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

WisdomTree, Inc.

Sabine Royalty Trust

Viper Energy, Inc.

Blackstone Secured Lending Fund

Texas Pacific Land Corp.

Kimbell Royalty Partners LP

Sitio Royalties Corp.

Black Stone Minerals LP

Permian Basin Royalty Trust

Bain Capital Specialty Finance, Inc.

Dorchester Minerals LP

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

2.25%

-0.93

29.32%

S&P 500

13.68%

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)

27.30%

EBIT Growth (5y)

104.23%

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

Pledged Shares

Institutional Holding

39.16%

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

2.58

EV to EBIT

19.22

EV to EBITDA

9.22

EV to Capital Employed

2.00

EV to Sales

7.01

PEG Ratio

Dividend Yield

ROCE (Latest)

10.38%

ROE (Latest)

9.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.37% (YoY

CASH AND EQV(HY)

Highest at USD 74.53 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.99 times

-7What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 578.05

DEBT-EQUITY RATIO (HY)

Highest at 58.99 %

INTEREST(Q)

Highest at USD 9.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 73.26 %

Here's what is working for Kimbell Royalty Partners LP

Cash and Eqv

Highest at USD 74.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 6.99 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.37% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

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

Interest Coverage Ratio

Lowest at 578.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 9.78 MM

in the last five periods and Increased by 9.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 73.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 58.99 %

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