OR Royalties Inc. Common Shares (OR)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Generates $151 million in annual free cash flow (2.0% yield on market cap)
• Solid return on equity of 15.7% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility
• Altman Z-Score of 32.9 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 62.1% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($14) with negative 187% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

OR Royalties Inc. Common Shares is a small-cap basic materials company valued at $7.4 billion. Revenue stands at $277 million. From a quality standpoint, OR shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 32.9 confirms fortress-level solvency. On valuation, the stock is trading at a premium 36.7x earnings, with trades far above its Graham Number ($14) with no margin of safety. Growth dynamics show revenue growing at 62.1% and profit growth of 805.8%. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

OR's 62% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $151 million in annual free cash flow (2.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 37x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer