Sabine Royalty Trust (SBR) AI Stock Analysis
SBR AI stock analysis summary
AI ResearchSabine Royalty Trust (SBR) holds royalty and mineral interests in oil and gas properties across six states. The trust generated $75.4M in trailing twelve-month revenue with a 95.7% operating margin. SBR offers a forward dividend yield of 5.88% with distributions paid monthly.
- Market cap
- $1.06B
- Revenue (TTM)
- $75.4M
- P/E
- 14.8x fwd 10.4x
- 1Y return
- 14.7% S&P 500 16.8%
- Avg. target
- $32.50 -55.2% vs last close
Bull case
- The trust maintains exceptional profitability, delivering a 95.7% operating margin and a 94.7% profit margin over the trailing twelve months.
- Income generation remains robust, backed by 40 consecutive years of dividend payments and a 5.88% forward dividend yield.
- Long-term shareholder returns are strong, with the stock delivering a 160.2% 5-year gain compared to 83.0% for the S&P 500.
Bear case
- Annual revenue has declined for three consecutive fiscal years, sliding from $125.7M in FY2022 to $77.1M in FY2025.
- The mean analyst price target of $32.50 sits 55.2% below the trust's recent closing price of $72.48.
- The trust trades at a significant premium on certain metrics, including an EV/EBITDA of 14.7x compared to the peer median of 8.0x.
What Sabine Royalty does
Sabine Royalty Trust specializes in royalty and mineral interests across a portfolio of oil and gas properties in the United States. Its holdings include landowner's royalties, overriding royalty interests, minerals, production payments, and non-participatory interests in producing and proven undeveloped assets. Strategically situated in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas, these properties provide exposure to key regional energy markets. Founded in 1982 and based in Dallas, Texas, the trust collects royalty revenues from operating companies without directly running drilling operations.
Growth and profitability
Sabine Royalty Trust experienced significant top-line volatility over the past five fiscal years. Revenue climbed from $60.9M in FY2021 to a peak of $125.7M in FY2022, representing 106.5% growth. Revenue subsequently fell 26.0% in FY2023 to $93.0M, dropped 11.2% in FY2024 to $82.6M, and declined 6.7% in FY2025 to $77.1M. Despite annual drops, revenue generated a 5-year CAGR of 16.2% from FY2020 to FY2025. Operating margins remained elevated, finishing at 94.7% in FY2025 with net income of $73.4M and EPS of $5.03. For the latest quarter ended June 30, 2026, quarterly revenue increased 16.5% year-over-year while quarterly earnings expanded 17.2%.
Balance sheet and cash flow
As of June 30, 2026, Sabine Royalty Trust held $9.7M in cash and short-term investments, matching its total assets of $9.7M. Shareholders' equity was $8.4M, resulting in a current ratio of 31.55. In FY2025, operating cash flow reached $73.4M, and the trust distributed $75.3M in dividends. The trust does not incur debt or retain major operational capital, and its share count change over 5 years is 0.0%.
Valuation and performance
At a share price of $72.48, Sabine Royalty Trust has a market capitalization of $1.06B and an enterprise value of $1.04B. Its trailing P/E of 14.8x sits slightly below the 15.0x median of its US-listed Energy peers, while its forward P/E of 10.4x is lower than the peer median of 12.7x. SBR trades at an EV/EBITDA of 14.7x compared to the peer median of 8.0x, and its price-to-sales ratio is 14.0x versus 1.8x. SBR shares gained 14.7% over the past year, trailing the S&P 500 return of 16.8%, but gained 160.2% over five years versus 83.0% for the index.
SBR dividend
Sabine Royalty Trust pays a monthly distribution with an annualized forward payout of $4.27 per share, resulting in a 5.88% dividend yield. The trust has maintained 40 consecutive years of dividend payments and delivered a 5-year annualized dividend growth rate of 16.3%. Its payout ratio is 35.5%, and the last ex-dividend date was October 15, 2026.
What analysts expect
Wall Street coverage lists a mean price target of $32.50, which stands 55.2% below the last close of $72.48. Sabine Royalty Trust has beaten EPS estimates in each of the last 4 quarters. The next earnings date for the trust is scheduled for November 6, 2026.
Key risks and what to watch
- Annual top-line performance remains tied to commodity prices, evidenced by revenue falling 26.0% in FY2023 and 11.2% in FY2024.
- In FY2025, dividend payments of $75.3M exceeded the trust's annual operating cash flow of $73.4M.
- The stock trades at an elevated price-to-book ratio of 125.4x due to its low equity base of $8.4M.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SBR AI stock analysis
This page is an AI-written research summary of Sabine Royalty Trust (SBR). 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: SBR income statement, SBR balance sheet, SBR key metrics, SBR chart. See the SBR stock overview for the latest quote and news.
SBR AI stock analysis FAQ
What is Sabine Royalty Trust's dividend yield and payout schedule?
Sabine Royalty Trust has an annualized forward dividend of $4.27 per share, yielding 5.88%. Distributions are paid to unitholders on a monthly schedule.
How does Sabine Royalty Trust's valuation compare to its energy peers?
SBR trades at a forward P/E of 10.4x, which is lower than the US-listed Energy peer median of 12.7x. However, its EV/EBITDA multiple of 14.7x is above the peer median of 8.0x.
When is Sabine Royalty Trust's next earnings report?
The trust's next scheduled earnings date is November 6, 2026.
How has SBR stock performed relative to the S&P 500?
Over the past year, SBR returned 14.7% versus 16.8% for the S&P 500. Over a five-year period, SBR gained 160.2%, outpacing the S&P 500's return of 83.0%.