LandBridge Company LLC Class A Shares Representing Limited Liability Company Interests (LB)

FairStock Score: 49/100 — MIXED

Key Financials

Strengths

• Generates $93 million in annual free cash flow (1.7% yield on market cap)
• Solid return on equity of 10.1% above cost of capital
• Altman Z-Score of 5.9 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 55.6% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($16) with negative 324% margin of safety—limited downside protection

AI Analysis

LandBridge Company LLC Class A Shares Representing Limited Liability Company Interests is a small-cap energy company valued at $5.4 billion. The business generates $199 million in annual revenue with a 4.0% net margin and $93 million in free cash flow. From a quality standpoint, LandBridge shows Altman Z-Score of 5.9 confirms fortress-level solvency and adequate 10% ROE. On valuation, the stock is commanding a steep 74.1x multiple, with trades far above its Graham Number ($16) with no margin of safety. Growth dynamics show revenue growing at 55.6% and profit growth of 228.3%. Our composite FairStock Score of 49/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

LandBridge's 56% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. With $93 million in annual free cash flow (1.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 74x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer