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North European Oil Royalty Trust (NRT)
NYSE:NRT
US Market

North European Oil Royalty (NRT) AI Stock Analysis

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North European Oil Royalty

(NYSE:NRT)

Rating:71Outperform
Price Target:―
North European Oil Royalty demonstrates strong financial health with high profitability and no debt, contributing to a solid financial performance score. The attractive valuation with a low P/E ratio and high dividend yield further supports the stock's appeal. However, technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

North European Oil Royalty (NRT) vs. SPDR S&P 500 ETF (SPY)

North European Oil Royalty Business Overview & Revenue Model

Company DescriptionNorth European Oil Royalty Trust (NRT) is a United States-based entity that holds overriding royalty rights in certain oil and natural gas properties primarily in Germany. These royalties are derived from interests in various concessions and leases located in the German state of Lower Saxony and other regions. NRT is not involved in exploration or production activities itself, but rather benefits from the production activities conducted by operating companies in these regions.
How the Company Makes MoneyNorth 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
North European Oil Royalty exhibits a strong financial position with high profitability and robust cash flows. Despite decreasing revenues, the company maintains high margins and zero debt, which ensures financial stability. However, declining asset levels and limited reinvestment might pose challenges for future expansion.
Income Statement
76
Positive
The company shows strong profitability, with a TTM gross profit margin of 96.39% and a net profit margin of 87.41%. Although there is a decline in revenue from the previous year, the company maintains high margins. The EBIT margin in the TTM period is substantial at 85.76%, reflecting efficient operations despite the decreasing revenue trend.
Balance Sheet
80
Positive
The balance sheet is robust with zero debt, resulting in a favorable debt-to-equity ratio. The equity ratio is strong at 78.74%, indicating financial stability. However, the company's total assets have decreased, which could limit growth potential.
Cash Flow
72
Positive
The company demonstrates strong cash flow with an operating cash flow to net income ratio of 0.92 in the TTM period. Free cash flow has shown significant growth from the previous period, indicating good liquidity. However, the absence of capital expenditures suggests limited reinvestment for future growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.87M5.79M22.14M13.20M4.60M4.05M
Gross Profit5.87M5.79M21.18M12.50M4.01M3.33M
EBITDA3.31M5.00M21.06M17.11M4.01M4.05M
Net Income5.16M5.06M21.17M17.09M3.98M3.29M
Balance Sheet
Total Assets1.73M1.63M795.20K7.17M1.41M649.59K
Cash, Cash Equivalents and Short-Term Investments1.73M1.63M795.20K7.19M1.41M649.59K
Total Debt0.000.000.000.000.000.00
Total Liabilities367.62K183.81K0.006.78M1.29M183.81K
Stockholders Equity1.36M1.44M795.20K392.42K122.75K465.77K
Cash Flow
Free Cash Flow3.43M830.14K17.09M17.09M3.98M3.29M
Operating Cash Flow4.73M830.14K22.14M17.09M3.98M3.29M
Investing Cash Flow0.000.000.000.000.000.00
Financing Cash Flow-4.77M0.00-28.54M-11.30M-3.22M-4.23M

North European Oil Royalty Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.10
Price Trends
50DMA
4.84
Positive
100DMA
4.58
Positive
200DMA
4.49
Positive
Market Momentum
MACD
0.05
Positive
RSI
53.16
Neutral
STOCH
39.45
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 5.1 is below the 20-day moving average (MA) of 5.17, above the 50-day MA of 4.84, and above the 200-day MA of 4.49, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 53.16 is Neutral, neither overbought nor oversold. The STOCH value of 39.45 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
NRNRT
71
Outperform
$46.87M8.69432.55%15.69%-53.52%-56.30%
68
Neutral
$15.14B9.956.38%5.21%4.16%-67.19%
PRPRT
57
Neutral
$48.91M8.887.52%13.24%-16.25%-17.58%
PVPVL
54
Neutral
$60.06M21.296.10%1.88%-80.46%-51.76%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NRT
North European Oil Royalty
5.10
-0.90
-15.00%
PVL
Permianville Royalty
1.82
0.75
70.09%
PRT
Permrock Royalty
4.02
0.56
16.18%
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: Apr 25, 2025