Mesa Royalty Trust (MTR) AI Stock Analysis

Founded in 1979 and headquartered in Houston, Texas, Mesa Royalty Trust operates as a passive entity that holds net overriding royalty interests in oil and gas producing properties across the United States. Its assets include interests in fields situated in the Hugoton region of Kansas, recognized for significant natural gas production, as well as the San Juan Basin spanning Northwestern New Mexico and Southwestern Colorado. Mesa Royalty Trust collects royalties from operating oil and gas companies, allowing it to generate revenue streams directly from hydrocarbon extraction and sales without engaging directly in operational activities.

Mesa Royalty Trust reported revenue of $908,160 in FY2021, which grew 353.6% to $4.1M in FY2022 before declining 20.4% to $3.3M in FY2023. Revenue fell further by 77.3% to $746,019 in FY2024 and decreased 19.3% to $601,840 in FY2025, reflecting a 5-year revenue CAGR of -6.3% from FY2020 to FY2025. Despite revenue contraction, margins remained elevated, with gross margin at 100.0%, operating margin at 71.4%, and net margin at 84.9% in FY2025, producing net income of $510,906 and EPS of $0.26. For the trailing twelve months ended June 30, 2026, revenue stood at $553,163 with a profit margin of 66.0% and an operating margin of 75.6%. In the latest quarter ended June 30, 2026, quarterly revenue fell 28.4% and quarterly earnings fell 33.3% year-over-year.

As of June 30, 2026, Mesa Royalty Trust held cash and short-term investments of $2.1M and total assets of $3.3M, with shareholders' equity of $3.1M and a current ratio of 17.12. Operating cash flow totaled $510,910 in FY2025, recovering from -$78.6M in FY2023. The passive entity utilizes cash distributions to reward unitholders, paying $433,920 in dividends during FY2025, while its 5-year share count change remained at 0.0%.

Mesa Royalty Trust carries a market capitalization of $3.8M and an enterprise value of $2.5M. The stock trades at a trailing P/E of 10.1x, below the 15.0x median of its US-listed Energy peers, but its forward P/E of 19.7x stands above the peer median of 12.7x. Additionally, its price-to-sales multiple of 6.8x and EV-to-EBITDA of 8.5x compare to peer medians of 1.8x and 8.0x, respectively. The trust's unit price closed at $2.02 on October 16, 2026, down 59.0% over the past year and down 56.7% over 5 years, underperforming the S&P 500 (SPY) returns of 16.8% and 83.0% across those respective periods.

Mesa Royalty Trust pays a monthly dividend with an annual forward dividend of $0.14 per unit, representing a dividend yield of 6.94% and a payout ratio of 39.5%. The trust has paid dividends for 43 consecutive years, though its 5-year annualized dividend growth was -4.4%. Its last ex-dividend date was May 29, 2026.

Mesa Royalty Trust has its next earnings date scheduled for November 12, 2026. The trust does not have formal analyst rating counts, price targets, or published forward consensus earnings estimates. Units closed at $2.02 on October 16, 2026, representing a market capitalization of $3.8M, trading 46.3% below its 200-day average. Institutional investors own 31.0% of the float, short interest stands at 0.2%, and insiders hold 0.0% of the units.

This page is an AI-written research summary of Mesa Royalty Trust (MTR). 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.

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