Royal Gold, Inc. (RGLD)
Basic Materials · NMS · US
Fundamentals
Valuation and ratings
Royal Gold, Inc. trades at USD191.18, which is 66% below the USD317.24 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 78 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 23.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Royal Gold, Inc.
Royal Gold, Inc., together with its subsidiaries, acquires and manages precious metal streams, royalties, and related interests in North America, South and Central America, Europe, the Middle East, Africa, and the Australia Pacific. It operates through Acquisition and Management of Stream Interests and Acquisition and Management of Royalty Interests segments. The company engages in the acquisition of existing stream and royalty interests; and the financing of projects that are in production, development, or in the exploration stage in exchange for stream or royalty interests, which consists of gold, silver, copper, nickel, zinc, lead, molybdenum, diamonds, uranium, iron, platinum, palladium, rhodium, lithium, titanium, cobalt, barite, tungsten, and coal. Its properties are located in Canada, Chile, the Dominican Republic, the United States, Zambia, Australia, Ghana, Brazil, Mexico, Bolivia, Argentina, Nicaragua, Macedonia, Botswana, Spain, and internationally. Royal Gold, Inc. was incorporated in 1981 and is based in Denver, Colorado.
RGLD passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
16 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- First Eagle, First Eagle Investment Management, LLC$233.52M · 0.4% of book
- Capital Research Global, Capital Research Global Investors$217.87M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$198.75M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$182.57M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$156.24M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Royal Gold, Inc. (RGLD) undervalued?
Against our discounted cash flow estimate of USD317.24, RGLD at USD191.18 is 66% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own RGLD?
16 of the institutions we track reported a position in RGLD in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is RGLD's P/E ratio?
RGLD trades at 23.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for RGLD, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.