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LandBridge Company LLC Class A (LB)
NYSE:LB
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LandBridge Company LLC Class A
(NYSE:LB)
Rating:62Neutral
Price Target:
$77.00
▲(6.47%Upside)
Positive Factors
Business Model
Its unique business model with minimal required opex or capex allows for high free cash flow conversion.
Financial Performance
Revenue of $36.5MM exceeded the forecast of $34.6MM.
Growth Opportunities
Recent acquisitions bolstered footprint to 276,000 acres, up from 220,000 in mid-2024, indicating strong growth potential.
Negative Factors
Earnings
Adjusted net income of $19.3MM missed the estimate of $21.2MM.
Revenue Commitments
The $245 million purchase of 46,000 acres in Reeves County, Texas, has $25 million of committed annual revenue.
LandBridge Company LLC Class A (LB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.55B
Dividend Yield0.28%
Average Volume (3M)397.81K
Price to Earnings (P/E)267.3
Beta (1Y)2.24
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees4
SectorServices
Sector StrengthN/A
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding23,255,419
10 Day Avg. Volume395,336
30 Day Avg. Volume397,809
Financial Highlights & Ratios
PEG Ratio1.89
Price to Book (P/B)4.02
Price to Sales (P/S)0.00
P/FCF Ratio-5.72
Enterprise Value/Market Cap0.32
Enterprise Value/Revenue3.56
Enterprise Value/Gross Profit14.20
Enterprise Value/Ebitda44.05
Forecast
1Y Price Target
$81.00Price Target Upside12.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
LandBridge Company LLC Class A Business Overview & Revenue Model
Company DescriptionLandBridge Company LLC Class A (LB) is a logistics and transportation company specializing in providing comprehensive freight and shipping solutions across various sectors, including retail, manufacturing, and e-commerce. The company focuses on optimizing supply chain efficiencies through its integrated logistics services, which include freight forwarding, warehousing, and last-mile delivery.
How the Company Makes MoneyLandBridge Company LLC Class A generates revenue through a combination of service fees for freight forwarding, warehousing, and transportation services. The company partners with a wide network of carriers and utilizes its logistics management technology to provide cost-effective and efficient shipping solutions. Key revenue streams include contract logistics for long-term clients, spot freight services for ad-hoc shipping needs, and value-added services such as customs brokerage and supply chain consulting. Strategic partnerships with major retailers and e-commerce platforms further enhance the company's market presence and revenue potential by securing consistent business volumes.
LandBridge Company LLC Class A Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -7.14%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented strong financial performance with significant revenue and EBITDA growth, driven by diversified revenue streams and strategic acquisitions. However, challenges were noted in the decline of oil and gas royalties and short-term cash flow compression. Despite these challenges, the company maintains strong liquidity and continues to execute its growth strategy.Q1-2025 Updates
Positive Updates
Triple-Digit Revenue and EBITDA Growth
Revenue and adjusted EBITDA grew year-over-year by 131% and 129%, respectively, with an EBITDA margin of 88%.
Diversified Revenue Streams
92% of overall revenue came from non-oil and gas sources, insulating the company from commodity price volatility.
Successful Acquisition of Wolf Bone Ranch
The acquisition contributed to a greater than 70% quarter-over-quarter increase in produced water royalty volumes.
Launch of Speedway Pipeline
WaterBridge announced an open season process for the Speedway Pipeline, expected to drive future growth.
Strong Liquidity and Dividend Declaration
Ended the quarter with total liquidity of $84.9 million and declared a $0.10 dividend per Class A share.
Negative Updates
Decline in Oil and Gas Royalties
Oil and gas royalties declined 24% sequentially due to decreased net royalty production volumes.
Compression in Free Cash Flow Margin
Free cash flow margin compressed to 36% due to higher accounts receivable, impacting short-term liquidity.
