Scully Royalty Ltd. (SRL) AI Stock Analysis
SRL AI stock analysis summary
AI ResearchScully Royalty Ltd. (SRL) is a holding company with interests spanning iron ore mining royalties, industrial operations, and merchant banking. The company has seen revenue decline at a 5-year CAGR of -20.1% through FY2024, reporting net income of -$21.6M that year. It maintains a low debt-to-equity ratio of 0.13 with $25.4M in cash and short-term investments.
- Market cap
- $74.6M
- Revenue (TTM)
- $35.8M
- P/E
- —
- 1Y return
- -13.4% S&P 500 16.8%
- Avg. target
- —
Bull case
- The company maintains a low debt-to-equity ratio of 0.13 with $25.4M in cash and short-term investments as of September 30, 2025.
- Shares trade at a price-to-book ratio of 0.4x based on shareholders' equity of $302.1M compared to a market cap of $74.6M.
- Insider ownership is high at 72.3%, aligning management directly with equity performance.
Bear case
- Revenue fell at a 5-year CAGR of -20.1% from FY2019 to FY2024, reaching $37.1M.
- The company generated negative free cash flow of -$31.6M in FY2024.
- Scully Royalty reported a trailing twelve-month profit margin of -7.5% and an operating margin of -6.8%.
What Scully Royalty does
Scully Royalty Ltd. operates across three distinct segments: Royalty, Industrial, and Merchant Banking, with activities spanning the Americas, Africa, Canada, Asia, and Europe. Its primary asset is a royalty interest in the Scully iron ore mine located in Newfoundland and Labrador, Canada, which provides a key revenue stream. Beyond mining, the company maintains diversified business interests in manufacturing as well as medical supplies and services. Founded in 2017 and headquartered in Central, Hong Kong, the firm was formerly known as MFC Bancorp Ltd. before rebranding in June 2019.
Growth and profitability
From FY2020 to FY2024, Scully Royalty's top line decreased from $56.6M to $37.1M, reflecting a 5-year revenue CAGR of -20.1%. Revenue peaked at $72.5M in FY2021 before declining 9.3% in FY2022, 17.9% in FY2023, and 31.3% in FY2024. Profitability has been volatile: operating margin reached 25.5% in FY2021 and 23.1% in FY2023, but turned negative to -7.2% in FY2024, resulting in net income of -$21.6M. Over the trailing twelve months, revenue was $35.8M with an operating margin of -6.8%. For the latest quarter ended September 30, 2025, revenue rose 2.6% year-over-year while quarterly earnings fell 76.9%.
Balance sheet and cash flow
As of September 30, 2025, Scully Royalty held $25.4M in cash and short-term investments against $39.4M in total debt, resulting in net debt of $14.0M. Total assets stood at $435.2M and shareholders' equity was $302.1M, supporting a debt-to-equity ratio of 0.13. Cash generation has fluctuated, with FY2024 operating cash flow at -$31.5M and free cash flow at -$31.6M. Capital expenditures in FY2024 were $89,000, while the company's share count increased 1.1% over five years.
Valuation and performance
Scully Royalty trades at a price-to-sales multiple of 2.1x, below the 3.2x median of its US-listed Financial Services peers. Its EV-to-EBITDA multiple of 14.4x sits above the peer median of 11.7x, while its price-to-book ratio is 0.4x with an enterprise value of $73.6M and market capitalization of $74.6M. The stock closed at $4.90 on October 16, 2026, down 13.4% over one year and 49.7% over five years, lagging the S&P 500 (SPY), which gained 16.8% and 83.0% over those respective periods.
What analysts expect
Scully Royalty has no analyst buy, hold, or sell ratings, price targets, or forward earnings projections available. In terms of earnings execution, the company recorded 0 EPS beats over the last 4 quarters. Over the trailing twelve months, diluted earnings per share stood at -$0.14, and quarterly earnings fell 76.9% year-over-year in the quarter ended September 30, 2025.
Key risks and what to watch
- Annual revenue dropped 31.3% in FY2024, demonstrating substantial top-line volatility.
- The stock has lagged the broader market, posting a 5-year return of -49.7% compared to 83.0% for the S&P 500.
- Institutional ownership is limited to 4.0%, which may constrain trading liquidity alongside a beta of 0.63.
- The company has recorded 0 EPS beats over the last 4 quarters, alongside a 76.9% year-over-year quarterly earnings drop.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SRL AI stock analysis
This page is an AI-written research summary of Scully Royalty Ltd. (SRL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SRL income statement, SRL balance sheet, SRL key metrics, SRL chart. See the SRL stock overview for the latest quote and news.
SRL AI stock analysis FAQ
What is Scully Royalty's core business asset?
Scully Royalty's primary asset is a royalty interest in the Scully iron ore mine in Newfoundland and Labrador, Canada. It also operates segments in merchant banking and industrial manufacturing, including medical supplies and services.
What does Scully Royalty's balance sheet look like?
As of September 30, 2025, the company had $25.4M in cash and short-term investments, $39.4M in total debt, and net debt of $14.0M. Its debt-to-equity ratio stood at 0.13 with total shareholders' equity of $302.1M.
How has SRL stock performed compared to the S&P 500?
SRL closed at $4.90 on October 16, 2026, down 13.4% over the trailing one year and down 49.7% over five years. By contrast, the S&P 500 gained 16.8% and 83.0% over those respective periods.
Who owns most of Scully Royalty Ltd.?
Insiders own 72.3% of the company's shares, while institutional investors hold 4.0% and short interest accounts for 0.1% of the float.