SB

Sabine Royalty Trust

SBR
—
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Sabine Royalty Trust AI Insights

Informational only. Not investment advice.
As of 2025-12-22

Snapshot

  • Zero debt with 95% operating margin TTM - pure pass-through royalty structure converts 95.6% of 82.9M revenue directly to net income[Operating Margin TTM]
  • ROA of 930% TTM (vs industry median 3.6%) - asset-light royalty model requires minimal capital to generate income[Return on Assets TTM]
  • P/B of 131x reflects trust structure where book value (7.5M) is irrelevant - 100% dividend payout depletes equity[Price to Book Ratio]

Watch Triggers

  • Total Revenue TTM: Quarterly revenue declines >15% YoY — Direct proxy for commodity prices; flows immediately to distributions
  • Dividends Paid Per Share TTM: Monthly distribution drops below $0.35 — Income investors will exit rapidly if yield thesis breaks
  • Operating Expense TTM: G&A exceeds 10% of revenue — Currently 5% - any increase directly reduces distributions

Bull Case

Pure income vehicle: 5.44 dividend per share TTM on 5.43 EPS delivers 10%+ yield with zero leverage risk (0% debt/equity)

Dividends Paid Per Share TTMDebt to Equity

1Y revenue growth of 29% and EPS growth of 30% show commodity price recovery flowing directly to unitholders

Total Revenue 1Y GrowthEPS Growth 1Y

Bear Case

Depleting asset with no reinvestment - trust cannot acquire new acreage, making long-term value erosion inevitable

PPETotal Assets

P/S of 12x (vs median 2.6x) prices in sustained high commodity prices; 3Y revenue decline of -13.9% shows volatility

Price to Sales RatioTotal Revenue 3Y Growth

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
45%

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Forward Thesis

Dividend sustainability hinges entirely on oil/gas prices - 3Y revenue CAGR of -13.9% shows commodity sensitivity

1-3yhigh
  • 100% payout ratio leaves no retained earnings buffer
  • Depleting asset base with no reinvestment mechanism
  • Zero operational control over production volumes
Dividend payout ratio 7Y avg: 99.9%Revenue 3Y growth: -13.9%Zero debt provides no leverage cushion

Valuation Context

Caveats

Public Strategies Rankings

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