Is Natural Resource Partners LP overvalued or undervalued?

As of 8 May 2025, the valuation grade for Natural Resource Partners LP has moved from expensive to fair. The company is currently fairly valued. Key ratios include a P/E ratio of 8, an EV to EBITDA of 7.93, and a ROE of 30.27%. In comparison to its peers, Natural Resource Partners LP's P/E ratio is lower than Hallador Energy Co. at 128.77 and slightly higher than SunCoke Energy, Inc. at 8.15, indicating a competitive valuation within its sector.
Despite a recent decline in stock performance relative to the S&P 500, with a year-to-date return of -13.79% compared to the index's 2.44%, the long-term performance remains strong, showing a 650.51% return over the past five years. This suggests that while the stock may be facing short-term challenges, its overall valuation appears reasonable given its financial metrics and peer comparisons.