Is Natural Resource Partners LP overvalued or undervalued?

As of 17 October 2025, the valuation grade for Natural Resource Partners LP has moved from very expensive to attractive, indicating a significant improvement in its perceived value. The company appears undervalued based on its current metrics, particularly with a P/E ratio of 8, which is notably lower than its peers such as CONSOL Energy, Inc. with a P/E of 48.73 and Arch Resources, Inc. at 13.08. Additionally, the EV to EBITDA ratio stands at 7.93, which is competitive compared to the industry, further supporting the undervaluation thesis.
Natural Resource Partners LP also boasts impressive returns on capital, with a ROCE of 24.21% and an ROE of 30.27%. The peer comparison shows that while some competitors are classified as expensive or fair, Natural Resource Partners LP's attractive valuation suggests it is well-positioned for growth. Despite a recent decline in stock price, the company has delivered a remarkable 743.54% return over the past five years, significantly outperforming the S&P 500's 91.29% return in the same period, reinforcing its potential as an attractive investment.