Royal Gold Inc (RGLD) stock analysis

P/E below its 5-year median

Royal Gold's P/E of 27.1 is below its own 5-year median of 27.5.

P/E above the industry

Royal Gold's P/E of 27.1 is above the Miscellaneous Investing median of 26.3.

EV/EBITDA below its 5-year median

Royal Gold's EV/EBITDA of 15.8 is below its 5-year median of 16.7.

P/B above the industry

Royal Gold's price-to-book of 2.95 is above the Miscellaneous Investing median of 1.20.

Trading above fair value

The share price of $268.84 is above our fair value estimate of $216.37.

Margin of safety under 20%

The price is 24.3% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 18.7% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 13.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 74.7% over the last twelve months, against a 5-year average of 37.8% a year.

Growing faster than the industry

Revenue grew 105% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Guidance raised

Royal Gold raised its 2026 DD&A outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 66.2% over the last twelve months, against 71.6% a year earlier.

Return on equity under 15%

Return on equity was 15.1% over the last twelve months and averaged 10.2% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 15.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Royal Gold's return on equity of 15.1% is above the Miscellaneous Investing median of 3.1%.

Earnings grew over 5 years

Net income grew 37.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 47.7% over the last twelve months, against a 5-year average of 44.0%.

Net margin above the industry

Royal Gold's net margin of 47.7% is above the Miscellaneous Investing median of 10.3%.

Low debt

Debt is 1.9% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 10.0% five years ago to 1.9%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 831% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.40 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 9.48; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Royal Gold paid dividends worth 0.7% of the share price over the last twelve months.

Yield below Treasuries

The 0.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Royal Gold yields 0.7%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 17.9% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.