North European Oil Royalty (NRT) AI Stock Analysis

• Market Cap: $80.23M
• Dividend Yield: 12.5%
• Average Volume (3M): 34.68K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.16
• Revenue Growth: 22.51%
• EPS Growth: 26.50%
• Country: US
• Employees: 2
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 9,190,590
• 10 Day Avg. Volume: 33,189
• 30 Day Avg. Volume: 34,681
• PEG Ratio: 0.13
• Price to Book (P/B): 30.05
• Price to Sales (P/S): 6.73
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 8.86
• Enterprise Value/Gross Profit: 8.86
• Enterprise Value/Ebitda: 9.46
• 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: 85 Outperform
• Price Target: $10.50 ▲(16.80% Upside)

The score is driven primarily by strong financial performance (elite margins, strong free cash flow, and zero debt), supported by a positive technical trend (price above major moving averages with healthy momentum) and an attractive value/income setup (moderate P/E and high dividend yield). The key offset is volatility in revenue, earnings, and cash flows, which raises predictability risk.

Positive Factors

Financial Health

Having zero debt provides financial flexibility and reduces risk, allowing the company to withstand market fluctuations and invest in opportunities without the burden of interest payments.

Profitability

High profitability margins indicate efficient operations and strong pricing power, which can sustain cash flow and support future distributions to shareholders.

Cash Flow

Strong cash flow growth enhances liquidity, enabling the company to maintain dividend payouts and invest in potential growth opportunities without external financing.

Negative Factors

Revenue Decline

Declining revenue can limit growth potential and affect long-term sustainability, as it may indicate reduced demand or market share erosion, impacting future profitability.

Asset Decline

A decrease in total assets may constrain the company's ability to leverage its balance sheet for expansion or to weather economic downturns, potentially impacting future growth.

Limited Reinvestment

Lack of reinvestment in capital expenditures may hinder the company's ability to innovate or expand its asset base, potentially affecting long-term competitive positioning and growth.

North European Oil Royalty Business Overview & Revenue Model

Company Description

North European Oil Royalty Trust, a grantor trust, holds overriding royalty rights covering gas and oil production in various concessions or leases in the Federal Republic of Germany. The company has rights under contracts with German exploration and development subsidiaries of ExxonMobil Corp. and the Royal Dutch/Shell Group of Companies. It holds royalties for the sale of gas well gas, oil well gas, crude oil, condensate, and sulfur. North European Oil Royalty Trust is based in Keene, New Hampshire.

How the Company Makes Money

North European Oil Royalty Trust generates revenue by collecting royalties from oil and natural gas production on the properties in which it holds interests. These royalties are typically calculated as a percentage of the gross sales of oil and gas produced by the operators of the concessions. The trust benefits from fluctuations in commodity prices, as its income is directly tied to the market prices of oil and gas. Additionally, the trust distributes the majority of its income to its unit holders in the form of cash distributions, aligning its revenue model with the interests of its investors. NRT does not have significant partnerships that impact its revenue, as its operations primarily involve passive royalty collection rather than active exploration or production activities.

North European Oil Royalty Financial Statement Overview

Summary

Strong overall fundamentals driven by exceptionally high profitability (very high operating and net margins), robust free cash flow generation, and a debt-free balance sheet. The main risk is meaningful volatility in revenue, earnings, and cash flows across years, which reduces predictability despite the strong base performance.

Income Statement

Profitability is exceptionally strong, with gross profit effectively equal to revenue and very high operating and net margins in recent years (e.g., FY2025 net margin ~92%). Revenue rebounded sharply in FY2025 (+41.7% YoY) after a weak FY2024 (-0.7%), but the multi-year pattern is volatile (notably the sharp drop from FY2023 to FY2024), which is a key risk for earnings stability. Overall: elite margins, but uneven revenue/earnings trajectory.

Balance Sheet

The balance sheet is very conservatively positioned with zero debt across all periods provided, which materially reduces financial risk. Equity has increased in the last two years (FY2024 to FY2025), improving capitalization, though returns on equity fluctuate significantly year-to-year (very high in FY2022–FY2023, much lower in FY2024–FY2025), signaling variability in profitability relative to the equity base. Overall: strong solvency and low leverage, with some volatility in shareholder returns.

Cash Flow

Cash generation is robust and tracks the business cycle closely: operating cash flow and free cash flow were strong in FY2025 (~$8.7M) and grew ~41% YoY, following a decline in FY2024 (~-0.7%). Free cash flow has historically been high relative to reported earnings where available (e.g., FY2024 at ~1.0x), supporting earnings quality, but the cash flow trend is also volatile across years, consistent with the swings in revenue. Overall: strong cash conversion and ample free cash flow, tempered by variability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.65M	5.79M	22.02M	17.80M	4.60M
Gross Profit	8.65M	5.79M	22.02M	17.80M	4.60M
EBITDA	7.87M	5.00M	21.06M	17.11M	4.01M
Net Income	7.94M	5.06M	21.17M	17.09M	3.98M
Balance Sheet
Total Assets	4.79M	1.63M	795.20K	7.19M	1.41M
Cash, Cash Equivalents and Short-Term Investments	4.79M	1.63M	795.20K	7.19M	1.41M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.85M	183.81K	0.00	6.80M	1.29M
Stockholders Equity	1.94M	1.44M	795.20K	392.42K	122.75K
Cash Flow
Free Cash Flow	8.73M	5.86M	22.14M	17.80M	4.60M
Operating Cash Flow	8.73M	5.86M	22.14M	17.80M	4.60M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-5.57M	-5.03M	-28.54M	-12.02M	-3.84M

North European Oil Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRT, the sentiment is Positive. The current price of 8.99 is above the 20-day moving average (MA) of 8.46, above the 50-day MA of 7.10, and above the 200-day MA of 5.39, indicating a bullish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 58.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRT.

North European Oil Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRT	85 Outperform	$80.23M	10.11	375.02%	12.50%	22.51%	26.50%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PRT	57 Neutral	$42.58M	8.31	7.20%	11.00%	-0.83%	-0.82%
PVL	54 Neutral	$60.06M	28.44	4.93%	6.02%	18.14%	-68.41%

North European Oil Royalty Corporate Events

North European Oil Royalty Announces Leadership Transition Plan

On January 13, 2026, North European Oil Royalty Trust’s long-serving Managing Director, John R. Van Kirk, notified the Trust that he will retire effective January 30, 2026, ending more than 35 years of service, a move publicly announced by the Trust in a January 16, 2026 press release. In connection with his retirement, the Trust’s Managing Trustee, Nancy J. Floyd Prue, an experienced oil and gas investment specialist and Chartered Financial Analyst who has been on the board since 2018 and Managing Trustee since 2023, will assume the role of interim Managing Director during the transition, with the Trust emphasizing that her appointment involves no special arrangements or related-party transactions and that she will be compensated under its standard trustee compensation policies.