Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP Fundamental Analysis
Kimbell Royalty Partners, LP (KRP) shows strong financial fundamentals with a PE ratio of 14.72, profit margin of 27.23%, and ROE of 12.05%. The company generates $0.4B in annual revenue with strong year-over-year growth of 13.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.6/100 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 KRP's fundamental strength across five key dimensions:
Efficiency Score
WeakKRP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKRP trades at attractive valuation levels.
Growth Score
ModerateKRP shows steady but slowing expansion.
Financial Health Score
ExcellentKRP maintains a strong and stable balance sheet.
Profitability Score
ModerateKRP maintains healthy but balanced margins.
Key Financial Metrics
Is KRP Expensive or Cheap?
P/E Ratio
KRP trades at 14.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KRP's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Kimbell Royalty Partners, LP at 1.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.28 times EBITDA. This is generally considered low.
How Well Does KRP Make Money?
Net Profit Margin
For every $100 in sales, Kimbell Royalty Partners, LP keeps $27.23 as profit after all expenses.
Operating Margin
Core operations generate 39.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.05 in profit for every $100 of shareholder equity.
ROA
Kimbell Royalty Partners, LP generates $7.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kimbell Royalty Partners, LP generates strong operating cash flow of $294.95M, reflecting robust business health.
Free Cash Flow
Kimbell Royalty Partners, LP produces free cash flow of $27.27M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.25 in free cash annually.
FCF Yield
KRP converts 1.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How KRP Stacks Against Its Sector Peers
| Metric | KRP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.72 | 19.95 | Better (Cheaper) |
| ROE | 12.05% | 963.00% | Weak |
| Net Margin | 27.23% | -48347.00% (disorted) | Strong |
| Debt/Equity | 0.65 | -0.54 (disorted) | Distorted |
| Current Ratio | 8.64 | 4.82 | Strong Liquidity |
| ROA | 7.39% | -2296.00% (disorted) | Weak |
KRP outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kimbell Royalty Partners, LP's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-21.47%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
102.15%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-13.57%
Industry Style: Cyclical, Value, Commodity
Declining