BLACK STONE MINERALS LP (BSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BSM - US09225M1018
14.62 USD
-0.07 (-0.48%)
14.6 USD
-0.02 (-0.14%)
We assign a fundamental rating of 7 out of 10 to BSM. BSM was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making BSM a very profitable company, without any liquidiy or solvency issues. 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
- 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
- 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.
- BSM has a Return On Equity of 21.74%. This is amongst the best in the industry. BSM outperforms 89.37% of its industry peers.
- With an excellent Return On Invested Capital value of 17.75%, BSM belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- With an excellent Profit Margin value of 56.23%, BSM belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
- In the last couple of years the Profit Margin of BSM has grown nicely.
- BSM has a better Operating Margin (64.62%) than 95.65% of its industry peers.
- In the last couple of years the Operating Margin of BSM has grown nicely.
- With an excellent Gross Margin value of 88.27%, BSM belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
- 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
- BSM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- BSM has less shares outstanding than it did 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 0.42. This is a very positive value and a sign of high solvency as it would only need 0.42 years to pay back of 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/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.
- BSM has a better Current ratio (4.37) than 85.99% of its industry peers.
- 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
- 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.
- BSM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.58%.
- BSM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.32% yearly.
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.
- Based on estimates for the next years, BSM will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- With a Price/Earnings ratio of 12.94, BSM is valued correctly.
- Based on the Price/Earnings ratio, BSM is valued a bit cheaper than the industry average as 65.70% of the companies are valued more expensively.
- BSM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 12.03 indicates a correct valuation of BSM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BSM indicates a somewhat cheap valuation: BSM is cheaper than 69.57% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BSM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 12.03 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BSM indicates a somewhat cheap valuation: BSM is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.81 | ||
| EV/EBITDA | 9.96 |
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.
- BSM's Dividend Yield is rather good when compared to the industry average which is at 3.73. BSM pays more dividend than 84.54% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 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 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.
- 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 12.94 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.