Holds 90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties. Now — the numbers.
This is an established company with proven profits.
An average decline of 6% a year over the last 4 years — the most striking risk in this picture.
If every debt were paid off today, $2.1M would still be left in the vault — a solid cushion for hard times.
The market pays 15.6× for every dollar of annual profit — around what a business like this usually costs.
Against companies in its own sector, it looks cheaper than 42% of them.
No analyst target is on record for this company.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Debt is low and cash is strong; the finances stand solid.
Clearly below the class average.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Growth: Sales growth trails the sector average.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
An investor who bought at the very peak is down 61% today. The business is the same; what changed most is the price — and the expectations — the market pins on it.
The net profit margin is 78% — still a thick cushion, though costs have been eating into it lately.
There is $2.1M in the vault; even if every debt were paid off, $2.1M would remain.
Over the last 12 months, company executives reported 34 buys and 1 sell. Management buying with its own money is usually read as a good sign.
Over the last 4 years, sales fell about 6% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
The growth engine is running at low revs right now. Report-card grade: 37/100.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 42/100.
We grade companies — revenue, margins, balance sheets. This is a fund, so there is no report card to give. That is not a low grade; it is a different kind of thing.
One-line summary: a basket, not a business. Judge it by what it holds.