Royal GoldFRA:RG3 -3.47%91 Altman Z-Score is 5.83 as of Jun. 25, 2026, which is 41% below its 10-year median of 9.86. GuruFocus rates FRA:RG3 with a GF Score™ of 91/100 and a GF Value™ of €235.32 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 790 Metals & Mining companies, Royal Gold ranks better than 71.39% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 5.75 is strong.
Royal Gold has a Altman Z-Score of 5.83, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Royal Gold's Altman Z-Score or its related term are showing as below:
FRA:RG3'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.17 Med: 9.86 Max: 39.62
Current: 5.75
During the past 13 years, Royal Gold's highest Altman Z-Score was 39.62. The lowest was 3.17. And the median was 9.86.
Royal Gold (FRA:RG3) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Royal Gold Altman Z-Score Related Terms
Royal Gold Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Royal Gold's Altman Z-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.
FRA:RG3 vs CDE, AUGO, SA: Altman Z-Score Comparison
For the Gold subindustry, Royal Gold's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Royal Gold's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Royal Gold's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Royal Gold's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.0311
+
1.4
*
0.1547
+
3.3
*
0.0837
+
0.6
*
8.6009
+
1.0
*
0.1368
=
5.83
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Royal Gold (FRA:RG3) has a Altman Z-Score of 5.83 as of Jun. 25, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Royal Gold and its competitors. This is 41% below median its historical median of 9.86. Over the past decade, Royal Gold's Altman Z-Score has ranged from 3.17 to 39.62. According to the industry distribution chart, Royal Gold ranks #226 out of 790 companies in the Metals & Mining industry, placing it in the top 28.6%.
Is Royal Gold's Altman Z-Score too high?
Royal Gold's current Altman Z-Score of 5.83 is 41% below median its 10-year median of 9.86. Over the past 10 years, this metric has ranged from a low of 3.17 to a high of 39.62. The Metals & Mining industry median Altman Z-Score is 3.45. Royal Gold's value of 5.83 is 69.2% above this industry median. Based on the distribution chart, Royal Gold ranks #226 out of 790 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Royal Gold has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Royal Gold's Altman Z-Score compare to CDE and AUGO?
According to the Metals & Mining industry distribution chart, Royal Gold ranks #226 out of 790 companies for Altman Z-Score. This puts Royal Gold in the upper half of its industry. The industry median Altman Z-Score is 3.45. Royal Gold's value of 5.83 is 69.2% above this benchmark. Historically, Royal Gold's own Altman Z-Score has ranged from 3.17 to 39.62 over the past decade. While the company's 10-year median is 9.86 vs. the industry median of 3.45, Royal Gold has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Metals & Mining company?
The median Altman Z-Score among Metals & Mining companies is 3.45, based on 790 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Gold's current Altman Z-Score of 5.83 is 69.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Royal Gold and its competitors. For the Metals & Mining industry, the median Altman Z-Score is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Gold's current Altman Z-Score is 5.83, which is 41% below median its own 10-year median of 9.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Gold stock overvalued right now?
Based on GuruFocus' analysis, Royal Gold (FRA:RG3) is currently considered Modestly Undervalued. The stock's GF Value™ is €235.32, compared to a current price of €175.00 — trading 25.6% below its estimated fair value. The current Altman Z-Score is 5.83, which is 41% below median its 10-year median of 9.86 and 69.2% above the Metals & Mining industry median of 3.45. Royal Gold's overall GF Score™ is 91/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Royal Gold (FRA:RG3), the current Altman Z-Score is 5.83 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Royal Gold (FRA:RG3) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Gold stock appears to be undervalued.
The current stock price of €175.00 is trading 25.6% below its estimated GF Value™ of €235.32.
GuruFocus considers Royal Gold to be Modestly Undervalued.
Key valuation signals for FRA:RG3:
Altman Z-Score: 5.83 (41% below median its 10-year median of 9.86)
GF Value™: €235.32 vs. price of €175.00 (25.6% below fair value)
Industry Position: 69.2% above the Metals & Mining median (#226 of 790)
No single metric tells the full story. See the FRA:RG3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Gold Inc enquires and manages precious metal royalties and streams with a focus on gold. The company purchases a percentage of the metal produced from a mineral property for an initial payment without assuming responsibility for 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 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.
91GF Score
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