San Juan Basin Royalty (SJT) AI Stock Analysis

• Market Cap: $262.41M
• Dividend Yield: N/A
• Average Volume (3M): 243.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -99.78%
• EPS Growth: -103.13%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.11
• Shares Outstanding: 46,608,795
• 10 Day Avg. Volume: 264,688
• 30 Day Avg. Volume: 243,437
• PEG Ratio: -0.38
• Price to Book (P/B): 66.67
• Price to Sales (P/S): 25.38
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 86.26K
• Enterprise Value/Gross Profit: 86.26K
• Enterprise Value/Ebitda: 1.16K
• 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: 61 Neutral
• Price Target: ―

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.

Positive Factors

Strong Profitability

The company's ability to maintain a high gross profit margin indicates efficient operations and strong pricing power, which can support long-term financial stability and shareholder returns.

Solid Balance Sheet

A strong balance sheet with no debt reduces financial risk and enhances the company's ability to withstand economic downturns, providing a stable foundation for future growth.

High Net Profit Margin

A high net profit margin reflects the company's efficiency in converting revenue into profit, indicating strong operational performance and the potential for sustained profitability.

Negative Factors

Revenue Decline

A substantial decline in revenue can impact the company's ability to generate cash and sustain operations, posing a risk to long-term growth and financial health.

Zero Cash Flow

Lack of cash flow generation limits the company's ability to invest in growth opportunities and meet financial obligations, potentially leading to liquidity challenges.

Reduced Return on Equity

A decrease in return on equity suggests reduced profitability relative to equity, which may indicate inefficiencies or challenges in generating returns for shareholders over time.

San Juan Basin Royalty Business Overview & Revenue Model

Company Description

San Juan Basin Royalty Trust (SJT) is a publicly traded trust that holds royalty interests in oil and gas properties located in the San Juan Basin in New Mexico. The trust's primary asset is its ownership of a net overriding royalty interest, which entitles it to a percentage of the revenue derived from oil and gas production on these properties. The trust is managed by a trustee, and its income is distributed to unit holders in the form of monthly distributions.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.98K	7.03M	53.39M	79.01M	37.62M	8.84M
Gross Profit	2.98K	7.03M	53.39M	79.01M	37.62M	8.84M
EBITDA	222.58K	5.23M	51.49M	78.32M	37.40M	7.41M
Net Income	-162.78K	5.16M	51.64M	77.60M	35.97M	7.42M
Balance Sheet
Total Assets	2.71M	3.44M	4.33M	8.46M	9.93M	6.41M
Cash, Cash Equivalents and Short-Term Investments	32.97K	760.92K	1.57M	5.49M	6.24M	1.29M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	195.75K	760.92K	1.57M	5.49M	6.24M	1.29M
Stockholders Equity	2.51M	2.68M	2.75M	2.97M	3.69M	5.12M
Cash Flow
Free Cash Flow	0.00	0.00	0.00	77.60M	2.87M	656.75K
Operating Cash Flow	0.00	0.00	0.00	77.60M	2.87M	656.75K
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

San Juan Basin Royalty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SJT, the sentiment is Negative. The current price of 5.56 is below the 20-day moving average (MA) of 5.93, below the 50-day MA of 5.88, and below the 200-day MA of 5.82, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 44.08 is Neutral, neither overbought nor oversold. The STOCH value of 21.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SJT.

San Juan Basin Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SJT	61 Neutral	$262.41M	―	-10.79%	―	-99.78%	-103.13%
PRT	57 Neutral	$47.45M	9.25	7.20%	10.77%	-0.83%	-0.82%
PVL	54 Neutral	$57.42M	27.19	4.93%	5.92%	18.14%	-68.41%