Dorchester Minerals L.P. Common Units Representing Limited Partnership Interests (DMLP)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

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

As a Buffett/Graham investor, I start with what the business owns. Dorchester is not a driller; it owns royalty and mineral interests in 594 counties and parishes across 28 states, plus net profits interests. With 26 employees, it is an asset-light toll collector on other people's production. That can produce beautiful economics: FairStock calculates return on equity of 28.02%, return on capital employed of 17.07%, debt-to-equity of 0.01, and an Altman Z-score of 86.78. The trailing free cash flow yield is 10.6%, and the dividend yield is 10.77%. But this is a commodity pass-through, not a pricing-power franchise. The Lynch category is CYCLICAL — Oil & Gas E&P, and the filed numbers show it: net income fell from $114.1M in FY2023 to $92.4M in FY2024 to $57.4M in FY2025; EPS fell from $2.85 to $2.13 to $1.16. The most recent quarter, fiscal Q2 2026 ended 2026-06-30, was much stronger: revenue $56.1M and net income $30.9M, versus revenue $32.4M and net income $12.3M in fiscal Q2 2025. That is a sharp rebound, but one quarter does not make a trend. At the 2026-10-13 close of $30.16, the market cap is $1.5B. FairStock's price-to-earnings is 17.23, price-to-book is 4.71, and the Graham Number is $15.74, leaving a margin of safety of -91.61%. So the price asks for continued high commodity prices and distributions. I respect the balance sheet and royalty model, but at this price the margin of safety is thin.

In plain English: Dorchester Minerals owns oil and gas royalty and mineral interests across many U.S. counties. It collects payments when energy companies produce oil and gas on its land, so it has only 26 employees and almost no debt. Recent quarterly results jumped sharply, but annual results have fallen since 2023, and at $30.16 the price looks full compared with its recent earnings and accounting value, even though the payout is high.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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