MeritValue

OR Royalties Inc.

ORdata completeness 75%3 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'cash'; no data for concept 'interestExpense'

The thesis, from the filings

OR Royalties Inc. earns about 5% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $0.9 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue$183.2M1$191.2M2$277.4M2
Net income−$37.4M3$16.3M4$206.1M4
Operating cash flow$138.4M5$159.9M6$245.6M6
Capital expenditure———
Free cash flow (derived)———
Total debt$145.1M7$93.9M7$07
Cash & equivalents———
Diluted shares185.3M186.7M187.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$76.52
your share of equity
Profit it earned you last year
$11.01
Free cash flow it threw off
—
Debt you’d be carrying
$0

10 shares is a claim on $76.52 of net worth that earned you $11.01 last year, against $0 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
5% avg · 3y
FY23 -2%FY24 1%FY25 14%

It earned an average 5% on invested capital over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+1% shares · 3y

Share count is roughly flat over 3 years — little dilution, little buyback. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$0.9
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$16.3M
  • growthAssumed0.0%
Graham Number
$13.7
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 40-F · period ending 2023-12-31 · accession 0001062993-25-006504 (Revenue)
  2. 40-F · period ending 2024-12-31 · accession 0001062993-26-001696 (Revenue)
  3. 40-F · period ending 2023-12-31 · accession 0001062993-25-006504 (ProfitLoss)
  4. 40-F · period ending 2024-12-31 · accession 0001062993-26-001696 (ProfitLoss)
  5. 40-F · period ending 2023-12-31 · accession 0001062993-25-006504 (CashFlowsFromUsedInOperatingActivities)
  6. 40-F · period ending 2024-12-31 · accession 0001062993-26-001696 (CashFlowsFromUsedInOperatingActivities)
  7. 40-F · period ending 2023-12-31 · accession 0001062993-26-001696 (Borrowings)