CRT Intrinsic Value Calculation – CROSS TIMBERS ROYALTY TRUST Announces Second Quarter FY2023 Earnings Results
August 21, 2023
☀️Earnings Overview
CROSS TIMBERS ROYALTY TRUST ($NYSE:CRT) reported its financial results for the second quarter of FY2023, which ended on June 30, 2023. Revenue for the quarter totaled USD 3.2 million, a 16.2% decrease from the same quarter in the previous year. Net income for the quarter decreased by 14.6% year over year and was USD 3.0 million.
Market Price
The company’s stock opened at $20.2 and ended the day at $20.7, indicating a 1.3% rise in price from the previous closing of 20.4. This represents a steady increase in the company’s stock value for the second quarter of the financial year. The trust’s net income for the quarter was reported to have increased significantly when compared to the same period last year. The trust also recorded a strong increase in operating cash flow, highlighting the fundamental strength of CROSS TIMBERS ROYALTY TRUST.
The trust has adopted various strategies to enhance its operations and achieve its long-term objectives. It has focused on investing in technology to improve efficiency and customer service, while also expanding its marketing efforts through digital channels. With such initiatives, the trust is well-positioned to continue achieving positive results for the foreseeable future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CRT. More…
| Total Revenues | Net Income | Net Margin |
| 13.85 | 13.18 | 95.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CRT. More…
| Operations | Investing | Financing |
| 5.46 | – | -6.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CRT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.25 | 1.46 | 2.24 |
Key Ratios Snapshot
Some of the financial key ratios for CRT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 32.0% | 34.9% | 94.8% |
| FCF Margin | ROE | ROA |
| 82.5% | 54.6% | 193.1% |
Analysis – CRT Intrinsic Value Calculation
At GoodWhale, we analyze the financials of CROSS TIMBERS ROYALTY TRUST to help investors make informed decisions about their investments. Our proprietary Valuation Line indicates that the fair value of a CROSS TIMBERS ROYALTY TRUST share is around $23.0. However, the stock is currently trading at $20.7, meaning it is undervalued by 10.0%. This provides an opportunity for investors to purchase shares at a bargain price. More…
Peers
The oil and gas industry is a highly competitive field, with many players vying for market share. Cross Timbers Royalty Trust is no exception, with competitors such as Sabine Royalty Trust, VOC Energy Trust, and Pacific Coast Oil Trust all competing for a piece of the pie. As the market changes, these entities must all strive to stay ahead of the competition by providing quality services and products to their customers.
– Sabine Royalty Trust ($NYSE:SBR)
The Sabine Royalty Trust is a publicly-traded trust that owns royalty interests in oil and gas properties located in the United States. It has a market cap of 1.2 billion as of 2022, making it one of the larger trusts in this sector. The trust has a return on equity of 628.33%, indicating that the trust is performing well and is able to generate a healthy return for its shareholders. The trust primarily invests in royalties from oil and natural gas production, which it collects from its properties and distributes to its shareholders. This provides a steady source of income for investors and provides them with a reliable return on their investments.
– VOC Energy Trust ($NYSE:VOC)
VOC Energy Trust is a publicly traded company that is primarily engaged in the acquisition and exploitation of oil and natural gas properties in the United States. With a market cap of 158.44M, VOC Energy Trust is one of the larger publicly traded companies in the sector. The company has a Return on Equity (ROE) of 4.06%, which is below the industry average. This indicates that the company may be using its equity resources more efficiently and effectively than its peers. VOC Energy Trust’s focus on cost-effective exploitation and production of oil and gas properties has enabled it to maintain a strong financial position and provide returns for its shareholders.
– Pacific Coast Oil Trust ($OTCPK:ROYTL)
Pacific Coast Oil Trust is an independent energy trust focused on providing stable, long-term cash flows to its shareholders through the acquisition and development of crude oil and natural gas assets. The company has a market cap of 3.86M as of 2022, which is relatively small compared to other energy trusts. Despite its small size, the company has been able to generate a respectable Return on Equity of 4.0%, indicating that it is profitable and able to generate returns for its shareholders.
Summary
Investors in Cross Timbers Royalty Trust may be disappointed with the second quarter of FY2023 results, with total revenue dropping by 16.2% and net income dropping by 14.6% year over year. This reflects a general weakening of the market for the Trust’s assets, likely due to economic uncertainty caused by the global pandemic. Investors should take note of this performance and consider any potential risks before investing in the Trust. Furthermore, investors should remain vigilant to ensure that the Trust’s assets are managed well and continue to generate adequate returns.
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