Mesabi Trust (MSB) AI Stock Analysis

Mesabi Trust operates as a royalty trust focused on the iron ore mining sector in the United States. Established in 1961 and headquartered in New York, New York, the trust earns income primarily from royalties on sales of iron ore pellets produced from properties in Minnesota. These royalties are paid by Northshore Mining Company and Hibbing Taconite Company from the Peter Mitchell mine and the Hibbing mine in the Mesabi Iron Range. The trust does not conduct direct mining activities; instead, it collects royalties on gross pellet sales and distributes proceeds to unit holders under the oversight of its Board of Trustees.

Mesabi Trust has experienced substantial top-line volatility, reflected in a 5-year revenue CAGR of -7.6% from FY2021 to FY2026. Annual revenue moved from $71.5M in FY2022 to $7.7M in FY2023, recovering to $22.9M in FY2024 and $25.5M in FY2025, before declining 31.2% to $17.5M in FY2026. Operating margin stood at 79.1% and net income reached $13.9M in FY2026, down from net income of $93.3M in FY2025. Over the trailing twelve months, revenue was $11.9M with an operating margin of -3.8% and EPS of $0.49. For the latest quarter ended July 31, 2026, quarterly revenue fell 55.8% year-over-year while quarterly earnings declined 70.1%.

As of July 31, 2026, Mesabi Trust reported cash and short-term investments of $17.4M and total assets of $19.8M, supported by shareholders' equity of $17.6M. The trust maintains strong liquidity with a current ratio of 8.18. In FY2026, free cash flow and operating cash flow each totaled $14.4M. Capital return to unit holders is the primary use of cash, with $91.4M paid in dividends during FY2026, while the 5-year share count change remained at 0.0%.

Mesabi Trust trades at a trailing P/E of 36.5x and an enterprise value to EBITDA of 32.9x, both well above the median of its US-listed Basic Materials peers at 19.7x and 10.5x, respectively. Its price-to-sales ratio of 19.7x also exceeds the peer median of 1.8x, though forward P/E of 12.8x sits below the peer median of 13.4x. Over the past year, MSB fell 40.0% and has dropped 52.7% year-to-date, trailing the S&P 500 (SPY) return of 16.8% over the past year and 83.0% over five years.

Mesabi Trust pays a quarterly dividend with an annual forward dividend of $0.89, providing a dividend yield of 4.98%. The trust has paid dividends for 37 consecutive years, achieving an annualized 5-year dividend growth rate of 33.1%. Its payout ratio is 1.8%, and the last ex-dividend date occurred on July 30, 2026.

Wall Street analysts tracking Mesabi Trust have set a mean price target of $33.00, compared to the stock's last close of $17.88 on October 16, 2026. This target implies an 84.6% premium over the current share price. Individual rating counts and forward quarterly consensus estimates are not disclosed. With earnings volatile and trailing twelve-month EPS at $0.49, investors will look to upcoming operational results from the underlying Minnesota iron ore mines to evaluate future trust distributions.

This page is an AI-written research summary of Mesabi Trust (MSB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: MSB income statement, MSB balance sheet, MSB key metrics, MSB chart. See the MSB stock overview for the latest quote and news.