Scully Royalty Ltd. (SRL)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses whose assets are understandable and whose price offers a margin of safety. Scully Royalty is a small, $105.2M market-cap outfit tied to an iron ore royalty, merchant banking, and industrial real estate. The royalty interest in the Scully iron ore mine may have some staying power, but I see no durable moat in merchant banking or leasing without more evidence. The numbers are not inspiring: as of the 2026-10-13 close at $4.83, the FairStock-calculated P/E is -34.50 and P/B is 0.34. ROE is -0.67%, ROCE is -0.93%, and the Piotroski F-Score is 0/9. That combination says the company is currently earning nothing on its capital, and the quality signals are poor. On the positive side, debt is modest with a D/E of 0.13, beta is 0.60, and the 2.91% dividend yield offers some return if it is maintained. The stock also sits near the low end of its $4.21-$10.39 52-week range, which often reflects doubt. The critical question is book value: P/B of 0.34 could be a bargain if the underlying assets are worth their carrying values. But with only 0 years of filed annual results for the Lynch category, no revenue or profit growth data, and no CET1, NIM, or combined ratio to judge credit or underwriting risk, I cannot verify consistency. This looks like a deep-value speculation on asset values, not a compounding business. I would need filed results showing positive returns on equity and capital before calling it a sound investment.

In plain English: Scully Royalty is a small company that makes money from an iron ore royalty, a finance business, and industrial property leases. Its profits are currently negative and it has very little filed history, so the business looks weak on the numbers. The shares trade for less than the value of its assets after debts, which can look cheap, but without steady profits that cheapness is uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer