Kimbell Royalty Partners LP () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dorchester Minerals LP

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Kimbell Royalty Partners LP

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Texas Pacific Land Corp.

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Sabine Royalty Trust

Sitio Royalties Corp.

Blackstone Secured Lending Fund

Bain Capital Specialty Finance, Inc.

Why is Kimbell Royalty Partners LP ?

Poor Management Efficiency with a low ROCE of 11.90%

The company has been able to generate a Return on Capital Employed (avg) of 11.90% signifying low profitability per unit of total capital (equity and debt)

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 25.47% and Operating profit at 85.69%

Flat results in Jun 25

NET PROFIT(Q) At USD 9.82 MM has Fallen at -42.57%
INTEREST COVERAGE RATIO(Q) Lowest at 659.34
PRE-TAX PROFIT(Q) At USD 10.98 MM has Fallen at -35.27%

With ROCE of 9.43%, it has a very attractive valuation with a 1.62 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -21.89%, its profits have fallen by -3.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.89% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kimbell Royalty Partners LP should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kimbell Royalty Partners LP for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kimbell Royalty Partners LP

3.67%

-0.93

29.32%

S&P 500

22.36%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.19%

EBIT Growth (5y)

105.68%

EBIT to Interest (avg)

6.41

Debt to EBITDA (avg)

1.44

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.26

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

259.28%

Pledged Shares

Institutional Holding

39.25%

ROCE (avg)

11.90%

ROE (avg)

12.75%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.61

EV to EBIT

18.21

EV to EBITDA

8.95

EV to Capital Employed

2.02

EV to Sales

6.83

PEG Ratio

Dividend Yield

ROCE (Latest)

11.09%

ROE (Latest)

11.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 241.73 MM

ROCE(HY)

Highest at 9.34%

DIVIDEND PAYOUT RATIO(Y)

Highest at 1,111.11%

CASH AND EQV(HY)

Highest at USD 81.14 MM

PRE-TAX PROFIT(Q)

Highest at USD 45.14 MM

NET PROFIT(Q)

Highest at USD 40.62 MM

-5What is not working for the Company

INTEREST(HY)

At USD 17.27 MM has Grown at 37.33%

DEBT-EQUITY RATIO (HY)

Highest at 60.01 %

Here's what is working for Kimbell Royalty Partners LP

Operating Cash Flow

Highest at USD 241.73 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 45.14 MM has Grown at 127.11%

over average net sales of the previous four periods of USD 19.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 40.62 MM has Grown at 121.25%

over average net sales of the previous four periods of USD 18.36 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

Highest at USD 45.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 40.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 81.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 1,111.11%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Kimbell Royalty Partners LP

Interest

At USD 17.27 MM has Grown at 37.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 60.01 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio