News Image

Why BLACK STONE MINERALS LP (NYSE:BSM) qualifies as a quality stock.

By Mill Chart

Last update: Sep 12, 2023

In this article we will dive into BLACK STONE MINERALS LP (NYSE:BSM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed BLACK STONE MINERALS LP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:BSM highlighted

  • BLACK STONE MINERALS LP has achieved substantial revenue growth over the past 5 years, with a 9.08% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a robust ROIC excluding cash and goodwill at 37.88%, BLACK STONE MINERALS LP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • BLACK STONE MINERALS LP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a favorable Profit Quality (5-year) ratio of 141.0%, BLACK STONE MINERALS LP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • BLACK STONE MINERALS LP has experienced impressive EBIT growth over the past 5 years, with 23.03% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • BLACK STONE MINERALS LP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to BSM. BSM was compared to 217 industry peers in the Oil, Gas & Consumable Fuels industry. BSM gets an excellent profitability rating and is at the same time showing great financial health properties. BSM has a correct valuation and a medium growth rate.

Check the latest full fundamental report of BSM for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

Back