Kimbell Royalty Partners Common Units Representing Limited Partner Interests (KRP)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

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

As a Buffett-style investor, I start with the business: Kimbell owns mineral and royalty interests, collecting a share of oil and gas production. That can be a high-margin, low-capex stream. The filed numbers show the cyclicality: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $112.5M and net income $47.3M, versus $86.5M and $26.7M in fiscal Q2 2025. For FY2025, revenue was $333.8M and net income $99.7M, versus $309.3M and $11.1M in FY2024. FY2023 revenue was $267.6M and net income $83.0M, showing how quickly profits can fall. This is not a stable consumer franchise; it is a price-taker in a boom-and-bust industry, and the computed Lynch category is CYCLICAL — Oil & Gas E&P. Financial health is decent: D/E 0.58, Piotroski 9/9, TTM FCF $193.2M. At the 2026-10-13 close of $15.75, FairStock's FCF yield is 14.0%, EV/EBITDA 7.01, and dividend yield 10.94%, which look attractive. But FairStock's Graham Number is $11.94, leaving a -31.91% margin of safety; P/B is 2.70 and P/E 18.53. ROCE is only 6.56%, and Altman Z-Score is 1.96. The low beta of 0.29 may soften market volatility, but it does not remove commodity risk. So I see a cash-generative but cyclical royalty business, priced near its 52-week high of $15.80 and above asset-based value. Quality is improving, but the price already reflects much of it.

In plain English: Kimbell Royalty Partners owns interests in oil and natural gas properties and earns a share of the money when energy is produced. The business is profitable and produces lots of cash, but results swing with energy prices. At $15.75, the price looks full compared with a conservative estimate of value, though the high cash payout is a draw.

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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/A (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