Mesabi Trust (MSB) stock analysis

P/E above its 5-year median

Mesabi Trust's P/E of 35.1 is above its own 5-year median of 10.6.

P/E above the industry

Mesabi Trust's P/E of 35.1 is above the Miscellaneous Investing median of 26.3.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/S above the industry

Mesabi Trust's price-to-sales of 18.97 is above the Miscellaneous Investing median of 4.14 (book value is negative, so we use sales).

Trading above fair value

The share price of $17.22 is above our fair value estimate of $16.92.

Margin of safety under 20%

The price is 1.8% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 31.3% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew -93.0% over the last twelve months, against a 5-year average of -9.9% a year.

Growing slower than the industry

Revenue grew -87.6% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 54.5% over the last twelve months, against 96.4% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings shrank over 5 years

Net income shrank 9.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 54.5% over the last twelve months, against a 5-year average of 84.3%.

Net margin above the industry

Mesabi Trust's net margin of 54.5% is above the Miscellaneous Investing median of 10.3%.

No debt

Mesabi Trust has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Low bankruptcy risk

The Altman Z-score is 60.78; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Mesabi Trust paid dividends worth 3.2% of the share price over the last twelve months.

Yield below Treasuries

The 3.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Mesabi Trust yields 3.2%.

Dividend stability

Fewer than five years of dividend history.

Not covered by earnings

Dividends take 194% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.