Owns net overriding royalty interests in oil and gas producing properties. Receives a percentage of revenue from the sale of oil and gas produced from its properties. Now — the numbers.
This is an established company with proven profits.
An average decline of 10% 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 8.9× for every dollar of annual profit — cheap, which is either an opportunity or a warning.
Against companies in its own sector, it looks cheaper than 80% 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.
The cash pile is strong; debt and other items pull the grade toward the middle.
The price looks reasonable next to what the company earns.
Clearly below the class average.
Clearly below the class average.
Price Momentum: The stock has lagged the market in recent months; investor interest is weak right now.
Growth: Sales growth trails the sector average.
An investor who bought at the very peak is down 92% 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 85% — 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.
It pays out $0.21 per share each year — regular cash for whoever holds the stock.
Over the last 4 years, sales fell about 10% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
Over the last 12 months, executives reported 216 sells against just 0 buys. Not an alarm bell by itself, but a number worth watching.
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.