Last Updated: 10 Nov 2024
Executive Summary
Royal Gold Inc. (RGLD) is a leading precious metal streaming and royalty company with a market capitalization of $9.86 billion. The company has a strong financial position with an EBITDA of $517.4 million and a profit margin of 42.5%. RGLD's stock price is currently trading at $149.93, near the high end of its 52-week range. Analysts have a mixed outlook on the stock, with six rating it a "Buy" and five rating it a "Hold." The company's strong fundamentals and positive analyst sentiment suggest that it is a good long-term investment.
Company Overview
Royal Gold Inc. is a Denver, Colorado-based company that acquires and manages precious metal flows, royalties, and related interests. The company has a portfolio of over 180 properties in the Americas, Africa, and Australia. RGLD's primary focus is on gold and silver, but it also has interests in copper, lead, and zinc. The company's business model is to provide financing to mining companies in exchange for a share of their future production. This allows RGLD to generate revenue without the need to own or operate mines.
Fundamental Analysis
RGLD has a strong financial position with an EBITDA of $517.4 million and a profit margin of 42.5%. The company's revenue has grown by an average of 5.9% over the past five years. RGLD's earnings per share (EPS) have also grown by an average of 14.2% over the past five years. The company's balance sheet is also strong, with a debt-to-equity ratio of 0.34.
Technical Analysis
RGLD's stock price is currently trading at $149.93, near the high end of its 52-week range. The stock has been in a strong uptrend since the beginning of 2023. The 50-day moving average is $143.44, and the 200-day moving average is $128.48. The relative strength index (RSI) is 65.5, which indicates that the stock is overbought.
Short Term Outlook
The short-term outlook for RGLD is mixed. The stock is overbought, which could lead to a pullback in the near term. However, the company's strong fundamentals and positive analyst sentiment suggest that the stock is likely to continue to perform well over the long term.
Long Term Outlook
The long-term outlook for RGLD is positive. The company's strong financial position and focus on precious metals make it a good investment for investors looking for long-term growth. The company's dividend yield of 0.0109% is also attractive for investors looking for income.
Analyst Recommendations
Analysts have a mixed outlook on RGLD. Six analysts rate the stock a "Buy," five rate it a "Hold," and one rates it a "Sell." The average analyst target price is $167.27, which represents a potential upside of 11.5% from the current price.
