BSM Stock Intrinsic Value – Black Stone Minerals Stock Rating Lowered to ‘Hold’ Despite Q1 Revenue Increase of 379%
May 20, 2023
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Investors were surprised to hear that analysts have downgraded the stock ratings of Black Stone Minerals ($NYSE:BSM) (BSM) to ‘Hold’ despite the company’s impressive first quarter results. BSM reported a revenue of $174.6 million, a 379% increase from their expected estimate of $30.4 million. This has raised many questions about the stock’s outlook and what this could mean for shareholders. Black Stone Minerals is a Houston-based company that acquires mineral and royalty interests in the United States. Given the impressive first quarter earnings, investors are trying to wrap their heads around why analysts have downgraded the stock rating.
Many believe that the downgrade is related to the uncertain market conditions that are being caused by the ongoing pandemic. With the US economy in a slump and the oil industry taking a hit, it is reasonable to assume that investors are taking a cautious approach when considering Black Stone Minerals stock. In light of these developments, it is important that investors do their own research into BSM stock before making any decisions regarding investments. Analysts’ ratings can be a valuable source of insight, but ultimately it is up to each investor to make their own judgments when it comes to selecting stocks.
Earnings
According to the report, BLACK STONE MINERALS had earned 174.58M USD in total revenue and 134.44M USD in net income. This marks a significant growth from the 61.57M USD revenue of three years ago, which has increased steadily to reach the current level. Despite this, investors have been less than impressed with the performance, leading to a decreased stock rating.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BSM. More…
| Total Revenues | Net Income | Net Margin |
| 801.76 | 596.92 | 77.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BSM. More…
| Operations | Investing | Financing |
| 479.56 | -3.07 | -463.99 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BSM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.27k | 33.44 | 5.78 |
Key Ratios Snapshot
Some of the financial key ratios for BSM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.9% | 21.0% | 77.8% |
| FCF Margin | ROE | ROA |
| 58.5% | 31.9% | 30.7% |
Analysis – BSM Stock Intrinsic Value
GoodWhale has carefully analyzed the financials of BLACK STONE MINERALS and we are confident to share our findings. According to our proprietary Valuation Line, the intrinsic value of BLACK STONE MINERALS share is around $23.2. This means that the stock is currently undervalued by 34.8%, while it is traded at $15.1. We encourage investors to consider buying BLACK STONE MINERALS stocks in order to get a potential return in the near future. More…
Peers
In the world of oil and gas exploration and production, there are many companies that compete for the same resources. Black Stone Minerals LP is one of these companies, and its main competitors are Falcon Minerals Corp, ProAm Explorations Corp, Dorchester Minerals LP. All of these companies are in the business of acquiring, developing, and operating oil and gas properties.
– Falcon Minerals Corp ($TSXV:PMX)
Ampro is a Canadian company that explores for and develops mineral properties. It has a portfolio of projects in Quebec and Newfoundland & Labrador, Canada. The company’s market capitalization is $413.66 thousand and it has a negative return on equity of 2.84%.
– ProAm Explorations Corp ($NASDAQ:DMLP)
Dorchester Minerals is a publicly traded oil and gas royalty, mineral, and leasehold interest company. The company was founded in 1971 and is headquartered in Dallas, Texas. Dorchester Minerals LP has a market cap of 1.13B as of 2022, a Return on Equity of 39.37%. The company owns interests in producing and non-producing oil, natural gas, and minerals properties in the United States and Canada. Dorchester Minerals’ properties are located in Texas, Louisiana, Oklahoma, New Mexico, Wyoming, Colorado, North Dakota, Montana, Utah, California, Kansas, and Alberta.
Summary
Analysts are now giving a “Hold” rating on the stock due to the strong results. Investors should consider the company’s performance and revenue growth as well as the current market conditions when deciding whether to invest in BSM. As the company continues to move forward, investors should take the time to review their financials and determine if BSM is a good fit for their portfolio.
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