North European Oil Royalty Trust Fundamental Analysis
North European Oil Royalty Trust Fundamental Analysis
North European Oil Royalty Trust (NRT) shows moderate financial fundamentals with a PE ratio of 7.02, profit margin of 91.14%, and ROE of 4.98%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.6/100 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 NRT's fundamental strength across five key dimensions:
Efficiency Score
WeakNRT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNRT trades at attractive valuation levels.
Growth Score
ModerateNRT shows steady but slowing expansion.
Financial Health Score
ExcellentNRT maintains a strong and stable balance sheet.
Profitability Score
ModerateNRT maintains healthy but balanced margins.
Key Financial Metrics
Is NRT Expensive or Cheap?
P/E Ratio
NRT trades at 7.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NRT's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values North European Oil Royalty Trust at 34.83 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.43 times EBITDA. This is generally considered low.
How Well Does NRT Make Money?
Net Profit Margin
For every $100 in sales, North European Oil Royalty Trust keeps $91.14 as profit after all expenses.
Operating Margin
Core operations generate 90.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.98 in profit for every $100 of shareholder equity.
ROA
North European Oil Royalty Trust generates $2.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
North European Oil Royalty Trust generates strong operating cash flow of $7.31M, reflecting robust business health.
Free Cash Flow
North European Oil Royalty Trust generates strong free cash flow of $7.31M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.80 in free cash annually.
FCF Yield
NRT converts 11.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
34.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
4.98
vs 25 benchmark
ROA
Return on assets percentage
2.40
vs 25 benchmark
ROCE
Return on capital employed
4.95
vs 25 benchmark
How NRT Stacks Against Its Sector Peers
| Metric | NRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.02 | 20.90 | Better (Cheaper) |
| ROE | 498.36% | 1138.00% | Weak |
| Net Margin | 91.14% | 1357.00% | Weak |
| Debt/Equity | 0.00 | -1.64 (disorted) | Distorted |
| Current Ratio | 1.93 | 2.97 | Neutral |
| ROA | 240.08% | 428.00% | Weak |
NRT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews North European Oil Royalty Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity