Mesabi Trust Common Stock (MSB)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

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

I approach Mesabi Trust as a royalty trust, not an operating miner. It receives income from iron ore, so the quality of the business depends on volumes and prices it does not control. The trust has some structural attractions: FairStock reports no D/E, an Altman Z-Score of 64.80, ROE of 32.13%, and ROCE of 18.43%. Its beta is 0.33, and it offers a 5.02% dividend yield. In fiscal 2024, the year ended 2025-01-31, filed results showed revenue of $98.6 million, net income of $93.3 million, and diluted EPS of $7.11. That demonstrates how profitable the royalty can be when royalty income is strong. But the recent trajectory is poor. Revenue growth is -57.01% and profit growth is -102.00%. In fiscal Q1 2026, the quarter ended 2026-04-30, net income was $1.1 million, or $0.08 per diluted share. In fiscal Q2 2026, the quarter ended 2026-07-31, revenue was $2.5 million and net income was a loss of $95,013, or -$0.01 per diluted share. The latest quarter, 2026-Q3, had revenue of $2.3 million and a net loss of $95,013 with a -4.08% margin. That is not a durable earnings base. At the 2026-10-13 close of $17.74, FairStock's P/E is 36.20, P/B is 13.24, EV/EBITDA is 27.83, and FCF yield is 3.8%. The Graham Number is only $3.84, leaving a margin of safety of -361.98%. The Piotroski F-Score is 5/9. I would want a much lower price or evidence that royalty income is returning before calling this a bargain. Cyclical trusts can look cheapest near peak earnings and expensive near troughs.

In plain English: Mesabi Trust collects payments from iron ore mining rather than running mines itself. The business looks weak right now because recent quarters have brought very little revenue and even small losses, after a much stronger fiscal 2024. At the 2026-10-13 close of $17.74, the price looks expensive compared with those recent profits and the company's accounting value.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-31) · fiscal Q1 2026 10-Q (period ended 2026-04-30) · fiscal Q3 2025 10-Q (period ended 2025-10-31) · fiscal Q2 2025 10-Q (period ended 2025-07-31) · FY2024 10-K (period ended 2025-01-31) · FY2023 10-K (period ended 2024-01-31) · FY2022 10-K (period ended 2023-01-31)

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