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SIR Royalty Income
(TSX:SRV.UN)
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Rating:75Outperform
Price Target:
C$16.00
▲(1.33% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by strong financial resilience (minimal leverage) and solid cash generation, offset by uneven revenue history and unusual margin volatility that clouds earnings consistency. Technicals are supportive with an established uptrend, though momentum is near overbought. Valuation is balanced, with a reasonable P/E and a high dividend yield providing support.
Positive Factors
Minimal leverage
Essentially no debt gives the trust financial flexibility and reduces interest and refinancing pressure. That conservative structure can help preserve distributions, absorb weaker restaurant conditions, and support stable capital allocation over the next several quarters.
Negative Factors
Choppy revenue history
The uneven multi-year revenue path makes it harder to establish a dependable growth trajectory. Although recent TTM growth is strong, prior declines suggest results remain sensitive to restaurant sales and may not compound consistently across future reporting periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Minimal leverage
Essentially no debt gives the trust financial flexibility and reduces interest and refinancing pressure. That conservative structure can help preserve distributions, absorb weaker restaurant conditions, and support stable capital allocation over the next several quarters.
Read all positive factors
SIR Royalty Income (SRV.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$120.02M
Dividend Yield8.93%
Average Volume (3M)4.14K
Price to Earnings (P/E)14.8
Beta (1Y)0.40
Revenue Growth6.11%
EPS Growth-22.46%
CountryCA
Employees5,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.97
Shares Outstanding8,375,567
10 Day Avg. Volume4,455
30 Day Avg. Volume4,142
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)1.41
Price to Sales (P/S)11.00
P/FCF Ratio13.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SIR Royalty Income Business Overview & Revenue Model
Company Description
The SIR Royalty Income Fund, operating through its SIR Royalty Limited Partnership, possesses and oversees a collection of service-focused eateries throughout Canada. Its diverse portfolio encompasses popular concept restaurant chains like Jack As...
How the Company Makes Money
The fund makes money primarily by earning royalties calculated as a percentage of “Royalty Pool Sales” generated by the restaurants included in the SIR royalty pool. Under the SIR Royalty Pooling Agreement, Recipe Unlimited (as the operator) remit...
SIR Royalty Income Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
88
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.91M | 11.10M | 10.66M | 23.32M | 40.95M | 4.12M |
| Gross Profit | 12.67M | 11.10M | 16.16M | 23.32M | 48.95M | 7.12M |
| EBITDA | 8.90M | 12.09M | 4.90M | 11.66M | 48.33M | 6.56M |
| Net Income | 8.15M | 8.47M | 12.03M | 19.11M | 44.41M | 4.91M |
Balance Sheet | ||||||
| Total Assets | 91.27M | 91.56M | 94.26M | 90.96M | 83.22M | 49.48M |
| Cash, Cash Equivalents and Short-Term Investments | 730.95K | 320.61K | 1.04M | 412.18K | 2.28M | 1.41M |
| Total Debt | 0.00 | 0.00 | 0.00 | 42.47K | 63.48K | 42.26K |
| Total Liabilities | 5.96M | 5.23M | 6.30M | 5.47M | 6.95M | 6.90M |
| Stockholders Equity | 85.31M | 86.34M | 87.96M | 85.48M | 76.27M | 42.59M |
Cash Flow | ||||||
| Free Cash Flow | 10.25M | 9.37M | 10.18M | 8.04M | 11.58M | 6.30M |
| Operating Cash Flow | 10.25M | 9.37M | 10.18M | 8.04M | 11.58M | 6.30M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -10.60M | -10.09M | -9.55M | -9.90M | -10.72M | -5.03M |
SIR Royalty Income Technical Analysis
Negative
15.79
Price Trends
15.53
Negative
15.41
Negative
15.02
Negative
Market Momentum
-0.42
Positive
35.27
Neutral
17.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SRV.UN, the sentiment is Negative. The current price of 15.79 is above the 20-day moving average (MA) of 14.76, above the 50-day MA of 15.53, and above the 200-day MA of 15.02, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 35.27 is Neutral, neither overbought nor oversold. The STOCH value of 17.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SRV.UN.
SIR Royalty Income Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$120.02M | 14.77 | 9.50% | 8.93% | 6.11% | -22.46% | |
73 Outperform | C$47.53B | 17.47 | 34.86% | 3.45% | 5.56% | 38.79% | |
67 Neutral | C$361.71M | 11.76 | 10.09% | 8.26% | -0.69% | -2.98% | |
66 Neutral | C$867.69M | 15.88 | 24.98% | 5.30% | -1.57% | 218.18% | |
65 Neutral | C$733.89M | 6.53 | 13.22% | 4.48% | -1.60% | 194.60% | |
64 Neutral | C$413.87M | 10.46 | 13.49% | 8.09% | 3.49% | 8.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
TSE:SRV.UN
SIR Royalty Income
14.33
0.71
5.20%
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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.