SABINE ROYALTY TRUST Reports Second Quarter FY2023 Earnings on June 30th 2023
August 27, 2023
☀️Earnings Overview
For the second quarter of FY2023, SABINE ROYALTY TRUST ($NYSE:SBR) reported total revenue of USD 17.4 million, a 37.8% decrease year over year. Net income also decreased 38.9%, to USD 16.7 million, when compared to the same period in FY2022, which ended on June 30 2023.
Market Price
On June 30th 2023, SABINE ROYALTY TRUST reported its second quarter fiscal year earnings. The stock opened on Friday at $68.4, but closed the day down by 0.3% to $68.2. This was lower than the previous closing price of $68.4, indicating a slight decline in investor confidence. Investors who held the stock before the earnings report were likely left disappointed as the price fell slightly, but those who bought in before the report were rewarded with a minor gain.
Overall, the company’s second quarter earnings report was mixed with investors watching closely to see what would happen with the stock afterwards. Although the stock closed slightly lower than its opening price, it was still higher than the day before, indicating that investors remain optimistic about the future of SABINE ROYALTY TRUST. Going forward, investors will be watching closely to see if this trend continues and to get a better idea of how the company is performing. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SBR. More…
| Total Revenues | Net Income | Net Margin |
| 118.36 | 115.35 | 97.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SBR. More…
| Operations | Investing | Financing |
| – | – | – |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SBR. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.55 | 1.68 | 0.39 |
Key Ratios Snapshot
Some of the financial key ratios for SBR are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 39.3% | 41.1% | 96.9% |
| FCF Margin | ROE | ROA |
| – | 1330.1% | 839.0% |
Analysis
GoodWhale’s analysis of SABINE ROYALTY TRUST shows that, despite its intermediate health score of 5/10 (based on its cashflows and debt), the company is likely to pay off debt and fund future operations. Additionally, SABINE ROYALTY TRUST does well in terms of asset, dividend, growth, and profitability. We classify SABINE ROYALTY TRUST as a ‘gorilla’ – a company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given these characteristics of SABINE ROYALTY TRUST, investors looking for a stable and profitable company to add to their portfolio may be interested in this particular company. More…
Peers
All of these companies strive to maximize their profits by leveraging their assets and exploiting market opportunities. With its strong portfolio of assets and experienced management team, Sabine Royalty Trust is well-positioned to provide a competitive edge in this highly competitive market.
– Pacific Coast Oil Trust ($OTCPK:ROYTL)
Pacific Coast Oil Trust is a publicly traded oil and gas trust based in California. It primarily focuses on the exploration, development, and production of oil and natural gas assets in California and the Pacific Coast region. The company has a market capitalization of 3.86M as of 2023, indicating that the company is small in size. In addition, its Return on Equity (ROE) of 4.0% is low in comparison to the industry average, suggesting that the company is not generating sufficient returns from its investments.
– Cross Timbers Royalty Trust ($NYSE:CRT)
The Timber Royalty Trust is a trust that holds interests in oil and gas properties located primarily in Texas and Oklahoma. It is managed by Cross Timbers Royalty Trust Management, LLC and is traded on the New York Stock Exchange under the symbol “CRT”. As of 2023, the trust has a market cap of 142.56M, making it one of the larger trusts on the market. The trust also has a Return on Equity of 31.09%, indicating that it is a profitable investment with a significant return on its assets. The trust collects royalties from the oil and gas companies that have leases on its properties, and distributes them to its unit holders on a quarterly basis.
– Mesa Royalty Trust ($NYSE:MTR)
Mesa Royalty Trust is a trust established for the benefit of the holders of the trust certificates. The trust invests in oil and gas interests in the United States and Canada, and distributes income from these investments to its certificate holders. As of 2023, Mesa Royalty Trust has a market cap of 31.77M, making it a mid-cap trust. It also has a Return on Equity of 5.75%, which is respectable for a trust of its size. The trust provides investors with a steady income stream with minimal risk.
Summary
Sabine Royalty Trust has reported financial results for the second quarter of FY2023, reporting a 37.8% decline in total revenue and a 38.9% decrease in net income compared to the same period last year. This indicates that the Trust is struggling financially and investors may want to take a cautious approach when considering investing in the company. It is important for investors to analyze and understand the underlying trends that are influencing the company’s performance, such as changes in commodity prices, competitive landscape, and industry specific factors, before making any decision. With proper research and analysis, investors should be able to decide whether Sabine Royalty Trust has a good investment opportunity or not.
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