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Reasonable growth and debt and a high ROIC for BLACK STONE MINERALS LP (NYSE:BSM).

By Mill Chart

Last update: Oct 10, 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

  • The 5-year revenue growth of BLACK STONE MINERALS LP has been remarkable, with 9.08% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a notable ROIC excluding cash and goodwill at 37.88%, BLACK STONE MINERALS LP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 0.0, BLACK STONE MINERALS LP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • BLACK STONE MINERALS LP exhibits impressive Profit Quality (5-year) with a 141.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • 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.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, BLACK STONE MINERALS LP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental analysis of NYSE:BSM

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

BSM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 216 industry peers in the Oil, Gas & Consumable Fuels industry. BSM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BSM has a correct valuation and a medium growth rate.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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