Black Stone Minerals, L.P.
Black Stone Minerals, L.P. Fundamental Analysis
Black Stone Minerals, L.P. (BSM) shows strong financial fundamentals with a PE ratio of 11.62, profit margin of 67.81%, and ROE of 24.79%. The company generates $0.4B in annual revenue with weak year-over-year growth of -12.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BSM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBSM demonstrates superior asset utilization.
Valuation Score
ExcellentBSM trades at attractive valuation levels.
Growth Score
WeakBSM faces weak or negative growth trends.
Financial Health Score
ExcellentBSM maintains a strong and stable balance sheet.
Profitability Score
ExcellentBSM achieves industry-leading margins.
Key Financial Metrics
Is BSM Expensive or Cheap?
P/E Ratio
BSM trades at 11.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BSM's PEG of -13.60 indicates potential undervaluation.
Price to Book
The market values Black Stone Minerals, L.P. at 2.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.64 times EBITDA. This is generally considered low.
How Well Does BSM Make Money?
Net Profit Margin
For every $100 in sales, Black Stone Minerals, L.P. keeps $67.81 as profit after all expenses.
Operating Margin
Core operations generate 56.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.79 in profit for every $100 of shareholder equity.
ROA
Black Stone Minerals, L.P. generates $21.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Black Stone Minerals, L.P. generates strong operating cash flow of $336.44M, reflecting robust business health.
Free Cash Flow
Black Stone Minerals, L.P. generates strong free cash flow of $245.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.16 in free cash annually.
FCF Yield
BSM converts 7.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-13.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How BSM Stacks Against Its Sector Peers
| Metric | BSM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.62 | 20.19 | Better (Cheaper) |
| ROE | 24.79% | 1019.00% | Weak |
| Net Margin | 67.81% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.08 | -0.65 (disorted) | Distorted |
| Current Ratio | 4.37 | 4.60 | Strong Liquidity |
| ROA | 21.57% | -11655350.00% (disorted) | Strong |
BSM outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Black Stone Minerals, L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-11.94%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
23.74%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-7.85%
Industry Style: Cyclical, Value, Commodity
Declining