Natural Resource PRN (NRP) AI Stock Analysis

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Natural Resource PRN

(NYSE:NRP)

74Outperform

NRP's solid financial health, particularly its strong balance sheet and cash flow, are tempered by concerns over declining income and market conditions. Technical indicators suggest stability, while valuation remains attractive. However, risks from reduced commodity prices and strategic market challenges impact the outlook.

Natural Resource PRN (NRP) vs. S&P 500 (SPY)

Market Cap

$1.35B

Dividend Yield2.91%

Average Volume (3M)23.47K

Price to Earnings (P/E)9.1

Beta (1Y)0.63

Revenue Growth-16.56%

EPS Growth-24.95%

CountryUS

Employees56

SectorEnergy

Sector Strength52

IndustryCoal

Share Statistics

EPS (TTM)11.27

Shares Outstanding13,138,097

10 Day Avg. Volume23,357

30 Day Avg. Volume23,471

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)5.81

Price to Cash Flow (P/CF)5.40

P/FCF Ratio5.40

Enterprise Value/Market Cap1.18

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit5.96

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Natural Resource PRN Business Overview & Revenue Model

Company DescriptionNatural Resource PRN (NRP) is a company specializing in the management and optimization of natural resources, particularly focusing on sectors such as forestry, water management, and sustainable agriculture. The company offers a range of services including resource assessment, environmental impact analysis, and the implementation of sustainable practices to enhance resource productivity and minimize ecological footprint.

How the Company Makes MoneyNRP generates revenue through a combination of consultancy fees, project management contracts, and long-term service agreements with governments, non-governmental organizations, and private sector clients. The company also engages in strategic partnerships with technology firms to develop innovative solutions for resource management, which can lead to diversified income streams through joint ventures. Additionally, NRP may receive grants or funding from environmental agencies and international bodies to support its sustainability projects.

Natural Resource PRN Financial Statement Overview

Summary

NRP demonstrates strong balance sheet and cash flow management with low debt levels and significant free cash flow generation. However, declining net income and revenue are notable concerns.

Income Statement

Positive

The company's income statement reveals mixed results. Gross profit margins are strong, with the most recent year showing a 100% margin due to revenue equaling gross profit. However, net profit margins have been declining due to a decrease in net income from $274.4M in 2023 to $3.1M in 2024. Revenue declined by 8.73% from 2023 to 2024, which is a concern. EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

Positive

The balance sheet shows a strong equity position with an equity ratio of 71.3% in 2024, up from previous years. Debt-to-equity ratio is low at 0.03, indicating very low leverage, which is a positive indicator of financial health. ROE has drastically decreased because of low net income, but overall stability is maintained through strong stockholder equity.

Cash Flow

Very Positive

The cash flow statement is robust, with significant free cash flow in 2024, matching the operating cash flow at $248.5M, demonstrating strong cash generation. Free cash flow growth is negative due to a decrease from 2023, but the company maintains a positive cash flow to net income ratio, indicating good cash management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
245.03M	293.66M	328.08M	194.25M	129.01M
	Gross Profit
268.01M	261.34M	305.57M	175.17M	119.81M
	EBIT
199.20M	292.54M	305.23M	147.78M	91.45M
	EBITDA
214.73M	311.03M	317.29M	166.85M	-34.65M
	Net Income Common Stockholders
3.10M	274.42M	268.49M	48.16M	-136.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.44M	11.99M	39.09M	135.52M	99.79M
	Total Assets
772.91M	797.88M	235.09M	953.82M	921.88M
	Total Debt
14.19M	155.06M	168.28M	433.55M	471.50M
	Net Debt
-16.25M	143.07M	129.19M	298.02M	371.71M
	Total Liabilities
221.80M	219.64M	235.09M	513.89M	549.02M
	Stockholders Equity
551.11M	570.23M	404.80M	3.21M	322.00K
Cash Flow		Free Cash Flow
248.49M	310.97M	266.72M	121.80M	89.27M
	Operating Cash Flow
248.49M	310.98M	266.84M	121.80M	89.27M
	Investing Cash Flow
7.51M	5.42M	2.69M	2.41M	1.68M
	Financing Cash Flow
-237.55M	-343.50M	-365.95M	-88.49M	-89.43M

Natural Resource PRN Technical Analysis

Technical Analysis Sentiment

Positive

Last Price102.95

Price Trends

50DMA

101.25

Positive

100DMA

102.84

Positive

200DMA

97.63

Positive

Market Momentum

MACD

-0.04

Negative

RSI

53.11

Neutral

STOCH

75.53

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRP, the sentiment is Positive. The current price of 102.95 is above the 20-day moving average (MA) of 99.07, above the 50-day MA of 101.25, and above the 200-day MA of 97.63, indicating a bullish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 75.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRP.

