One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Gold Royalty Corp.
GROY · ASE · Basic Materials · Gold
Current price
$3.16
52-week range
$2.45 - $5.46
Market cap
$732.11M
Balance sheet
Healthy
0.20x Concerning
Net cash $13.99M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
View details ↓What this company does
Gold Royalty Corp.
Gold Royalty Corp. acts like a specialized bank for mining companies, giving them cash upfront to help fund their projects. In return, the company receives a royalty (a small slice of the future gold or other metals the mine produces), which is how it makes money. This business model allows Gold Royalty to profit from many different mines without taking on the high costs and risks of actually operating a mine itself.
How the company got here
Gold Royalty Corp. was founded in 2020 and grew very quickly by buying up interests in various mining projects. Instead of operating mines itself, the company provides cash to mining companies to help them explore or build their mines. In just a few years, it went from holding 18 royalty interests to over 250 through several key acquisitions of other royalty companies. This rapid expansion has positioned the company to start earning significant cash as these mining projects begin producing gold and other metals.
What it actually does
Think of Gold Royalty Corp. as a special kind of investor in gold mines, rather than a company that digs for gold itself. It gives mining companies money upfront, and in return, gets a small percentage of the metals found or the money earned from a mine for many years. This means Gold Royalty doesn't have to pay for the expensive equipment or workers needed to run a mine. It simply collects its share from many different mines, which spreads out its risk if one mine has problems.
Royalties and Streams
This is the company's single and primary way of making money. It buys the rights to receive a small piece of a mine's future production or revenue, which are known as royalties and streams. A royalty is a percentage of the minerals produced or the money a mine makes. A stream is similar, but involves buying a percentage of a mine's future metal production at a low, fixed price. These agreements provide cash to mining operators for their costs, and in return, Gold Royalty gets a long-term return as the mines produce and sell metals like gold, silver, and copper.
What management is betting on now
Management is focused on growing the company's value by acquiring more royalty and stream interests in mining projects at various stages. They are strategically buying interests in mines that are close to starting production, which is expected to significantly increase the company's revenue (the total money it brings in) and cash flow (the cash left after paying its own operating costs). The company aims to build a large and diverse portfolio of these interests across North and South America. This strategy avoids the direct risks and costs of mining while benefiting from high gold prices and new discoveries made by its mining partners.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $3.16
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $14.0M - more cash than debt. Interest coverage 0.2x.
Net debt
$-13.99M
Interest coverage
0.20x
Gold Royalty Corp.'s profit covers its interest bill about 0.2 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
GROY
BASELINE
Gold Royalty Corp.
Total debt $151.00K Interest coverage 0.20x This is the baseline the peer rows are being compared against.
Total debt $219.28M Interest coverage 45.20x +21,955% vs GROY Carries about 220.5x more debt cushion than GROY.
Total debt $236.19M Interest coverage 51.34x +24,954% vs GROY Carries about 250.5x more debt cushion than GROY.
Total debt $14.66M Interest coverage -0.04x -100% vs GROY This peer has almost no interest-payment cushion compared with GROY.
What you should know
The case for and against GROY
2 Rewards
0 Risks
Rewards
-
Revenue grew 54.5% last year.
-
Returns 0.2% on equity, ahead of 25% of its peers.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
32.24x
P/B
1.01x
P/S
32.45x
EV/EBITDA
68.09x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
94.2%
Operating margin
27.7%
Net margin
6.7%
ROE
0.2%
ROA
0.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.00x
Current ratio
4.80x
Quick ratio
4.20x
Total debt
$151.00K
Total cash
$14.14M
Growth
How the business has been compounding
Revenue TTM
$22.56M
Revenue 5Y CAGR
58.2%
EPS TTM
0.00
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$6.17M
Free CF TTM
$-66.79M
FCF margin
-296.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2023-06-16