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 has a great profitability rating, there are some minor concerns on its financial health. 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.
BSM had a positive operating cash flow in the past year.
BSM had positive earnings in each of the past 5 years.
BSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BSM has a better Return On Assets (15.65%) than 92.42% of its industry peers.
The Return On Equity of BSM (18.21%) is better than 78.20% of its industry peers.
BSM has a better Return On Invested Capital (15.23%) than 90.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BSM is in line with the industry average of 23.70%.
The last Return On Invested Capital (15.23%) 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 | 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 has a Profit Margin of 50.04%. This is amongst the best in the industry. BSM outperforms 92.89% of its industry peers.
BSM's Profit Margin has improved in the last couple of years.
The Operating Margin of BSM (58.40%) is better than 92.42% of its industry peers.
In the last couple of years the Operating Margin of BSM has grown nicely.
The Gross Margin of BSM (85.51%) is better than 92.89% of its industry peers.
BSM's Gross Margin has been stable in the last couple of years.
| 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
BSM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, BSM has less shares outstanding
The number of shares outstanding for BSM has been increased compared to 5 years ago.
The debt/assets ratio for BSM is higher compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 0.26, BSM belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
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 better Debt to Equity ratio (0.06) than 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
A Current Ratio of 1.35 indicates that BSM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.35, BSM is doing good in the industry, outperforming 61.61% of the companies in the same industry.
BSM has a Quick 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.
BSM has a Quick ratio of 1.35. This is in the better half of the industry: BSM outperforms 68.72% of its industry peers.
| 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%.
BSM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.02% yearly.
The Revenue for BSM has decreased by -25.94% in the past year. This is quite bad
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
BSM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.89% yearly.
Based on estimates for the next years, BSM will show a small growth in Revenue. The Revenue will grow by 5.68% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
BSM is valuated correctly with a Price/Earnings ratio of 14.60.
The rest of the industry has a similar Price/Earnings ratio as BSM.
The average S&P500 Price/Earnings ratio is at 27.21. BSM is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 9.21, the valuation of BSM can be described as reasonable.
BSM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BSM is cheaper than 70.62% 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 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 9.21 |
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.
BSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BSM is cheaper than 69.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.35 | ||
| EV/EBITDA | 10.52 |
4.3 Compensation for Growth
The excellent profitability rating of BSM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.91
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.
BSM's Dividend Yield is rather good when compared to the industry average which is at 6.66. BSM pays more dividend than 91.00% of the companies 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.
BSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP178.29%
EPS Next 2Y11.41%
EPS Next 3Y7.89%
13.14
+0.06 (+0.46%)
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 Cap2.78B
Analysts72.5
Price Target15.81 (20.32%)
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 | 14.6 | ||
| Fwd PE | 9.21 | ||
| P/S | 7.18 | ||
| P/FCF | 11.35 | ||
| P/OCF | 7.96 | ||
| P/B | 2.61 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 10.52 |
EPS(TTM)0.9
EY6.85%
EPS(NY)1.43
Fwd EY10.86%
FCF(TTM)1.16
FCFY8.81%
OCF(TTM)1.65
OCFY12.56%
SpS1.83
BVpS5.03
TBVpS5.03
PEG (NY)N/A
PEG (5Y)2.91
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%