San Juan Basin Royalty Trust (SJT) AI Stock Analysis
SJT AI stock analysis summary
AI ResearchSan Juan Basin Royalty Trust is an express trust holding royalty interests in oil and natural gas properties in northwestern New Mexico. Revenue decreased from $79.0M in FY2022 to $11,887 in FY2025, resulting in net income of -$387,808. The trust carries a market capitalization of $197.6M with cash and short-term investments of $4,019 as of June 30, 2026.
- Market cap
- $197.6M
- Revenue (TTM)
- $1,049
- P/E
- — fwd 11.6x
- 1Y return
- -23.9% S&P 500 16.8%
- Avg. target
- $20.50 383.5% vs last close
Bull case
- Analysts project an upside potential of 383.5% toward a mean price target of $20.50 compared to the closing price of $4.24.
- The trust's forward P/E of 11.6x trades at a discount to the US-listed Energy peer group median of 12.7x.
- Operating margin reached 98.1% in FY2022 when revenue was $79.0M, illustrating strong historical operational profitability during peak periods.
Bear case
- Annual revenue fell 99.8% to $11,887 in FY2025, generating net income of -$387,808.
- Liquidity is constrained with cash and short-term investments of $4,019 against total debt of $944,471 and a current ratio of 0.00 as of June 30, 2026.
- In the quarter ended June 30, 2026, quarterly revenue fell 93.8% year-over-year while quarterly earnings declined 88.6%.
What San Juan Basin Royalty does
San Juan Basin Royalty Trust is an express trust based in Houston, Texas, founded in 1980. The trust holds a 75% net overriding royalty interest derived from Southland's oil and natural gas assets situated in the San Juan Basin of northwestern New Mexico. These assets cover 119,000 net producing acres and 1,140.0 net wells across San Juan, Rio Arriba, and Sandoval Counties, encompassing working interests, royalty interests, and other contractual rights. BBVA USA serves as trustee, managing its portfolio and operations dedicated to generating revenue from the production and sale of regional oil and natural gas resources.
Growth and profitability
SJT experienced significant operational swings over recent years. Revenue reached $79.0M in FY2022, growing 110.0%, with a net margin of 98.2% and EPS of $1.67. However, revenue fell 32.4% to $53.4M in FY2023, declined 87.0% to $6.9M in FY2024, and dropped 99.8% to $11,887 in FY2025. This drove net income from $51.6M in FY2023 to -$387,808 in FY2025, alongside an operating margin of -3262.5%. From FY2020 to FY2025, the five-year revenue compound annual growth rate was -73.4%. For the latest quarter ending June 30, 2026, quarterly revenue fell 93.8% year-over-year, while quarterly earnings declined 88.6%.
Balance sheet and cash flow
As of June 30, 2026, San Juan Basin Royalty Trust held $4,019 in cash and short-term investments alongside total debt of $944,471, resulting in net debt of $940,452. Total assets stood at $2.7M against shareholders' equity of $1.7M, yielding a debt-to-equity ratio of 0.54 and a current ratio of 0.00. In FY2025, operating cash flow was -$387,810, compared to $5.1M in FY2024 and $77.6M in FY2023. Over the past five years, the trust's share count change was 0.0%.
Valuation and performance
SJT trades at a forward P/E of 11.6x, below the 12.7x median of its US-listed Energy peers. Its enterprise value of $145.4M reflects an EV/EBITDA of 13.1x, higher than the peer median of 8.0x, while its price-to-sales multiple is 11.0x versus 1.8x for sector peers. Over the past year, the stock fell 23.9%, compared to a 16.8% gain for the S&P 500. Over a five-year timeframe, the stock gained 15.5%, trailing the S&P 500's return of 83.0%.
What analysts expect
Analysts maintain a mean price target of $20.50 for San Juan Basin Royalty Trust, representing a 383.5% upside relative to its last close of $4.24 on October 16, 2026. The trust's beta is 0.70, and institutional investors hold 37.5% of shares, with insider ownership at 0.0%. The trust is scheduled to release its next earnings report on November 12, 2026.
Key risks and what to watch
- A five-year revenue CAGR of -73.4% reflects severe long-term contraction in proceeds from royalty interests.
- Holding just $4,019 in cash and short-term investments with a current ratio of 0.00 leaves the trust vulnerable to immediate funding needs.
- Trailing twelve-month operating margin stands at -107810.9% on total TTM revenue of $1,049, indicating sustained operating imbalances.
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 SJT AI stock analysis
This page is an AI-written research summary of San Juan Basin Royalty Trust (SJT). 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: SJT income statement, SJT balance sheet, SJT key metrics, SJT chart. See the SJT stock overview for the latest quote and news.
SJT AI stock analysis FAQ
What is San Juan Basin Royalty Trust's primary asset?
The trust holds a 75% net overriding royalty interest derived from Southland's oil and natural gas properties across 119,000 net producing acres and 1,140.0 net wells in northwestern New Mexico.
How has SJT performed relative to the S&P 500?
Over the past year, SJT fell 23.9% while the S&P 500 gained 16.8%. Over a five-year period, SJT rose 15.5% compared to an 83.0% return for the S&P 500.
What is SJT's current valuation?
SJT trades at a forward P/E of 11.6x, an EV/EBITDA of 13.1x, and a price-to-sales ratio of 11.0x with an enterprise value of $145.4M.
When is San Juan Basin Royalty Trust's next earnings date?
The trust's next earnings date is scheduled for November 12, 2026.