Star Royalties (STRR) AI Stock Analysis

• Market Cap: C$25.95M
• Dividend Yield: N/A
• Average Volume (3M): 104.04K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.37
• Revenue Growth: -47.93%
• EPS Growth: -538.46%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): 0.00
• Shares Outstanding: 78,637,280
• 10 Day Avg. Volume: 77,421
• 30 Day Avg. Volume: 104,040
• PEG Ratio: <0.01
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 18.24
• P/FCF Ratio: -10.03
• 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: 53 Neutral
• Price Target: ―

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.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing resilience against market volatility and operational challenges.

Effective Cost Control

Effective cost control, as evidenced by a solid gross profit margin, helps maintain profitability even amid declining revenues, supporting long-term sustainability.

Positive Investing Cash Flows

Positive investing cash flows suggest strategic asset investments, potentially enhancing future revenue streams and long-term growth prospects.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining market position and demand, which could impact long-term growth and profitability.

Negative Cash Flows

Negative cash flows from operations suggest liquidity pressures, potentially limiting the company's ability to invest in growth and meet financial obligations.

Operational Challenges

Operational challenges, as indicated by negative margins, highlight inefficiencies that could hinder profitability and require strategic improvements for recovery.

Star Royalties Business Overview & Revenue Model

Company Description

Star Royalties Ltd. (STRR) is a royalty and streaming company focused on creating value through investments in high-quality resource assets. Operating in the natural resources sector, Star Royalties primarily engages in acquiring royalties and streams in precious metals, green elements, and other commodities, providing capital to resource companies in exchange for a percentage of future revenue or production.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	526.67K	811.24K	940.50K	1.42M	691.62K	9.80K
Gross Profit	252.34K	412.86K	501.35K	713.75K	988.03K	4.34K
EBITDA	-1.72M	-2.25M	-1.90M	-1.67M	-1.91M	-523.45K
Net Income	-25.00M	-24.09M	5.64M	17.33M	-2.67M	-799.89K
Balance Sheet
Total Assets	27.30M	27.02M	54.60M	46.62M	31.22M	12.62M
Cash, Cash Equivalents and Short-Term Investments	3.07M	2.20M	3.66M	2.48M	4.16M	1.99M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	205.65K	308.23K	783.82K	714.96K	435.72K	134.84K
Stockholders Equity	27.10M	26.72M	53.82M	45.90M	30.78M	12.48M
Cash Flow
Free Cash Flow	-1.20M	-1.47M	-725.61K	-767.68K	-17.43M	-10.40M
Operating Cash Flow	-1.20M	-1.47M	-725.61K	-767.68K	-1.10M	-578.54K
Investing Cash Flow	170.27K	0.00	1.15M	-901.45K	-16.32M	-9.82M
Financing Cash Flow	0.00	0.00	0.00	0.00	19.53M	12.05M

Star Royalties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STRR, the sentiment is Positive. The current price of 0.34 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.32, and above the 200-day MA of 0.25, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:STRR.

Star Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMPR	70 Outperform	C$142.57M	28.72	17.02%	―	112.93%	―
VOXR	69 Neutral	C$473.10M	―	-2.13%	1.05%	11.95%	-44.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STRR	53 Neutral	C$25.95M	-0.78	-64.35%	―	-47.93%	-538.46%
FTEL	48 Neutral	C$21.36M	-9.51	―	―	―	32.85%
AGMR	45 Neutral	C$184.76M	-4.86	-9.95%	―	―	-285.42%