Mesabi Trust Common Stock (MSB)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 63.4% demonstrating efficient capital deployment
• Altman Z-Score of 55.7 confirms minimal bankruptcy risk and strong solvency
• Superior net profit margin of 27.3% indicating pricing power and operational efficiency
• Attractive 3.4% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($6) with negative 339% margin of safety—limited downside protection
• Revenue declining at 41.6% year-over-year signals potential demand weakness or market share loss

AI Analysis

Mesabi Trust Common Stock is a micro-cap basic materials company valued at $352 million. The business generates $18 million in annual revenue with a 27.3% net margin. From a quality standpoint, Mesabi shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 55.7 confirms fortress-level solvency. On valuation, the stock is trading at a premium 26.7x earnings, with trades far above its Graham Number ($6) with no margin of safety. Growth dynamics show revenue growing at -41.6% and profit growth of -55.1%. The 3.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 48/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. 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