# Deterra Royalties (DRR.AU)

Canonical: https://gigainvestors.com/s/DRR.AU

Analysis as of: 2026-10-16T07:42:27.399Z. Financial observations: FY2019–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 3.92 per share; close as of 2026-10-15.

Estimated value: low AUD 3.33 per share, central AUD 3.79 per share, high AUD 4.40 per share. Buy at or below the central value AUD 3.79 per share. Valuation as of 2026-10-16T07:42:27.399Z; scenarios are not confidence intervals.

Expected annual return: 9.8% at the stated quote. About 9.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 8 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.03×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.87×

- FY2020: 0.92×

- FY2021: 0.96×

- FY2022: 0.97×

- FY2023: 0.95×

- FY2024: 0.95×

- FY2025: 0.93×

- FY2026: 0.94×

### moat: pass

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 60.1%

- Typical minus recent gross margin: -3.0 pp

- Typical gross margin (annual median): 96.4%

- Recent gross margin (lower of latest and 3-year median): 99.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.0%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2020: >100%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: 42.7%

- FY2026: 60.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.01×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 812M

- Net income, five-year total: AUD 806M

- Working capital / revenue, annual change: 1.3 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.03×

- FY2026: 1.01×

### management: pass

- buybacks unrelated to price (informational)

- Per-share earnings: 0.10 to 0.29 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: 0.1%

- Per-share value growth: 23.3%

- Per-share value change: AUD 0.19

- Per-share value, starting three-year median: AUD 0.10

- Per-share value, ending three-year median: AUD 0.29

- Buyback history: 0 years

- Debt-funded buybacks: No

- ROIC, last three-year median: 60.1%

Chart: Earnings per share; fiscal year observations.

- FY2019: AUD 0.06

- FY2020: AUD 0.10

- FY2021: AUD 0.18

- FY2022: AUD 0.34

- FY2023: AUD 0.29

- FY2024: AUD 0.29

- FY2025: AUD 0.29

- FY2026: AUD 0.31

### accounting: pass

- Sloan accruals: -1.5%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.03×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.87×

Chart: Sloan accruals; fiscal year observations.

- FY2020: -125.6%

- FY2021: 13.6%

- FY2022: 33.0%

- FY2023: -25.9%

- FY2024: -15.1%

- FY2025: 4.1%

- FY2026: -1.5%

## Holders

## Price story

Down 29% since Jan 2024 · sales -8%

Story as of 2026-10-16T10:00:12.361Z; price observation 2026-10-15.

Price needs cash profits to grow 1.3% a year for ten years

### Sales · FY2025–2026

sales -8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: AUD 56M 

- FY2020: AUD 86M 

- FY2021: AUD 145M 

- FY2022: AUD 265M 

- FY2023: AUD 229M 

- FY2024: AUD 241M 

- FY2025: AUD 263M 

- FY2026: AUD 242M 

### Gross margin · FY2026

gross margin 99.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: 87.3% 

- FY2020: 91.6% 

- FY2021: 96.6% 

- FY2022: 97.0% 

- FY2023: 96.1% 

- FY2024: 96.2% 

- FY2026: 99.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in other industrial metals & mining; annual sales are AUD 242.4 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2026: revenue 242400000; grossProfit 240995000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 96.2% to 100% during 2024–26; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2024: grossProfit / revenue = 96.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2026: grossProfit / revenue = 99.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); 8-year return on capital observations [[2020,3.580335249763584],[2021,2.462884333007258],[2022,1.9587376570389747],[2023,2.4401419244877536],[2024,3.193301978332452],[2025,0.426597835627925],[2026,0.6010651773000968]]; median 2.4401419244877536. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 97% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); Gross margin observations: [[2021,0.9657803579667927],[2022,0.9696969696969697],[2023,0.9610754414125201]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 8 of 8 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2019: growth capex 0; upkeep 22569233; owner earnings 11630767. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2020: growth capex 0; upkeep 22569233; owner earnings 53279081. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2021: growth capex 0; upkeep 45000; owner earnings 94517800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2022: growth capex 0; upkeep 10000; owner earnings 178795400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2023: growth capex 0; upkeep 89000; owner earnings 152727800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2024: growth capex 0; upkeep 88000; owner earnings 155160600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2025: growth capex 0; upkeep 1931000; owner earnings 160019800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); FY2026: growth capex 0; upkeep 14000; owner earnings 165540800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); Dividend observations: [[2019,30776310],[2020,30776310],[2021,33341000],[2022,122615000],[2023,180123000],[2024,167793000],[2025,122817000],[2026,132993000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 20.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DRR.AU SharesStats.PercentInsiders = 20.583000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:27.399Z); Ten-year compound average after fade. Initial solved rate 0.006143159101855589. Price 3.92; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2020-10: AUD 3.93 per share

