Mesabi Shs (MSB) AI Stock Analysis

• Market Cap: $362.37M
• Dividend Yield: 26.07%
• Average Volume (3M): 38.45K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.83
• Revenue Growth: 331.26%
• EPS Growth: 391.35%
• Country: US
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 7.11
• Shares Outstanding: 13,120,010
• 10 Day Avg. Volume: 34,934
• 30 Day Avg. Volume: 38,454
• PEG Ratio: 0.00993
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.58
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.31
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

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 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

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

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

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

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.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
25.46M	22.86M	7.74M	71.46M	25.95M
	Gross Profit
25.20M	22.60M	7.41M	71.17M	25.74M
	EBIT
20.64M	19.07M	5.39M	68.84M	23.49M
	EBITDA
20.64M	18.54M	5.12M	68.30M	23.71M
	Net Income Common Stockholders
93.27M	18.98M	5.31M	68.77M	23.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
100.20M	23.98M	13.97M	47.73M	22.41M
	Total Assets
101.73M	26.69M	14.12M	53.91M	22.93M
	Total Debt
0.00	1.96M	23.56K	4.63M	249.48K
	Net Debt
-100.20M	-23.98M	-13.94M	-43.10M	-12.25M
	Total Liabilities
78.40M	5.72M	2.68M	23.12M	6.45M
	Stockholders Equity
23.33M	20.98M	11.44M	30.79M	16.48M
Cash Flow		Free Cash Flow
93.94M	14.61M	13.86M	62.84M	20.81M
	Operating Cash Flow
93.94M	14.61M	13.86M	62.84M	20.81M
	Investing Cash Flow
0.00	0.00	0.00	9.91M	3.43M
	Financing Cash Flow
-17.71M	-4.59M	-47.63M	-37.52M	-21.91M

Mesabi Shs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 24.93 is below the 20-day moving average (MA) of 27.09, below the 50-day MA of 26.31, and above the 200-day MA of 21.53, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 24.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSB.

Mesabi Shs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSB	80 Outperform	$362.37M	3.89	421.08%	26.07%	331.26%	391.35%
FRD	73 Outperform	$112.71M	19.99	4.51%	0.99%	-12.19%	-67.95%
ZEUS	58 Neutral	$357.09M	22.92	2.95%	1.88%	-9.65%	-61.57%
MTUS	58 Neutral	$548.25M	30.62	-3.00%	―	-23.34%	-128.05%
RDUS	53 Neutral	$829.14M	―	-41.03%	2.56%	-2.75%	-339.59%
ACNT	50 Neutral	$133.24M	―	-11.17%	―	-14.57%	48.61%
Sector *	49 Neutral	$1.95B	-1.21	-21.28%	3.72%	1.18%	-30.47%

Mesabi Shs Corporate Events

Mesabi Trust Receives $2.4M in April 2025 Royalties

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.