NYSE:MSB

Stock Analysis Report

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Executive Summary

Mesabi Trust, a royalty trust, engages in the iron ore mining business in the United States.

Rewards


Snowflake Analysis

Share Price & News

How has Mesabi Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.4%

MSB

-1.9%

US Metals and Mining

0.5%

US Market


1 Year Return

-16.3%

MSB

27.6%

US Metals and Mining

18.0%

US Market

Return vs Industry: MSB underperformed the US Metals and Mining industry which returned 27.8% over the past year.

Return vs Market: MSB underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

MSBIndustryMarket
7 Day5.4%-1.9%0.5%
30 Day26.7%7.4%4.5%
90 Day46.9%20.8%19.7%
1 Year-6.8%-16.3%30.5%27.6%20.5%18.0%
3 Year83.2%32.6%17.5%9.8%46.3%36.8%
5 Year164.4%69.9%94.1%76.7%87.2%66.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MSB ($19.96) is trading below our estimate of fair value ($41.03)

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


Price To Earnings Ratio

PE vs Industry: MSB is good value based on its PE Ratio (9.8x) compared to the US Metals and Mining industry average (14.8x).

PE vs Market: MSB is good value based on its PE Ratio (9.8x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MSB is overvalued based on its PB Ratio (43x) compared to the US Metals and Mining industry average (1.9x).

Future Growth

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

21.6%

Forecasted Materials 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 Mesabi 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 Mesabi Trust performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSB has high quality earnings.

Growing Profit Margin: MSB's current net profit margins (93.3%) are lower than last year (95.8%).


Past Earnings Growth Analysis

Earnings Trend: MSB's earnings have grown significantly by 23.5% per year over the past 5 years.

Accelerating Growth: MSB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MSB had negative earnings growth (-39.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (-26.7%).


Return on Equity

High ROE: MSB's Return on Equity (439%) is considered outstanding.

Financial Health

How is Mesabi Trust's financial position?


Financial Position Analysis

Short Term Liabilities: MSB's short term assets ($14.4M) exceed its short term liabilities ($7.5M).

Long Term Liabilities: MSB's short term assets ($14.4M) exceed its long term liabilities ($791.2K).


Debt to Equity History and Analysis

Debt Level: MSB is debt free.

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

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

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


Balance Sheet

Dividend

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

1.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MSB's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: MSB's dividend (1%) is low compared to the top 25% of dividend payers in the US market (4.31%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.7%), MSB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

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

9.1yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
James Ehrenberg
Individual Trustee14.58yrsUS$40.31k0.023%
$ 59.9k
Robert Berglund
Individual Trustee11.58yrsUS$40.31k0.015%
$ 39.9k
Robin Radke
Individual Trustee1.58yrsUS$40.31k0.0045%
$ 11.9k
Michael Mlinar
Individual Trustee6.58yrsUS$40.31k0.034%
$ 89.8k

9.1yrs

Average Tenure

70yo

Average Age

Experienced Board: MSB's board of directors are considered experienced (9.1 years average tenure).


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

Mesabi Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mesabi Trust
  • Ticker: MSB
  • Exchange: NYSE
  • Founded: 1961
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$261.875m
  • Shares outstanding: 13.12m
  • Website: https://www.mesabi-trust.com

Location

  • Mesabi Trust
  • 60 Wall Street
  • 16th Floor
  • New York
  • New York
  • 10005
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSBNYSE (New York Stock Exchange)YesTrust UnitsUSUSDJan 1968

Biography

Mesabi Trust, a royalty trust, engages in the iron ore mining business in the United States. The company was founded in 1961 and is based in New York, New York.


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 11:58
End of Day Share Price2020/08/13 00:00
Earnings2020/04/30
Annual Earnings2020/01/31


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.