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Deterra Royalties Limited
Basic Materials · Other Industrial Metals & Mining
Updated just now
$4.03
MARKET CAP
$2.13B
P/E RATIO
13.7
DIV. YIELD
6.1%
FRANKING
100%
DRR has red flags on value, has red flags on dividends — see the full breakdown
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Deterra Royalties Limited operates as a royalty investment company in Australia, the United States, Mexico, Zambia, Peru, Canada, Mali, Kenya, Brazil, Cote D'Ivoire, and South Africa.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$7.22
Discounted cash flow estimate
$3.90
For 6% dividend yield
Business quality and balance-sheet durability.
Profit generated per $1 of shareholder investment
Exceptional 156.7% ROE places this among elite companies. Strong competitive advantage evident.
Current Snapshot
10Y Avg
156.7%
Threshold
15.0%
Worst Year
124.9%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 156.7%, meaning each $1 of shareholder equity generates $1.57 in annual profit. The threshold is 15%, and the worst single year was 124.9%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
At 156.7% ROE, every $1 retained by this company generates $1.57 in annual profit. This exceptional compounding power is what drives long-term wealth - and for dividend investors, it often translates to sustainable dividend growth without needing to borrow or dilute shareholders.
Sources
Short-term assets vs. short-term debts
Strong liquidity. 30.20 ratio means ample cash to cover short-term obligations.
Current Snapshot
Current Ratio
30.20x
Warning Floor
1.00x
Target
1.50x
Why It Matters
Liquidity supports operational stability. Companies with weak liquidity can face pressure even when long-term fundamentals are sound.
Formula
Current Assets / Current LiabilitiesMethod
Compare the current ratio to the warning floor and target level used in the framework.
Worked Example
This company's current ratio is 30.20x — it has $30.20 in short-term assets for every $1 of short-term liabilities. The target is 1.5x, with a warning floor at 1.0x.
How to Interpret
Ratios above the target suggest healthier short-term resilience; ratios below 1.0x can indicate immediate funding risk.
Strong liquidity means the company can keep paying dividends even during temporary revenue drops. There's ample cash cushion to weather storms.
Sources
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$133M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $133M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
7.3% earnings yield is below the 8.5% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
7.3%
Required Yield
8.5%
Spread
-1.2pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.29 and a share price of $4.03, earnings yield is 7.3%. The required yield for this industry is 8.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
How current price compares with estimated intrinsic value
How much earnings are consumed by capital expenditure
Exceptionally capital-light. Only 0% of earnings consumed by CapEx — this is the type of business Buffett loves.
Current Snapshot
10Y CapEx Intensity
0%
Threshold
75%
Buffer
+75%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 0% of this company's cumulative earnings were consumed by capital expenditure. The materials & mining threshold is 75%, leaving a buffer of +75%.
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
Very low capital requirements mean most profits are available for dividends, buybacks, or growth. This business generates wealth without needing to pour money back in — the hallmark of a durable competitive advantage.
Sources
Years of earnings needed to retire all long-term debt
Percentage of revenue that becomes profit after all expenses
Consistency of profits over time
Is the business growing — and is debt being managed responsibly?
Debt growing with stable revenue — check whether new borrowing is productive or a warning sign for dividend sustainability.
Current Snapshot
Revenue Change
-0.6%
Debt Change
+119013.3%
Trend State
Mixed
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by -0.6% across the displayed period, while debt changed by +119013.3%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Debt growing with stable revenue — check whether new borrowing is productive or a warning sign for dividend sustainability.
Sources
Annual dividends as percentage of stock price
5.80% is close but below Barsi's 6% minimum. Consider waiting for a price drop.
Current Snapshot
6Y Avg Yield
5.8%
6% Requirement
6.0%
Gross Yield
8.3%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.23 and a share price of $4.03, the Barsi yield is 5.8%. The minimum requirement is 6%. Including franking credits, the gross yield is 8.3%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
At 5.80%, you'd need more capital to generate the same income as a 6%+ yielder. A price drop could make this more attractive.
Sources
Track record of consistent dividend payments
Insufficient dividend history for estimation
Highest price to lock in 6% yield
Industry category of the business
Basic Materials is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Other Industrial Metals & Mining
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Other Industrial Metals & Mining (Basic Materials sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
A 65% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Current Snapshot
Latest Ratio
65.2%
Healthy Range
30%-75%
Zone
Healthy
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.22 dividend / $0.29 EPS equals 74.9% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
A 65% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Sources
Deterra Royalties Limited operates as a royalty investment company in Australia, the United States, Mexico, Zambia, Peru, Canada, Mali, Kenya, Brazil, Cote D'Ivoire, and South Africa. It holds a portfolio of royalty assets across bulk commodities, base, battery, and precious metals, including iron ore, mineral sands, copper, lithium, gold, and silver. The company was incorporated in 2020 and is based in Perth, Australia.
Who owns the company's shares and how much leadership has at stake
When leaders own 20%+, they win when you win and lose when you lose
Professional fund managers have done their homework and chosen to own this
Shares freely traded on the ASX by individual investors like you
The people running this company own a large chunk of it (20.5%). When leadership has their own money on the line, they tend to make decisions that benefit all shareholders — not just their salary. Professional fund managers also hold shares, which is a vote of confidence in the business.
