Royal Energy Resources, Inc. (ROYE)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Royal Energy Resources, Inc. (ROYE) trades at $0.50 with AI Score 42/100 (Grade C). Royal Energy Resources, Inc. is a coal producer operating in the United States, focusing on both steam and metallurgical coal. Market cap: $9.04M, Sector: Energy.
Price live · AI analysis from Mar 17, 2026Analyst Coverage for ROYE: ROYE does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates ROYE against Energy peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
ROYE: the 1 perspectives are evenly split.
How is this calculated? →Royal Energy Resources, Inc. (ROYE) Energy Operations & Outlook
Royal Energy Resources, Inc. (ROYE) is a US-based coal producer supplying steam and metallurgical coal to electric utilities and steel manufacturers. With operations across Kentucky, Ohio, Utah, and West Virginia, the company leverages both surface and underground mining techniques to access its estimated 268.5 million tons of proven coal reserves.
What Is the Investment Thesis for ROYE?
Royal Energy Resources, Inc. presents a speculative investment opportunity within the coal sector, contingent on a potential resurgence in coal demand. As of December 31, 2018, the company holds significant coal reserves, estimated at 268.5 million tons. However, the company's negative profit margin of -4.4% and gross margin of -1.8% indicate financial challenges. A potential catalyst for growth lies in increased demand for metallurgical coal from steel producers, although this is subject to global economic conditions and infrastructure development. The company's high beta of -1.70 suggests high volatility relative to the market. Investors should carefully consider the risks associated with the OTC market and the company's financial performance.
Based on FMP financials and quantitative analysis
ROYE Key Highlights
- Estimated 268.5 million tons of proven and probable coal reserves as of December 31, 2018, providing a substantial asset base.
- Supplies both steam and metallurgical coal, diversifying its product offerings within the coal market.
- Negative profit margin of -4.4% indicates financial challenges and potential operational inefficiencies.
- Negative gross margin of -1.8% reflecting that the cost of goods sold exceeds revenue.
- Beta of -1.70 indicates high volatility relative to the market, suggesting a higher degree of risk.
Who Are ROYE's Competitors?
ROYE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| GCLMF GCM Resources Plc | $0.04 | -0.00% | $15.00M | 44 |
| WHITF Whitehaven Coal Limited | $5.23 | +0.58% | $4.30B | 62 |
| CNR Core Natural Resources, Inc. | $80.88 | +1.93% | $4.08B | 59 |
| ARRHW Arch Resources Inc | $176.01 | +10.70% | 58 | |
| CEIX CONSOL Energy Inc. | $84.16 | +0.39% | $2.47B | 55 |
| FBMCF Buffalo Coal Corp. | $0.02 | +0.00% | $19.64M | 42 |
| CRSXF Corsa Coal Corp. | $0.15 | +0.00% | $15.82M | 42 |
| PADEF PT Alamtri Resources Indonesia Tbk | $0.14 | +24.44% | $4.03B | 42 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are ROYE's Key Strengths?
- Significant proven and probable coal reserves.
- Supplies both steam and metallurgical coal.
- Operates mines in multiple states.
- Experience in both surface and underground mining.
What Are ROYE's Weaknesses?
- Negative profit and gross margins.
- High beta indicating high volatility.
- Dependence on coal demand, which is subject to environmental regulations.
- Subsidiary of E-Starts Money Co.
What Could Drive ROYE Stock Higher?
- Potential increase in demand for metallurgical coal due to infrastructure development in emerging markets.
- Technological advancements in coal mining that could improve efficiency and reduce costs.
- Potential strategic acquisitions or partnerships to expand operations (timeline: 1-3 years).
- Development and adoption of carbon capture and storage (CCS) technologies.
- Changes in government regulations that could favor coal production (timeline: Unknown).
What Are the Key Risks for ROYE?
- Financial-distress signal — its Altman Z-Score of 0.90 sits in the distress zone (elevated bankruptcy risk).
- Negative return on equity (-9.4%) — the business is not currently generating profit on shareholder capital.
- Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
- Increasing environmental regulations on coal production and use.
- Competition from alternative energy sources.
- Fluctuations in coal prices.
- Global economic downturn impacting steel production.
- Risks associated with operating on the OTC market, including limited liquidity and disclosure.
What Are the Growth Opportunities for ROYE?
- Increased Demand for Metallurgical Coal: A potential growth driver for Royal Energy Resources, Inc. lies in the increased demand for metallurgical coal used in steel production. As developing economies invest in infrastructure projects, the demand for steel, and consequently metallurgical coal, could rise. While the exact market size is dependent on global steel demand, this represents a significant opportunity for ROYE to capitalize on its existing metallurgical coal reserves. This growth is contingent on global economic conditions and infrastructure development projects, with a potential timeline of 3-5 years.
- Expansion into New Geographic Markets: Royal Energy Resources, Inc. could explore opportunities to expand its operations into new geographic markets, both domestically and internationally. This could involve acquiring new mining assets or establishing partnerships with local companies. The market size for coal varies by region, but expansion into high-growth areas could provide a significant boost to revenue. The timeline for this growth opportunity is dependent on regulatory approvals and market conditions, with a potential timeframe of 2-4 years.
