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Empress Royalty (TSXV:EMPR) has drawn fresh attention after releasing full year 2025 results alongside new 2026 production guidance, giving investors updated clarity on both recent profitability and expected attributable gold equivalent volumes.
See our latest analysis for Empress Royalty.
The share price has recently cooled, with a 1 day share price return showing a 6% decline and a 7 day share price return showing a 7.6% decline at CA$1.10. However, the 1 year total shareholder return of about 180% points to strong longer term momentum that recent guidance and earnings have brought back into focus.
If this update has you looking across precious metals, it could be a good moment to scan our list of 28 elite gold producer stocks for other potential royalty and mining ideas.
With earnings per share at US$0.06, net income of US$7.44 million and the share price cooling after a big 1 year run, is Empress Royalty still mispriced or is the market already baking in future growth?
Price-to-Earnings of 14x: Is it justified?
On a P/E of 14x at around CA$1.10, Empress Royalty is priced below both the wider Canadian market and the Canadian metals and mining industry averages.
The P/E multiple compares the current share price to earnings per share and, for a royalty business like Empress, it gives a quick read on what investors are currently paying for each dollar of profit.
Here, a 14x P/E sits below the Canadian market average of 16.8x, below the Canadian metals and mining industry average of 18.6x, and also below a peer group average of 27.5x. This signals the market is assigning a lower earnings multiple than many comparable names.
Given Empress has high quality earnings, a current net profit margin of 43.3% that is ahead of last year, and a return on equity of 26.7%, that discount versus industry and peer averages stands out as a valuation gap based on earnings alone. This is despite the DCF model currently indicating a lower cash flow based fair value of about CA$0.02 per share.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 14x (UNDERVALUED)
However, the DCF implied value of about CA$0.02 per share and an intrinsic discount of roughly 61% highlight the risk that current earnings prove less durable than hoped.
Find out about the key risks to this Empress Royalty narrative.
Another angle from the SWS DCF model
While the 14x P/E suggests Empress Royalty is cheap relative to peers, our DCF model tells a different story. With an estimated cash flow value of about CA$0.02 per share versus a CA$1.10 price, the stock appears overvalued from that perspective. This raises the question of which signal investors may want to focus on.
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out Empress Royalty for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 7 high quality undervalued stocks . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
If this combination of indicators seems conflicting to you, that is the point. Take a moment to review the data yourself, weigh the balance of risks and potential rewards, then check out 2 key rewards.
Looking for more investment ideas?
If you are weighing what to do next, do not stop at a single royalty name. Broaden your watchlist with a few targeted stock ideas.
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Target value by scanning our list of 7 high quality undervalued stocks that pair reasonable pricing with solid fundamental profiles.
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Prioritise resilience with 8 resilient stocks with low risk scores , focusing on companies that score well on stability and risk controls.
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Hunt for the next potential standout using our screener containing 7 high quality undiscovered gems , where lesser known names show strong underlying metrics.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include EMPR.V .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
