North European Oil Royalty (NRT) AI Stock Analysis

• Market Cap: $77.38M
• Dividend Yield: 12.5%
• Average Volume (3M): 34.68K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.26
• 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: 6.66
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 7.87
• Enterprise Value/Gross Profit: 7.87
• Enterprise Value/Ebitda: 8.41
• 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: 82 Outperform
• Price Target: $10.00 ▲(11.23% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven mainly by strong financial performance (elite profitability, solid free cash flow, and no debt) and supportive valuation (low P/E and high dividend yield). Technical signals are mixed—longer-term trend is positive, but near-term momentum is softer—while corporate events are modestly positive but not transformative.

Positive Factors

Zero debt balance sheet

Zero reported debt materially reduces financial risk, giving the trust flexibility to absorb commodity-driven revenue swings while maintaining distributions. A debt-free balance sheet lowers insolvency risk and preserves capital allocation flexibility across commodity cycles and downturns.

Strong cash generation & FCF

NRT generates robust operating and free cash flow (FCF ~ $8.7M in FY2025, +41% YoY), with FCF often outpacing reported earnings. Strong cash conversion underpins durable distribution capacity, funds trust expenses, and provides internal liquidity to smooth payouts across cycles.

Simple passive royalty business model

As a grantor trust holding passive royalty interests, NRT avoids operating, exploration, and capex exposure. This contract-based model reduces execution risk and ongoing capital needs, making long-term cash flow outcomes more dependent on production/prices than on operational execution.

Negative Factors

Commodity & production volatility

Revenues, earnings, and cash flow exhibit significant multi-year volatility tied to commodity prices and production swings. Such variability weakens predictability of distributions, complicates budgeting, and increases risk that payouts will fluctuate materially across 2–6 month horizons and beyond.

Geographic concentration & FX exposure

Royalties derive exclusively from German properties and are exposed to euro-USD conversion. Geographic concentration heightens regulatory, fiscal, and political risk localized to Germany and amplifies distribution variability via currency moves, reducing diversification benefits for unit holders.

Dependency on third-party operators

Because NRT does not operate the underlying fields, cash flows depend on third-party operators' production, sales, and contractual compliance. Operational failures, operator financial stress, or disputes over royalties can materially reduce receipts and are largely outside the trust's control.

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

Very strong fundamentals with exceptionally high margins, robust free cash flow generation, and a zero-debt balance sheet. The key offset is meaningful volatility in revenue, earnings, and cash flows across years, reducing predictability.

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	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 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 8.62, above the 50-day MA of 7.70, and above the 200-day MA of 5.60, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 42.97 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	82 Outperform	$77.38M	9.75	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	$40.15M	7.83	7.20%	11.00%	-0.83%	-0.82%
PVL	54 Neutral	$56.76M	26.88	4.93%	6.02%	18.14%	-68.41%

North European Oil Royalty Corporate Events

North European Oil Royalty Unitholders Back Trustees, Pay Plan

North European Oil Royalty Trust held its Annual Meeting of Unit Owners on February 17, 2026, with 1,996,448 units represented in person or by proxy. Unit owners voted on trustee elections and an advisory resolution on executive compensation, demonstrating active governance participation.

At the meeting, four trustees — Andrew S. Borodach, Ahron H. Haspel, Richard P. Howard, and Nancy J. F. Prue — were elected to serve until the next annual meeting, each receiving a strong majority of votes. Unit owners also approved, on a non-binding basis, the compensation of the Trust’s Managing Director, signaling general support for current leadership and its pay practices.

The most recent analyst rating on (NRT) stock is a Buy with a $10.50 price target. To see the full list of analyst forecasts on North European Oil Royalty stock, see the NRT Stock Forecast page.

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.