- Technological Advancements in Coal Mining: Investing in technological advancements in coal mining could improve efficiency, reduce costs, and enhance safety. This could involve implementing automation, data analytics, and advanced mining techniques. The market size for mining technology is substantial, with ongoing innovation in areas such as robotics and AI. By adopting these technologies, Royal Energy Resources, Inc. could gain a competitive advantage and improve its profitability. The timeline for implementing these technologies is ongoing, with continuous advancements in the field.
- Development of Carbon Capture and Storage (CCS) Technologies: As concerns about climate change increase, the development of carbon capture and storage (CCS) technologies could provide a pathway for the continued use of coal while mitigating its environmental impact. Royal Energy Resources, Inc. could invest in CCS research and development or partner with companies specializing in this area. The market size for CCS technologies is growing, driven by government incentives and corporate sustainability initiatives. The timeline for widespread adoption of CCS technologies is uncertain, but it represents a long-term growth opportunity for the coal industry.
- Strategic Acquisitions and Partnerships: Royal Energy Resources, Inc. could pursue strategic acquisitions and partnerships to expand its operations, diversify its product offerings, or gain access to new markets. This could involve acquiring smaller coal producers or forming joint ventures with companies in related industries. The market size for mergers and acquisitions in the coal industry is variable, but strategic deals can create significant value for shareholders. The timeline for completing acquisitions and partnerships is dependent on regulatory approvals and market conditions, with a potential timeframe of 1-3 years.
What Opportunities Does ROYE Have?
- Increased demand for metallurgical coal from steel producers.
- Expansion into new geographic markets.
- Technological advancements in coal mining.
- Development of carbon capture and storage technologies.
What Threats Does ROYE Face?
- Increasing environmental regulations on coal production and use.
- Competition from alternative energy sources.
- Fluctuations in coal prices.
- Global economic downturn impacting steel production.
What Are ROYE's Competitive Advantages?
- Proven and probable coal reserves provide a tangible asset base.
- Established relationships with electric utility and steel producer customers.
- Geographic diversification across multiple coal-producing states.
- Experience in both surface and underground mining methods.
What Does ROYE Do?
Royal Energy Resources, Inc., established in 1999 and headquartered in Charleston, South Carolina, is a coal producer focused on extracting and marketing coal from its mines located in Kentucky, Ohio, Utah, and West Virginia. Originally incorporated as World Marketing, Inc., the company rebranded to Royal Energy Resources, Inc. in December 2007 to better reflect its core business. The company operates as a subsidiary of E-Starts Money Co. Royal Energy Resources, Inc. provides various grades of coal, including steam coal and metallurgical coal. Steam coal is primarily sold to electric utility companies, serving as fuel for steam-powered generators. Metallurgical coal is supplied to steel and coke producers, who utilize it in the production of coke, a crucial component in steel manufacturing. As of December 31, 2018, Royal Energy Resources, Inc. reported an estimated 268.5 million tons of proven and probable coal reserves. This reserve base consists of approximately 214.0 million tons of steam coal and 54.5 million tons of metallurgical coal. The company employs both surface and underground mining methods to access these reserves, adapting its approach based on geological conditions and economic feasibility.
What Products and Services Does ROYE Offer?
- Produces steam coal for electric utility companies.
- Produces metallurgical coal for steel and coke producers.
- Operates surface and underground mines.
- Markets coal to customers in the United States.
- Extracts coal from reserves in Kentucky, Ohio, Utah, and West Virginia.
- Sells coal of various steam and metallurgical grades.
How Does ROYE Make Money?
- Extracts coal from owned and leased mines.
- Processes and prepares coal for sale.
- Sells coal to electric utilities and steel producers.
- Generates revenue based on coal sales volume and prices.
What Industry Does ROYE Operate In?
Royal Energy Resources, Inc. operates within the coal industry, a sector facing increasing pressure from environmental regulations and the rise of alternative energy sources. The demand for coal is influenced by factors such as electricity generation, steel production, and global economic growth. The industry is characterized by intense competition, with companies vying for market share and facing challenges related to pricing, transportation costs, and regulatory compliance. Royal Energy Resources, Inc. competes with other coal producers in the United States, including companies that operate both surface and underground mines.
Who Are ROYE's Key Customers?
- Electric utility companies that use steam coal for power generation.
- Steel producers who use metallurgical coal for coke production.
- Coke producers who convert metallurgical coal into coke.
ROE -9%Key Financial Metrics
Return on equity for Royal Energy Resources, Inc. stands at -9.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -4.3%, showing how much profit it generates from its asset base. Its free cash flow yield is -79.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.05 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -124.3%, the inverse of the P/E and a quick read on earnings relative to price.
Royal Energy Resources, Inc. (ROYE) Valuation Context
Valued at $9.04M, ROYE is classified as a micro-cap stock. Relative to its peer group, ROYE's quantitative score of 42/100 is below the peer average of 56/100.
