Star Royalties (STRR) AI Stock Analysis

• Market Cap: C$14.15M
• Dividend Yield: N/A
• Average Volume (3M): 48.71K
• Price to Earnings (P/E): 2.3
• Beta (1Y): -0.02
• Revenue Growth: -38.41%
• EPS Growth: N/A
• Country: CA
• Employees: 8
• Sector: Real Estate
• Sector Strength: 67
• Industry: Other Precious Metals
• EPS (TTM): -0.43
• Shares Outstanding: 72,555,595
• 10 Day Avg. Volume: 54,039
• 30 Day Avg. Volume: 48,712
• PEG Ratio: 0.55
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.60
• 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

Star Royalties' overall stock score reflects significant operational challenges, with declining revenues and negative cash flows weighing heavily. The strong balance sheet provides some stability, but technical indicators suggest weak market momentum. The low P/E ratio indicates the stock might be undervalued, offering potential upside if the company can address its operational issues.

Star Royalties Business Overview & Revenue Model

Company Description

Star Royalties Ltd. operates as a precious metals royalty and streaming investment company. It focuses on providing wealth creation through accretive transaction structuring and asset life extension with alignment to both counterparties and shareholders. The company also focuses on investing in a pipeline of additional green investments; and offers financing solutions. Star Royalties Ltd. was incorporated in 2018 and is based in Toronto, Canada.

How the Company Makes Money

Star Royalties makes money by acquiring and managing royalty and streaming agreements. The company invests in resource assets by providing upfront capital to mining and resource companies. In return, Star Royalties receives a percentage of the revenue generated from the sale of these resources or a fixed amount of the production over the life of the asset. This model allows the company to generate consistent cash flows while minimizing operational risks. Key revenue streams include royalties from precious metal mining operations and green resource projects. Partnerships with resource companies and effective portfolio management are significant factors contributing to Star Royalties' earnings.

Star Royalties Financial Statement Overview

Summary

Star Royalties faces operational challenges with declining revenues and negative cash flows, raising concerns about profitability and liquidity. The strong equity position and lack of debt, however, provide a cushion against financial volatility. Focusing on improving operational efficiency and revenue growth will be crucial for future stability.

Income Statement

Star Royalties has shown declining revenue with a decrease from $1,415,498 in 2022 to $876,621 in the TTM period. The gross profit margin stands at 51.8%, indicating effective cost control relative to revenue. However, the negative EBIT and EBITDA margins, along with a declining net profit margin due to reduced revenue, reflect ongoing operational challenges.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of 98.4%, indicating low leverage and strong asset backing by equity. The absence of debt reduces financial risk. Despite a decrease in stockholders' equity over the past year, the overall financial stability remains robust.

Cash Flow

Cash flows are a concern, with negative operating and free cash flows indicating cash outflows from core operations. The free cash flow has further deteriorated from the previous year, suggesting liquidity pressures. However, the company has managed to maintain positive investing cash flows, likely supporting its asset base.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
876.62K	940.50K	1.42M	691.62K	9.80K	0.00
	Gross Profit
454.03K	501.35K	713.75K	66.42K	4.34K	0.00
	EBIT
-2.53M	-1.68M	-2.28M	-2.94M	-254.42K	-106.15K
	EBITDA
-2.49M	-1.90M	-1.67M	-1.91M	-523.45K	0.00
	Net Income Common Stockholders
5.32M	5.64M	17.33M	-2.67M	-799.89K	-106.15K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
396.92K	3.66M	2.48M	4.16M	1.99M	396.92K
	Total Assets
708.62K	54.60M	46.62M	31.22M	12.62M	708.62K
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-396.92K	-2.88M	-2.48M	-4.16M	-1.99M	-396.92K
	Total Liabilities
112.54K	783.82K	714.96K	435.72K	134.84K	112.54K
	Stockholders Equity
596.08K	53.82M	45.90M	30.78M	12.48M	596.08K
Cash Flow		Free Cash Flow
-1.34M	-725.61K	-767.68K	-17.43M	-10.40M	-9.08K
	Operating Cash Flow
-1.34M	-725.61K	-767.68K	-1.10M	-578.54K	-9.08K
	Investing Cash Flow
1.15M	1.15M	-901.45K	-16.32M	-9.82M	0.00
	Financing Cash Flow
0.00	0.00	0.00	19.53M	12.05M	400.81K

Star Royalties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STRR, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.23, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 37.84 is Neutral, neither overbought nor oversold. The STOCH value of 7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:STRR.

Star Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$2.81B	10.29	0.39%	8508.26%	5.90%	-17.41%
STRR	53 Neutral	C$14.15M	2.26	-61.52%	―	-38.41%	―
FTEL	48 Neutral	C$14.95M	―	-240.37%	―	―	48.54%
AGMR	45 Neutral	C$12.04M	―	-6.48%	―	―	9.68%