- 2020-11: AUD 4.60 per share

- 2020-12: AUD 4.80 per share

- 2021-01: AUD 4.31 per share

- 2021-02: AUD 4.55 per share

- 2021-03: AUD 3.92 per share

- 2021-04: AUD 4.37 per share

- 2021-05: AUD 4.20 per share

- 2021-06: AUD 4.50 per share

- 2021-07: AUD 4.67 per share

- 2021-08: AUD 4.35 per share

- 2021-09: AUD 3.79 per share

- 2021-10: AUD 3.88 per share

- 2021-11: AUD 4.13 per share

- 2021-12: AUD 4.30 per share

- 2022-01: AUD 4.28 per share

- 2022-02: AUD 4.46 per share

- 2022-03: AUD 4.83 per share

- 2022-04: AUD 4.86 per share

- 2022-05: AUD 4.49 per share

- 2022-06: AUD 4.24 per share

- 2022-07: AUD 4.32 per share

- 2022-08: AUD 4.19 per share

- 2022-09: AUD 4.00 per share

- 2022-10: AUD 4.09 per share

- 2022-11: AUD 4.62 per share

- 2022-12: AUD 4.58 per share

- 2023-01: AUD 4.89 per share

- 2023-02: AUD 4.47 per share

- 2023-03: AUD 4.80 per share

- 2023-04: AUD 4.60 per share

- 2023-05: AUD 4.49 per share

- 2023-06: AUD 4.60 per share

- 2023-07: AUD 4.70 per share

- 2023-08: AUD 4.45 per share

- 2023-09: AUD 4.79 per share

- 2023-10: AUD 4.70 per share

- 2023-11: AUD 4.96 per share

- 2023-12: AUD 5.27 per share

- 2024-01: AUD 5.54 per share

- 2024-02: AUD 4.96 per share

- 2024-03: AUD 4.93 per share

- 2024-04: AUD 4.95 per share

- 2024-05: AUD 4.63 per share

- 2024-06: AUD 3.99 per share

- 2024-07: AUD 3.99 per share

- 2024-08: AUD 3.68 per share

- 2024-09: AUD 4.04 per share

- 2024-10: AUD 3.70 per share

- 2024-11: AUD 3.75 per share

- 2024-12: AUD 3.72 per share

- 2025-01: AUD 4.07 per share

- 2025-02: AUD 3.59 per share

- 2025-03: AUD 3.60 per share

- 2025-04: AUD 3.65 per share

- 2025-05: AUD 3.80 per share

- 2025-06: AUD 3.76 per share

- 2025-07: AUD 4.15 per share

- 2025-08: AUD 4.19 per share

- 2025-09: AUD 3.98 per share

- 2025-10: AUD 4.08 per share

- 2025-11: AUD 4.05 per share

- 2025-12: AUD 4.07 per share

- 2026-01: AUD 4.23 per share

- 2026-02: AUD 4.32 per share

- 2026-03: AUD 4.02 per share

- 2026-04: AUD 4.12 per share

- 2026-05: AUD 4.50 per share

- 2026-06: AUD 4.70 per share

- 2026-07: AUD 4.35 per share

- 2026-08: AUD 4.11 per share

- 2026-09: AUD 4.08 per share

- 2026-10: AUD 3.96 per share

## Annual estimated value (AUD per share)

- FY2023: low AUD 3.13 per share, central AUD 3.55 per share, high AUD 4.12 per share

- FY2024: low AUD 3.28 per share, central AUD 3.73 per share, high AUD 4.32 per share

- FY2025: low AUD 3.57 per share, central AUD 4.06 per share, high AUD 4.71 per share

- FY2026: low AUD 3.34 per share, central AUD 3.80 per share, high AUD 4.41 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations