Company Overview
Cross Timbers Royalty Trust operates as an express trust entity within the United States, holding significant net profits interests in both producing and nonproducing royalty and overriding royalty interest properties located in Texas, Oklahoma, and New Mexico, alongside a 75% net profits working interest in four specific properties in Tennessee. The company functions within the broader Energy sector and specifically the Oil & Gas E&P industry, which implies that its financial performance is directly tied to commodity price fluctuations and production volumes in these regions. The total market capitalization stands at $63.78M, while the trailing twelve-month revenue is recorded at $5.62M, and the employee count is listed as N/A. These valuation and revenue figures indicate that the company is a relatively small-scale operation within the energy landscape, suggesting that its total addressable market and operational footprint are limited compared to major integrated oil and gas corporations.
Financial Health
The company reported revenue of $5.62M for the trailing twelve months and generated net income of $4.45M during the same period, whereas EBITDA data is not available in the provided metrics. The substantial gap between revenue and net income reveals a highly efficient cost structure where operating expenses are minimal, allowing the trust to retain a vast majority of its gross receipts as profit. Free cash flow figures are not disclosed in the available data, which limits the ability to assess immediate liquidity generation from operations independent of non-cash items. The gross margin is recorded at 100.0%, indicating that there are no direct costs of goods sold associated with the royalty interests held, a characteristic typical of royalty trusts that pass through revenue to investors. The operating margin is 77.9% and the profit margin is 79.1%, demonstrating that the vast majority of revenue translates directly into the bottom line after covering all operating expenses. Total cash on hand is $1.49M, while debt figures and the debt-to-equity ratio are not available, meaning a direct comparison of leverage is not possible from the current data. The current ratio stands at 1.00, indicating that the company's current assets exactly match its current liabilities, which suggests a neutral short-term liquidity position where the firm can meet its obligations without needing to raise external capital. Return on Equity is an exceptional 188.8% and Return on Assets is 75.9%, revealing that management is generating highly disproportionate returns relative to the equity invested and the total assets utilized to generate those returns.
Valuation Assessment
The trailing P/E ratio is 14.36, while the forward P/E is not available in the current dataset, implying that analysts or the market may not have a concrete consensus on future earnings trajectory to price in at this time. The price-to-book ratio is significantly elevated at 28.58, which indicates that the market is valuing the company at a substantial premium over its tangible book value, likely reflecting the high-quality nature of the underlying royalty assets or scarcity of similar investment vehicles. The price-to-sales ratio is 11.34, and the EV/EBITDA ratio is not available, suggesting that valuation is being driven more by revenue multiples and book value metrics rather than traditional earnings or enterprise value multiples. The 52-week high is $13.31 and the 52-week low is $7.07, meaning the current market price sits at a specific point within this historical range, though the exact current price is not explicitly stated in the facts provided. The beta is 0.13, which indicates that the stock price exhibits very low volatility relative to the broader market, moving significantly less than the average stock and offering a defensive characteristic uncommon in the energy sector.
Growth & Income
Revenue growth year-over-year is -54.8% and earnings growth year-over-year is -70.2%, indicating that earnings are contracting at a faster rate than revenue, which is consistent with the decline in production or commodity prices affecting the royalty base more severely than the top-line revenue recognition. For dividend payers, the dividend yield is 5.0% and the payout ratio is 100.0%, which means the entire amount of earnings is distributed to shareholders, leaving no retained earnings for reinvestment. Given that the payout ratio is 100.0%, the sustainability of the dividend is entirely dependent on the continuity of royalty flows, as any decline in production or prices would immediately impact the ability to maintain the current yield. The overall growth and income profile presents a high-yield, low-growth instrument that is currently experiencing double-digit percentage declines in both revenue and earnings, offering income generation at the expense of capital appreciation potential.