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Company name Royal Gold, Inc USA)
Stock ticker RGLD
Live stock price [stckqut]RGLD[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Fair
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $76.99
Target stock price (averages with growth) $86.66
Target stock price (averages with no growth) $59.56
Target stock price (manual assumptions) $72.66

The following company description is from Google Finance: http://www.google.com/finance?q=rgld

Royal Gold, Inc. (Royal Gold) together with its subsidiaries, is engaged in the business of acquiring and managing precious metals royalties and similar interests. The Company focuses to acquire existing royalties or to finance projects that are in production or in development stage in exchange. As of June 30, 2012, the Company owned royalties on 39 producing properties, 26 development stage properties and 128 exploration stage properties, of which the Company considers 40 to be evaluation stage projects. The Company owns a royalty on all gold produced from the sulfide portion of the Andacollo copper and gold deposit. The Company owns a 1.0% to 1.5% sliding-scale net smelter return (NSR) royalty on the Canadian Malartic open-pit gold mine and milling operation located in Quebec, Canada.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Royal Gold, Inc USA) as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I am leaving Royal Gold on my Watch List simply so investors know of a good gold based stock in case that exposure is needed in their personal portfolios.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Royal Gold, Inc USA) calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $63.99

Growth: 0.13

Current EPS (TTM): $0.87

P/E: 73

Future EPS Calc: $1.6

Future Stock Price Calc: $117.01

Target stock price: $72.65

I hope that this makes you a better investor. [/s2If]

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Company name Royal Gold, Inc USA)
Stock ticker RGLD
Live stock price [stckqut]RGLD[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $128.05
Target stock price (averages with growth) $147.3
Target stock price (averages with no growth) $106.17
Target stock price (manual assumptions) $103.18

The following company description is from Google Finance: http://www.google.com/finance?q=rgld

Royal Gold, Inc. (Royal Gold) together with its subsidiaries, is engaged in the business of acquiring and managing precious metals royalties and similar interests. The Company focuses to acquire existing royalties or to finance projects that are in production or in development stage in exchange. As of June 30, 2012, the Company owned royalties on 39 producing properties, 26 development stage properties and 128 exploration stage properties, of which the Company considers 40 to be evaluation stage projects. The Company owns a royalty on all gold produced from the sulfide portion of the Andacollo copper and gold deposit. The Company owns a 1.0% to 1.5% sliding-scale net smelter return (NSR) royalty on the Canadian Malartic open-pit gold mine and milling operation located in Quebec, Canada.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

 

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Company name Royal Gold, Inc.
Stock ticker RGLD
Live stock price [stckqut]RGLD[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $123.11
Target stock price (averages with growth) $156.06
Target stock price (averages with no growth) $112.82
Target stock price (manual assumptions) $108.8

The following company description is from Google Finance: http://www.google.com/finance?q=rgld

Royal Gold, Inc. (Royal Gold) together with its subsidiaries, is engaged in the business of acquiring and managing precious metals royalties and similar interests derived from production. The Company focuses to acquire existing royalties or to finance projects that are in production or in development stage in exchange for royalty interests. As of June 30, 2010, the Company owns royalties on 33 producing properties, 23 development stage properties and over 130 exploration-stage properties, of which the Company considers 37 to be evaluation stage projects.32 producing properties. On January 25, 2010, Royal Gold acquired an interest in the gold produced from the sulfide portion of the Andacollo project in Chile (Andacollo Royalty). On February 22, 2010, the Company, through RG Exchangeco Inc., wholly owned Canadian subsidiary of Royal Gold acquired all of International Royalty Corporation (IRC).

Confident Investor comments: The target price on this stock is likely a bit too high. Royal Gold is a reasonable play on the gold price and that is driving the valuation. If the price of this stock starts to approach the target price but the price of gold has not similarly increased then there would be instability in the stock price. However, at this price and at this time, I think that a Confident Investor can confidently invest in this stock.

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Several times a year, a Confident Investor must reevaluate the companies in the portfolio. Keeping your money in a stock that no longer qualifies as a “Good” company can end up hurting your investment performance a great deal.  Also, there are a lot of Good Companies so losing the worst of the best is not going to impact the ability to have a balanced portfolio.  Over the coming days, this site will evaluate each stock on the Watch List.

 

Company name Royal Gold, Inc.
Stock ticker RGLD
Live stock price [stckqut]RGLD[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $92.89
Target stock price (averages with growth) $86.02
Target stock price (averages with no growth) $52.99
Target stock price (manual assumptions) $60.16

The following company description is from Google Finance: http://www.google.com/finance?q=rgld Royal Gold, Inc. (Royal Gold) together with its subsidiaries, is engaged in the business of acquiring and managing precious metals royalties and similar interests derived from production. The Company focuses to acquire existing royalties or to finance projects that are in production or in development stage in exchange for royalty interests. As of June 30, 2010, the Company owns royalties on 33 producing properties, 23 development stage properties and over 130 exploration-stage properties, of which the Company considers 37 to be evaluation stage projects.32 producing properties. On January 25, 2010, Royal Gold acquired an interest in the gold produced from the sulfide portion of the Andacollo project in Chile (Andacollo Royalty). On February 22, 2010, the Company, through RG Exchangeco Inc., wholly owned Canadian subsidiary of Royal Gold acquired all of International Royalty Corporation (IRC).

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

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Company name Royal Gold, Inc.
Stock ticker RGLD
Live stock price [stckqut]RGLD[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Poor
P/E growth Good
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $75.28
Target stock price (averages with growth) $69.74
Target stock price (averages with no growth) $42.98
Target stock price (manual assumptions) $52.92

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.