PermRock Royalty Trust (NYSE:PRT) - Share price, News & Analysis

PRT fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	2/6

PRT Stock Overview

PermRock Royalty Trust owns 80% net profits interest in the oil and natural gas production properties acquired by Boaz Energy II, LLC in Permian Basin, Texas.

Rewards

Trading at 11.9% below our estimate of its fair value

Earnings grew by 401.8% over the past year

Risk Analysis

Earnings have declined by 37.5% per year over past 5 years

Dividend of 7.44% is not well covered by earnings

PermRock Royalty Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PermRock Royalty Trust
Historical stock prices
Current Share Price	US$9.78
52 Week High	US$10.88
52 Week Low	US$5.95
Beta	1.28
1 Month Change	16.99%
3 Month Change	2.84%
1 Year Change	45.32%
3 Year Change	10.88%
5 Year Change	n/a
Change since IPO	-36.90%

Recent News & Updates

Apr 29

Returns On Capital At PermRock Royalty Trust (NYSE:PRT) Paint A Concerning Picture

If you're looking at a mature business that's past the growth phase, what are some of the underlying trends that pop...

Shareholder Returns

	PRT	US Oil and Gas	US Market
7D	16.7%	1.4%	-0.5%
1Y	45.3%	54.9%	-12.3%

Return vs Industry: PRT underperformed the US Oil and Gas industry which returned 52.5% over the past year.

Return vs Market: PRT exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is PRT's price volatile compared to industry and market?
PRT volatility
PRT Average Weekly Movement	10.2%
Oil and Gas Industry Average Movement	8.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: PRT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: PRT's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2017	n/a	n/a	https://www.permrock.com

PermRock Royalty Trust owns 80% net profits interest in the oil and natural gas production properties acquired by Boaz Energy II, LLC in Permian Basin, Texas. Its underlying properties comprising 22,997 net acres, which include 2,434 net acres on the Central Basin Platform of the Permian Basin in Hockley and Terry counties, Texas; 1,667 net acres on the Central Basin Platform of the Permian Basin in Terry and Cochran counties, Texas; 14,727 net acres on the Eastern Shelf of the Permian Basin in Glasscock, Schleicher, Stonewall, and Coke counties, Texas; and 4,169 net acres on the Central Basin Platform of the Permian Basin in Ward, Crane, Terry, and Ector counties, Texas. The company was founded in 2017 and is based in Fort Worth, Texas.

PermRock Royalty Trust Fundamentals Summary

How do PermRock Royalty Trust's earnings and revenue compare to its market cap?
PRT fundamental statistics
Market Cap	US$118.98m
Earnings (TTM)	US$8.85m
Revenue (TTM)	US$9.64m

13.4x

P/E Ratio

12.3x

P/S Ratio

Is PRT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRT income statement (TTM)
Revenue	US$9.64m
Cost of Revenue	US$0
Gross Profit	US$9.64m
Other Expenses	US$792.80k
Earnings	US$8.85m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.73
Gross Margin	100.00%
Net Profit Margin	91.78%
Debt/Equity Ratio	0.0%

How did PRT perform over the long term?

See historical performance and comparison

Dividends

7.4%

Current Dividend Yield

100%

Payout Ratio

Valuation

Is PermRock Royalty Trust undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

11.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PRT ($9.78) is trading below our estimate of fair value ($11.1)

Significantly Below Fair Value: PRT is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: PRT is poor value based on its PE Ratio (13.4x) compared to the US Oil and Gas industry average (13.3x).

PE vs Market: PRT is good value based on its PE Ratio (13.4x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PRT's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: PRT is good value based on its PB Ratio (1.4x) compared to the US Oil and Gas industry average (2.1x).

Future Growth

How is PermRock Royalty Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-5.2%

Forecasted Energy industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as PermRock Royalty Trust has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has PermRock Royalty Trust performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-37.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PRT has high quality earnings.

Growing Profit Margin: PRT's current net profit margins (91.8%) are higher than last year (64.8%).

Past Earnings Growth Analysis

Earnings Trend: PRT's earnings have declined by 37.5% per year over the past 5 years.

Accelerating Growth: PRT's earnings growth over the past year (401.8%) exceeds its 5-year average (-37.5% per year).

Earnings vs Industry: PRT earnings growth over the past year (401.8%) exceeded the Oil and Gas industry 88.4%.

Return on Equity

High ROE: PRT's Return on Equity (10.6%) is considered low.

Financial Health

How is PermRock Royalty Trust's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PRT's short term assets ($1.9M) exceed its short term liabilities ($863.6K).

Long Term Liabilities: PRT has no long term liabilities.

Debt to Equity History and Analysis

Debt Level: PRT is debt free.

Reducing Debt: PRT has not had any debt for past 5 years.

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

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

Balance Sheet

Dividend

What is PermRock Royalty Trust current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

7.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PRT's dividend (7.44%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: PRT's dividend (7.44%) is in the top 25% of dividend payers in the US market (4.11%)

Stability and Growth of Payments

Stable Dividend: PRT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PRT has only been paying a dividend for 4 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (100%), PRT's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

CEO

PermRock Royalty Trust has no CEO, or we have no data on them.

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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31