BLACK STONE MINERALS LP (BSM)

US09225M1018

15.07  -0.16 (-1.05%)

After market: 15.12 +0.05 (+0.33%)

Fundamental Rating

6

Taking everything into account, BSM scores 6 out of 10 in our fundamental rating. BSM was compared to 215 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.



8

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.
Each year in the past 5 years BSM had a positive operating cash flow.

1.2 Ratios

BSM has a better Return On Assets (31.63%) than 92.06% of its industry peers.
BSM has a Return On Equity of 32.92%. This is in the better half of the industry: BSM outperforms 76.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.96%, BSM belongs to the top of the industry, outperforming 90.65% of the companies in the same industry.
BSM had an Average Return On Invested Capital over the past 3 years of 23.38%. This is significantly below the industry average of 54.47%.
The last Return On Invested Capital (26.96%) for BSM is above the 3 year average (23.38%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 31.63%
ROE 32.92%
ROIC 26.96%
ROA(3y)26.79%
ROA(5y)20.2%
ROE(3y)28.57%
ROE(5y)22.57%
ROIC(3y)23.38%
ROIC(5y)18.57%

1.3 Margins

BSM has a better Profit Margin (67.66%) than 91.59% of its industry peers.
BSM's Profit Margin has improved in the last couple of years.
BSM has a Operating Margin of 71.51%. This is amongst the best in the industry. BSM outperforms 92.52% of its industry peers.
In the last couple of years the Operating Margin of BSM has grown nicely.
Looking at the Gross Margin, with a value of 88.44%, BSM belongs to the top of the industry, outperforming 93.46% of the companies in the same industry.
BSM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 71.51%
PM (TTM) 67.66%
GM 88.44%
OM growth 3Y15.5%
OM growth 5Y6.49%
PM growth 3Y32.03%
PM growth 5Y8.49%
GM growth 3Y2.05%
GM growth 5Y0.47%

7

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 more shares outstanding
Compared to 5 years ago, BSM has more shares outstanding
BSM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

There is no outstanding debt for BSM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACC3.04
WACC8.86%

2.3 Liquidity

BSM has a Current Ratio of 7.48. This indicates that BSM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BSM (7.48) is better than 92.99% of its industry peers.
A Quick Ratio of 7.48 indicates that BSM has no problem at all paying its short term obligations.
BSM's Quick ratio of 7.48 is amongst the best of the industry. BSM outperforms 92.99% of its industry peers.
Industry RankSector Rank
Current Ratio 7.48
Quick Ratio 7.48

2

3. Growth

3.1 Past

The earnings per share for BSM have decreased strongly by -10.95% in the last year.
Measured over the past 5 years, BSM shows a small growth in Earnings Per Share. The EPS has been growing by 0.32% on average per year.
Looking at the last year, BSM shows a very negative growth in Revenue. The Revenue has decreased by -10.75% in the last year.
BSM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.58% yearly.
EPS 1Y (TTM)-10.95%
EPS 3Y73.19%
EPS 5Y0.32%
EPS growth Q2Q-20.73%
Revenue 1Y (TTM)-10.75%
Revenue growth 3Y19.99%
Revenue growth 5Y-0.58%
Revenue growth Q2Q-17.17%

3.2 Future

BSM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.46% yearly.
BSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.59% yearly.
EPS Next Y-7.64%
EPS Next 2Y-4.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.37%
Revenue Next 2Y0.59%
Revenue Next 3YN/A
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.06, the valuation of BSM can be described as reasonable.
BSM's Price/Earnings ratio is a bit cheaper when compared to the industry. BSM is cheaper than 64.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.86. BSM is valued rather cheaply when compared to this.
BSM is valuated reasonably with a Price/Forward Earnings ratio of 8.73.
Based on the Price/Forward Earnings ratio, BSM is valued a bit cheaper than the industry average as 67.29% of the companies are valued more expensively.
BSM is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.87, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.06
Fwd PE 8.73

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as BSM.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BSM indicates a somewhat cheap valuation: BSM is cheaper than 77.10% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.32
EV/EBITDA 6.61

4.3 Compensation for Growth

The excellent profitability rating of BSM may justify a higher PE ratio.
A cheap valuation may be justified as BSM's earnings are expected to decrease with -4.46% in the coming years.
PEG (NY)N/A
PEG (5Y)24.87
EPS Next 2Y-4.46%
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 12.48%, BSM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.28, BSM pays a better dividend. On top of this BSM pays more dividend than 94.86% of the companies listed in the same industry.
BSM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
Industry RankSector Rank
Dividend Yield 12.48%

5.2 History

The dividend of BSM is nicely growing with an annual growth rate of 7.76%!
BSM has been paying a dividend for at least 10 years, so it has a reliable track record.
BSM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.76%
Div Incr Years3
Div Non Decr Years3

5.3 Sustainability

BSM pays out 104.77% of its income as dividend. This is not a sustainable payout ratio.
BSM's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP104.77%
EPS Next 2Y-4.46%
EPS Next 3YN/A

BLACK STONE MINERALS LP

NYSE:BSM (3/1/2024, 7:05:15 PM)

After market: 15.12 +0.05 (+0.33%)

15.07

-0.16 (-1.05%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.17B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 12.48%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 8.06
Fwd PE 8.73
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)24.87
Profitability
Industry RankSector Rank
ROA 31.63%
ROE 32.92%
ROCE
ROIC
ROICexc
ROICexgc
OM 71.51%
PM (TTM) 67.66%
GM 88.44%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 7.48
Quick Ratio 7.48
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-10.95%
EPS 3Y73.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.75%
Revenue growth 3Y19.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y