Fact based stock research
Black Stone Minerals (NYSE:BSM)

US09225M1018

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Black Stone Minerals stock research in summary

blackstoneminerals.com

ANALYSIS: With an Obermatt Combined Rank of 45 (worse than 55% compared with investment alternatives), Black Stone Minerals (Oil & Gas Production, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Black Stone Minerals are low in value (priced high) with a consolidated Value Rank of 36 (worse than 64% of alternatives) and show below-average growth (Growth Rank of 6) but are safely financed (Safety Rank of 100), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 45, is a hold recommendation based on Black Stone Minerals's financial characteristics. As the company Black Stone Minerals's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 36) and low growth (Obermatt Growth Rank of 6), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 100) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	36
Growth Rank	6
Safety Rank	100
Combined Rank	45

Country	USA
Industry	Oil & Gas Production
Index
Size class	Medium

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Black Stone Minerals

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	32	25	23	36
GROWTH
GROWTH	12	9	61	6
SAFETY
SAFETY	88	97	98	100
SENTIMENT
SENTIMENT	n/a	55	39	^new
360° VIEW
360° VIEW	n/a	40	60	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Black Stone Minerals is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	32	25	23	36
GROWTH
GROWTH	12	9	61	6
SAFETY
SAFETY	88	97	98	100
COMBINED
COMBINED	26	35	82	45

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Black Stone Minerals the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 36 (worse than 64% compared with alternatives), Black Stone Minerals shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Black Stone Minerals. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 98% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 11 which means that the stock price compared with what market professionals expect for future profits is higher than 89% of comparable companies, indicating a low value concerning Black Stone Minerals's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 46 which means that the stock price compared with what market professionals expect for future profit levels is higher than 54% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 13 is also low. Compared with invested capital, the stock price is higher than for 87% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 36, is a hold recommendation based on Black Stone Minerals's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Black Stone Minerals? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Black Stone Minerals only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	6	6	3	11
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	28	5	35	46
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	4	32	11	13
DIVIDEND YIELD
DIVIDEND YIELD	96	99	96	98
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	32	25	23	36

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Black Stone Minerals; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 6 (better than 6% compared with alternatives), Black Stone Minerals shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Black Stone Minerals. Sales Growth has a rank of 26, which means that currently professionals expect the company to grow less than 74% of its competitors. The same is valid for Profit Growth, with a rank of 31, and Capital Growth with 16. In addition, Stock Returns have a below market rank of 34, which means that the stock returns have recently been below 66% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 6, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	29	94	48	26
PROFIT GROWTH
PROFIT GROWTH	n/a	7	82	31
CAPITAL GROWTH
CAPITAL GROWTH	n/a	11	17	16
STOCK RETURNS
STOCK RETURNS	49	19	77	34
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	12	9	61	6

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Black Stone Minerals.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 100 (better than 100% compared with alternatives) for 2024, the company Black Stone Minerals has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Black Stone Minerals is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Black Stone Minerals. Leverage is at 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors. Refinancing is at a rank of 78, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 78% of its competitors. Finally, Liquidity is also good at a rank of 98, which means that the company generates more profit to service its debt than 98% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 100 (better than 100% compared with alternatives), Black Stone Minerals has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Black Stone Minerals but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	80	95	98	100
REFINANCING
REFINANCING	51	65	82	78
LIQUIDITY
LIQUIDITY	91	99	89	98
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	88	97	98	100

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Black Stone Minerals and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	66	11	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	79	79	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	16	88	^new
MARKET PULSE
MARKET PULSE	n/a	12	11	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	55	39	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Black Stone Minerals.
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