Latest news with #RGLD
Yahoo
26-05-2025
- Business
- Yahoo
Should iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV) Be on Your Investing Radar?
The iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV) was launched on 09/07/2016, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market. The fund is sponsored by Blackrock. It has amassed assets over $307.40 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market. Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk. Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics. Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space. It has a 12-month trailing dividend yield of 1.96%. Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Healthcare sector--about 16.70% of the portfolio. Financials and Industrials round out the top three. Looking at individual holdings, Royal Gold Inc (RGLD) accounts for about 1.97% of total assets, followed by Old Republic International Corp (ORI) and Agree Realty Reit Corp (ADC). The top 10 holdings account for about 15.4% of total assets under management. SMMV seeks to match the performance of the MSCI USA Small Cap Minimum Volatility (USD) Index before fees and expenses. The MSCI USA Small Cap Minimum Volatility (USD) Index comprises of small-capitalization U.S. equities that, in the aggregate, have lower volatility characteristics relative to the small-capitalization U.S. equity market. The ETF has added about 0.75% so far this year and it's up approximately 13.97% in the last one year (as of 05/26/2025). In the past 52-week period, it has traded between $36.45 and $44.35. The ETF has a beta of 0.69 and standard deviation of 13.98% for the trailing three-year period. With about 283 holdings, it effectively diversifies company-specific risk. IShares MSCI USA Small-Cap Min Vol Factor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SMMV is a good option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $63.70 billion in assets, iShares Core S&P Small-Cap ETF has $76.05 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares MSCI USA Small-Cap Min Vol Factor ETF (SMMV): ETF Research Reports Agree Realty Corporation (ADC) : Free Stock Analysis Report Old Republic International Corporation (ORI) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Royal Gold, Inc. (RGLD) : Free Stock Analysis Report iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Is There An Opportunity With Royal Gold, Inc.'s (NASDAQ:RGLD) 21% Undervaluation?
Royal Gold's estimated fair value is US$218 based on 2 Stage Free Cash Flow to Equity Royal Gold is estimated to be 21% undervalued based on current share price of US$171 Analyst price target for RGLD is US$202 which is 7.2% below our fair value estimate How far off is Royal Gold, Inc. (NASDAQ:RGLD) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Don't get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We check all companies for important risks. See what we found for Royal Gold in our free report. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$585.6m US$723.8m US$715.7m US$691.5m US$681.9m US$680.9m US$685.9m US$695.0m US$707.2m US$721.7m Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x4 Analyst x2 Est @ -1.39% Est @ -0.14% Est @ 0.72% Est @ 1.33% Est @ 1.76% Est @ 2.05% Present Value ($, Millions) Discounted @ 6.8% US$548 US$635 US$588 US$532 US$491 US$459 US$433 US$411 US$391 US$374 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$4.9b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.8%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$722m× (1 + 2.8%) ÷ (6.8%– 2.8%) = US$18b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$18b÷ ( 1 + 6.8%)10= US$9.5b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$14b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$171, the company appears a touch undervalued at a 21% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Royal Gold as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.8%, which is based on a levered beta of 0.935. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Royal Gold Strength Earnings growth over the past year exceeded the industry. Currently debt free. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Metals and Mining market. Opportunity Annual revenue is forecast to grow faster than the American market. Trading below our estimate of fair value by more than 20%. Threat Annual earnings are forecast to grow slower than the American market. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Royal Gold, we've compiled three additional elements you should consider: Financial Health: Does RGLD have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for RGLD's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Washington Post
07-05-2025
- Business
- Washington Post
Royal Gold: Q1 Earnings Snapshot
DENVER — DENVER — Royal Gold Inc. (RGLD) on Wednesday reported first-quarter earnings of $113.5 million. On a per-share basis, the Denver-based company said it had net income of $1.72. Earnings, adjusted for non-recurring gains, were $1.51 per share.
Business Insider
23-04-2025
- Business
- Business Insider
RBC Capital Reaffirms Their Buy Rating on Royal Gold (RGLD)
In a report released on April 21, Josh Wolfson from RBC Capital maintained a Buy rating on Royal Gold (RGLD – Research Report), with a price target of $170.00. The company's shares closed yesterday at $181.35. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. According to TipRanks, Wolfson is a 5-star analyst with an average return of 11.1% and a 67.21% success rate. Wolfson covers the Basic Materials sector, focusing on stocks such as Royal Gold, Wheaton Precious Metals, and Osisko Gold Royalties. In addition to RBC Capital, Royal Gold also received a Buy from Scotiabank's Tanya Jakusconek in a report issued on April 14. However, on April 21, Bank of America Securities maintained a Sell rating on Royal Gold (NASDAQ: RGLD). RGLD market cap is currently $12.23B and has a P/E ratio of 36.83. Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RGLD in relation to earlier this year. Last month, Randy Shefman, the SVP & GC of RGLD sold 1,300.00 shares for a total of $201,474.00.
Forbes
16-04-2025
- Business
- Forbes
Royal Gold Stock: Time To Cash Out?
RGLD Stock Royal Gold (NASDAQ: RGLD) appears to be in a strong position right now—high-margin, debt-free, and benefiting from a remarkable rally in gold prices. Revenue has climbed nearly 19% over the past year, significantly outpacing its three-year average growth rate of 9.6%. With a 60% operating margin driven by its royalty-based model, minimal operational risk, and robust cash flow, the company looks solid on paper. But when things seem too good, it's often the right time to start questioning. So here's the key question: Is now the moment to lock in gains on Royal Gold? We believe the answer is yes! The stock has delivered nearly 40% returns so far this year, and while further upside isn't out of the question, this doesn't appear to be a good entry point. The stock seems overextended. We flag such over-extensions in our High-Quality portfolio, which has beaten the S&P 500 and produced returns exceeding 91% since it was launched. Here's what's causing concern: Royal Gold's recent surge aligns closely with soaring gold prices, which are currently at record highs. However, gold prices react to macroeconomic developments. The Fed is expected to reduce interest rates in 2025, but that expectation may already be baked into the current price. If that doesn't play out as anticipated, gold prices could fall. Additionally, if geopolitical risks subside and fair trade deals are finalized, investors could shift away from gold into riskier assets. Should this happen, royalty stocks like RGLD—which are essentially leveraged plays on gold—could be hit first. Royal Gold hasn't been outperforming; it's simply riding the wave. And all waves eventually break. There's a peculiarity here: Royal Gold's trajectory hasn't been smooth. Even though gold has steadily risen since mid-2023, RGLD hasn't followed suit with the same consistency. It has shown vulnerability to sharp corrections—think 15%-30%—after strong rallies. That's a warning sign. This detail may be subtle but it's meaningful. RGLD's price-to-earnings ratio has fallen from 38 to 33 over the last six months, signaling that the price rise is largely due to earnings growth. If the market were truly bullish on Royal Gold's future, we'd expect the P/E to either hold steady or increase. In simple terms, the market is saying: 'That was your moment—don't expect another.' If you've been holding Royal Gold during this run, congratulations—you've profited from the rally. But now's the time to be prudent: take profits or at least reduce your exposure and reallocate. This kind of measured approach is central to our High Quality Portfolio, a selection of 30 stocks that has consistently outperformed the S&P 500 over the last four years. Why? Because the HQ Portfolio is built around delivering better returns with reduced risk compared to the benchmark—as demonstrated in its performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
