Based on the key measurements obtained from Mesa Royalty's financial statements, Mesa Royalty Trust may be sliding down financialy. It has an above-average risk of going through some form of financial distress next quarter. At this time, Mesa Royalty's Long Term Investments are relatively stable compared to the past year. As of 02/26/2025, Intangible Assets is likely to grow to about 2 M, while Total Stockholder Equity is likely to drop slightly above 2.6 M. Key indicators impacting Mesa Royalty's financial strength include:
The financial analysis of Mesa Royalty is a critical element in measuring its lifeblood. Investors should not minimize Mesa Royalty's ability to pay suppliers or employees on time, ensuring interest payments are not accumulating.
Mesa Royalty competes with Cross Timbers, San Juan, MV Oil, PermRock Royalty, and Sabine Royalty. Mesa Royalty Trust owns net overriding royalty interests in various oil and gas producing properties in the United States. The company was founded in 1979 and is based in Houston, Texas. Mesa Royalty operates under Oil Gas EP classification in the United States and is traded on New York Stock Exchange.
Comparative valuation techniques use various fundamental indicators to help in determining Mesa Royalty's current stock value. Our valuation model uses many indicators to compare Mesa Royalty value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Mesa Royalty competition to find correlations between indicators driving Mesa Royalty's intrinsic value. More Info.
Mesa Royalty Trust is regarded third in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about 0.62 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Mesa Royalty Trust is roughly 1.61 . At this time, Mesa Royalty's Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Mesa Royalty by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.
Mesa Royalty Trust Systematic Risk
Mesa Royalty's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Mesa Royalty volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was twenty with a total number of output elements of fourty-one. The Beta measures systematic risk based on how returns on Mesa Royalty Trust correlated with the market. If Beta is less than 0 Mesa Royalty generally moves in the opposite direction as compared to the market. If Mesa Royalty Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Mesa Royalty Trust is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Mesa Royalty is generally in the same direction as the market. If Beta > 1 Mesa Royalty moves generally in the same direction as, but more than the movement of the benchmark.
Steps to analyze company Financials for Investing
There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Mesa Royalty is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Mesa has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it. In summary, you can determine if Mesa Royalty's financials are consistent with your investment objective using the following steps:
Review Mesa Royalty's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
Study the cash flow inflows and outflows to understand Mesa Royalty's liquidity and solvency.
Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
Compare Mesa Royalty's financials to those of its peers to see how it stacks up and identify any potential red flags.
Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Mesa Royalty's stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.
Today, most investors in Mesa Royalty Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Mesa Royalty's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Mesa Royalty growth as a starting point in their analysis.
Along with financial statement analysis, the daily predictive indicators of Mesa Royalty help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Mesa Royalty Trust. We use our internally-developed statistical techniques to arrive at the intrinsic value of Mesa Royalty Trust based on widely used predictive technical indicators. In general, we focus on analyzing Mesa Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Mesa Royalty's daily price indicators and compare them against related drivers.
When running Mesa Royalty's price analysis, check to measure Mesa Royalty's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Mesa Royalty is operating at the current time. Most of Mesa Royalty's value examination focuses on studying past and present price action to predict the probability of Mesa Royalty's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Mesa Royalty's price. Additionally, you may evaluate how the addition of Mesa Royalty to your portfolios can decrease your overall portfolio volatility.