Natural Resource PRN Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARLP	79 Outperform	$3.49B	9.90	19.34%	10.32%	-4.60%	-42.35%
BTU	76 Outperform	$1.53B	4.66	10.41%	2.38%	-14.50%	-46.36%
NRP	74 Outperform	$1.35B	9.07	32.48%	2.91%	-16.56%	-24.95%
HCC	71 Outperform	$2.58B	10.26	12.64%	0.65%	-9.10%	-47.93%
SXC	69 Neutral	$808.37M	8.49	14.82%	4.82%	-6.19%	65.91%
AMR	66 Neutral	$1.65B	8.88	11.64%	0.36%	-14.81%	-71.49%
Sector *	55 Neutral	$7.10B	3.56	-6.61%	5.99%	-0.03%	-51.61%

* Energy Sector Average

Performance Comparison

NRP

Natural Resource PRN

102.95

14.85

16.86%

ARLP

Alliance Resource

27.14

7.27

36.59%

SXC

Suncoke Energy

9.55

-0.56

-5.54%

AMR

Alpha Metallurgical Resources

126.20

-215.27

-63.04%

HCC

Warrior Met Coal

49.10

-21.42

-30.37%

BTU

Peabody Energy Comm

12.58

-10.62

-45.78%

Natural Resource PRN Earnings Call Summary

Earnings Call Date:Feb 28, 2025

(Q4-2024)

% Change Since: 5.22%|

Next Earnings Date:May 06, 2025

Earnings Call Sentiment Neutral

The earnings call highlights NRP's strategic achievements in debt reduction and cash flow generation. However, significant challenges remain due to the decline in coal and soda ash prices, impacting revenue and market position. The company's initiatives in carbon-neutral projects face uncertainties, affecting future potential growth. While financial management shows strength, market conditions pose substantial hurdles.

Q4-2024 Updates

Positive Updates

Increased Credit Facility Capacity

NRP increased its credit facility capacity by $45 million to $200 million and extended the maturity date by two years to 2029.

Debt Reduction Achievements

Over the last 10 years, NRP paid off over $1.3 billion of financial obligations, leaving only $142 million of debt remaining.

Free Cash Flow Generation

NRP generated $251 million of free cash flow in 2024, indicating strong cash generation capabilities.

Special Distribution Declared

A special distribution of $1.21 per common unit was declared to cover tax liabilities associated with owning NRP common units in 2024.

Negative Updates

Coal Price Decline

Metallurgical and thermal coal prices dropped by half from the highs seen in 2023, negatively impacting revenue.

Soda Ash Market Challenges

Global soda ash prices fell roughly 60% from 2023 highs due to oversupply and decreased demand, leading to a $43 million decline in cash distributions from Sisecam, Wyoming.

Decreased Mineral Rights Segment Income

The Mineral Rights segment saw a decrease of $11 million in net income and $8 million in cash flow in Q4, primarily due to weaker coal demand.

Non-Renewal of CO2 Sequestration Lease

Exxon will not renew its carbon dioxide sequestration lease on NRP's Baldwin County, Alabama acreage, indicating challenges in carbon-neutral initiatives.

Company Guidance

During the Natural Resource Partners LP Fourth Quarter 2024 Earnings Conference Call, significant financial metrics were highlighted, reflecting the company's efforts to strengthen its financial position. In 2024, NRP generated $251 million in free cash flow, paid off all remaining preferred units, settled all outstanding warrants, and increased its credit facility capacity by $45 million to $200 million, extending its maturity to 2029. The company reduced its debt to $142 million after paying off over $1.3 billion in financial obligations over the past decade. Despite falling coal and soda ash prices in 2024, NRP managed to produce $184 million in net income and $248 million in operating cash flow for the year. The Mineral Rights segment reported $206 million in net income and $242 million in operating cash flow, though experiencing a decline from the previous year due to weaker coal demand. Meanwhile, the soda ash segment faced challenges with a decrease in net income by $55 million year-over-year, attributed to market oversupply and weakened demand. Corporate and financing improvements included a near 30% expansion of the credit facility and reduced debt-related expenses. The company maintained quarterly distributions of $0.75 per common unit and announced a special distribution of $1.21 per common unit to cover tax liabilities for 2024.

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.