Current Snapshot
Insider %
20.5%
Institutional %
43.6%
Float %
35.9%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 20.5% and institutions own 43.6%, public float is 35.9%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
The people running this company own a large chunk of it (20.5%). When leadership has their own money on the line, they tend to make decisions that benefit all shareholders — not just their salary. Professional fund managers also hold shares, which is a vote of confidence in the business.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 24 Mar 2026 | Seabrook (Jennifer Anne) Independent Non-Executive Chairman | Acquisition at price 2.99 per share. | 4K | $11K |
| 3 Nov 2025 | Heywood (Leanne) Independent Non-Executive Director | Purchase at price 2.67 per share. | 3K | $8K |
| 30 Sept 2025 | Morrison (Alexander) Independent Non-Executive Director | Purchase at price 2.63 per share. | 10K | $26K |
| 23 Sept 2025 | Seabrook (Jennifer Anne) Independent Non-Executive Chairman | Acquisition at price 2.73 per share. | 4K | $11K |
| 30 June 2025 | Clifton (J) Chief Financial Officer | Unknown | 6K | — |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
Stock is trading 12% ABOVE the fair-value threshold (includes 50% margin of safety), but still below the estimated intrinsic value.
Current Snapshot
Current Margin
44.2%
Industry Threshold
50%
Status
12% Above Fair Value
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $7.22 per share, current price is $4.03, and margin of safety is 44.2%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
Price remains below the intrinsic value estimate but above your required threshold. Under this methodology, the valuation buffer is thinner, so estimate error and volatility have a larger impact.
Sources
Manageable debt. Could pay off long-term debt in 1.9 years — comfortably within the 4-year threshold.
Current Snapshot
Payoff Years
1.9yr
Target Years
4yr
Gap
+2.1yr
Why It Matters
Debt payoff years converts leverage into an intuitive time measure, making debt burden easier to compare across stocks.
Formula
Long-Term Debt / Average Net Income (3yr)Method
Use current long-term debt and the 3-year average net income to smooth one-off profit noise.
Worked Example
With $295M in long-term debt and $154M in average annual earnings (3yr), it would take 1.9 years of earnings to pay off all debt. The materials & mining threshold is 4 years.
How to Interpret
Lower values generally indicate stronger debt capacity. Very high values can constrain dividend resilience.
Debt is comfortably serviceable from earnings. This means interest payments won't crowd out dividends, even during moderate downturns.
Sources
Exceptional 59.1% net margin signals a strong and durable competitive advantage.
Current Snapshot
Current Margin
59.1%
Threshold
15.0%
Relative Position
+44.1%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 59.1% — it keeps 59 cents of every revenue dollar as profit after all expenses. The materials & mining threshold is 15%, putting it 44.1% above the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
Outstanding profitability means this company converts a large share of every dollar earned into profit. This buffer protects dividends even if revenue dips — the hallmark of a moat.
Sources
Cyclical business - earnings naturally fluctuate with commodity prices. Focus on dividend consistency instead.
Current Snapshot
Positive Years
5/4
Allowed Losses
0 (limited)
EPS CAGR
13.3%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 5 of the last 4 years. With only 4 years of data, every year must be positive. EPS growth rate (CAGR) is 13.3%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
Cyclical businesses have volatile earnings tied to commodity prices. For these companies, dividend track record is more telling than earnings consistency.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 24 Feb 2026Interim | 24 Mar 2026 | $0.18 | 100% | $0.12 | $0.05 |
| 26 Aug 2025Final | 23 Sept 2025 | $0.13 | 0% | $0.13 | $0.00 |
| 25 Feb 2025Interim | 25 Mar 2025 | $0.09 | 0% | $0.09 | $0.00 |
| 27 Aug 2024Final | 24 Sept 2024 | $0.14 | 0% | $0.14 | $0.00 |
| 22 Feb 2024Interim | 21 Mar 2024 | $0.15 | 0% | $0.15 | $0.00 |
| 22 Aug 2023Final | 19 Sept 2023 | $0.17 | 0% | $0.17 | $0.00 |
| 24 Feb 2023Interim | 24 Mar 2023 | $0.12 | 0% | $0.12 | $0.00 |
| 25 Aug 2022Final | 22 Sept 2022 | $0.22 | 0% | $0.22 | $0.00 |
| 11 Mar 2022Interim | 8 Apr 2022 | $0.12 | 0% | $0.12 | $0.00 |
| 2 Sept 2021Final | 30 Sept 2021 | $0.12 | 0% | $0.12 | $0.00 |
6 years of consistent dividends meets Barsi's 6-year minimum requirement.
Current Snapshot
History
6yr
Predictability
Variable
Payout Health
High risk
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 6 years of dividend history (2021–2026). No suspensions detected — 6 consecutive years of payments. Predictability: Variable. Payout health: High risk. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A consistent track record through recent years gives confidence your income will continue. This company has shown commitment to shareholder returns.
Sources
Current price ($4.03) is 3% above the ceiling. Wait for a drop to lock in 6% yield.
Current Snapshot
Current Price
$4.03
Max Buy Price
$3.90
Delta
-3.3%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $4.03 and a ceiling of $3.90, the entry is 3.3% above the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
At this price, you won't achieve Barsi's target 6% yield. Consider waiting for a pullback — market volatility often creates more favourable valuations for patient investors.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
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