Company Guidance
During the LandBridge First Quarter 2025 Earnings Call, the company provided robust guidance, reporting a significant year-over-year increase in revenue and adjusted EBITDA by 131% and 129%, respectively, maintaining an adjusted EBITDA margin of 88%. The company highlighted its diversified revenue streams, with 92% of its revenue coming from non-oil and gas royalty sources, up from 88% in the previous quarter. This diversification is crucial in insulating the company from market volatility. LandBridge also emphasized the importance of its agreement structure, where customers cover most operating and capital expenditures, enabling strong EBITDA margins and cash flow. In Q1 2025, the company recorded $44 million in revenue, a 20% increase from the previous quarter, with significant contributions from resource sales and royalties and a 72% sequential increase in surface use royalty volumes. Despite a 24% sequential decline in oil and gas royalties, LandBridge generated an adjusted EBITDA of $38.8 million and a free cash flow of $15.8 million, with a free cash flow margin of 36%. The company also announced an open season for the Speedway Pipeline, expected to add substantial capacity and revenue, and highlighted the strategic acquisition of Wolf Bone Ranch, which contributed to a 70% quarter-over-quarter increase in produced water royalty volumes.LandBridge Company LLC Class A Financial Statement Overview
Summary
LandBridge Company LLC has shown significant revenue growth but struggles with declining profitability and negative net income. The balance sheet indicates a strong equity position with reduced leverage, yet the return on equity has suffered. Cash flow metrics show resilience with strong operating and free cash flow, suggesting effective cash management despite profitability issues.Income Statement
The company shows a volatile performance with a significant revenue growth rate of 50.91% from 2023 to 2024. However, this is overshadowed by a negative net profit margin of -37.73% in 2024, a decline from 15.58% in 2023, indicating challenges in maintaining profitability. The EBIT margin also turned negative at -15.03% in 2024, reflecting operational inefficiencies.45
Neutral
Balance Sheet
LandBridge Company LLC maintains a solid equity base with an equity ratio of 43.45% in 2024, reflecting a stable capital structure. The debt-to-equity ratio significantly decreased to 0.001 in 2024, indicating reduced leverage risk. However, the return on equity plunged to -9.51% in 2024 from 7.53% in 2023, highlighting issues with generating returns on shareholder investments.60
Neutral
Cash Flow
The cash flow statement shows strength with a strong free cash flow growth rate of 32.58% from 2023 to 2024, and robust operating cash flow to net income ratio of 1.63 in 2024. This suggests efficient cash management despite net income losses. The free cash flow to net income ratio improved significantly, indicating a strong cash flow position relative to net earnings.75
Positive
| Breakdown | |||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 134.89M | 109.95M | 72.86M | 51.78M | Gross Profit |
| 123.66M | 98.97M | 57.92M | 38.57M | EBIT |
| -4.99M | -16.51M | 70.01M | -3.23M | EBITDA |
| 4.26M | -7.47M | 79.32M | 3.63M | Net Income Common Stockholders |
| -46.08M | 5.11M | 11.35M | -6.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 8.89M | 37.03M | 37.82M | 25.35M | Total Assets |
| 310.36M | 1.00B | 288.95M | 276.02M | Total Debt |
| 138.70M | 381.24M | 131.78M | 61.01M | Net Debt |
| 129.81M | 344.21M | 93.96M | 35.66M | Total Liabilities |
| 148.02M | 395.41M | 138.20M | 66.06M | Stockholders Equity |
| 162.33M | 436.01M | 150.75M | 209.96M |
| Cash Flow | Free Cash Flow | ||
| -309.77M | 66.65M | 50.26M | 17.21M | Operating Cash Flow |
| 66.33M | 67.64M | 53.04M | 20.50M | Investing Cash Flow |
| -567.06M | -724.35M | -2.77M | -696.00K | Financing Cash Flow |
| 506.77M | 655.92M | -37.80M | -7.71M |
LandBridge Company LLC Class A Technical Analysis
Neutral
72.32
Price Trends
72.73
Negative
71.50
Positive
62.65
Positive
Market Momentum
-0.38
Positive
43.64
Neutral
15.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LB, the sentiment is Neutral. The current price of 72.32 is below the 20-day moving average (MA) of 76.25, below the 50-day MA of 72.73, and above the 200-day MA of 62.65, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 15.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LB.
LandBridge Company LLC Class A Risk Analysis
LandBridge Company LLC Class A disclosed 60 risk factors in its most recent earnings report. LandBridge Company LLC Class A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LandBridge Company LLC Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.45B | 21.72 | 17.89% | 2.86% | 20.14% | 43.55% | |
78 Outperform | $3.55B | 15.94 | 19.05% | 1.15% | -0.58% | 12.02% | |
73 Outperform | $3.40B | 7.45 | 38.48% | 2.15% | 0.77% | 1.69% | |
70 Outperform | $4.60B | 8.19 | 9.29% | 2.45% | 0.54% | -39.88% | |
64 Neutral | $4.68B | 16.04 | 16.16% | 1.55% | -4.17% | -17.99% | |
62 Neutral | $5.55B | 267.28 | -15.39% | 0.28% | ― | ― | |
60 Neutral | $941.82M | 5.84 | 2.43% | 4.01% | 10.27% | -74.96% |
* Services Sector Average
Performance Comparison
LB
LandBridge Company LLC Class A
71.90
49.04
214.52%
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25.65
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WFRD
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46.83
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-57.75%
WHD
Cactus
44.92
-1.45
-3.13%
CHX
ChampionX
24.30
-6.86
-22.02%
LandBridge Company LLC Class A Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
LandBridge Reports Strong Q1 2025 Financial Performance
Positive
May 7, 2025
LandBridge Company LLC reported a strong financial performance for the first quarter of 2025, with a 131% year-over-year revenue growth to $44 million and a net income of $15.5 million. The company attributes its success to diversified revenue streams and strategic land acquisitions, including the Wolf Bone Ranch. Despite a decrease in oil and gas royalties, the company saw significant increases in surface use royalties and resource sales. LandBridge declared a quarterly cash dividend and reaffirmed its fiscal year 2025 EBITDA outlook, indicating confidence in its growth trajectory and operational strategy.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.