All that glitters might not be gold, but Gold Royalty Corp is certainly catching the eye of investors looking for a strategic shift. With its focus on the metals and mining sector, particularly precious metals and minerals, the company is drawing attention from those traditionally invested in platinum group metals. Despite a challenging financial landscape, with a free cash flow loss of 43.6M, Gold Royalty Corp's market capitalization stands at a robust $240.4M, suggesting investor confidence in its long-term potential. Analysts are optimistic, with a strong buy consensus and a lowest estimated target price of $2.9, indicating room for growth from its current typical price of $1.46. The company's ability to increase its cash flow from 1.4M to 2.3M by the end of the period also highlights its operational resilience. As investors weigh their options, Gold Royalty Corp presents a compelling case for those seeking enhanced returns in the gold sector. Platinum Group's stock is rebounding more swiftly, with a 2.40% increase today compared to Gold Royalty Corp's 4.96% rise. As some investors shy away from the metals and mining sector, it's worthwhile to delve deeper into Gold Royalty Corp's position relative to Platinum Group and similar companies. Let's explore the competitive dynamics between gold and platinum to better understand their market standings.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Gold or Platinum is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Gold Royalty dividends
A dividend is the distribution of a portion of Gold Royalty earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Gold Royalty dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Gold one year expected dividend income is about USD0.01 per share.
Dividend Yield is likely to rise to 0.01 in 2025, whereas
Dividends Paid is likely to drop 0.00 in 2025.
Investing in stocks that pay
dividends, such as stock of Gold Royalty Corp, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Gold Royalty must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Gold Royalty. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Gold Royalty's Liquidity
Gold Royalty
financial leverage refers to using borrowed capital as a funding source to finance Gold Royalty Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gold Royalty financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Gold Royalty's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Gold Royalty's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Gold Royalty's total debt and its cash.
Correlation Between Gold and Platinum Group Metals
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Gold Royalty together with similar or unrelated positions with a negative correlation. For example, you can also add Platinum Group to your portfolio. If Platinum Group is not perfectly correlated to Gold Royalty it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Gold Royalty, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Gold Royalty and Platinum Group in your portfolio? Please note if you are using this as a pair-trade strategy between Gold Royalty and Platinum Group, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between GROY and PLG for more information.
A Deeper look at Gold
Total Debt Breakdown
Let me now analyze Gold Royalty total debt. Based on the latest financial disclosure, Gold Royalty Corp has a Total Debt of 179.21
M. This is 91.32% lower than that of the Metals & Mining sector and significantly higher than that of the
Materials industry. The total debt for all United States stocks is 96.63% higher than that of Gold Royalty.
As for Platinum Group we see total debt of 263
K, which is much higher than that of the Materials
| GROY | 179.21 Million | 99.85 |
| Sector | 0.0 | 0.0 |
| PLG | 263,000 | 0.15 |
Warren Buffett once said, "Price is what you pay. Value is what you get." This sentiment resonates with investors considering a shift from platinum group metals to Gold Royalty Corp (NYSE: GROY) for potentially enhanced returns. With a current price-to-book ratio of 0.43X, GROY appears undervalued compared to its book value per share of $3.28, suggesting room for growth. Despite reporting a loss with an EPS estimate of -0.02 for the current year, the company shows promise with a projected EPS of 0.01 next year. As the gold industry continues to attract attention, GROY's market capitalization of $240.36 million and a Wall Street target price of $3.07 could entice investors seeking value in the precious metals sector..
Another 3 percent rise for Gold Royalty
Gold Royalty Corp's stock has recently climbed by 3%, but investors should proceed with caution. The risk-adjusted performance is at 0.09, indicating some positive movement, but also highlighting underlying volatility concerns. This could mean the stock might dip again. Investors need to balance the potential for short-term gains with the inherent risks, staying alert to market conditions and company updates.
As of March 27th, Gold Royalty's downside deviation is 3.37, with a risk-adjusted performance of 0.0943 and a market risk-adjusted performance of 0.707. Analyzing Gold Royalty's technical indicators, such as historical prices and volume momentum, can help identify patterns to predict future price directions.Considering Gold Royalty Corp's recent uptick of over 4%, investors might be curious about its future trajectory. With a strong buy consensus from analysts and a highest estimated target price of $3.53, there's a sense of optimism surrounding the stock. However, it's important to weigh this against the current valuation market value of 1.48 and the naive expected forecast value of 1.42. While the potential upside price of 4.58 suggests room for growth, investors should remain cautious and consider these figures alongside broader market conditions and personal investment goals..
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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