Permrock Royalty (PRT) AI Stock Analysis

• Market Cap: $48.42M
• Dividend Yield: 11.37%
• Average Volume (3M): 28.49K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.35
• Revenue Growth: -16.25%
• EPS Growth: -17.58%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.11
• Shares Outstanding: 12,165,732
• 10 Day Avg. Volume: 23,529
• 30 Day Avg. Volume: 28,494
• PEG Ratio: -0.38
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 9.97
• Enterprise Value/Ebitda: 2.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Permrock Royalty exhibits a moderate overall stock score, driven by solid valuation metrics and a strong balance sheet. However, concerns about cash flow and profitability limit the potential upside. The stock's technical indicators reflect weak momentum, while its low P/E ratio and high dividend yield suggest undervaluation.

Permrock Royalty Business Overview & Revenue Model

Company Description

PermRock Royalty Trust is a statutory trust formed in November 2017 under the Delaware Statutory Trust Act. The company's primary focus is on acquiring and holding net profits interests in oil and natural gas properties located in the Permian Basin, one of the most prolific oil and natural gas producing regions in the United States. PermRock Royalty Trust aims to provide its beneficiaries with monthly cash distributions derived from the income generated by these interests.

How the Company Makes Money

PermRock Royalty Trust generates revenue primarily through the collection of net profits interests from its oil and natural gas properties in the Permian Basin. The trust receives a percentage of the profits from the production and sale of oil and gas, after certain costs and expenses are deducted. The amount of revenue generated is directly correlated to the production levels and market prices for oil and natural gas. Additionally, the trust may benefit from strategic partnerships with operators who manage the day-to-day operations of the oil and gas wells, ensuring efficient production and cost management. These factors collectively contribute to the trust's ability to provide regular distributions to its unit holders.

Permrock Royalty Financial Statement Overview

Summary

Permrock Royalty's financials reflect a mixed picture. While revenue has surged recently, the low net income impacts profitability margins. The balance sheet is strong in terms of debt, but cash flow issues pose liquidity challenges and operational inefficiencies.

Income Statement

The income statement shows a volatile revenue pattern with substantial growth in the latest year. However, the net profit margin is very low due to a significant drop in net income, raising concerns about profitability sustainability.

Balance Sheet

The company's balance sheet reveals strong equity with zero debt, resulting in an excellent debt-to-equity ratio. However, the equity ratio indicates limited asset utilization efficiency. This combination suggests stability but potential underutilization of assets.

Cash Flow

Cash flow analysis indicates inconsistency, highlighted by a substantial negative operating cash flow and free cash flow in the latest period. The cash flow to net income ratios suggest cash generation issues, impacting liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.43M	6.02M	7.19M	13.18M	8.14M	3.19M
	Gross Profit
4.71M	6.02M	7.19M	36.81B	-5.36B	1.66M
	EBIT
4.04M	5.16M	6.26M	19.53B	7.37M	1.91M
	EBITDA
4.04M	5.16M	6.26M	12.30M	7.37M	1.91M
	Net Income Common Stockholders
5.75M	5.16M	6.26M	19.53B	7.37M	1.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.49M	1.61M	1.37M	1.98M	1.85M	1.18M
	Total Assets
72.77M	73.99M	77.24M	82.02M	85.67M	89.10M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-1.49M	-1.61B	-1.37B	-1.98B	-1.85B	-1.18B
	Total Liabilities
0.00	612.26K	368.61K	981.94K	849.91K	181.47K
	Stockholders Equity
0.00	73.38M	76.88M	81.04M	84.82M	88.92M
Cash Flow		Free Cash Flow
0.00	0.00	-4.16B	-4.09B	0.00	10.44B
	Operating Cash Flow
0.00	0.00	-4.16B	-4.09B	0.00	10.44B
	Investing Cash Flow
0.00	0.00	0.00	0.00	0.00	0.00
	Financing Cash Flow
0.00	0.00	0.00	0.00	0.00	0.00

Permrock Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRT, the sentiment is Positive. The current price of 3.98 is above the 20-day moving average (MA) of 3.87, above the 50-day MA of 3.92, and above the 200-day MA of 3.82, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 67.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRT.

Permrock Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRT	71 Outperform	$41.54M	8.04	551.10%	10.40%	-53.52%	-56.30%
PRT	57 Neutral	$48.42M	8.80	7.52%	11.37%	-16.25%	-17.58%
Sector *	57 Neutral	$7.13B	3.45	-3.67%	5.68%	0.46%	-50.35%
PVL	54 Neutral	$49.50M	17.54	6.10%	5.70%	-80.46%	-51.76%