San Juan Basin Royalty (SJT) AI Stock Analysis

• Market Cap: $282.92M
• Dividend Yield: 6.98%
• Average Volume (3M): 245.94K
• Price to Earnings (P/E): 53.0
• Beta (1Y): 0.45
• Revenue Growth: -85.94%
• EPS Growth: -88.55%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.11
• Shares Outstanding: 46,608,795
• 10 Day Avg. Volume: 253,200
• 30 Day Avg. Volume: 245,945
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 21.75
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

San Juan Basin Royalty's strong profitability and solid balance sheet are offset by significant revenue decline and zero cash flow, leading to potential liquidity issues. The technical indicators show limited momentum, while the high dividend yield provides a cushion. The absence of new earnings guidance or corporate events results in a neutral impact, leading to an overall moderate score.

San Juan Basin Royalty Business Overview & Revenue Model

Company Description

San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest carved out of Southland's oil and natural gas interests (the Subject Interests) in properties located in the San Juan Basin in northwestern New Mexico. The Subject Interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico, as well as 1,140.0 net wells. BBVA USA serves as the trustee of the San Juan Basin Royalty Trust. The company was founded in 1980 and is based in Houston, Texas.

How the Company Makes Money

San Juan Basin Royalty Trust generates revenue primarily through its net overriding royalty interest in oil and gas production from the San Juan Basin properties. The trust receives a percentage of the gross proceeds from the sale of oil and gas, which is then subject to certain costs and expenses, such as production taxes and post-production costs. The net income received is distributed to unit holders on a monthly basis. The trust's earnings are heavily influenced by factors such as fluctuations in oil and gas prices, production levels, and operational costs. Additionally, partnerships with oil and gas operators in the San Juan Basin play a significant role in the trust's ability to generate revenue, as these operators are responsible for the production activities on the properties.

San Juan Basin Royalty Financial Statement Overview

Summary

San Juan Basin Royalty shows strong profitability and a solid balance sheet with no debt. However, the significant revenue decline and zero cash flow generation are concerning and suggest potential liquidity challenges.

Income Statement

The income statement reflects strong profitability with a gross profit margin of 100% due to the absence of cost of goods sold. However, the company experienced a significant revenue decline of 32.4% from 2022 to 2023, which is a concern. The net profit margin stands robust at 96.7% for 2023, indicating high efficiency in converting revenue to profit. Additionally, EBIT and EBITDA margins are exceptionally high, reflecting strong operational performance.

Balance Sheet

The balance sheet shows a solid equity ratio of 63.6% for 2023, indicating a strong capital structure with no debt, reducing financial risk. However, the return on equity decreased to 187.6% in 2023 from 261.3% in 2022, suggesting reduced profitability relative to equity. Overall, the company's financial stability is strong, but the decline in ROE warrants attention.

Cash Flow

The cash flow statement reflects a challenging situation with zero operating and free cash flow in 2023, resulting in an inability to calculate growth rates or ratios. This indicates a potential liquidity issue despite previous years showing positive cash flows. The lack of operating cash flow relative to net income raises concerns about cash conversion efficiency.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
15.33M	53.39M	79.01M	37.62M	8.84M	9.90M
	Gross Profit
8.48M	53.39M	61.94M	28.42M	8.84M	9.90M
	EBIT
12.74M	51.64M	77.49M	35.97M	7.41M	8.07M
	EBITDA
12.76M	51.49M	77.54M	35.97M	7.41M	8.07M
	Net Income Common Stockholders
12.74M	51.64M	77.60M	35.97M	7.42M	8.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.60M	1.57M	5.49M	6.24M	1.29M	1.08M
	Total Assets
24.88M	4.33M	8.46M	9.93M	6.41M	6.53M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-8.60M	-1.57M	-5.49M	-6.24M	-1.29M	-1.08M
	Total Liabilities
8.56M	1.57M	5.49M	6.24M	1.29M	1.08M
	Stockholders Equity
16.32M	2.75M	2.97M	3.69M	5.12M	5.45M
Cash Flow		Free Cash Flow
57.75K	0.00	77.60M	2.87M	656.75K	7.70M
	Operating Cash Flow
57.75K	0.00	77.60M	2.87M	656.75K	7.70M
	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	-8.09M

San Juan Basin Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.07
• 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 SJT, the sentiment is Positive. The current price of 6.07 is above the 20-day moving average (MA) of 5.42, above the 50-day MA of 5.24, and above the 200-day MA of 4.26, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 67.58 is Neutral, neither overbought nor oversold. The STOCH value of 78.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SJT.

San Juan Basin Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSM	66 Neutral	$3.06B	12.56	23.12%	10.41%	-12.71%	-39.85%
SBR	66 Neutral	$978.71M	12.26	922.55%	8.02%	-11.35%	-11.76%
SJT	61 Neutral	$282.92M	53.03	189.96%	6.98%	-85.94%	-88.55%
DMLP	61 Neutral	$1.39B	13.72	32.48%	11.00%	-1.39%	-23.38%
KRP	60 Neutral	$2.44B	45.09	1.48%	13.99%	13.72%	-110.82%
Sector *	55 Neutral	$7.10B	3.56	-6.61%	5.99%	-0.03%	-51.71%