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Star Royalties (TSE:STRR)
:STRR
Canadian Market

Star Royalties (STRR) AI Stock Analysis

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TS

Star Royalties

(STRR)

Rating:53Neutral
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.

Star Royalties (STRR) vs. iShares MSCI Canada ETF (EWC)

Star Royalties Business Overview & Revenue Model

Company DescriptionStar 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 MoneyStar 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
45
Neutral
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
75
Positive
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
50
Neutral
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
811.24K940.50K1.42M691.62K9.80K
Gross Profit
412.86K501.35K713.75K66.42K4.34K
EBIT
-2.64M-2.34M-2.28M-2.94M-254.42K
EBITDA
-2.25M-1.90M-1.67M-1.91M-523.45K
Net Income Common Stockholders
-24.09M5.64M17.33M-2.67M-799.89K
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.20M3.66M2.48M4.16M1.99M
Total Assets
27.02M54.60M46.62M31.22M12.62M
Total Debt
0.000.000.000.000.00
Net Debt
-1.38M-2.88M-2.48M-4.16M-1.99M
Total Liabilities
308.23K783.82K714.96K435.72K134.84K
Stockholders Equity
26.72M53.82M45.90M30.78M12.48M
Cash FlowFree Cash Flow
-1.47M-725.61K-767.68K-17.43M-10.40M
Operating Cash Flow
-1.47M-725.61K-767.68K-1.10M-578.54K
Investing Cash Flow
0.001.15M-901.45K-16.32M-9.82M
Financing Cash Flow
0.000.000.0019.53M12.05M

Star Royalties Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.22
Price Trends
50DMA
0.22
Positive
100DMA
0.24
Negative
200DMA
0.26
Negative
Market Momentum
MACD
<0.01
Negative
RSI
66.94
Neutral
STOCH
79.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STRR, the sentiment is Neutral. The current price of 0.22 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.22, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.94 is Neutral, neither overbought nor oversold. The STOCH value of 79.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:STRR.

Star Royalties Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSWPM
75
Outperform
$54.73B63.178.51%0.69%37.40%8.55%
TSFNV
74
Outperform
$43.36B50.1810.19%0.92%-7.22%
TSSSL
73
Outperform
$3.61B90.252.05%0.64%6.23%36.40%
TSOR
69
Neutral
C$6.59B149.682.50%0.70%12.78%
61
Neutral
$2.85B10.990.40%6.10%5.75%-21.23%
53
Neutral
C$16.12M2.26-62.77%-38.41%
41
Neutral
C$2.76M-206.92%-539.74%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:STRR
Star Royalties
0.23
-0.03
-11.54%
TSE:SSL
Sandstorm Gold
12.57
5.17
69.86%
TSE:OR
Osisko Gold Royalties
35.94
13.69
61.54%
TSE:WPM
Wheaton Precious Metals
123.00
50.95
70.72%
TSE:FNV
Franco-Nevada
228.13
70.35
44.59%
TSE:RGLD
Red Lake Gold Inc
0.05
-0.02
-28.57%
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.