Natural Resource Partners LP Limited Partnership (NRP)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

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

I look at Natural Resource Partners as a royalty-like owner of mineral rights, not a miner. It leases coal, soda ash, trona and other resources, so it avoids much operating cost and capital intensity. That model can be a moat: its reserves and land positions are hard to replicate, and the latest filed results show real profitability. In fiscal Q2 2026 (the quarter ended 2026-06-30), net income was $25.2M, though that was below the $34.2M earned in fiscal Q2 2025. For full-year 2025, net income was $136.4M, down from $183.6M in FY2024 and $278.4M in FY2023. Revenue slipped from $278.7M in FY2023 to $232.4M in FY2024, so the cycle is clearly moving against thermal coal. Financial health is a bright spot: the D/E is only 0.05, Altman Z-Score 8.52, Piotroski 8/9, and FCF yield 10.8%. ROE is 17.20% and ROCE 10.49%. But at the 2026-10-13 close of $111.75, FairStock's P/E is 14.25 and P/B is 2.32. The Graham Number is $93.03, implying a negative 20.12% margin of safety. EV/EBITDA is 10.74. I see a high-quality asset base and conservative balance sheet, but earnings are declining, revenue is shrinking, and the units trade above Graham's conservative value. This is a cyclical royalty business: a fair price, not a bargain, with the outcome dependent on coal or soda ash catalysts.

In plain English: Natural Resource Partners owns land and mineral rights and earns royalties from coal, soda ash, and other resources, rather than mining them itself. Profits are still solid but have fallen from their earlier peaks as commodity markets cooled. At the recent price of $111.75, the units look slightly expensive compared with the company's assets and earnings, though it still produces significant cash.

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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