North European Oil Royality Trust Common Stock (NRT)

FairStock Score: 95/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

As a Graham-and-Buffett-minded investor, I start with what NRT is: a grantor trust holding overriding royalty rights on oil, gas, condensate, and sulfur production in Germany, tied to ExxonMobil and Shell subsidiaries. That is a very high-margin stream—in fiscal Q3 2026, the quarter ended 2026-07-31, filed revenue was $2.6M and net income $2.5M—but it is not a classic moat. The trust does not control wells, reserves, or capital spending. With only 2 employees, most revenue reaches the bottom line. Financial health looks strong on some measures: FairStock calculates Altman Z at 23.26, ROE at 511.50%, ROCE at 155.84%, and a 95/100 FairStock score. Yet quality is uneven: Piotroski F-Score is 3/9, P/B is 40.48, and Graham Number is $2.17. At the $8.50 close on 2026-10-13, the negative margin of safety is -291.71%, so asset-based value is far below price. The P/E is 8.50 and dividend yield is 11.88%, which looks cheap and generous, but PEG is 13.71. Filed results improved sequentially from fiscal Q1 2026 revenue of $2.2M and net income of $1.9M to fiscal Q3 2026 revenue of $2.6M and net income of $2.5M, yet fiscal Q3 2026 matched fiscal Q3 2025. FairStock assigns no Lynch category because it has 0 years of filed results, needing 3. I see a low-beta income stream, not a compounding bargain.

In plain English: North European Oil Royalty Trust earns royalties from oil and gas produced in Germany by units of ExxonMobil and Shell. The business has very high profit margins and pays a large dividend, but sales and profits have been nearly flat and the share price is high compared with the value shown in its books. At $8.50 on 2026-10-13, it looks more like a high-income, slow-growth holding than a cheap bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-31) · fiscal Q2 2026 10-Q (period ended 2026-04-30) · fiscal Q1 2026 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-07-31)

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