BLACK STONE MINERALS LP (BSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BSM - US09225M1018
14.69 USD
+0.06 (+0.41%)
14.69 USD
0 (0%)
Taking everything into account, BSM scores 6 out of 10 in our fundamental rating. BSM was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. BSM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BSM has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year BSM was profitable.
- BSM had a positive operating cash flow in the past year.
- BSM had positive earnings in each of the past 5 years.
- Each year in the past 5 years BSM had a positive operating cash flow.
1.2 Ratios
- BSM has a Return On Assets of 19.25%. This is amongst the best in the industry. BSM outperforms 95.17% of its industry peers.
- With an excellent Return On Equity value of 21.74%, BSM belongs to the best of the industry, outperforming 89.37% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 17.75%, BSM belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BSM is above the industry average of 21.94%.
- The last Return On Invested Capital (17.75%) for BSM is well below the 3 year average (25.28%), which needs to be investigated, but indicates that BSM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.25% | ||
| ROE | 21.74% | ||
| ROIC | 17.75% |
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 has a better Profit Margin (56.23%) than 94.20% of its industry peers.
- In the last couple of years the Profit Margin of BSM has grown nicely.
- With an excellent Operating Margin value of 64.62%, BSM belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
- In the last couple of years the Operating Margin of BSM has grown nicely.
- BSM has a Gross Margin of 88.27%. This is amongst the best in the industry. BSM outperforms 94.20% of its industry peers.
- BSM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.62% | ||
| PM (TTM) | 56.23% | ||
| GM | 88.27% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BSM is creating value.
- The number of shares outstanding for BSM has been reduced compared to 1 year ago.
- The number of shares outstanding for BSM has been increased compared to 5 years ago.
- Compared to 1 year ago, BSM has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of BSM is 0.42, which is an excellent value as it means it would take BSM, only 0.42 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.42, BSM belongs to the best of the industry, outperforming 89.37% of the companies in the same industry.
- A Debt/Equity ratio of 0.08 indicates that BSM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.08, BSM belongs to the top of the industry, outperforming 80.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | N/A |
ROIC/WACC1.99
WACC8.91%
2.3 Liquidity
- A Current Ratio of 4.37 indicates that BSM has no problem at all paying its short term obligations.
- BSM has a better Current ratio (4.37) than 85.99% of its industry peers.
- A Quick Ratio of 4.37 indicates that BSM has no problem at all paying its short term obligations.
- BSM has a better Quick ratio (4.37) than 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.37 | ||
| Quick Ratio | 4.37 |
3. Growth
3.1 Past
- BSM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.25%.
- 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.
- Looking at the last year, BSM shows a very negative growth in Revenue. The Revenue has decreased by -19.58% in the last year.
- The Revenue has been decreasing by -2.32% on average over the past years.
EPS 1Y (TTM)-30.25%
EPS 3Y13.82%
EPS 5Y5.02%
EPS Q2Q%-2.44%
Revenue 1Y (TTM)-19.58%
Revenue growth 3Y6.47%
Revenue growth 5Y-2.32%
Sales Q2Q%1.94%
3.2 Future
- BSM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.00% yearly.
- The Revenue is expected to grow by 3.96% on average over the next years.
EPS Next Y4.51%
EPS Next 2Y2.23%
EPS Next 3Y7%
EPS Next 5YN/A
Revenue Next Year-6.62%
Revenue Next 2Y0.7%
Revenue Next 3Y3.96%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- BSM is valuated correctly with a Price/Earnings ratio of 13.00.
- 65.22% of the companies in the same industry are more expensive than BSM, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.32. BSM is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 12.22, which indicates a correct valuation of BSM.
- BSM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BSM is cheaper than 66.18% of the companies in the same industry.
- BSM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 12.22 |
4.2 Price Multiples
- BSM's Enterprise Value to EBITDA is on the same level as the industry average.
- BSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BSM is cheaper than 66.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.88 | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BSM does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of BSM may justify a higher PE ratio.
PEG (NY)2.88
PEG (5Y)2.59
EPS Next 2Y2.23%
EPS Next 3Y7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.48%, BSM is a good candidate for dividend investing.
- BSM's Dividend Yield is rather good when compared to the industry average which is at 3.75. BSM pays more dividend than 85.02% of the companies in the same industry.
- BSM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.48% |
5.2 History
- The dividend of BSM has a limited annual growth rate of 1.14%.
- BSM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- BSM pays out 135.16% 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.
DP135.16%
EPS Next 2Y2.23%
EPS Next 3Y7%
BLACK STONE MINERALS LP / BSM FAQ
What is the fundamental rating for BSM stock?
ChartMill assigns a fundamental rating of 6 / 10 to BSM.
What is the valuation status of BLACK STONE MINERALS LP (BSM) stock?
ChartMill assigns a valuation rating of 5 / 10 to BLACK STONE MINERALS LP (BSM). This can be considered as Fairly Valued.
What is the profitability of BSM stock?
BLACK STONE MINERALS LP (BSM) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for BSM stock?
The Price/Earnings (PE) ratio for BLACK STONE MINERALS LP (BSM) is 13 and the Price/Book (PB) ratio is 2.77.
What is the expected EPS growth for BLACK STONE MINERALS LP (BSM) stock?
The Earnings per Share (EPS) of BLACK STONE MINERALS LP (BSM) is expected to grow by 4.51% in the next year.