(RE) RE Royalties - Ratings and Ratios

RE Royalties Ltd (V:RE) specializes in acquiring revenue-based royalties from renewable energy and clean technology companies. The firm provides non-dilutive royalty financing solutions to both privately held and publicly traded entities. As of May 2, 2024, its portfolio includes 115 royalties across solar, wind, hydro, battery storage, and renewable natural gas projects. These assets are located in Canada, Mexico, Chile, and the United States. Founded in 2016, the company is headquartered in Vancouver, Canada.

The companys business model focuses on generating returns through royalties tied to the operational performance of renewable energy projects. This approach allows RE Royalties to align its revenue streams with the growth of the renewable energy sector. Its portfolio spans a diverse range of technologies and geographies, ensuring a balanced exposure to different markets and regulatory environments.

From a technical perspective, the stock has shown limited volatility, with an Average True Range (ATR) of 0.01. The moving averages (SMA 20, SMA 50, and SMA 200) are clustered around 0.46 to 0.48, indicating a stable price trend. The last price of 0.48 suggests the stock is currently trading near its short-term and long-term averages.

Fundamentally, RE Royalties has a market capitalization of 20.77M CAD. The price-to-book (P/B) ratio of 1.56 indicates that the stock is trading at a modest premium to its book value. However, the return on equity (RoE) of -6.52% reflects current profitability challenges. The price-to-sales (P/S) ratio of 6.38 highlights a premium valuation relative to revenue, which may be attributed to the growth prospects of the renewable energy sector.