Cross Timbers Royalty Trust Common Stock (CRT)

FairStock Score: 67/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Cross Timbers is not an operating company but an express trust owning royalty and net-profits interests in Texas, Oklahoma and New Mexico oil and gas properties. In fiscal Q2 2026, it reported revenue of $1.1 million and net income of $861,180, a 79.14% margin—an attractive sign. The provided FairStock figures also show ROE of 145.08%, ROCE of 58.72%, and D/E is N/A, while Altman Z is 23.13. But high accounting returns on a small, depleting asset base are not the same as a durable competitive moat. The trust is a price-taker on commodities and has limited control over production or costs. The negatives matter. The supplied growth rates are negative: revenue growth of -15.89% and profit growth of -3.51%. The Piotroski F-Score is a mediocre 4/9, and there is no Peter Lynch category because only zero years of filed results are available under the rule requiring three. At the 2026-10-13 close of $12.31, the P/E is 23.23, P/B is 35.17, and EV/EBITDA is 20.38. The Graham Number is only $2.04, producing a margin of safety of -503.43%—meaning the price is far above a conservative asset-based value. A 5.26% dividend yield and 0.02 beta may comfort income investors, but distributions depend on volatile production and energy prices. For a Graham-style investor, this is not a bargain. The business can be cash-generative when energy prices cooperate, but the trust is finite, declining, and priced as if stability is assured. I would want a much larger discount to intrinsic value and evidence that production and distributions are not eroding.

In plain English: Cross Timbers Royalty Trust owns interests in oil and gas properties and collects royalties. Its latest quarter showed a very high profit margin, but revenue has been shrinking. At $12.31, the price looks expensive compared with its profits, accounting value, and a conservative estimate of asset worth, though it pays a 5.26% dividend.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer