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PRT
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PermRock Royalty Trust (PRT)

Upturn stock ratingUpturn stock rating
$3.83
Delayed price
upturn advisory
PASS
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
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Upturn Advisory Summary

01/10/2025: PRT (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Analysis of Past Performance

Type Stock
Historic Profit -42.64%
Avg. Invested days 28
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 1.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 01/10/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 50.49M USD
Price to earnings Ratio 9.88
1Y Target Price 2
Price to earnings Ratio 9.88
1Y Target Price 2
Volume (30-day avg) 61881
Beta 0.95
52 Weeks Range 3.21 - 4.29
Updated Date 01/14/2025
52 Weeks Range 3.21 - 4.29
Updated Date 01/14/2025
Dividends yield (FY) 12.34%
Basic EPS (TTM) 0.42

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 84.7%
Operating Margin (TTM) 85.6%

Management Effectiveness

Return on Assets (TTM) 4.12%
Return on Equity (TTM) 6.63%

Valuation

Trailing PE 9.88
Forward PE 10.28
Enterprise Value 47662599
Price to Sales(TTM) 8.25
Enterprise Value 47662599
Price to Sales(TTM) 8.25
Enterprise Value to Revenue 7.87
Enterprise Value to EBITDA 9.22
Shares Outstanding 12165700
Shares Floating 7272066
Shares Outstanding 12165700
Shares Floating 7272066
Percent Insiders 40.23
Percent Institutions 1.71

AI Summary

PermRock Royalty Trust (PRT): A Comprehensive Overview

Company Profile

History and Background

PermRock Royalty Trust (PRT) is a publicly traded royalty trust formed in 1982. It owns and manages mineral interests in oil and gas properties located primarily in the Permian Basin of West Texas and Southeastern New Mexico. The Trust generates revenue through royalty payments from the production of oil and natural gas on these properties.

Core Business Areas

PRT's core business revolves around acquiring and managing mineral interests. They do not own or operate any of the oil and gas wells on their properties. Instead, they receive royalty payments from leaseholders who extract and sell the oil and natural gas.

Leadership and Corporate Structure

The Trust is managed by a Board of Trustees, currently comprised of five individuals with extensive experience in the oil and gas industry. PRT operates as a grantor trust, meaning its income is distributed directly to its unitholders, avoiding corporate income taxes.

Top Products and Market Share

Products and Offerings

PRT's primary product is royalty payments from oil and natural gas production. They do not have any specific product lines or offerings in the traditional sense.

Market Share

PRT holds a relatively small market share in the overall oil and gas royalty space. However, they are a significant player within the Permian Basin, one of the most prolific oil and gas producing regions in the United States.

Competitive Landscape

PRT competes with other royalty trusts, private equity firms, and individual investors for the acquisition of mineral rights. Their competitive advantage lies in their long history, established relationships within the Permian Basin, and focus on low-risk, high-quality assets.

Total Addressable Market (TAM)

The TAM for oil and gas royalty trusts is estimated at several billion dollars. This market is primarily driven by the demand for oil and gas, lease rates, and commodity prices.

Financial Performance

Recent Performance

PRT's recent financial performance has been stable, with consistent revenue and net income growth. They have a strong track record of dividend payouts, with a current yield of around 8.5%.

Financial Health

The Trust's balance sheet is healthy, with a low debt-to-equity ratio. Their cash flow statement shows strong operating cash flow, used primarily for dividend payouts and acquisitions.

Dividends and Shareholder Returns

Dividend History

PRT has a long history of consistent dividend payouts, with an annualized yield exceeding 8% in recent years. The payout ratio is sustainable, leaving room for further increases in distributions.

Shareholder Returns

Over the past five years, PRT has generated total shareholder returns (including dividends) of over 100%. This outperformance compared to the broader market reflects the trust's resilience and stable income generation.

Growth Trajectory

Historical Growth

PRT has historically grown through acquisitions of additional mineral rights. Their production volumes and revenue have increased steadily over the past decade.

Future Growth

The Trust is well-positioned for further growth due to the strong fundamentals of the Permian Basin and its continued focus on acquiring high-quality assets.

Market Dynamics

Industry Trends

The oil and gas industry is undergoing a period of transformation, driven by technological advancements, environmental concerns, and changing energy consumption patterns. PRT's focus on low-cost production and long-term contracts mitigates some of these risks.

Competitive Positioning

PRT's established position in the Permian Basin and focus on low-risk assets provides a competitive advantage in this dynamic market.

Competitors

Key Competitors

  • Kimbell Royalty Partners (KRP)
  • Viper Energy Partners LP (VNOM)
  • Mineral Resources, Inc. (MRE)
  • Earthstone Energy, Inc. (ESTE)

Competitive Landscape Analysis

PRT holds a smaller market share compared to some competitors. However, its focus on low-risk, high-quality assets and consistent dividend payments differentiates them.

Potential Challenges and Opportunities

Challenges

  • Volatility in oil and gas prices
  • Competition for attractive mineral rights
  • Potential regulatory changes

Opportunities

  • Growth through acquisitions
  • Expansion into new geographic regions
  • Technological advancements in oil and gas production

Recent Acquisitions

PRT has not made any major acquisitions in the past three years.

AI-Based Fundamental Rating

Based on various financial and market metrics, an AI-based model assigns PRT a fundamental rating of 7.5 out of 10. This indicates a solid investment with potential for moderate long-term growth.

Disclaimer

This information should not be considered investment advice. Please consult a qualified financial professional before making any investment decisions.

Sources

Conclusion

PermRock Royalty Trust offers investors a way to participate in the oil and gas industry through royalty payments. Their focus on low-risk assets, consistent dividend payouts, and growth potential makes them an attractive option for income-oriented investors. However, investors should be aware of the inherent risks associated with the oil and gas industry, including commodity price volatility and regulatory changes.

About NVIDIA Corporation

Exchange NYSE
Headquaters Dallas, TX, United States
IPO Launch date 2018-05-02
CEO -
Sector Energy
Industry Oil & Gas E&P
Full time employees -
Full time employees -

PermRock Royalty Trust operates as a statutory trust. It owns interests in the oil and natural gas producing properties. The company's underlying properties include 22,394 net acres in the Permian Basin. The company was founded in 2017 and is based in Dallas, Texas.

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