OROR Royalties Inc.
Is the business good?
Earnings fully cash-backed (2.7×). That is the only one of 4 checks this filer's data supports, so take it as a single data point rather than a settled answer.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is OR?
OR Royalties Inc. earns 3.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.1 points below what the capital costs: growth destroys value
- Operating margin
- 35%
Operating margin · Gold median 40% · fiscal year to FY2023
- Cash conversion
- 2.70×
Cash conversion · 1.19× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.4%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 20% |
| FY2021 | 50% |
| FY2022 | 56% |
| FY2023 | 35% |
Details›
- Gross marginfiscal year to FY2023
- 70%
- Operating marginfiscal year to FY2023
- 35%
- Net marginfiscal year to FY2023
- −20%
- Revenue, trailing twelve months
- $247M
- Net income, trailing twelve months
- −$48M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.