Mesabi Shs (MSB) AI Stock Analysis

• Market Cap: $425.09M
• Dividend Yield: 19.32%
• Average Volume (3M): 40.95K
• Price to Earnings (P/E): 40.5
• Beta (1Y): 1.16
• Revenue Growth: -78.78%
• EPS Growth: -81.27%
• Country: US
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 13,120,010
• 10 Day Avg. Volume: 25,035
• 30 Day Avg. Volume: 40,954
• PEG Ratio: <0.01
• Price to Book (P/B): 13.27
• Price to Sales (P/S): 12.16
• P/FCF Ratio: 3.30
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 20.32
• Enterprise Value/Gross Profit: 24.81
• Enterprise Value/Ebitda: 33.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $35.00 ▼(-4.16% Downside)
• Action: Downgraded Date: 01/21/26
• Date: Action: Downgraded 01/21/26

The score is primarily driven by strong underlying financial strength (high profitability, strong cash conversion, and zero debt), offset by cyclical volatility in revenue and free cash flow. Technicals are neutral-to-soft near term, and valuation is mixed—supported by an exceptionally high dividend yield but tempered by a relatively high P/E.

Positive Factors

Conservative balance sheet

Zero total debt provides durable financial flexibility and downside protection across commodity cycles. With no meaningful leverage the trust can sustain distributions, fund administrative needs, and withstand temporary production or price shocks without needing external financing, supporting long-term resilience.

Strong cash conversion

Consistent operating cash flow above net income shows high cash conversion, a durable advantage for a distribution-focused trust. This supports regular payout capability and reduces reliance on accrual earnings, helping preserve distributions and governance of reserves through commodity-driven revenue swings.

Low-operational-risk royalty model

The royalty structure minimizes operational and capital-expenditure risk, concentrating the business on contractually-defined royalty receipts. This durable business model lowers execution risk, avoids mining capex and operating liabilities, and provides direct exposure to commodity economics without operating overhead.

Negative Factors

Cyclical revenue & FCF volatility

The trust's earnings and distributable cash are strongly cyclical, driven by mining activity and iron ore markets. Persistent swings in revenue and FCF reduce predictability of distributions, complicate capital planning and investor income expectations, and raise the probability of multi-quarter downside during weaker commodity cycles.

Recent sharp revenue decline

A very large recent revenue decline signals meaningful drops in production or realized royalty receipts. Such a pronounced fall can persist through extended commodity weakness or operational slowdowns, materially reducing distributable cash and straining the trust's ability to maintain historic payout levels absent a recovery in volumes or prices.

Dependence on third-party operator & prices

The trust has no control over mining operations or pricing; its returns rely on a single operator's activity and iron ore market dynamics. This structural concentration risk amplifies operational and commodity exposure, meaning changes in lessee strategy, lease terms, or market pricing can quickly and materially affect cash flows.

Mesabi Shs Business Overview & Revenue Model

Company Description

Mesabi Trust, a royalty trust, engages in iron ore mining business in the United States. The company was incorporated in 1961 and is based in New York, New York.

How the Company Makes Money

Mesabi Trust makes money through royalties and fees from the iron ore mined by Northshore Mining Company at the Peter Mitchell Mine. The trust receives a base overriding royalty and a bonus overriding royalty based on the volume and price of iron ore shipped. Additionally, Mesabi Trust earns royalties from the sales of taconite pellets produced from the mined ore. These revenue streams are influenced by factors such as global iron ore prices, production levels, and demand from steel manufacturers. The trust's earnings are highly dependent on its relationship with Northshore Mining Company and, by extension, Cleveland-Cliffs Inc.

Mesabi Shs Financial Statement Overview

Summary

Strong profitability and cash conversion with a very conservative balance sheet (zero debt in latest periods) support a high score. The main constraint is volatility: revenue and free cash flow have swung materially (TTM revenue down and TTM FCF sharply lower), consistent with cyclical earnings.

Income Statement

Profitability is exceptionally strong in the available periods, with very high gross and net margins in both TTM (Trailing-Twelve-Months) and most annual reports. However, the growth profile is volatile: revenue declined in TTM (Trailing-Twelve-Months) (-17.61%) and has swung sharply year-to-year (including a very large jump in 2024 followed by a drop in TTM). Overall, this looks like a highly profitable but cyclical/unstable revenue stream.

Balance Sheet

The balance sheet is conservatively positioned with zero total debt in the latest annual and TTM (Trailing-Twelve-Months) snapshots, and only modest leverage in prior years (low debt relative to equity). Equity remains solid, supporting financial flexibility. The main watch-out is that returns on equity are highly variable across years, which signals earnings volatility rather than balance-sheet stress.

Cash Flow

Cash generation is strong, with operating cash flow consistently exceeding net income in most periods (e.g., TTM (Trailing-Twelve-Months) coverage ~3.95x; several prior years also comfortably above 1x), suggesting good cash conversion. That said, free cash flow growth is unstable, including a steep decline in TTM (Trailing-Twelve-Months) (-77.655%) after prior strength, reinforcing the view of a cyclical cash flow profile.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2024	Jan 2023	Jan 2021
Income Statement
Total Revenue	19.77M	25.46M	22.86M	7.50M	71.46M	25.95M
Gross Profit	16.20M	98.27M	22.61M	7.16M	71.17M	25.73M
EBITDA	12.17M	20.64M	18.54M	7.55M	70.99M	26.26M
Net Income	17.21M	93.27M	18.98M	5.31M	68.77M	23.41M
Balance Sheet
Total Assets	26.00M	101.73M	26.69M	14.12M	53.91M	22.93M
Cash, Cash Equivalents and Short-Term Investments	23.19M	100.20M	23.98M	13.97M	47.73M	22.41M
Total Debt	0.00	0.00	1.96M	23.56K	4.63M	249.48K
Total Liabilities	4.91M	78.40M	5.72M	2.68M	23.12M	6.45M
Stockholders Equity	21.09M	23.33M	20.98M	11.44M	30.79M	16.48M
Cash Flow
Free Cash Flow	19.38M	93.94M	14.61M	13.86M	62.84M	20.81M
Operating Cash Flow	19.38M	93.94M	14.61M	13.86M	62.84M	20.81M
Investing Cash Flow	0.00	0.00	0.00	0.00	9.91M	3.43M
Financing Cash Flow	-17.58M	-17.71M	-4.59M	-47.63M	-37.52M	-21.91M

Mesabi Shs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSB, the sentiment is Positive. The current price of 36.52 is above the 20-day moving average (MA) of 32.19, above the 50-day MA of 35.06, and above the 200-day MA of 31.15, indicating a neutral trend. The MACD of -1.06 indicates Negative momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 56.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSB.

Mesabi Shs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSB	69 Neutral	$425.09M	40.46	29.57%	19.32%	-78.78%	-81.27%
FRD	67 Neutral	$125.74M	11.73	8.47%	0.75%	8.72%	43.14%
WS	67 Neutral	$1.84B	22.60	11.57%	1.78%	-0.75%	-13.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MTUS	59 Neutral	$672.69M	-599.17	-1.18%	―	-3.42%	-134.99%
ACNT	46 Neutral	$123.11M	-37.69	-3.84%	―	-29.03%	―