NYSE:MNRL

Stock Analysis Report

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Executive Summary

Brigham Minerals, Inc. owns and operates a portfolio of mineral and royalty interests in the continental United States.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

How has Brigham Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MNRL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.2%

MNRL

-5.2%

US Oil and Gas

-0.7%

US Market


1 Year Return

-47.7%

MNRL

-43.3%

US Oil and Gas

5.3%

US Market

Return vs Industry: MNRL underperformed the US Oil and Gas industry which returned -43.6% over the past year.

Return vs Market: MNRL underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

MNRLIndustryMarket
7 Day-8.2%-5.2%-0.7%
30 Day-12.7%-10.3%4.6%
90 Day8.9%5.2%14.0%
1 Year-42.2%-47.7%-40.7%-43.3%7.6%5.3%
3 Yearn/a-35.8%-42.6%34.9%26.1%
5 Yearn/a-37.8%-48.0%62.3%44.7%

Price Volatility Vs. Market

How volatile is Brigham Minerals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brigham Minerals undervalued compared to its fair value and its price relative to the market?

34.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MNRL ($11.22) is trading above our estimate of fair value ($9.99)

Significantly Below Fair Value: MNRL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MNRL is poor value based on its PE Ratio (34.4x) compared to the US Oil and Gas industry average (8x).

PE vs Market: MNRL is poor value based on its PE Ratio (34.4x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: MNRL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MNRL's PB Ratio (0.7x) is in line with the US Oil and Gas industry average.


Next Steps

Future Growth

How is Brigham Minerals forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

70.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNRL's forecast earnings growth (70% per year) is above the savings rate (2.2%).

Earnings vs Market: MNRL's earnings (70% per year) are forecast to grow faster than the US market (22.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MNRL's revenue (11.3% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: MNRL's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MNRL's Return on Equity is forecast to be low in 3 years time (1.1%).


Next Steps

Past Performance

How has Brigham Minerals performed over the past 5 years?

335.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: MNRL has a high level of non-cash earnings.

Growing Profit Margin: MNRL's current net profit margins (8.9%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if MNRL's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare MNRL's past year earnings growth to its 5-year average.

Earnings vs Industry: MNRL earnings growth over the past year (335.3%) exceeded the Oil and Gas industry -21.6%.


Return on Equity

High ROE: MNRL's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is Brigham Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: MNRL's short term assets ($58.0M) exceed its short term liabilities ($8.0M).

Long Term Liabilities: MNRL's short term assets ($58.0M) do not cover its long term liabilities ($242.0M).


Debt to Equity History and Analysis

Debt Level: MNRL is debt free.

Reducing Debt: MNRL had no debt 5 years ago.

Debt Coverage: MNRL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MNRL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Brigham Minerals's current dividend yield, its reliability and sustainability?

13.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MNRL's dividend (13.55%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: MNRL's dividend (13.55%) is in the top 25% of dividend payers in the US market (4.6%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether MNRL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MNRL's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (432.2%), MNRL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MNRL's dividends in 3 years are not forecast to be well covered by earnings (241.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Rob Roosa (50yo)

3yrs

Tenure

US$6,195,026

Compensation

Mr. Robert M. Roosa, also known as Rob, has been Chief Executive Officer of Brigham Minerals, Inc. since July 2017 and serves as its Director since May 2018. He served as president of Brigham Minerals, Inc ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD6.20M) is above average for companies of similar size in the US market ($USD3.17M).

Compensation vs Earnings: Rob's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Roosa
CEO & Director3yrsUS$6.20m0.16% $1.1m
Blake Williams
Chief Financial Officer3yrsUS$2.91m0.080% $520.8k
Kari Potts
VP, General Counsel & Corporate Secretary0.50yrno data0.0038% $25.0k
Kevin L'abbé
Vice President of Exploration for the Mid-Continent & Rocky Mountain Regionsno datano datano data
A. McDavid
Vice President of Exploration for the Permian & Williston Basinsno datano datano data

3.0yrs

Average Tenure

39yo

Average Age

Experienced Management: MNRL's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Roosa
CEO & Director3yrsUS$6.20m0.16% $1.1m
William Keenan
Independent Director7.25yrsUS$224.57k0.021% $137.9k
Ben Brigham
Founder & Executive Chairman7.67yrsUS$7.80m0.33% $2.2m
Richard Stoneburner
Independent Director2.17yrsUS$224.57k0.021% $137.9k
Harold Carter
Independent Director7.5yrsUS$243.32k0.15% $994.3k
James Levy
Independent Director7.5yrsUS$224.57k0.021% $137.9k
John Sult
Independent Director2.17yrsUS$239.57k0.085% $554.6k
John Holland
Independent Director1.92yrsUS$224.57k0.021% $137.9k
Carrie Clark
Independent Director0.42yrno datano data

2.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MNRL's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.1%.


Top Shareholders

Company Information

Brigham Minerals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brigham Minerals, Inc.
  • Ticker: MNRL
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$655.029m
  • Market Cap: US$440.912m
  • Shares outstanding: 56.91m
  • Website: https://www.brighamminerals.net

Number of Employees


Location

  • Brigham Minerals, Inc.
  • 5914 West Courtyard Drive
  • Suite 150
  • Austin
  • Texas
  • 78730
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNRLNYSE (New York Stock Exchange)YesClass A Common StockUSUSDApr 2019
2TQDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2019

Biography

Brigham Minerals, Inc. owns and operates a portfolio of mineral and royalty interests in the continental United States. The company primarily holds mineral and royalty interests in the Permian Basin in West Texas and New Mexico; the South Central Oklahoma Oil Province and Sooner Trend Anadarko Basin Canadian and Kingfisher Counties plays in the Anadarko Basin of Oklahoma; the Denver-Julesburg Basin in Colorado; and Wyoming and the Williston Basin in North Dakota. As of December 31, 2019, it had mineral and royalty interests in approximately 57,800 net mineral acres; and owned mineral and royalty interests in 4,908 gross productive horizontal wells, which consisted of 4,424 oil wells and 484 natural gas wells, as well as proved undeveloped reserves of 7,037 thousand barrels of oil; 28,498 million cubic feet of natural gas; and 3,344 thousand barrels of natural gas liquids for a total of 15,131 thousand barrels of oil equivalent. Brigham Minerals, Inc. was founded in 2012 and is headquartered in Austin, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 23:59
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.