Stock Analysis & Valuation Maverix Metals Inc. (MMX.TO)

• Previous Close: $6.53
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	3.70	-43
Graham Formula	4.30	-34

Strategic Investment Analysis

Company Overview

Maverix Metals Inc. (TSX: MMX) is a leading precious metals royalty and streaming company headquartered in Vancouver, Canada. Founded in 2016, Maverix specializes in acquiring and managing royalties and streams on gold, silver, and other base metals across the Americas and Australia. With a diversified portfolio of over 100 royalties and streams, the company provides investors with exposure to high-quality mining assets without the operational risks associated with traditional mining companies. Maverix operates in the Other Precious Metals industry within the Basic Materials sector, leveraging its strategic partnerships with mining operators to generate stable, long-term cash flows. The company’s business model focuses on low-cost, scalable growth through accretive acquisitions, making it an attractive option for investors seeking precious metals exposure with reduced volatility. Maverix’s strong financial performance and commitment to shareholder returns, including a consistent dividend, reinforce its position as a key player in the royalty and streaming space.

Investment Summary

Maverix Metals presents an attractive investment opportunity for those seeking exposure to precious metals with lower operational risk. The company’s royalty and streaming model provides stable cash flows, evidenced by its FY 2021 revenue of CAD 57.5 million and net income of CAD 24.1 million. With a strong operating cash flow of CAD 43.2 million and a manageable debt level of CAD 12.5 million, Maverix maintains a solid financial position. The company’s dividend yield, supported by a payout of CAD 0.11 per share, adds to its appeal. However, investors should consider the inherent risks tied to commodity price fluctuations and the performance of underlying mining assets. Maverix’s growth strategy relies on acquiring new royalties, which could face competition or execution challenges. Overall, the company’s diversified portfolio and low-cost structure make it a compelling choice in the precious metals sector.

Competitive Analysis

Maverix Metals competes in the precious metals royalty and streaming sector, a niche but growing segment of the mining industry. The company’s competitive advantage lies in its diversified portfolio of over 100 royalties and streams, reducing reliance on any single asset. Unlike traditional miners, Maverix avoids high capital expenditures and operational risks, focusing instead on financing mining projects in exchange for future metal production. This asset-light model allows for scalable growth and strong margins. Maverix’s strategic focus on high-quality, long-life assets in stable jurisdictions (Americas and Australia) further mitigates geopolitical risks. However, the company faces competition from larger, more established royalty firms with greater financial resources and broader global portfolios. Maverix’s relatively smaller scale may limit its ability to compete for premium assets, but its agility and targeted acquisition strategy enable it to capitalize on mid-tier opportunities. The company’s strong relationships with mining operators and its ability to structure creative financing deals provide an edge in securing attractive royalties. Maverix’s commitment to shareholder returns, including dividends, enhances its appeal relative to peers that may prioritize growth over income.

Major Competitors

• Franco-Nevada Corporation (FNV.TO): Franco-Nevada is the largest player in the royalty and streaming sector, with a globally diversified portfolio. Its scale and financial strength allow it to secure premium assets, but its size may limit growth opportunities compared to smaller, more agile competitors like Maverix. Franco-Nevada’s established reputation and lower-risk profile make it a preferred choice for conservative investors.
• Wheaton Precious Metals Corp. (WPM.TO): Wheaton Precious Metals specializes in streaming agreements, particularly in silver and gold. Its focus on high-quality, long-life assets provides stability, but its reliance on fewer, larger streams increases exposure to individual asset performance. Wheaton’s strong balance sheet and industry relationships give it an advantage, but Maverix’s broader royalty portfolio offers greater diversification.
• Osisko Gold Royalties Ltd (OR.TO): Osisko Gold Royalties focuses on gold-focused royalties and streams, with a strong presence in Canada. Its mid-tier size allows for strategic acquisitions, similar to Maverix, but its narrower geographic focus may limit diversification. Osisko’s active development role in some assets differentiates it from Maverix’s purely passive model.
• Sandstorm Gold Ltd. (SAND): Sandstorm Gold operates in the streaming space with a portfolio of over 200 royalties and streams. Its smaller scale and higher growth focus align with Maverix’s strategy, but Sandstorm’s higher leverage and exposure to development-stage assets increase risk. Maverix’s more conservative approach may appeal to income-focused investors.