grill, Scaddabush Italian Kitchen & Bar, and Canyon Creek Chop House, among others.

How the Company Makes Money

SIR Royalty Income Fund generates revenue primarily through royalty payments received from SIR Corp. The fund receives a percentage of the revenue generated by the restaurants owned and operated by SIR Corp. This royalty payment is based on the gross sales of the restaurants, providing the fund with a stable income stream. Additionally, the fund's earnings are influenced by the overall performance and sales growth of the SIR Corp. restaurant brands. The fund has a strategic partnership with SIR Corp., which allows it to benefit from the operational expertise and brand recognition of the restaurant chains. As SIR Corp. expands or enhances its restaurant operations, the fund's potential for income growth increases, thereby benefiting its investors.

SIR Royalty Income Financial Statement Overview

Summary

SIR Royalty Income has shown financial resilience with strong equity and no debt in the TTM period. However, volatility in revenue and profits, along with inconsistent gross profit margins, suggests challenges in maintaining stable growth. Improved cash flow generation is a positive sign, though financial outflows persist, potentially impacting future liquidity.

Income Statement

The company has experienced significant volatility in revenue with a decline from 2022 to 2023 and a further drop in TTM figures. Gross profit margins have fluctuated, indicating instability in controlling costs. The absence of EBITDA data limits comprehensive profitability analysis, and the net income has seen a substantial decrease from 2023 to the TTM period.

Balance Sheet

The balance sheet shows strong equity levels with no debt in the TTM period, resulting in an impressive Debt-to-Equity Ratio. The Equity Ratio remains healthy, indicating asset efficiency. However, the volatility in total assets and liabilities suggests potential financial instability.

Cash Flow

Operating cash flow has grown from 2023 to TTM, reflecting improved cash generation. However, the free cash flow growth is difficult to assess due to the lack of historical data, and the financing cash flow remains negative, indicating ongoing financial outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.50M	10.66M	23.32M	40.95M	4.12M	-42.73M
Gross Profit	14.75M	16.16M	23.32M	48.95M	7.12M	-56.98M
EBITDA	3.42M	4.90M	11.66M	7.37M	2.43M	-14.77M
Net Income	10.51M	12.03M	19.11M	44.41M	4.91M	-44.00M
Balance Sheet
Total Assets	94.22M	94.26M	90.96M	83.22M	49.48M	48.49M
Cash, Cash Equivalents and Short-Term Investments	1.08M	1.04M	412.18K	2.28M	1.41M	138.63K
Total Debt	0.00	0.00	42.47K	63.48K	42.26K	46.36K
Total Liabilities	6.46M	6.30M	5.47M	6.95M	6.90M	5.79M
Stockholders Equity	87.76M	87.96M	85.48M	76.27M	42.59M	42.70M
Cash Flow
Free Cash Flow	9.46M	10.18M	8.04M	11.58M	6.30M	2.20M
Operating Cash Flow	9.46M	10.18M	8.04M	11.58M	6.30M	2.20M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-9.55M	-9.55M	-9.90M	-10.72M	-5.03M	-2.20M

SIR Royalty Income Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SRV.UN, the sentiment is Positive. The current price of 14.09 is above the 20-day moving average (MA) of 14.04, below the 50-day MA of 14.33, and above the 200-day MA of 13.34, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 59.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SRV.UN.

SIR Royalty Income Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNR	77 Outperform	$4.49B	21.39	4.01%	1.43%	-5.33%	-57.58%
DOL	75 Outperform	$53.91B	43.47	94.57%	0.21%	9.91%	16.96%
SRV.UN	68 Neutral	―	11.57	9.03%	8.20%	―	-62.68%
XTC	64 Neutral	$245.31M	10.43	6.05%	6.17%	-3.53%	-17.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MRE	54 Neutral	C$735.16M	―	-2.64%	2.01%	-7.25%	-143.07%
DOO	54 Neutral	$7.10B	―	38.70%	0.87%	-13.78%	-115.58%