Acquires and holds an 80% term net profits interest in oil and natural gas properties. Generates income from the net proceeds of production and sale of these interests. Now — the numbers.
This is an established company with proven profits.
No real growth (-2% a year).
If every debt were paid off today, $2.0M would still be left in the vault — a solid cushion for hard times.
The market pays 7.7× 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 72% 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.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Growth: Sales growth trails the sector average.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
An investor who bought at the very peak is down 74% 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 86% — still a thick cushion, though costs have been eating into it lately.
There is $2.0M in the vault; even if every debt were paid off, $2.0M would remain.
It pays out $0.58 per share each year — regular cash for whoever holds the stock.
Over the last 4 years, sales fell about 2% 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: 25/100.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 37/100.
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.