Permian Basin Royalty Trust Common Stock (PBT)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

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

As a Graham-and-Buffett style investor, I want a simple, understandable business with durable economics and a sensible price. Permian Basin Royalty Trust is understandable: it owns overriding royalty interests in Waddell Ranch and Texas Royalty properties, including about 125 separate royalty interests and roughly 51,000 net producing acres. That can be a high-quality cash stream because royalties do not require heavy capital spending, and the latest reported quarter, 2026-Q2, showed revenue of $4.2M, net income of $3.9M, and a 92.71% margin. The provided growth figures are 34.44% for revenue and 61.46% for profit, which is attractive if it persists. But the moat is not a classic competitive advantage; it depends on oil and gas prices, production volumes, and reserve depletion. Financial health looks unusual: FairStock's calculations show ROE of 9976.58%, ROCE of 473.29%, and a Piotroski F-Score of only 2/9, while debt/equity is N/A and Altman Z-Score is 282.07. At the close on 2026-10-13, the price was $35.39. FairStock's valuation work shows P/E of 101.11, P/B of 11533.33, EV/EBITDA of 63.52, PEG of 1.65, and dividend yield of 0.66%. Those are not cheap numbers, and the FairStock Score is 34/100. The 52-week range is $16.25-$37.00, so the shares are near the top of that range. A Lynch category is not assigned because only 0 years of filed results are available and 3 are needed. I see a high-margin but commodity-sensitive trust whose price already reflects a lot of optimism. I would want a clearer reserve/production picture and a wider margin of safety before calling it attractive.

In plain English: Permian Basin Royalty Trust owns royalty interests in oil and gas properties in Texas, so it collects money when energy is produced. The business turns almost all of its revenue into profit, but the stock price looks very high compared with that profit and the dividend yield is very low. Based on the numbers given, the shares look expensive rather than cheap.

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

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