BLACK STONE MINERALS LP (BSM) Stock Fundamental Analysis
NYSE:BSM - New York Stock Exchange, Inc. - US09225M1018 - Currency: USD
We assign a fundamental rating of 6 out of 10 to BSM. BSM was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. While BSM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BSM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BSM had positive earnings in the past year.
BSM had a positive operating cash flow in the past year.
Each year in the past 5 years BSM has been profitable.
BSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BSM (15.65%) is better than 92.42% of its industry peers.
BSM's Return On Equity of 18.21% is fine compared to the rest of the industry. BSM outperforms 78.20% of its industry peers.
BSM has a better Return On Invested Capital (15.23%) than 90.05% of its industry peers.
BSM had an Average Return On Invested Capital over the past 3 years of 25.28%. This is in line with the industry average of 23.70%.
The 3 year average ROIC (25.28%) for BSM is well above the current ROIC(15.23%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.65% | ||
| ROE | 18.21% | ||
| ROIC | 15.23% |
ROA(3y)29.1%
ROA(5y)21.66%
ROE(3y)30.66%
ROE(5y)23.33%
ROIC(3y)25.28%
ROIC(5y)19.74%
1.3 Margins
BSM's Profit Margin of 50.04% is amongst the best of the industry. BSM outperforms 92.89% of its industry peers.
In the last couple of years the Profit Margin of BSM has grown nicely.
The Operating Margin of BSM (58.40%) is better than 92.42% of its industry peers.
BSM's Operating Margin has improved in the last couple of years.
The Gross Margin of BSM (85.51%) is better than 92.89% of its industry peers.
In the last couple of years the Gross Margin of BSM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.4% | ||
| PM (TTM) | 50.04% | ||
| GM | 85.51% |
OM growth 3Y7.06%
OM growth 5Y5.48%
PM growth 3Y7.56%
PM growth 5Y7.06%
GM growth 3Y1.53%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BSM is creating value.
The number of shares outstanding for BSM has been reduced compared to 1 year ago.
Compared to 5 years ago, BSM has more shares outstanding
BSM has a worse debt/assets ratio than last year.
2.2 Solvency
BSM has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
BSM's Debt to FCF ratio of 0.26 is amongst the best of the industry. BSM outperforms 92.42% of its industry peers.
BSM has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
BSM has a Debt to Equity ratio of 0.06. This is in the better half of the industry: BSM outperforms 79.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | N/A |
ROIC/WACC1.7
WACC8.95%
2.3 Liquidity
BSM has a Current Ratio of 1.35. This is a normal value and indicates that BSM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.35, BSM is in the better half of the industry, outperforming 61.61% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that BSM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.35, BSM is doing good in the industry, outperforming 68.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
BSM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.56%.
Measured over the past 5 years, BSM shows a small growth in Earnings Per Share. The EPS has been growing by 5.02% on average per year.
BSM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -25.94%.
BSM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.32% yearly.
EPS 1Y (TTM)-41.56%
EPS 3Y13.82%
EPS 5Y5.02%
EPS Q2Q%-92.59%
Revenue 1Y (TTM)-25.94%
Revenue growth 3Y6.47%
Revenue growth 5Y-2.32%
Sales Q2Q%-1.31%
3.2 Future
The Earnings Per Share is expected to grow by 7.89% on average over the next years.
BSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.68% yearly.
EPS Next Y-0.17%
EPS Next 2Y11.41%
EPS Next 3Y7.89%
EPS Next 5YN/A
Revenue Next Year3.56%
Revenue Next 2Y7.3%
Revenue Next 3Y5.68%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.57, the valuation of BSM can be described as correct.
BSM's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.28, BSM is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.18, which indicates a very decent valuation of BSM.
BSM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BSM is cheaper than 71.09% of the companies in the same industry.
BSM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BSM.
70.62% of the companies in the same industry are more expensive than BSM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 10.54 |
4.3 Compensation for Growth
BSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.9
EPS Next 2Y11.41%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.63%, BSM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, BSM pays a better dividend. On top of this BSM pays more dividend than 91.00% of the companies listed in the same industry.
BSM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.63% |
5.2 History
The dividend of BSM has a limited annual growth rate of 1.14%.
