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SJT

San Juan Basin Royalty Trust NYSE:SJT Stock Report

Last Price

US$8.57

Market Cap

US$400.8m

7D

-9.1%

1Y

73.8%

Updated

06 Jul, 2022

Data

Company Financials
SJT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends2/6

SJT Stock Overview

San Juan Basin Royalty Trust operates as an express trust in Texas.

San Juan Basin Royalty Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for San Juan Basin Royalty Trust
Historical stock prices
Current Share PriceUS$8.57
52 Week HighUS$14.70
52 Week LowUS$3.75
Beta0.59
1 Month Change-37.45%
3 Month Change-3.82%
1 Year Change73.83%
3 Year Change138.72%
5 Year Change30.64%
Change since IPO5.48%

Recent News & Updates

Jul 05

San Juan Basin Royalty Trust: Prospective ~15% Forward Yield Is Attractive

U.S. natural gas pulled back strongly after Freeport LNG blow-up. This also caused SJT's price to fall sharply. Distributions lag gas prices and immediate distributions will be high. In both the short and long term I expect U.S. export capacity to increase. Both my short-term and long-term expectations here are positive although high volatility will be par for the course. The most recently declared monthly distribution for the San Juan Basin Royalty Trust (SJT) amounted to $0.11 per share. That distribution is based on April volume and gas prices. April did not represent the 2022 high. Currently, Henry Hub remains above April levels after experiencing a steep drop-off. Given where gas prices are, that San Juan Basin Royalty Trust trades at $8.60, and the outlook for natural gas globally, I'm thinking it is quite an attractive security here. Data by YCharts Strong natural gas prices are at least partially explicable by Russia's invasion of Ukraine and the subsequent scramble by European countries to secure non-Russian gas supply. U.S. gas export has a ceiling because there are only so many liquefaction terminals. Liquefaction terminals, like those owned by Cheniere Energy (LNG), turn natural gas into a liquid. This makes it much more cost-effective to be transported by ship (to Asia or Europe). Data by YCharts In the short term, the rug got pulled out under U.S. natural gas prices because about 17% of U.S. liquefaction capacity got shut down because of an explosion at Freeport LNG. This facility has been shut down since June 8 and that's expected to last until Natural gas prices have fallen ~40% since Freeport LNG was shuttered June 8 due to an explosion, and the regulator's move points to further delays at the plant, which are expected to lead to lower prices since more of Freeport's fuel is now available for domestic consumption rather than for export to Europe. Freeport LNG accounts for ~17% of liquefied natural gas processing capacity in the U.S. and headlines suggested the facility is not expected to return before the end of the year. In this recent press release, Freeport provided some color (emphasis by me): The incident occurred in pipe racks that support the transfer of LNG from the facility's LNG storage tank area to the terminal's dock facilities located on the intracoastal (i.e., north) side of Freeport LNG's dock basin. None of the liquefaction trains, LNG storage tanks, dock facilities, or LNG process areas were impacted. In coordination with local, state and federal officials, Freeport LNG's investigation into the cause of the incident, and what steps are necessary to safely resume liquefaction operations, is underway. Preliminary observations suggest that the incident resulted from the overpressure and rupture of a segment of an LNG transfer line, leading to the rapid flashing of LNG and the release and ignition of the natural gas vapor cloud. Additional investigation is underway to determine the underlying precipitating events that enabled the overpressure conditions in the LNG piping. At this time, completion of all necessary repairs and a return to full plant operations is not expected until late 2022. Given the relatively contained area of the facility physically impacted by the incident, a resumption of partial operations is targeted to be achieved in approximately 90 days, once the safety and security of doing so can be assured, and all regulatory clearances are obtained. I'm not knowledgeable enough to venture an educated guess of what percentage of lost capacity can be brought back online in around 90 days. I do expect some capacity to be brought back online by that time, based on this press release. As this export capacity is ramped back up, which is a relatively short-term event, I'd expect the uptrend for U.S. natural gas to resume. Long term I don't see Europe's interest in U.S. gas slowing down much. It is a relatively clean fossil fuel. Europe is at the vanguard of the energy transition and is very interested in reducing carbon emissions across the entire E.U. Even a Russian withdrawal from Ukraine is not putting the cat back into the bag. Politicians have now experienced what it is like to be (partially) energy-dependent on Russia. A ceasefire may decrease the speed with which the block will decrease reliance on Russian imports. I fully expect the general trend will continue. Here's a recent history of recent monthly distributions: Month Declaration Date Record Date Payable Date Distribution per Unit Net Cash Total Distribution 10 calendar days prior to the record date Last business day of the month 10 business days after the record date January 1/21/2022 1/31/2022 2/14/2022 $0.103446 $4,821,486.55 February 2/17/2022 2/28/2022 3/14/2022 $0.085744 $3,996,441.96 March 3/21/2022 03/31/2022 04/14/2022 $0.119104 $5,551,298.95 April 4/19/2022 4/29/2022 5/13/2022 $0.082883 $3,863,096.64 May 5/20/2022 5/31/2022 6/14/2022 $0.091781 $4,277,812.64 June 6/17/2022 6/30/2022 7/15/2022 $0.111613 $5,202,132.35

Shareholder Returns

SJTUS Oil and GasUS Market
7D-9.1%-6.3%0.7%
1Y73.8%27.3%-18.4%

Return vs Industry: SJT exceeded the US Oil and Gas industry which returned 27.3% over the past year.

