Dorchester Minerals (DMLP) AI Stock Analysis

• Market Cap: $1.34B
• Dividend Yield: 10.26%
• Average Volume (3M): 110.28K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.40
• Revenue Growth: 12.35%
• EPS Growth: -18.66%
• Country: US
• Employees: 27
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.36
• Shares Outstanding: 47,339,756
• 10 Day Avg. Volume: 134,550
• 30 Day Avg. Volume: 110,282
• PEG Ratio: 0.12
• Price to Book (P/B): 6.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.66
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 9.46
• Enterprise Value/Ebitda: 2.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $31.00 ▲(9.50%Upside)

Dorchester Minerals has a strong financial foundation with excellent balance sheet health and profitability, contributing significantly to the score. The valuation is favorable due to a high dividend yield and reasonable P/E ratio. However, mixed technical indicators suggest caution, preventing a higher score.

Dorchester Minerals Business Overview & Revenue Model

Company Description

Dorchester Minerals, L.P. (DMLP) is a publicly traded Delaware limited partnership engaged in the acquisition, ownership, and administration of producing and non-producing mineral, royalty, overriding royalty, net profits, and leasehold interests. Operating within the oil and natural gas sectors, the company primarily focuses on managing its extensive portfolio of properties located in various onshore basins across the United States, leveraging its expertise to maximize the value of its diverse asset base.

How the Company Makes Money

Dorchester Minerals, L.P. generates revenue primarily through the collection of royalties and net profits interests derived from its extensive portfolio of producing oil and natural gas properties. These revenue streams include royalties received from operators who extract and sell hydrocarbons from the company's mineral and royalty interests, and net profits interests which represent a percentage of the profits from production after the deduction of operational and development costs. The company's earnings are significantly influenced by fluctuations in commodity prices, production volumes, and operational efficiencies. While Dorchester Minerals does not directly engage in exploration or production activities, its strategic partnerships with operators who manage these activities on its properties play a critical role in optimizing its revenue potential.

Dorchester Minerals Financial Statement Overview

Summary

Dorchester Minerals shows a strong financial position with high profitability, stable growth, and excellent balance sheet metrics. The company's low leverage and efficient cash flow management provide a solid foundation for future growth, although revenue growth has slowed slightly.

Income Statement

Dorchester Minerals has demonstrated strong profitability with a high gross profit margin of 66.15% and a solid net profit margin of 52.18% for the TTM (Trailing-Twelve-Months). While total revenue increased by 7.54% from 2024, there was a slight decline from the 2023 levels. Despite this, the company's EBIT and EBITDA margins remain robust, indicating effective cost management.

Balance Sheet

The company maintains a very healthy balance sheet with a low debt-to-equity ratio of 0.003, signaling minimal financial leverage. The equity ratio stands at an impressive 99.07%, reflecting strong financial stability and shareholder funding. Return on Equity (ROE) is also commendable at 26.21%, demonstrating efficient use of equity capital.

Cash Flow

Dorchester Minerals exhibits strong cash flow metrics with a consistent operating cash flow to net income ratio of 1.52. The free cash flow to net income ratio is equally solid, supporting sustainable dividend payments and potential reinvestments. However, the free cash flow growth rate shows minimal change, which could indicate a plateau in cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
173.71M	161.52M	163.80M	170.80M	93.42M	46.93M
	Gross Profit
114.94M	104.38M	125.28M	138.83M	75.36M	29.33M
	EBIT
91.92M	0.00	114.12M	130.61M	70.17M	21.87M
	EBITDA
127.59M	135.22M	140.62M	149.90M	80.86M	34.02M
	Net Income Common Stockholders
90.65M	92.45M	110.39M	130.61M	70.17M	21.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.55M	42.51M	47.02M	40.75M	28.31M	11.23M
	Total Assets
349.04M	366.81M	191.06M	176.24M	146.81M	88.33M
	Total Debt
974.00K	1.04M	1.31M	1.59M	1.89M	2.19M
	Net Debt
-40.57M	-41.47M	-45.71M	-39.16M	-26.42M	-9.05M
	Total Liabilities
5.90M	5.02M	5.51M	4.72M	4.40M	3.76M
	Stockholders Equity
345.79M	363.79M	185.44M	171.52M	142.41M	84.56M
Cash Flow		Free Cash Flow
138.07M	132.64M	139.84M	147.05M	70.31M	39.41M
	Operating Cash Flow
138.07M	132.64M	139.84M	147.05M	70.31M	39.41M
	Investing Cash Flow
12.51M	14.72M	2.28M	2.09M	2.58M	6.13M
	Financing Cash Flow
-146.76M	-151.88M	-135.85M	-136.69M	-55.81M	-49.64M

Dorchester Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.31
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DMLP, the sentiment is Positive. The current price of 28.31 is above the 20-day moving average (MA) of 27.73, above the 50-day MA of 27.87, and below the 200-day MA of 29.58, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.88 is Neutral, neither overbought nor oversold. The STOCH value of 88.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DMLP.

Dorchester Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DMLP	74 Outperform	$1.34B	13.43	33.71%	10.26%	12.35%	-18.66%
BSM	70 Outperform	$2.95B	15.21	19.93%	10.78%	-12.71%	-39.85%
KRP	68 Neutral	$1.73B	45.09	2.88%	13.32%	3.20%	-91.39%
SBR	66 Neutral	$968.07M	12.58	798.58%	8.09%	-11.35%	-11.76%
SJT	61 Neutral	$303.89M	291.70	39.61%	0.34%	-85.94%	-88.55%
Sector *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%

Dorchester Minerals Corporate Events

Dorchester Minerals Elects Board and Approves Auditor

On May 14, 2025, Dorchester Minerals, L.P. held its Annual Meeting of Limited Partners where unitholders voted on key matters. Three managers, Allen D. Lassiter, C.W. Russell, and Sarah N. Wariner, were elected to the Board of Managers and appointed to the Advisory Committee. Additionally, Grant Thornton LLP was approved as the independent registered public accounting firm for the year ending December 31, 2025.

Dorchester Minerals to Hold Annual Meeting and Presentation

On May 14, 2025, Dorchester Minerals, L.P. will hold its Annual Meeting of Limited Partners followed by an investor presentation in Dallas, Texas. During the presentation, CEO Bradley Ehrman and other employees will discuss the company’s historical financial and operational information, providing stakeholders with insights into past performance.

Dorchester Minerals Reports Q1 2025 Financial Results

Dorchester Minerals, L.P. announced its financial results for the first quarter ended March 31, 2025, reporting a net income of $17,642,000 or $0.36 per common unit. Despite a decrease in net income compared to the previous year, the company saw an increase in operating revenues from $30,979,000 in 2024 to $43,164,000 in 2025. The company had previously declared a first quarter distribution of $0.725835 per common unit payable on May 15, 2025. These results highlight the company’s continued focus on managing its mineral and royalty interests, although the net income per common unit decreased from $0.44 in 2024.

Dorchester Minerals Announces Q1 2025 Cash Distribution

On April 24, 2025, Dorchester Minerals, L.P. announced a cash distribution of $0.725835 per common unit for the first quarter of 2025, reflecting activities up to March 31, 2025. The distribution, payable on May 15, 2025, includes cash receipts from oil and natural gas sales, with a significant portion attributed to sales from late 2024 and early 2025. The announcement highlights the company’s financial performance and its implications for stakeholders, particularly in terms of tax withholding for non-U.S. investors.