Royal Gold (MEX:RGLD) Beneish M-Score : -2.49 (As of Dec. 15, 2024)

View and export this data going back to 2018. Start your Free Trial

What is Royal Gold Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Royal Gold's Beneish M-Score or its related term are showing as below:

MEX:RGLD' s Beneish M-Score Range Over the Past 10 Years
Min: -5.49 Med: -2.59 Max: -1.87
Current: -2.49

During the past 13 years, the highest Beneish M-Score of Royal Gold was -1.87. The lowest was -5.49. And the median was -2.59.

Royal Gold Beneish M-Score Historical Data

The historical data trend for Royal Gold's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Royal Gold Beneish M-Score Chart

Royal Gold Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.72

-2.38

-1.87

-2.59

Royal Gold Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.54	-2.59	-2.87	-2.71	-2.49

Competitive Comparison of Royal Gold's Beneish M-Score

For the Gold subindustry, Royal Gold's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Royal Gold's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Royal Gold's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Royal Gold's Beneish M-Score falls into.

Royal Gold Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Royal Gold for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.284

0.528 * 0.8802

0.404 * 0.6829

0.892 * 1.0841

0.115 * 1.2681

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9848

4.679 * -0.054581

0.327 * 0.2268

-2.30

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was MXN1,187 Mil.
Revenue was 3816.709 + 3189.457 + 2471.216 + 2591.391 = MXN12,069 Mil.
Gross Profit was 2539.025 + 2062.734 + 1442.829 + 1518.024 = MXN7,563 Mil.
Total Current Assets was MXN3,980 Mil.
Total Assets was MXN65,010 Mil.
Property, Plant and Equipment(Net PPE) was MXN59,491 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN2,691 Mil.
Selling, General, & Admin. Expense(SGA) was MXN746 Mil.
Total Current Liabilities was MXN1,700 Mil.
Long-Term Debt & Capital Lease Obligation was MXN0 Mil.
Net Income was 1895.034 + 1487.739 + 782.779 + 1065.626 = MXN5,231 Mil.
Non Operating Income was -8.368 + -1.154 + 7.419 + 0.407 = MXN-2 Mil.
Cash Flow from Operations was 2690.699 + 2079.606 + 2294.997 + 1715.893 = MXN8,781 Mil.

Total Receivables was MXN853 Mil.
Revenue was 2414.555 + 2469.442 + 3071.316 + 3177.458 = MXN11,133 Mil.
Gross Profit was 1314.935 + 1388.467 + 1749.416 + 1687.496 = MXN6,140 Mil.
Total Current Assets was MXN2,853 Mil.
Total Assets was MXN59,175 Mil.
Property, Plant and Equipment(Net PPE) was MXN54,270 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN3,151 Mil.
Selling, General, & Admin. Expense(SGA) was MXN699 Mil.
Total Current Liabilities was MXN1,234 Mil.
Long-Term Debt & Capital Lease Obligation was MXN5,587 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(1187.483 / 12068.773)	/	(853.09 / 11132.771)
	=	0.098393	/	0.076629
	=	1.284

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(6140.314 / 11132.771)	/	(7562.612 / 12068.773)
	=	0.551553	/	0.626626
	=	0.8802

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (3979.508 + 59490.776) / 65009.987)	/	(1 - (2852.623 + 54269.967) / 59174.832)
	=	0.023684	/	0.034681
	=	0.6829

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	12068.773	/	11132.771
	=	1.0841

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(3151.338 / (3151.338 + 54269.967))	/	(2691.077 / (2691.077 + 59490.776))
	=	0.054881	/	0.043278
	=	1.2681

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(746.216 / 12068.773)	/	(698.938 / 11132.771)
	=	0.06183	/	0.062782
	=	0.9848

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 1699.726) / 65009.987)	/	((5587.111 + 1234.077) / 59174.832)
	=	0.026146	/	0.115272
	=	0.2268

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(5231.178 - -1.696	-	8781.195)	/	65009.987
	=	-0.054581

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Royal Gold has a M-score of -2.30 suggests that the company is unlikely to be a manipulator.

Royal Gold Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Royal Gold's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Royal Gold Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Royal Gold Inc (MEX:RGLD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

RGLD:USA 0KXS:UK RG3:Germany RG3:Germany

Address

1144 15th Street, Suite 2500, Denver, CO, USA, 80202

Website

https://www.royalgold.com

Royal Gold Inc enquires and manages precious metal royalties and streams, with a focus on gold. The company operates by purchasing a percentage of the metal produced from a mineral property for an initial payment, without assuming responsibility of mining operations. Similarly, precious metal streams are purchase agreements with mine operators providing the right to purchase all or a portion of one or more metals produced from a mine, in exchange for an upfront deposit payment. Generally Royal Gold does not conduct any work on the properties in which it holds royalty and streaming assets. The company owns a portfolio of producing, development, evaluation, and exploration royalties and streams, and the majority of group revenue is generated from Canada, Mexico, Chile, and the United States.