Return vs Market: SJT exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is SJT's price volatile compared to industry and market?
SJT volatility
SJT Average Weekly Movement12.6%
Oil and Gas Industry Average Movement9.1%
Market Average Movement8.2%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.4%

Stable Share Price: SJT is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: SJT's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
1980n/an/ahttps://www.sjbrt.com

San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest carved out of Southland’s oil and natural gas interests (the Subject Interests) in properties located in the San Juan Basin in northwestern New Mexico. The Subject Interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico, as well as 1,140.0 net wells.

San Juan Basin Royalty Trust Fundamentals Summary

How do San Juan Basin Royalty Trust's earnings and revenue compare to its market cap?
SJT fundamental statistics
Market CapUS$400.84m
Earnings (TTM)US$42.59m
Revenue (TTM)US$44.30m

9.4x

P/E Ratio

9.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SJT income statement (TTM)
RevenueUS$44.30m
Cost of RevenueUS$0
Gross ProfitUS$44.30m
Other ExpensesUS$1.71m
EarningsUS$42.59m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.91
Gross Margin100.00%
Net Profit Margin96.13%
Debt/Equity Ratio0.0%

How did SJT perform over the long term?

See historical performance and comparison

Dividends

11.1%

Current Dividend Yield

100%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SJT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SJT?

Other financial metrics that can be useful for relative valuation.

SJT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.9x
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does SJT's PE Ratio compare to its peers?

SJT PE Ratio vs Peers
The above table shows the PE ratio for SJT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.4x
EGY VAALCO Energy
4.3x-70.7%US$377.0m
REPX Riley Exploration Permian
52.1x113.9%US$446.5m
REI Ring Energy
8.5x73.8%US$273.2m
KRP Kimbell Royalty Partners
60.6x26.5%US$996.4m
SJT San Juan Basin Royalty Trust
9.4xn/aUS$400.8m

Price-To-Earnings vs Peers: SJT is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (31.4x).


Price to Earnings Ratio vs Industry

How does SJT's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: SJT is good value based on its Price-To-Earnings Ratio (9.4x) compared to the US Oil and Gas industry average (11.3x)


Price to Earnings Ratio vs Fair Ratio

What is SJT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SJT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SJT's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of SJT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SJT ($8.57) is trading below our estimate of fair value ($14.73)

Significantly Below Fair Value: SJT is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

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


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Future Growth

How is San Juan Basin 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


-8.0%

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 San Juan Basin 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.


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  • Examine whether San Juan Basin Royalty Trust is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • San Juan Basin Royalty Trust competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has San Juan Basin Royalty Trust performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SJT has high quality earnings.

Growing Profit Margin: SJT's current net profit margins (96.1%) are higher than last year (88%).


Past Earnings Growth Analysis

Earnings Trend: SJT's earnings have declined by 9.3% per year over the past 5 years.

Accelerating Growth: SJT's earnings growth over the past year (303.6%) exceeds its 5-year average (-9.3% per year).

Earnings vs Industry: SJT earnings growth over the past year (303.6%) exceeded the Oil and Gas industry 102.2%.


Return on Equity

High ROE: SJT's Return on Equity (1239.2%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is San Juan Basin 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: SJT's short term assets ($6.6M) exceed its short term liabilities ($5.6M).

Long Term Liabilities: SJT's short term assets ($6.6M) exceed its long term liabilities ($1,000.0K).


Debt to Equity History and Analysis

Debt Level: SJT is debt free.

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

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

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


Balance Sheet


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Dividend

What is San Juan Basin 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

  • Cash Flow Coverage


11.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SJT's dividend (11.11%) is higher than the bottom 25% of dividend payers in the US market (1.61%).

High Dividend: SJT's dividend (11.11%) is in the top 25% of dividend payers in the US market (4.27%)


Stability and Growth of Payments

Stable Dividend: SJT's dividend payments have been volatile in the past 10 years.

Growing Dividend: SJT's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (100%), SJT'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.


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Management

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


CEO

San Juan Basin 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.


Top Shareholders

Company Information

San Juan Basin Royalty Trust's employee growth, exchange listings and data sources


Key Information

  • Name: San Juan Basin Royalty Trust
  • Ticker: SJT
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$400.836m
  • Shares outstanding: 46.61m
  • Website: https://www.sjbrt.com

Location

  • San Juan Basin Royalty Trust
  • 2200 Post Oak Boulevard
  • Floor 18
  • Houston
  • Texas
  • 77056
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/06 00:00
End of Day Share Price2022/07/06 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.