BLACK STONE MINERALS LP (BSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BSM - US09225M1018
14.59 USD
-0.03 (-0.21%)
14.58 USD
-0.01 (-0.07%)
Taking everything into account, BSM scores 7 out of 10 in our fundamental rating. BSM was compared to 207 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- BSM had positive earnings in the past year.
- In the past year BSM had a positive cash flow from operations.
- In the past 5 years BSM has always been profitable.
- BSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 19.25%, BSM belongs to the best of the industry, outperforming 95.17% of the companies in the same industry.
- 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.
- BSM has a better Return On Invested Capital (17.75%) than 95.65% of its industry peers.
- 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.
- BSM's Profit Margin has improved in the last couple of years.
- BSM has a Operating Margin of 64.62%. This is amongst the best in the industry. BSM outperforms 95.65% of its industry peers.
- In the last couple of years the Operating Margin of BSM has grown nicely.
- BSM's Gross Margin of 88.27% is amongst the best of the industry. BSM outperforms 94.20% 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 | 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
- 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.
- BSM has more shares outstanding than it did 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.
- BSM has a Debt to Equity ratio of 0.08. This is amongst the best in the industry. BSM outperforms 80.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | N/A |
ROIC/WACC2
WACC8.89%
2.3 Liquidity
- BSM has a Current Ratio of 4.37. This indicates that BSM is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 4.37, BSM belongs to the top of the industry, outperforming 85.99% of the companies in the same industry.
- BSM has a Quick Ratio of 4.37. This indicates that BSM is financially healthy and has no problem in meeting 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
- The earnings per share for BSM have decreased strongly by -30.25% in the last year.
- BSM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.02% yearly.
- BSM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.58%.
- Measured over the past years, BSM shows a decrease in Revenue. The Revenue has been decreasing by -2.32% on average per year.
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 5.05% yearly.
- BSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y7.44%
EPS Next 2Y2.8%
EPS Next 3Y5.05%
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 stable: in the next years the growth will be about the same 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
- A Price/Earnings ratio of 12.91 indicates a correct valuation of BSM.
- BSM's Price/Earnings ratio is a bit cheaper when compared to the industry. BSM is cheaper than 65.22% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, BSM is valued rather cheaply.
- With a Price/Forward Earnings ratio of 12.00, BSM is valued correctly.
- BSM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BSM is cheaper than 70.53% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of BSM to the average of the S&P500 Index (25.98), we can say BSM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 12 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BSM is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, BSM is valued a bit cheaper than the industry average as 67.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.79 | ||
| EV/EBITDA | 9.94 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- BSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)2.57
EPS Next 2Y2.8%
EPS Next 3Y5.05%
5. Dividend
5.1 Amount
- BSM has a Yearly Dividend Yield of 8.17%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.73, BSM pays a better dividend. On top of this BSM pays more dividend than 84.54% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BSM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.17% |
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
- 135.16% of the earnings are spent on dividend by BSM. This is not a sustainable payout ratio.
- BSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP135.16%
EPS Next 2Y2.8%
EPS Next 3Y5.05%
BLACK STONE MINERALS LP / BSM FAQ
What is the fundamental rating for BSM stock?
ChartMill assigns a fundamental rating of 7 / 10 to BSM.
What is the valuation status of BLACK STONE MINERALS LP (BSM) stock?
ChartMill assigns a valuation rating of 6 / 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 12.91 and the Price/Book (PB) ratio is 2.75.
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 7.44% in the next year.