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Permianville Royalty Trust (PVL)
NYSE:PVL
US Market

Permianville Royalty (PVL) AI Stock Analysis

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Permianville Royalty

(NYSE:PVL)

54Neutral
Permianville Royalty presents a stable financial situation with no debt and high operational margins, but challenges in revenue decline and cash flow raise concerns about long-term sustainability. Technical indicators are neutral, suggesting mixed investor sentiment. The stock is attractively valued, which could appeal to value investors despite the financial challenges.

Permianville Royalty (PVL) vs. S&P 500 (SPY)

Permianville Royalty Business Overview & Revenue Model

Company DescriptionPermianville Royalty Trust (PVL) is a statutory trust that primarily operates in the energy sector. The trust holds a net profits interest in oil and natural gas properties located in the Permian Basin in Texas and the Haynesville Shale in Louisiana. The trust's primary purpose is to distribute monthly cash distributions to its unitholders derived from the net profits from these properties.
How the Company Makes MoneyPermianville Royalty Trust generates revenue primarily through its net profits interest in oil and gas properties. The net profits interest is a percentage of the revenue generated from the sale of oil and gas produced from these properties, minus certain expenses. These expenses can include production and development costs, operating and maintenance costs, and taxes. The trust does not directly engage in the operations or development of the properties but instead relies on operators to manage and produce oil and gas. The revenue collected is then distributed to the trust's unitholders in the form of cash distributions. The trust's earnings are significantly influenced by the market prices of oil and natural gas, production volumes, and operational efficiencies.

Permianville Royalty Financial Statement Overview

Summary
Permianville Royalty's financial performance presents a mixed picture. The company shows operational efficiency with high margins, but declining revenue and lack of cash flow could impact long-term sustainability. The balance sheet is strong with no debt, yet the absence of liabilities might limit growth opportunities. The overall financial health appears stable but requires careful monitoring of revenue and cash flows.
Income Statement
45
Neutral
The income statement shows mixed results with a significant net profit margin of 135.56% in 2023 due to net income surpassing total revenue, which may indicate irregularities or one-time gains. The revenue growth rate from 2022 to 2023 was -30.72%, reflecting a decline in revenue. The company also displayed strong EBIT and EBITDA margins, suggesting efficient operations, but the revenue contraction poses risks.
Balance Sheet
55
Neutral
The balance sheet is stable with no debt, resulting in a debt-to-equity ratio of 0, which is a positive sign. The equity ratio stands at 100%, indicating complete equity financing. However, the return on equity (ROE) was 27.34%, which is moderate. The lack of liabilities implies financial stability, but the decrease in total assets from 2022 to 2023 may be concerning.
Cash Flow
30
Negative
The cash flow statement highlights challenges, with no reported operating cash flow or free cash flow for 2023, indicating potential liquidity constraints. The absence of consistent cash flows raises concerns about the company's ability to sustain operations without external financing.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
3.15M10.41M15.03M4.20M5.57M9.48M
Gross Profit
3.17M10.41M-20.18B-5.44B-6.95B-21.58B
EBIT
-6.61B9.49M12.94M2.80M5.02M9.15M
EBITDA
642.23K8.96M13.34M2.96M5.02M9.33M
Net Income Common Stockholders
7.64M14.11M13.48M3.12M5.02M9.52M
Balance SheetCash, Cash Equivalents and Short-Term Investments
18.25K1.39M922.91K67.12K29.64K90.67K
Total Assets
694.98M51.63M60.56M65.19M71.29M77.26M
Total Debt
0.000.000.000.00348.82K34.82K
Net Debt
-18.25K-1.39M-922.91K-67.12K319.18K-55.85K
Total Liabilities
0.000.0060.56M0.00348.82K34.82K
Stockholders Equity
694.98M51.63M60.56M65.19M70.95M77.22M
Cash FlowFree Cash Flow
2.28B0.004.20B0.000.000.00
Operating Cash Flow
2.28B0.004.20B0.000.000.00
Investing Cash Flow
0.000.000.000.000.000.00
Financing Cash Flow
0.000.000.000.000.000.00

Permianville Royalty Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.39
Price Trends
50DMA
1.48
Negative
100DMA
1.48
Negative
200DMA
1.48
Negative
Market Momentum
MACD
0.02
Negative
RSI
58.31
Neutral
STOCH
77.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PVL, the sentiment is Negative. The current price of 1.39 is below the 20-day moving average (MA) of 1.53, below the 50-day MA of 1.48, and below the 200-day MA of 1.48, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.31 is Neutral, neither overbought nor oversold. The STOCH value of 77.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PVL.

Permianville Royalty Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SBSBR
79
Outperform
$970.55M12.19922.55%8.07%4.88%5.15%
62
Neutral
$1.40B13.9032.48%10.86%-1.39%-23.38%
58
Neutral
$9.12B5.24-7.59%7.51%0.53%-65.25%
PVPVL
54
Neutral
$49.17M17.435.90%4.43%-80.46%-51.76%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PVL
Permianville Royalty
1.39
0.09
6.92%
DMLP
Dorchester Minerals
28.13
-3.45
-10.92%
SBR
Sabine Royalty
61.79
-0.84
-1.34%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.