Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

OR Royalties Inc. (OR)

Company Dividend Discount ModelIndustry: GoldSector: Basic Materials

Valuation Snapshot

Stable Growth$4.44 - $6.12$5.29
Multi-Stage$5.95 - $6.52$6.23
Blended Fair Value$5.76
Current Price$55.79
Upside-89.67%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.23%0.00%0.160.160.200.140.150.150.150.100.080.05
YoY Growth--1.80%-20.62%48.97%-11.94%5.31%-1.27%43.90%26.17%55.76%0.00%
Dividend Yield--0.77%0.71%0.94%0.82%1.11%1.39%0.99%0.81%0.55%0.38%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)147.75
(-) Cash Dividends Paid (M)32.55
(=) Cash Retained (M)115.19
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)29.5518.4711.08
Cash Retained (M)115.19115.19115.19
(-) Cash Required (M)-29.55-18.47-11.08
(=) Excess Retained (M)85.6496.72104.11
(/) Shares Outstanding (M)188.44188.44188.44
(=) Excess Retained per Share0.450.510.55
LTM Dividend per Share0.170.170.17
(+) Excess Retained per Share0.450.510.55
(=) Adjusted Dividend0.630.690.73
WACC / Discount Rate11.84%11.84%11.84%
Growth Rate-2.00%-1.00%0.00%
Fair Value$4.44$5.29$6.12
Upside / Downside-92.04%-90.52%-89.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)147.75146.27144.81143.36141.93140.51144.72
Payout Ratio22.03%35.63%49.22%62.81%76.41%90.00%92.50%
Projected Dividends (M)32.5552.1171.2790.05108.44126.46133.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate11.84%11.84%11.84%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)46.1246.5947.06
Year 2 PV (M)55.8456.9858.14
Year 3 PV (M)62.4464.3766.34
Year 4 PV (M)66.5569.3172.15
Year 5 PV (M)68.6972.2675.99
PV of Terminal Value (M)822.36865.18909.77
Equity Value (M)1,121.991,174.701,229.45
Shares Outstanding (M)188.44188.44188.44
Fair Value$5.95$6.23$6.52
Upside / Downside-89.33%-88.83%-88.31%

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