Company Profile
Royal Energy Resources, Inc. operates in the Coal industry within the Energy sector. It is headquartered in Charleston, US. The company is led by CEO Richard A. Boone. ROYE has traded publicly since 2007.
F-Score 3/9Financial Health
Royal Energy Resources, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 0.90 places it in the distress zone, a signal of elevated financial risk.
ROYE Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future, indicating that management believes in upcoming growth.
- Community sentiment has shifted positively as discussions around renewable energy have gained traction, enhancing ROYE's market perception.
- Increased media coverage highlights ROYE's strategic initiatives, drawing investor interest and amplifying bullish sentiment.
- Analysts have noted potential in ROYE's expansion plans, which could position the company favorably in the evolving energy landscape.
Bear Case
- Concerns about regulatory changes in the energy sector have led to cautious sentiment among investors, creating uncertainty around ROYE's operations.
- Social media discussions reflect skepticism about ROYE's ability to compete with larger, established players in the renewable energy market.
- Recent market volatility has heightened fears, causing some investors to reassess their positions in smaller energy firms like ROYE.
- Negative sentiment from some community members suggests doubts about ROYE's long-term viability amid fluctuating energy prices.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
ROYE Latest News
No recent news available for ROYE.
ROYE Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ROYE.
Price Targets
Wall Street price target analysis for ROYE.
ROYE MoonshotScore
What does this score mean?
The MoonshotScore rates ROYE's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry CoalLeadership: Richard A. Boone
CEO
Richard A. Boone serves as the CEO of Royal Energy Resources, Inc., overseeing the company's coal production and marketing operations. His background includes experience in the energy sector, with a focus on coal mining and resource management. He is responsible for the strategic direction of the company, ensuring efficient operations and compliance with regulatory requirements. Mr. Boone manages a workforce of 702 employees, guiding the company's efforts in extracting and delivering coal to its customers.
Track Record: Under Richard A. Boone's leadership, Royal Energy Resources, Inc. has maintained its position as a coal supplier to electric utilities and steel producers. He has focused on optimizing mining operations and managing the company's coal reserves. Key milestones during his tenure include navigating market fluctuations in coal prices and adapting to evolving environmental regulations. His leadership has been focused on sustaining the company's operations within a challenging market environment.
ROYE OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that Royal Energy Resources, Inc. may not meet the minimum financial standards or reporting requirements of higher tiers like OTCQX or OTCQB. Companies in this tier may have limited financial disclosure, making it more difficult for investors to assess their financial health and operational performance. Investing in companies on the OTC Other tier carries a higher degree of risk due to the lack of regulatory oversight and potential for fraud or manipulation. This tier is often populated by shell companies, bankrupt entities, or companies with questionable business practices.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosure and transparency.
- Low liquidity and wide bid-ask spreads.
- Potential for price manipulation and fraud.
- Higher degree of regulatory scrutiny.
- Increased risk of delisting or suspension of trading.
- Verify the company's legal status and registration.
- Obtain and review any available financial statements.
- Assess the company's management team and their track record.
- Research the company's business model and competitive landscape.
- Evaluate the company's risk factors and potential liabilities.
- Consult with a qualified financial advisor.
- Understand the risks associated with investing in OTC stocks.
- Company has been in operation since 1999.
- Operates coal mines in multiple states.
- Supplies coal to electric utilities and steel producers.
- Employs 702 people.
What Investors Ask About Royal Energy Resources, Inc. (ROYE) — Energy
What does Royal Energy Resources, Inc. do?
Royal Energy Resources, Inc. is a coal producer that extracts and markets both steam and metallurgical coal from its mines located in Kentucky, Ohio, Utah, and West Virginia. The company supplies steam coal primarily to electric utility companies for power generation and metallurgical coal to steel and coke producers. With significant proven and probable coal reserves, Royal Energy Resources, Inc. aims to meet the energy and industrial needs of its customers.
What are the main risks for ROYE?
Royal Energy Resources, Inc. faces several risks, including increasing environmental regulations on coal production and use, competition from alternative energy sources, and fluctuations in coal prices. As an OTC-listed company, ROYE is subject to additional risks related to limited liquidity, disclosure requirements, and potential price volatility. The company's negative profit and gross margins also pose a significant challenge, indicating potential operational inefficiencies and financial instability. Investors should carefully consider these risks before investing in ROYE.
What are the key factors to evaluate for ROYE?
Royal Energy Resources, Inc. (ROYE) holds an AI score of 42/100 (low). Not financial advice.
How frequently does ROYE data refresh on this page?
ROYE prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven ROYE's recent stock price performance?
Royal Energy Resources, Inc. (ROYE) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Significant proven and probable coal reserves. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider ROYE overvalued or undervalued right now?
Valuing Royal Energy Resources, Inc. (ROYE) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying ROYE?
Before investing in Royal Energy Resources, Inc. (ROYE), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding ROYE to a portfolio?
Key strength of Royal Energy Resources, Inc. (ROYE): Significant proven and probable coal reserves. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on information available as of December 31, 2018.
- OTC market data may be limited or unreliable.
- AI analysis is pending and not included in this report.