North European Oil Royalty (NRT) AI Stock Analysis

• Market Cap: $81.61M
• Dividend Yield: 12.5%
• Average Volume (3M): 34.68K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.20
• 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: 0.95
• Enterprise Value/Revenue: 7.49
• Enterprise Value/Gross Profit: 7.70
• Enterprise Value/Ebitda: 8.15
• 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: $11.50 ▲(27.92% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven primarily by strong financial performance (elite margins, strong free cash flow, and zero debt) and supported by attractive valuation (low P/E and high dividend yield). Technicals are positive with price above key moving averages, though momentum readings are mostly neutral, keeping the score from being higher.

Positive Factors

Debt-free balance sheet

A zero-debt capital structure materially reduces financial risk and interest burden, preserving cash available for distributions and covering trust expenses. This provides durable financial flexibility through commodity cycles and lowers insolvency risk for at least the next 2–6 months and beyond.

Robust free cash flow generation

Consistent free cash flow supports the trust’s business model of passing through distributions to unitholders and funds trustee costs. Strong cash conversion improves payout sustainability and reserves against production or price shocks, underpinning reliable cash returns over the medium term.

Exceptionally high margins from royalty model

As a passive royalty trust, NRT has minimal operating costs and elite margins, converting most revenue into distributable cash. This structural business model yields durable profitability and high payout potential so long as producing wells remain economic and agreements remain intact.

Negative Factors

Revenue and cash-flow volatility

Significant year-to-year swings in production or prices materially affect distributions and forecasting. For a trust that distributes substantially all cash, volatility reduces predictability of payouts and complicates planning for income-dependent investors over the next several quarters.

Commodity, production and FX exposure

NRT's cash receipts directly track commodity prices, field output and EUR/USD moves. These structural exposures can compress distributions during weak commodity cycles or lower production, creating persistent earnings sensitivity beyond short-term market noise.

Leadership transition risk

The retirement of a long-tenured Managing Director creates potential execution and institutional-knowledge gaps during the succession. While an internal trustee is interim MD, the transition could affect administrative continuity, trust oversight, or counterparty relationships over the medium term.

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

NRT makes money by receiving royalty payments tied to the production and sale of hydrocarbons (and related products such as sulfur) from the German properties underlying its royalty interests. These royalties are calculated under the applicable royalty agreements (including royalty rates and other contractual terms) based on volumes produced/sold and the realized sales prices, so the trust’s incoming cash flow is primarily driven by commodity prices, production volumes, and the applicable exchange rate between the euro and the U.S. dollar (because royalties are associated with German operations while the trust reports and distributes in U.S. dollars). After receiving royalty proceeds, NRT pays ongoing trust-level expenses (e.g., administrative costs, trustee and professional fees) and then distributes substantially all remaining cash to unitholders as periodic distributions. The trust does not generate revenue through operating activities, refining/marketing, or services; its economics are largely dependent on the performance of the underlying producing properties and the terms and administration of the royalty agreements with the parties responsible for operating the fields and selling production.

North European Oil Royalty Financial Statement Overview

Summary

Very strong profitability (exceptionally high margins), robust free cash flow generation, and a conservatively positioned, debt-free balance sheet. The main drawback is meaningful volatility in revenue, earnings, and cash flow across years, which reduces 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	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	10.38M	8.65M	5.79M	22.02M	17.80M	4.60M
Gross Profit	10.09M	8.65M	5.79M	22.02M	17.80M	4.60M
EBITDA	9.54M	7.87M	5.00M	21.06M	17.11M	4.01M
Net Income	9.60M	7.94M	5.06M	21.17M	17.09M	3.98M
Balance Sheet
Total Assets	3.88M	4.79M	1.63M	795.20K	7.19M	1.41M
Cash, Cash Equivalents and Short-Term Investments	3.88M	4.79M	1.63M	795.20K	7.19M	1.41M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	0.00	2.85M	183.81K	0.00	6.80M	1.29M
Stockholders Equity	0.00	1.94M	1.44M	795.20K	392.42K	122.75K
Cash Flow
Free Cash Flow	8.22M	8.73M	5.86M	22.14M	17.80M	4.60M
Operating Cash Flow	8.22M	8.73M	5.86M	22.14M	17.80M	4.60M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-5.16M	-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: Negative
• 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 8.86, above the 50-day MA of 8.66, and above the 200-day MA of 6.07, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 58.62 is Neutral, neither overbought nor oversold. The STOCH value of 51.51 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	$81.61M	10.31	689.28%	12.50%	22.51%	26.50%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PRT	57 Neutral	$40.51M	10.89	7.20%	11.00%	-0.83%	-0.82%
PVL	54 Neutral	$61.05M	28.28	0.02%	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.