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RE Royalties (TSE:RE)
:RE
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RE Royalties (RE) AI Stock Analysis

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TSE:RE

RE Royalties

(RE)

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Neutral 48 (OpenAI - Gpt-5.6Sol)
Rating:48Neutral
Price Target:
C$0.38
▲(0.26% Upside)
Action:Reiterated
Date:09/06/26
The score is held down primarily by weak financial performance: shrinking revenue, substantial losses, and high balance-sheet risk due to significant debt and negative equity. Technicals are neutral with price hovering near key moving averages and momentum indicators near mid-range, offering limited support. Valuation is mixed: the high dividend yield helps, but a negative P/E underscores that profitability remains a key issue.
Positive Factors
Contractual royalty revenue model
The royalty structure can create recurring, contractually defined income while avoiding direct operating responsibility for partner businesses. Revenue-linked payments also allow participation in partner growth, and repeated deal origination can expand the portfolio over time.
Negative Factors
Shrinking revenue and deep losses
Revenue contraction reduces the base from which royalty income and future earnings can grow, while substantial operating losses show that current scale is not covering the cost structure. Continued weakness would limit reinvestment capacity and make durable profitability harder to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Contractual royalty revenue model
The royalty structure can create recurring, contractually defined income while avoiding direct operating responsibility for partner businesses. Revenue-linked payments also allow participation in partner growth, and repeated deal origination can expand the portfolio over time.
Read all positive factors

RE Royalties (RE) vs. iShares MSCI Canada ETF (EWC)

RE Royalties Business Overview & Revenue Model

Company Description
RE Royalties Ltd. offers a distinctive, non-dilutive royalty financing solution to both privately held and publicly traded companies operating in renewable energy generation, development, and clean technology. The company's business model involves...
How the Company Makes Money
RE Royalties makes money primarily by (1) originating and acquiring royalty agreements with operating businesses and then (2) collecting ongoing royalty payments tied to those businesses’ revenue. Under a typical structure, RE Royalties provides u...

RE Royalties Earnings Call Summary

Earnings Call Date:Dec 04, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Nov 30, 2026
Earnings Call Sentiment Neutral
The call highlighted significant new investments and a strong cash position, as well as a notable increase in EBITDA and a reduced net loss. However, there were declines in revenue and gross profit compared to the prior year.
Positive Updates
Successful Completion of Series 4 Green Bonds
Raised total gross proceeds of approximately $7 million, contributing to a healthy cash balance of approximately $20 million for future opportunities.
Negative Updates
Revenue and Income Decline
Revenue and income for Q3 2024 decreased by 12% compared to the prior year, with a 14% decrease over the 9 months ending September 30, 2024, due to lower finance income and a one-time royalty buyout in the prior year.
Read all updates
Q3-2024 Updates
Negative
Successful Completion of Series 4 Green Bonds
Raised total gross proceeds of approximately $7 million, contributing to a healthy cash balance of approximately $20 million for future opportunities.
Read all positive updates
Company Guidance
During the RE Royalties Q3 2024 earnings call, the company provided guidance on their financial performance and strategic investments. They reported a decrease in revenue and income by 12% to $1.7 million for the third quarter, attributed to early loan repayments from clients. However, EBITDA increased by $2.6 million compared to the previous year, reaching $1 million, due to the absence of a prior year's $3.1 million provision for expected credit loss. The company completed significant transactions, including a $10 million loan for solar projects in the Maldives and a $3 million loan for battery storage systems in Ontario, which are expected to bolster future revenues and cash flows. As of September 30, 2024, RE Royalties held cash and cash equivalents of $18.4 million, and they are actively evaluating additional investment opportunities to enhance their project pipeline.

RE Royalties Financial Statement Overview

Summary
Financial performance is weak. Revenue declined ~20% in the TTM period and profitability is deeply negative with large operating losses and a sharply negative net margin. Balance sheet risk is elevated with significant debt and negative equity (in 2025 and TTM), reducing flexibility and raising refinancing risk. Cash flow is mixed: operating cash flow is negative, though free cash flow turned positive in TTM, which is a partial offset but not yet a consistent trend.
Income Statement
18
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
28
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Dec 2021
Income Statement
Total Revenue3.19M1.89M8.59M9.81M4.24M1.93M
Gross Profit804.41K-983.22K7.70M9.45M3.89M1.63M
EBITDA-4.52M-6.48M-5.02M1.52M1.61M-1.01M
Net Income-8.83M-8.87M-9.27M-1.81M-433.82K-2.13M
Balance Sheet
Total Assets30.93M31.63M53.81M53.98M42.61M35.19M
Cash, Cash Equivalents and Short-Term Investments1.84M2.75M16.55M14.44M7.58M20.10M
Total Debt34.85M34.60M44.51M36.28M21.56M20.60M
Total Liabilities35.82M35.74M46.81M36.89M22.22M20.79M
Stockholders Equity-6.88M-5.86M5.20M15.33M19.78M14.41M
Cash Flow
Free Cash Flow4.52M-7.41M-8.73M-4.68M-12.50M-8.92M
Operating Cash Flow-995.89K-2.60M2.50M792.29K141.56K143.31K
Investing Cash Flow8.75M548.32K-1.86M-3.59M-17.40M616.21K
Financing Cash Flow-12.14M-11.39M1.24M9.87M4.36M7.64M

RE Royalties Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.38
Price Trends
50DMA
0.38
Negative
100DMA
0.38
Negative
200DMA
0.35
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
47.71
Neutral
STOCH
20.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RE, the sentiment is Neutral. The current price of 0.38 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.38, and above the 200-day MA of 0.35, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:RE.

RE Royalties Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
48
Neutral
C$16.10M-1.84191.75%7.89%-18.29%12.84%
48
Neutral
C$14.25M-4.66-72.76%-66.21%-378.27%
45
Neutral
C$51.89M-3.59-18.15%-19.22%11.82%
45
Neutral
C$21.64M-1.5137.67%-84.31%-199.44%
43
Neutral
C$22.68M-7.06-90.67%43.82%
42
Neutral
C$8.25M-5.0040.55%7.28%7.69%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RE
RE Royalties
0.38
0.09
28.81%
TSE:GIP
Green Impact Partners Inc
2.35
-1.43
-37.83%
TSE:FNQ
Fineqia International
TSE:GRB
Greenbriar Capital
0.53
0.09
20.45%
TSE:REVV
ReVolve Renewable Power Corp
0.17
-0.04
-20.19%
TSE:PRME
Dominion Water Reserves
0.07
-0.02
-22.22%

RE Royalties Corporate Events

Business Operations and StrategyPrivate Placements and Financing
RE Royalties Expands Solaris Partnership with US$67.5 Million Royalty Funding Plan
Positive
Aug 6, 2026
RE Royalties has committed an additional US$1 million to purchase royalties on Solaris Energy’s portfolio of distributed generation solar projects in the U.S., bringing its total investment in Solaris to US$4.8 million across 16 projects tot...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2026