Sabine Royalty (SBR) AI Stock Analysis

• Market Cap: $896.48M
• Dividend Yield: 8.74%
• Average Volume (3M): 41.06K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.60
• Revenue Growth: -11.35%
• EPS Growth: -11.76%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 5.46
• Shares Outstanding: 14,579,345
• 10 Day Avg. Volume: 50,872
• 30 Day Avg. Volume: 41,057
• PEG Ratio: 2.07
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.68
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sabine Royalty's strong profitability and debt-free balance sheet are significant strengths. However, recent challenges with revenue declines and cash flow volatility pose risks. The technical analysis indicates bearish short-term momentum, although the valuation remains attractive due to a low P/E ratio and high dividend yield.

Sabine Royalty Business Overview & Revenue Model

Company Description

Sabine Royalty Trust (SBR) is an express trust that focuses on managing, developing, and monetizing its interests in oil and gas properties across multiple states in the United States. The trust holds a diversified portfolio of royalty and mineral interests in producing and non-producing oil and gas properties, providing investors with a stream of income derived primarily from energy production activities.

How the Company Makes Money

Sabine Royalty Trust generates revenue primarily through the collection of royalties and mineral interests from its oil and gas properties. The trust receives a percentage of the revenue generated from the sale of oil and gas extracted from its properties. This income is then distributed to shareholders in the form of monthly dividends. The trust's earnings are largely influenced by the fluctuating market prices of oil and gas, production levels, and operational efficiencies of its managed properties. Additionally, the trust does not engage in any operations itself but relies on third-party operators who manage the day-to-day operations of the properties.

Sabine Royalty Financial Statement Overview

Summary

Sabine Royalty demonstrates strong financial performance with high profitability and efficiency, bolstered by a debt-free balance sheet and improving cash flow situation. The consistent growth in revenue and robust margins highlight a promising growth trajectory. Nonetheless, the company should focus on enhancing its cash flow conversion ratios for sustained financial health.

Income Statement

The company exhibits strong profitability with a consistent Gross Profit Margin of 100% across TTM and annual periods, indicating no cost of goods sold. The Net Profit Margin for TTM is approximately 96.7%, showing excellent cost management and profitability. Revenue growth from the previous year is 4.28%, demonstrating positive growth trajectory. The EBIT and EBITDA margins are also robust at 96.57% and 96.4% respectively for TTM, supporting strong operational efficiency.

Balance Sheet

The balance sheet reveals solid financial health with zero debt, resulting in a Debt-to-Equity Ratio of 0. The Equity Ratio for TTM is 97.46%, reflecting a strong equity base relative to total assets. However, Return on Equity (ROE) for TTM is high at 111%, indicating highly efficient use of equity, although it may also suggest potential over-leverage on equity returns.

Cash Flow

The company shows a significant improvement in cash flows with a positive Free Cash Flow of $24.46 million in the TTM period, compared to negative cash flows in previous years. The Operating Cash Flow to Net Income Ratio is 0.26 for TTM, indicating that a substantial portion of income is converted into cash flow. The Free Cash Flow to Net Income Ratio is also 0.26, showing alignment with operating cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
97.83M	93.82M	125.75M	60.90M	36.33M	46.73M
	Gross Profit
97.83M	93.82M	125.75M	60.90M	36.33M	46.73M
	EBIT
94.47M	90.89M	122.23M	57.85M	33.28M	43.87M
	EBITDA
94.30M	89.45M	122.72M	57.85M	33.28M	43.87M
	Net Income Common Stockholders
94.62M	90.25M	122.69M	57.86M	33.31M	44.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.43M	9.34M	16.17M	16.19M	4.79M	6.73M
	Total Assets
8.06M	9.44M	16.28M	16.32M	4.95M	6.91M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-7.43M	-9.34B	-16.17M	-16.19B	-4.79B	-6.73B
	Total Liabilities
484.83K	878.92K	4.87M	1.41M	965.96K	1.26M
	Stockholders Equity
7.57M	8.56M	11.41M	14.91M	3.99M	5.65M
Cash Flow		Free Cash Flow
24.46M	-93.01M	122.69M	57.86M	-1.58M	44.01M
	Operating Cash Flow
24.46M	-93.01M	122.69M	57.86M	-1.58M	44.01M
	Investing Cash Flow
0.00	0.00	0.00	0.00	0.00	0.00
	Financing Cash Flow
-20.38M	0.00	0.00	0.00	0.00	-44.03M

Sabine Royalty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBR, the sentiment is Negative. The current price of 63.9 is below the 20-day moving average (MA) of 65.49, below the 50-day MA of 66.07, and above the 200-day MA of 62.27, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 65.08 is Neutral, neither overbought nor oversold. The STOCH value of 82.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBR.

Sabine Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSM	73 Outperform	$2.89B	11.93	23.12%	10.71%	-12.71%	-39.85%
MNR	68 Neutral	$1.55B	6.90	15.49%	21.02%	―	―
SBR	66 Neutral	$896.48M	11.26	922.55%	8.74%	-11.35%	-11.76%
DMLP	62 Neutral	$1.29B	12.76	32.48%	11.82%	-1.39%	-23.38%
SJT	61 Neutral	$238.64M	46.25	189.96%	8.28%	-85.94%	-88.55%
Sector *	57 Neutral	$7.44B	4.21	-3.75%	6.64%	-0.07%	-64.77%
PRT	54 Neutral	$43.92M	8.51	6.96%	12.53%	-16.25%	-17.58%