BSM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BSM pays out 178.29% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BSM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP178.29%
EPS Next 2Y11.41%
EPS Next 3Y7.89%
13.11
-0.03 (-0.23%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners13.93%
Inst Owner Change2.16%
Ins Owners17.84%
Ins Owner Change4.83%
Market Cap2.77B
Analysts72.5
Price Target15.81 (20.59%)
Short Float %1.22%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.63% |
Yearly Dividend1.68
Dividend Growth(5Y)1.14%
DP178.29%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-72.64%
Min EPS beat(2)-93.88%
Max EPS beat(2)-51.4%
EPS beat(4)1
Avg EPS beat(4)-37.6%
Min EPS beat(4)-93.88%
Max EPS beat(4)14.35%
EPS beat(8)2
Avg EPS beat(8)-24.1%
EPS beat(12)6
Avg EPS beat(12)6.62%
EPS beat(16)7
Avg EPS beat(16)2.8%
Revenue beat(2)0
Avg Revenue beat(2)-13.97%
Min Revenue beat(2)-25.2%
Max Revenue beat(2)-2.74%
Revenue beat(4)0
Avg Revenue beat(4)-11.45%
Min Revenue beat(4)-25.2%
Max Revenue beat(4)-2.74%
Revenue beat(8)1
Avg Revenue beat(8)-4.65%
Revenue beat(12)4
Avg Revenue beat(12)4.06%
Revenue beat(16)5
Avg Revenue beat(16)-0.49%
PT rev (1m)-6.06%
PT rev (3m)-11.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)-8.82%
EPS NY rev (3m)-14.96%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-4%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 9.18 | ||
| P/S | 7.16 | ||
| P/FCF | 11.33 | ||
| P/OCF | 7.94 | ||
| P/B | 2.61 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 10.54 |
EPS(TTM)0.9
EY6.86%
EPS(NY)1.43
Fwd EY10.89%
FCF(TTM)1.16
FCFY8.83%
OCF(TTM)1.65
OCFY12.59%
SpS1.83
BVpS5.03
TBVpS5.03
PEG (NY)N/A
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.65% | ||
| ROE | 18.21% | ||
| ROCE | 19.28% | ||
| ROIC | 15.23% | ||
| ROICexc | 15.27% | ||
| ROICexgc | 15.27% | ||
| OM | 58.4% | ||
| PM (TTM) | 50.04% | ||
| GM | 85.51% | ||
| FCFM | 63.22% |
ROA(3y)29.1%
ROA(5y)21.66%
ROE(3y)30.66%
ROE(5y)23.33%
ROIC(3y)25.28%
ROIC(5y)19.74%
ROICexc(3y)25.87%
ROICexc(5y)20.12%
ROICexgc(3y)25.87%
ROICexgc(5y)20.12%
ROCE(3y)32%
ROCE(5y)24.99%
ROICexcg growth 3Y13.21%
ROICexcg growth 5Y8.09%
ROICexc growth 3Y13.21%
ROICexc growth 5Y8.09%
OM growth 3Y7.06%
OM growth 5Y5.48%
PM growth 3Y7.56%
PM growth 5Y7.06%
GM growth 3Y1.53%
GM growth 5Y0.56%
F-Score4
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 244.7% | ||
| Cap/Sales | 26.96% | ||
| Interest Coverage | 85.68 | ||
| Cash Conversion | 129.91% | ||
| Profit Quality | 126.35% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | N/A |
F-Score4
WACC8.95%
ROIC/WACC1.7
Cap/Depr(3y)108.08%
Cap/Depr(5y)70.81%
Cap/Sales(3y)10.59%
Cap/Sales(5y)7.45%
Profit Quality(3y)109.65%
Profit Quality(5y)150.85%
High Growth Momentum
Growth
EPS 1Y (TTM)-41.56%
EPS 3Y13.82%
EPS 5Y5.02%
EPS Q2Q%-92.59%
EPS Next Y-0.17%
EPS Next 2Y11.41%
EPS Next 3Y7.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-25.94%
Revenue growth 3Y6.47%
Revenue growth 5Y-2.32%
Sales Q2Q%-1.31%
Revenue Next Year3.56%
Revenue Next 2Y7.3%
Revenue Next 3Y5.68%
Revenue Next 5YN/A
EBIT growth 1Y-35.76%
EBIT growth 3Y13.99%
EBIT growth 5Y3.03%
EBIT Next Year18.48%
EBIT Next 3Y11.78%
EBIT Next 5YN/A
FCF growth 1Y-47.74%
FCF growth 3Y4.19%
FCF growth 5Y-1.89%
OCF growth 1Y-27.14%
OCF growth 3Y14.84%
OCF growth 5Y-1.17%