Royal Gold Stock: A Majestic Mover Flirting With Buy Point Amid 58% Run As Earnings Spike

Ladies and gentlemen, buckle up! We're diving into the world of precious metals, and there's one stock that's been on a tear: Royal Gold. This company has seen its stock price soar by a whopping 58% in the past year, and it's flirting with a buy point as earnings continue to spike. Let's break down what's driving this majestic mover and why you should be paying attention.

First things first, let's talk about the numbers. Royal Gold's stock price has been on a rollercoaster ride, hitting an all-time high of $143.19 on September 13, 2024. The 52-week high is $145.59, which is 3.2% above the current share price of $141.05. That's a 58% increase from the 52-week low of $100.55. This is not a stock to ignore!

Now, let's dive into the earnings. Royal Gold's financial performance has been nothing short of spectacular. In 2024, the company achieved record revenue of $719 million, operating cash flow of $530 million, and net income of $332 million. That's a 19% increase in revenue, a 27% increase in operating cash flow, and a 39% increase in net income compared to 2023. These numbers are off the charts!

But it's not just about the revenue. Royal Gold's EBITDA margin for the year was over 81%, peaking at nearly 84% in the fourth quarter. This high margin indicates strong profitability and operational efficiency, which is music to investors' ears.

And let's not forget about the dividends. Royal Gold paid over $105 million in dividends and raised its annual dividend to $1.80 per share for 2025, marking the 24th consecutive annual dividend increase. This consistent dividend growth and high dividend yield of 1.15% make the stock appealing to income-focused investors.



But what about the future? Royal Gold's debt-free status and strong liquidity position provide stability and flexibility for future growth and acquisitions. The company ended the year with no debt and approximately $1.2 billion of available liquidity. This strong financial position is a major plus.

And let's talk about the projects. New revenue was generated from MarRosa, Manchow, and Cote gold mines, with new agreements and royalties added for other promising projects. These developments indicate a strong pipeline of future revenue streams.

Now, let's compare Royal Gold to its peers. With a market capitalization of $10.32 billion and an enterprise value of $10.13 billion, Royal Gold is not the largest player in the gold mining sector, but it holds a significant position. Its trailing P/E ratio of 31.15 and forward P/E ratio of 25.54 suggest that it might be undervalued compared to some of its peers, which could be an attractive point for investors looking for potential growth opportunities.

But here's the kicker: Royal Gold's PEG ratio is 3.53, which is relatively high compared to some of its peers. This suggests that while the company's earnings growth is expected to be strong, the current valuation might be considered high relative to this growth. So, you need to do your homework and decide if this is a stock you want to own.

In conclusion, Royal Gold is a majestic mover in the precious metals sector, and its 58% run in the past year is a testament to its strong financial performance and growth prospects. With record earnings, high margins, consistent dividend growth, and a strong financial position, Royal Gold is a stock that deserves your attention. But remember, the market is unpredictable, and past performance is not indicative of future results. So, do your due diligence and make an informed decision.

BOO-YAH! This stock's a winner!