Does SAN JUAN BASIN ROYALTY TR (NYSE:SJT) match Peter Lynch’s “Invest in What You Know” philosophy?

Peter Lynch, one of the most successful investors of all time, focused on growth stocks with strong fundamentals and a business model that’s easy to understand. Let’s analyze whether SAN JUAN BASIN ROYALTY TR (NYSE:SJT) fits his legendary investment approach.

Checking the Peter Lynch growth stock criteria for SAN JUAN BASIN ROYALTY TR (NYSE:SJT)

• In terms of Return on Equity(ROE), SJT is performing well, achieving a 481.0% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.
• At a Debt/Equity ratio of 0.0, SJT seems well-positioned to sustain growth while keeping debt in check.
• The EPS of SJT has shown consistent growth over a 5-year period, indicating the company's ability to generate increasing earnings over time.
• A PEG ratio of 0.8 suggests that SJT offers an attractive balance between growth and valuation.
• SJT maintains a healthy liquidity position with a Current Ratio of 2.74.

A complete fundamental analysis of SJT

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.

SJT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While SJT has a great health rating, its profitability is only average at the moment. SJT is valued expensive and it does not seem to be growing.

For an up to date full fundamental analysis you can check the fundamental report of SJT

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.