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Mesabi Trust Shs (MSB)
NYSE:MSB
US Market

Mesabi Shs (MSB) AI Stock Analysis

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Mesabi Shs

(NYSE:MSB)

Rating:80Outperform
Price Target:
Mesabi Shs boasts strong financial performance with high profitability and an impressive balance sheet, which are vital for its competitive edge in the steel industry. The stock shows positive technical momentum, although overbought indicators warrant caution. Its low P/E ratio and high dividend yield enhance its appeal as an undervalued investment, contributing to a strong overall score.

Mesabi Shs (MSB) vs. SPDR S&P 500 ETF (SPY)

Mesabi Shs Business Overview & Revenue Model

Company DescriptionMesabi 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 MoneyMesabi 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
Mesabi Shs demonstrates strong financial health, characterized by high profitability and robust balance sheet metrics. The company has shown a remarkable ability to generate revenue growth and maintain profitability, crucial for the competitive steel industry. Cash flows are well-aligned with earnings, supporting financial stability. Attention should be given to operational efficiency and long-term reinvestment strategies to sustain growth momentum.
Income Statement
85
Very Positive
The company shows impressive profitability metrics with a high gross profit margin of 95.6% and a strong net profit margin of 93.8% for the TTM (Trailing-Twelve-Months). Revenue has seen significant growth, rising from $22.9 million to $97.97 million, demonstrating a strong upward trajectory. However, the EBITDA margin is relatively lower compared to other metrics, indicating potential areas for operational efficiency improvement.
Balance Sheet
80
Positive
The company maintains a robust balance sheet with zero total debt, resulting in a favorable debt-to-equity ratio of 0.0. Stockholders' equity is strong, contributing to an equity ratio of 94.7%. The return on equity is high at 96.4%, reflecting efficient use of equity. The high cash position relative to liabilities indicates strong liquidity. However, the company should monitor equity fluctuations as they impact leverage ratios.
Cash Flow
78
Positive
Cash flow analysis reveals a consistent increase in free cash flow, with a notable free cash flow growth rate. The operating cash flow to net income ratio stands at 0.98, indicating that the company's earnings are well-supported by cash flow. The company has managed capital expenditures effectively, with free cash flow to net income also at 0.98. The lack of significant capital expenditures suggests limited reinvestment, which may be a concern for long-term growth.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue25.46M22.86M7.50M71.46M25.95M
Gross Profit27.41M22.61M7.16M71.17M25.73M
EBITDA20.64M18.54M5.12M68.30M23.71M
Net Income93.27M18.98M5.31M68.77M23.41M
Balance Sheet
Total Assets101.73M26.69M14.12M53.91M22.93M
Cash, Cash Equivalents and Short-Term Investments100.20M23.98M13.97M47.73M22.41M
Total Debt0.001.96M23.56K4.63M249.48K
Total Liabilities78.40M5.72M2.68M23.12M6.45M
Stockholders Equity23.33M20.98M11.44M30.79M16.48M
Cash Flow
Free Cash Flow93.94M14.61M13.86M62.84M20.81M
Operating Cash Flow93.94M14.61M13.86M62.84M20.81M
Investing Cash Flow0.000.000.009.91M3.43M
Financing Cash Flow-17.71M-4.59M-47.63M-37.52M-21.91M

Mesabi Shs Technical Analysis

Technical Analysis Sentiment
Negative
Last Price23.91
Price Trends
50DMA
25.83
Negative
100DMA
25.96
Negative
200DMA
23.53
Positive
Market Momentum
MACD
-0.62
Positive
RSI
43.57
Neutral
STOCH
58.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSB, the sentiment is Negative. The current price of 23.91 is below the 20-day moving average (MA) of 24.93, below the 50-day MA of 25.83, and above the 200-day MA of 23.53, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 58.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSB.

Mesabi Shs Risk Analysis

Mesabi Shs disclosed 1 risk factors in its most recent earnings report. Mesabi Shs reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Mesabi Shs Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
MSMSB
80
Outperform
$327.87M3.51464.02%9.35%331.26%391.35%
67
Neutral
$654.30M30.62-3.00%-23.34%-128.05%
62
Neutral
$10.11B9.67-0.15%3.01%2.10%-35.27%
FRFRD
62
Neutral
$116.23M18.864.66%0.97%-13.95%-63.56%
57
Neutral
$374.84M23.372.95%1.96%-9.65%-61.57%
53
Neutral
$132.42M-8.42%-6.70%61.17%
49
Neutral
$835.34M-41.03%2.53%-2.75%-339.59%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MSB
Mesabi Shs
23.91
10.09
73.01%
FRD
Friedman Industries
16.46
1.94
13.36%
ZEUS
Olympic Steel
33.58
-9.48
-22.02%
RDUS
Schnitzer Steel Industries
29.62
14.41
94.74%
ACNT
Ascent Industries
12.73
3.34
35.57%
MTUS
Metallus
15.75
-4.40
-21.84%

Mesabi Shs Corporate Events

Financial DisclosuresRegulatory Filings and Compliance
Mesabi Trust Receives $2.4M in April 2025 Royalties
Neutral
May 2, 2025

Mesabi Trust, which operates in the iron ore industry, reported its financial results for the fiscal year ended January 31, 2025. The Trust’s audited financial statements were filed with the SEC on April 24, 2025. On April 30, 2025, Mesabi Trust received a total of $2,422,329 in royalty payments from Cliffs, based on shipments of iron ore products by Northshore during the first quarter of 2025. This included a base royalty of $1,067,762 and a bonus royalty of $1,281,315. The volume of iron ore shipped in the first quarter of 2025 was significantly lower compared to the same period in 2024, reflecting the variability in production and shipments due to factors like operational idling and market conditions.

Spark’s Take on MSB Stock

According to Spark, TipRanks’ AI Analyst, MSB is a Outperform.

Mesabi Shs boasts strong financial performance with high profitability and an impressive balance sheet, which are vital for its competitive edge in the steel industry. The stock shows positive technical momentum, although overbought indicators warrant caution. Its low P/E ratio and high dividend yield enhance its appeal as an undervalued investment, contributing to a strong overall score.

To see Spark’s full report on MSB stock, click here.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Feb 21, 2025