Gold Royalty Corp. (NYSE: GROY)

Sector: Basic Materials Industry: Gold CIK: 0001834026
Market Cap 707.53 Mn
P/B 1.26
P/E -110.50
P/S 48.92
ROIC (Qtr) -0.05
Div Yield % 0.00
Rev 1y % (Qtr) 101.36
Total Debt (Qtr) 50.80 Mn
Debt/Equity (Qtr) 0.09

About

Gold Royalty Corp., also known as GROY, is a company that operates in the precious metals industry, providing creative financing solutions to the metals and mining industry. The company, which was incorporated in 2020, is headquartered in Vancouver, British Columbia, Canada. Gold Royalty Corp.'s main business activities involve the acquisition of royalties, streams, and similar interests in mineral properties. The company generates revenue through its "royalty generator model," which involves acquiring property interests and then retaining a royalty...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 740.52M provides 14.58x coverage of total debt 50.80M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 5.14M exceeds capital expenditure of 2.12M by 2.42x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 740.52M provides 147.60x coverage of working capital 5.02M, indicating strong operational backing.
  • Operating cash flow of 7.26M provides solid 1.48x coverage of current liabilities 4.90M, showing strong operational health.
  • Long-term investments of 12.08M provide solid 2.41x backing of working capital 5.02M, showing strategic capital allocation.

Bear case

  • Operating cash flow of 7.26M barely covers its investment activities of (1.64M), with a coverage ratio of -4.41, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of 7.26M shows concerning coverage of stock compensation expenses of 2.74M, with a 2.65 ratio indicating potential earnings quality issues.
  • Operating cash flow of 7.26M provides minimal -14.81x coverage of tax expenses of (490000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 5.14M represents just -14.63x of debt issuance (351000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 2.03M show weak coverage of depreciation charges of 3.22M, with a 0.63 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Gold
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEM NEWMONT Corp /DE/ 121.63 Bn 16.92 5.66 5.65 Bn
2 AEM Agnico Eagle Mines Ltd 96.06 Bn 27.86 9.09 0.34 Bn
3 B Barrick Mining Corp 82.76 Bn 23.10 5.67 4.71 Bn
4 WPM Wheaton Precious Metals Corp. 56.61 Bn 56.52 30.93 0.01 Bn
5 FNV FRANCO NEVADA Corp 44.11 Bn 47.96 28.52 0.00 Bn
6 KGC Kinross Gold Corp 38.43 Bn 21.85 5.96 1.24 Bn
7 PAAS Pan American Silver Corp 19.78 Bn 31.19 6.08 0.86 Bn
8 AGI Alamos Gold Inc 17.45 Bn 32.41 10.85 0.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.02 3.17
EV to Cash from Ops. EV/CFO 104.26 -11.55
EV to Debt EV to Debt 14.89 548.67
EV to EBIT EV/EBIT 373.03 12.24
EV to EBITDA EV/EBITDA 265.72 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF 147.29 12.17
EV to Market Cap EV to Market Cap 1.07 1.72
EV to Revenue EV/Rev 52.30 7.50
Price to Book Value [P/B] P/B 1.26 5.26
Price to Earnings [P/E] P/E -110.50 -1.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.54
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.40
Dividend per Basic Share Div per Share (Qtr) 0.00 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.25
Interest Coverage Int. cover (Qtr) 0.23 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 96.73 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 78.08 130.91
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 112.28 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 111.60 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 108.41 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 77.61 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 69.23 224.62
FCF Growth (1y) % FCF 1y % (Qtr) 107.87 171.65
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 68.97 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.92 3.14
Current Ratio Curr Ratio (Qtr) 2.03 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 0.27
Interest Cover Ratio Int Coverage (Qtr) 0.23 406.21
Times Interest Earned Times Interest Earned (Qtr) 0.23 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 36.30 -19.19
EBIT Margin % EBIT Margin % (Qtr) 14.02 -44.57
EBT Margin % EBT Margin % (Qtr) -47.66 -34.79
Gross Margin % Gross Margin % (Qtr) 71.10 30.59
Net Profit Margin % Net Margin % (Qtr) -44.30 -40.44