Mesa Royalty Trust Common Stock (MTR)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

Strengths

• Solid return on equity of 16.2% above cost of capital
• Altman Z-Score of 43.5 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 46.6% demonstrates strong top-line momentum
• Attractive 5.9% dividend yield providing steady income returns
• FairStock composite score of 78/100 places it in the top tier across value, quality, and momentum factors

AI Analysis

Mesa Royalty Trust Common Stock is a micro-cap energy company valued at $9 million. Revenue stands at $682,738. From a quality standpoint, Mesa shows Altman Z-Score of 43.5 confirms fortress-level solvency and adequate 16% ROE. On valuation, the stock is reasonably priced at 15.4x earnings, with trades above its Graham Number with a negative 47% margin. Growth dynamics show revenue growing at 46.6% and profit growth of 132.9%. The 5.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 78/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Mesa's 47% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. 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 energy 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