Owns a net profits interest in oil and natural gas production. Receives 80% of the net profits from the sale of oil and natural gas. Now — the numbers.
This is an established company with proven profits.
No real growth (3% a year).
If every debt were paid off today, $2.7M would still be left in the vault — a solid cushion for hard times.
The market pays 17.6× for every dollar of annual profit — around what a business like this usually costs.
Against companies in its own sector, it looks cheaper than 77% 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.
Clearly above the class average — a step short of the very top.
There is growth, but not at top-of-the-class tempo.
Clearly below the class average.
Price Momentum: The stock has lagged the market in recent months; investor interest is weak right now.
An investor who bought at the very peak is down 67% 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 74% — still a thick cushion, though costs have been eating into it lately.
There is $2.7M in the vault; even if every debt were paid off, $2.7M would remain.
It pays out $0.22 per share each year — regular cash for whoever holds the stock.
Over the last 12 months, executives reported 69 sells against just 0 buys. Not an alarm bell by itself, but a number worth watching.
Buyers haven’t stepped back in yet; the price hasn’t found its footing. Report-card grade: 33/100. For a turnaround signal, the stock first needs to close the gap with the market.
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.