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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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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 -21.38%, its profits have fallen by -3.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.38% 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

-19.84%

-0.85

29.26%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.47%

EBIT Growth (5y)

85.69%

EBIT to Interest (avg)

6.41

Debt to EBITDA (avg)

1.44

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.27

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

41.15%

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

1.80

EV to EBIT

17.22

EV to EBITDA

7.98

EV to Capital Employed

1.62

EV to Sales

6.10

PEG Ratio

Dividend Yield

ROCE (Latest)

9.43%

ROE (Latest)

7.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 245.46 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 2,883.44%

RAW MATERIAL COST(Y)

Fallen by -5.85% (YoY

-13What is not working for the Company

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%

DEBT-EQUITY RATIO (HY)

Highest at 60.48 %

INTEREST(Q)

Highest at USD 8.95 MM

Here's what is working for Kimbell Royalty Partners LP

Operating Cash Flow

Highest at USD 245.46 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)

Dividend Payout Ratio

Highest at 2,883.44%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -5.85% (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

Net Profit

At USD 9.82 MM has Fallen at -42.57%

over average net sales of the previous four periods of USD 17.1 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 8.95 MM has Grown at 35.12%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 659.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 10.98 MM has Fallen at -35.27%

over average net sales of the previous four periods of USD 16.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Interest

Highest at USD 8.95 MM

in the last five periods and Increased by 35.12% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 60.48 %

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