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

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

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

I look for businesses whose assets produce predictable cash and whose price leaves room for error. LandBridge owns surface acres and resources in the Delaware Basin, with royalties, water sales, and materials supporting oil and gas development. The filed growth is real: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $66.8 million and net income $12.3 million, versus revenue of $47.5 million and net income of $7.5 million in fiscal Q2 2025. For FY2025, revenue was $199.1 million and net income $30.1 million, up from FY2024 revenue of $110.0 million and net income of $5.1 million. The balance sheet looks sound by the supplied measures: Piotroski F-Score 8/9, Altman Z-Score 7.64, debt-to-equity 0.64. But the price at the 2026-10-13 close of $87.33 is not Graham-like. FairStock's P/E is 77.28, P/B 6.94, EV/EBITDA 48.28, FCF yield only 2.2%, and Graham Number $17.89, implying a margin of safety of -388.15%. ROE is 11.52% and ROCE 7.07%, respectable but not exceptional against such multiples. The Lynch category is CYCLICAL - Oil & Gas E&P, meaning earnings follow the economic cycle. Growth could continue, but the margin of safety is absent. I would want a much lower price or evidence that these cash flows are durable through a downturn.

In plain English: LandBridge owns land and resources in the Delaware Basin that support oil and natural gas development, and it also sells water and materials and collects royalties. The business is growing quickly, with recent quarterly revenue and profit well above the year-earlier quarter, and its finances look solid. But at $87.33 on 2026-10-13, the price looks high compared with the company's recent profits and net assets, so investors are paying a lot for that growth.

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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