Dorchester Minerals (DMLP) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: 11.49%
• Average Volume (3M): 77.91K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.39
• Revenue Growth: 12.35%
• EPS Growth: -18.66%
• Country: US
• Employees: 27
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.36
• Shares Outstanding: 47,339,756
• 10 Day Avg. Volume: 74,456
• 30 Day Avg. Volume: 77,912
• PEG Ratio: -3.99
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.45
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 11.03
• Enterprise Value/Ebitda: 2.33
• 1Y Price Target: $31.00
• Price Target Upside: 12.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $31.00 ▲(12.65%Upside)

Dorchester Minerals scores highly due to its strong financial health, characterized by high profitability and low leverage. The valuation is attractive, supported by a high dividend yield. However, technical indicators suggest a neutral market sentiment, which balances the score.

Dorchester Minerals Business Overview & Revenue Model

Company Description

Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of producing and nonproducing natural gas and crude oil royalty, net profit, and leasehold interests in the United States. Its royalty properties consist of producing and nonproducing mineral, royalty, and overriding royalty interests located in 582 counties and parishes in 26 states; and net profits interests represent net profits overriding royalty interests in various properties owned by the operating partnership. Dorchester Minerals Management LP serves as the general partner of Dorchester Minerals, L.P. The company was founded in 1982 and is based in Dallas, Texas.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	161.52M	163.80M	170.80M	93.42M	46.93M
Gross Profit	104.38M	125.28M	138.83M	75.36M	29.33M
EBITDA	135.22M	140.62M	149.90M	80.86M	34.02M
Net Income	92.45M	110.39M	130.61M	70.17M	21.87M
Balance Sheet
Total Assets	366.81M	191.06M	176.24M	146.81M	88.33M
Cash, Cash Equivalents and Short-Term Investments	42.51M	47.02M	40.75M	28.31M	11.23M
Total Debt	1.04M	1.31M	1.59M	1.89M	2.19M
Total Liabilities	5.02M	5.51M	4.72M	4.40M	3.76M
Stockholders Equity	363.79M	185.44M	171.52M	142.41M	84.56M
Cash Flow
Free Cash Flow	132.64M	139.84M	147.05M	70.31M	39.41M
Operating Cash Flow	132.64M	139.84M	147.05M	70.31M	39.41M
Investing Cash Flow	14.72M	2.28M	2.09M	2.58M	6.13M
Financing Cash Flow	-151.88M	-135.85M	-136.69M	-55.81M	-49.64M

Dorchester Minerals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DMLP, the sentiment is Neutral. The current price of 27.52 is below the 20-day moving average (MA) of 27.58, below the 50-day MA of 27.65, and below the 200-day MA of 29.53, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 47.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DMLP.

Dorchester Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DMLP	73 Outperform	$1.30B	13.13	33.71%	11.49%	12.35%	-18.66%
BSM	70 Outperform	$2.60B	13.43	19.93%	12.14%	-12.71%	-39.85%
KRP	68 Neutral	$1.79B	45.09	2.88%	11.56%	3.20%	-91.39%
Sector *	67 Neutral	$15.27B	9.94	6.24%	5.21%	4.47%	-70.67%
SBR	66 Neutral	$967.34M	12.42	798.58%	7.64%	-11.35%	-11.76%
SJT	61 Neutral	$273.59M	251.97	39.61%	0.39%	-85.94%	-88.55%
CRT	―	$57.24M	9.60	240.32%	9.65%	―	―

Dorchester Minerals Corporate Events

Dorchester Minerals Announces Q2 Cash Distribution

On July 24, 2025, Dorchester Minerals, L.P. announced a second quarter cash distribution of $0.620216 per common unit, reflecting activities for the period ending June 30, 2025. The distribution, payable on August 14, 2025, is based on cash receipts from oil and natural gas sales, totaling approximately $26.6 million from royalty properties and $3.1 million from net profits interest. Additionally, $4.2 million was received from lease bonus and other income. The announcement also included the availability of the 2024 Schedule K-3 for unitholders, with implications for foreign tax credit computations and federal income tax withholding for non-U.S. investors.

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.