San Juan Basin Royalty Trust Common Stock (SJT)

FairStock Score: 27/100 — RISKY

Key Financials

AI Analysis

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

I look at San Juan Basin Royalty Trust as a royalty trust, not a typical operating company. It owns a 75% net overriding royalty interest in Southland's oil and natural gas interests across about 119,000 net-producing acres in northwestern New Mexico. That can be a low-cost structure, but it also makes unitholders price-takers on commodities and exposed to depletion. The supplied figures are not healthy: EPS is $-0.02 and profit growth is -19.15%, with the filing period not specified in the data provided. FairStock calculations from the 2026-10-13 close of $4.43 show a P/E of -221.50 and a P/B of 110.75, so the price is not supported by current earnings or book value. ROE is -36.80% and ROCE is -18.65%, meaning capital is being eroded. The FairStock score of 27/100 and Piotroski F-Score of 1/9 reinforce weak financial quality. The Altman Z-Score of 127.98 looks extremely safe, but for a trust it may not be comparable to an industrial company. Debt/equity of 0.54 is manageable, and beta of 0.64 suggests lower market volatility, yet those do not offset negative returns on capital. Growth is uncertain: revenue growth is unavailable, profit growth is negative, and the Lynch category is 'none' because only 0 years of filed results are available, while 3 are needed. A Graham-style bargain needs a margin of safety. Here, negative earnings and a very high price-to-book make that hard to justify. Unless commodity prices and production recover materially, I would see this as a speculative resource trust rather than a durable compounder.

In plain English: San Juan Basin Royalty Trust earns royalty money from oil and natural gas properties in northwestern New Mexico. The business looks weak right now: it has lost money, profit has been falling, and it has a low financial quality score. At $4.43, the price looks expensive compared with those weak numbers and its very high price relative to book value.

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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