Is RGLD a high-quality business?

AlphaMadera's AlphaQuality grade scores Royal Gold, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how RGLD compares to a Buffett-style quality bar.

What is Royal Gold, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to RGLD based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes RGLD a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

RGLD - Royal Gold, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $314.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Other Commodity Producers

AlphaQuality — archetype-weighted quantitative grade

C+ 58.5 / 100 composite

Composite Grade

Composite of six pillars weighted for other commodity producers businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C- 50.8

5yr Avg ROIC 4.0% 30/100
Operating Margin Trend +3.99 pp/yr 100/100

Capital Efficiency

Weight: 10%

D 34.3

5yr Avg ROE 4.3% 32/100
5yr Share-Count CAGR 1.5% 39/100

Growth Quality

Weight: 5%

A- 83.6

5yr Revenue CAGR 12.4% 86/100
5yr EPS CAGR 12.5% 83/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 25%

D+ 39.7

5yr FCF Margin 7.3% 59/100
5yr FCF/NI Conversion 0.16x 16/100

Balance Sheet

Weight: 25%

A+ 93.3

Net Debt / EBITDA 0.95x 86/100
Interest Coverage (EBIT/Int) 25.52x 100/100
Altman Z-Score 4.86 99/100

Stability

Weight: 20%

C- 50.3

EPS Volatility (σ/μ) 0.44 38/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 1/5 80/100

3 of 3 gurus held; 2 added; 1 trimmed.

Holders: 3
Avg Δ position: +153.8%
New buys: 0
Full exits: 0

Cooperman increased +428%
Wood increased +36%
Greenblatt decreased -2%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.