OR Royalties Inc. (NYSE: OR)

Sector: Basic Materials Industry: Gold CIK: 0001627272
Market Cap 7.25 Bn
P/B 5.19
P/E 48.86
P/S 29.41
ROIC (Qtr) 14.36
Div Yield % 0.36
Rev 1y % (Qtr) 70.63
Total Debt (Qtr) 5.28 Mn
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 214.06M provides robust 40.57x coverage of total debt 5.28M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 57.04M provide 45.67x coverage of short-term debt 1.25M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 214.06M provides strong 27.27x coverage of stock compensation 7.85M, indicating sustainable incentive practices.
  • Operating cash flow of 214.06M provides exceptional 40.03x coverage of interest expenses 5.35M, showing strong debt service capability.
  • Strong tangible asset base of 1.44B provides 272.34x coverage of total debt 5.28M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 214.06M barely covers its investment activities of (110.96M), with a coverage ratio of -1.93, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 214.06M provides thin coverage of dividend payments of (33.32M) with a -6.42 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 114.09M represents just -1.85x of debt issuance (61.72M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 214.06M barely covers operating expenses of (45.35M) with a -4.72 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Short-term investments of 48.84M exceed receivables of 3.45M by 14.16x, indicating potentially inefficient capital allocation given collection cycle needs.

Categories of Royalty, streams and interests Breakdown of Revenue (2024)

Categories of Royalty, streams and interests Breakdown of Revenue (2024)

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 4.77 3.17
EV to Cash from Ops. EV/CFO 33.81 -11.55
EV to Debt EV to Debt 1,371.75 548.67
EV to EBIT EV/EBIT 38.73 12.24
EV to EBITDA EV/EBITDA 28.40 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF 63.43 12.17
EV to Market Cap EV to Market Cap 1.00 1.72
EV to Revenue EV/Rev 29.37 7.50
Price to Book Value [P/B] P/B 5.19 5.26
Price to Earnings [P/E] P/E 48.86 -1.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.45 1.54
Dividend Payout Ratio % Div Payout % (Qtr) 18.40 5.40
Dividend per Basic Share Div per Share (Qtr) 0.15 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 23.93 10.25
Interest Coverage Int. cover (Qtr) 34.95 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -79.13 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 35.33 130.91
Dividend Growth (1y) % Div 1y % (Qtr) -49.12 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 654.87 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 116.19 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 936.91 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 635.00 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 455.86 224.62
FCF Growth (1y) % FCF 1y % (Qtr) 20.54 171.65
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 39.41 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.16 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.11 0.03
Cash Ratio Cash Ratio (Qtr) 2.27 3.14
Current Ratio Curr Ratio (Qtr) 4.37 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.27
Interest Cover Ratio Int Coverage (Qtr) 34.95 406.21
Times Interest Earned Times Interest Earned (Qtr) 34.95 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 90.70 -19.19
EBIT Margin % EBIT Margin % (Qtr) 75.85 -44.57
EBT Margin % EBT Margin % (Qtr) 73.68 -34.79
Gross Margin % Gross Margin % (Qtr) 82.00 30.59
Net Profit Margin % Net Margin % (Qtr) 60.20 -40.44