Sabine Royalty (SBR) AI Stock Analysis

• Market Cap: $988.92M
• Dividend Yield: 7.61%
• Average Volume (3M): 37.10K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.53
• Revenue Growth: -14.84%
• EPS Growth: -16.23%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.70
• Shares Outstanding: 14,579,345
• 10 Day Avg. Volume: 48,793
• 30 Day Avg. Volume: 37,100
• PEG Ratio: -1.01
• Price to Book (P/B): 108.52
• Price to Sales (P/S): 11.44
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 12.49
• Enterprise Value/Gross Profit: 12.49
• Enterprise Value/Ebitda: 13.20
• 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: 66 Neutral
• Price Target: ―

Sabine Royalty's strong profitability and debt-free balance sheet are significant strengths. However, recent challenges with revenue declines and cash flow volatility pose risks. The technical analysis indicates bearish short-term momentum, although the valuation remains attractive due to a low P/E ratio and high dividend yield.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, allowing the company to navigate market fluctuations more effectively.

Strong Profit Margins

Strong profit margins indicate efficient operations and pricing power, contributing to sustained profitability even amidst revenue fluctuations.

High Dividend Yield

A high dividend yield enhances shareholder returns and signals confidence in cash flow generation, appealing to long-term income investors.

Negative Factors

Revenue Decline

A declining revenue trend can impact profitability and growth prospects, necessitating strategic adjustments to stabilize and grow income streams.

Cash Flow Volatility

Volatile cash flows can hinder operational stability and limit investment capabilities, posing a risk to long-term financial health.

Decline in Stockholders' Equity

A decline in stockholders' equity may reflect underlying financial challenges, affecting investor confidence and future capital raising efforts.

Sabine Royalty Business Overview & Revenue Model

Company Description

Sabine Royalty Trust (SBR) is an express trust that focuses on managing, developing, and monetizing its interests in oil and gas properties across multiple states in the United States. The trust holds a diversified portfolio of royalty and mineral interests in producing and non-producing oil and gas properties, providing investors with a stream of income derived primarily from energy production activities.

How the Company Makes Money

Sabine Royalty Trust generates revenue primarily through the collection of royalties and mineral interests from its oil and gas properties. The trust receives a percentage of the revenue generated from the sale of oil and gas extracted from its properties. This income is then distributed to shareholders in the form of monthly dividends. The trust's earnings are largely influenced by the fluctuating market prices of oil and gas, production levels, and operational efficiencies of its managed properties. Additionally, the trust does not engage in any operations itself but relies on third-party operators who manage the day-to-day operations of the properties.

Sabine Royalty Financial Statement Overview

Summary

Sabine Royalty exhibits strong profitability and a solid balance sheet with no debt and a high equity ratio. However, recent revenue declines and cash flow volatility pose potential risks. The company should focus on stabilizing revenue and managing cash flow to maintain financial health.

Income Statement

The income statement shows strong gross and net profit margins with a stable EBIT margin. However, the company experienced a significant revenue decline in 2024 compared to previous years, which affects the overall profitability outlook. Historical data indicates robust profitability, but recent trends suggest caution.

Balance Sheet

The balance sheet is strong with no debt, resulting in a very favorable debt-to-equity ratio. The equity ratio is high, indicating financial stability. However, the slight decline in stockholders' equity over recent years warrants monitoring.

Cash Flow

Cash flow analysis reveals volatility with negative free cash flow in 2023 and zero operating cash flows in 2024. Although previous years showed healthy operating cash flows, recent trends highlight a cash management challenge that could impact future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.18M	82.57M	93.01M	125.75M	60.90M	36.33M
Gross Profit	77.18M	82.57M	93.01M	125.75M	60.90M	36.33M
EBITDA	73.08M	79.04M	89.45M	122.46M	57.85M	33.28M
Net Income	73.58M	79.64M	90.25M	122.69M	57.86M	33.31M
Balance Sheet
Total Assets	7.96M	9.25M	9.44M	16.28M	16.32M	4.95M
Cash, Cash Equivalents and Short-Term Investments	7.89M	9.17M	9.34M	16.17M	16.19M	4.79M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	755.99K	543.43K	878.92K	4.87M	1.41M	965.96K
Stockholders Equity	7.21M	8.71M	8.56M	11.41M	14.91M	3.99M
Cash Flow
Free Cash Flow	19.07M	0.00	-93.01M	122.69M	57.86M	-1.58M
Operating Cash Flow	19.07M	0.00	-93.01M	122.69M	57.86M	-1.58M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-18.24M	0.00	0.00	0.00	0.00	0.00

Sabine Royalty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBR, the sentiment is Negative. The current price of 78.31 is above the 20-day moving average (MA) of 73.21, above the 50-day MA of 72.54, and above the 200-day MA of 67.75, indicating a neutral trend. The MACD of -2.02 indicates Positive momentum. The RSI at 34.83 is Neutral, neither overbought nor oversold. The STOCH value of 11.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBR.

Sabine Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNR	81 Outperform	$1.88B	11.61	6.68%	17.41%	9.33%	―
INR	68 Neutral	$883.33M	-27.52	-2.91%	―	―	―
SBR	66 Neutral	$988.92M	12.48	986.82%	7.61%	-14.84%	-16.23%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KRP	64 Neutral	$1.39B	-63.57	4.73%	14.08%	-2.71%	-113.80%
DMLP	61 Neutral	$1.07B	19.71	14.72%	12.51%	-12.51%	-59.55%