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Natural Resource Partners (NRP)
NYSE:NRP
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Natural Resource PRN
(NYSE:NRP)
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Rating:73Outperform
Price Target:
$115.00
â–²(6.46% Upside)
NRP's overall stock score reflects strong financial stability and profitability, supported by positive technical indicators and attractive valuation metrics. However, challenges in revenue growth and market conditions, particularly in coal and soda ash markets, temper the outlook.
Natural Resource PRN (NRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.42B
Dividend Yield3.9%
Average Volume (3M)18.96K
Price to Earnings (P/E)10.2
Beta (1Y)0.65
Revenue Growth-20.92%
EPS Growth-26.59%
CountryUS
Employees56
SectorEnergy
Sector Strength52
IndustryCoal
Share Statistics
EPS (TTM)2.52
Shares Outstanding13,138,097
10 Day Avg. Volume27,003
30 Day Avg. Volume18,958
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue6.15
Enterprise Value/Gross Profit6.59
Enterprise Value/Ebitda7.35
Forecast
1Y Price Target
$115.00Price Target Upside6.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Natural Resource PRN Business Overview & Revenue Model
Company DescriptionNatural Resource Partners L.P., through its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates through two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in Appalachia, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties are located in the United States; oil and gas properties located in Louisiana; timber assets located in West Virginia; and trona ore mining operation and soda ash refinery are located in the Green River Basin, Wyoming. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.
How the Company Makes MoneyNatural Resource PRN generates revenue primarily through consulting fees for its expert services in environmental assessments and strategic resource management. Key revenue streams include hourly billing for consultancy services, project-based fees for larger engagements, and retainer agreements with ongoing clients. Additionally, NRP has established partnerships with governmental agencies and non-profit organizations, securing funding for collaborative projects focused on sustainability initiatives. The company may also earn revenue through workshops, training sessions, and publications related to best practices in natural resource management.
Natural Resource PRN Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
Despite challenging market conditions with weak coal and soda ash prices, NRP has managed to generate significant free cash flow and is making progress on deleveraging. However, the outlook remains cautious due to ongoing market pressures.Q2-2025 Updates
Positive Updates
Robust Free Cash Flow Generation
NRP generated $46 million of free cash flow in Q2 2025 and $203 million over the last 12 months, despite low commodity prices.
Deleveraging Progress
NRP is on track to pay off substantially all debt by mid-next year and plans to increase unitholder distributions starting next August.
Improved Financial Flexibility in Coal Market
Despite a downturn, many operators are in better financial shape due to more conservative capital structures and limited liabilities.
Stable Distributions
NRP announced a $0.75 per common unit distribution for Q2 2025, maintaining the same level as the previous quarter.
Negative Updates
Weak Coal and Soda Ash Markets
Both coal and soda ash markets are experiencing cyclical lows, with prices at or below production costs, leading to decreased net income.
Reduced Net Income in Mineral Rights Segment
The Mineral Rights segment saw a decrease of $13 million in net income and $11 million in free cash flow compared to the previous year due to weaker coal markets.
Soda Ash Market Oversupply
Sales prices for soda ash are below production costs due to weak demand and increased supply, particularly from China.
Stagnation in Carbon-Neutral Initiatives
There has been no significant progress in carbon-neutral initiatives due to regulatory and market uncertainties.
Company Guidance
During the Natural Resource Partners L.P. Second Quarter 2025 Earnings Conference Call, it was reported that NRP generated $46 million in free cash flow for the quarter and $203 million over the past year. Despite the cyclical lows in the prices of key commodities such as metallurgical coal, thermal coal, and soda ash, NRP has successfully continued its deleveraging strategy, aiming to pay off most of its debt by mid-next year and increase unitholder distributions by next August. The Mineral Rights segment saw a decrease of $13 million in net income compared to the previous year due to weaker coal markets, while the Soda Ash segment experienced a $1 million decrease in net income due to price drops influenced by weak demand and new supply from China. The Corporate and Financing segment showed improvements due to reduced debt levels, resulting in lower interest costs. The company is preparing for future opportunities, potentially involving acquisitions, once their debt is substantially reduced.Natural Resource PRN Financial Statement Overview
Summary
NRP shows strong operational efficiency with high gross profit margins and robust cash flow generation. However, declining revenue and net income, coupled with high leverage, pose significant risks. The company's strategic focus on debt reduction and cash flow stability offers some financial resilience.Income Statement
The income statement shows a declining trend in revenue, with a significant drop from $328 million in 2022 to $229 million in the TTM period. Gross profit margins remained high, indicating efficient cost management, but net income decreased sharply in the TTM period, affecting profitability. Historical profitability was stronger, with high EBIT and net margins in 2022.72
Positive
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio peaking in previous years and stockholders' equity nearly depleted in the TTM period. The equity ratio has decreased significantly, indicating increased risk. Total assets remained relatively stable, but liabilities' management needs attention to improve stability.65
Positive
Cash Flow
The cash flow statement is strong, with consistent operating cash flow and free cash flow. The operating cash flow to net income ratio is high, indicating efficient cash generation relative to net income. Cash flow stability is a notable strength despite the overall profitability decline.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 219.50M | 245.03M | 293.66M | 328.08M | 194.25M | 129.01M |
| Gross Profit | 205.13M | 245.03M | 261.34M | 305.57M | 175.17M | 119.81M |
| EBITDA | 183.90M | 214.73M | 311.03M | 317.29M | 166.85M | -34.65M |
| Net Income | 17.20M | 183.64M | 274.42M | 268.49M | 48.16M | -136.51M |
Balance Sheet | ||||||
| Total Assets | 761.97M | 772.91M | 797.88M | 235.09M | 953.82M | 921.88M |
| Cash, Cash Equivalents and Short-Term Investments | 30.34M | 30.44M | 11.99M | 39.09M | 135.52M | 99.79M |
| Total Debt | 101.34M | 142.07M | 155.06M | 168.28M | 433.55M | 471.50M |
| Total Liabilities | 171.52M | 221.80M | 219.64M | 235.09M | 513.89M | 549.02M |
| Stockholders Equity | 579.95M | 541.56M | 570.23M | 404.80M | 3.21M | 322.00K |
Cash Flow | ||||||
| Free Cash Flow | 200.37M | 248.49M | 310.97M | 266.72M | 121.80M | 89.27M |
| Operating Cash Flow | 200.37M | 248.49M | 310.98M | 266.84M | 121.80M | 89.27M |
| Investing Cash Flow | 3.79M | 7.51M | 5.42M | 2.69M | 2.41M | 1.68M |
| Financing Cash Flow | -206.15M | -237.55M | -343.50M | -365.95M | -88.49M | -89.43M |
Natural Resource PRN Technical Analysis
Positive
108.02
Price Trends
103.02
Positive
99.41
Positive
100.01
Positive
Market Momentum
1.09
Negative
72.85
Negative
84.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRP, the sentiment is Positive. The current price of 108.02 is above the 20-day moving average (MA) of 103.29, above the 50-day MA of 103.02, and above the 200-day MA of 100.01, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 72.85 is Negative, neither overbought nor oversold. The STOCH value of 84.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRP.
Natural Resource PRN Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.27B | 14.01 | 12.59% | 10.59% | -8.59% | -55.01% | |
73 Outperform | $1.42B | 10.15 | 28.59% | 3.90% | -20.92% | -26.59% | |
67 Neutral | $2.27B | 43.10 | -5.55% | 1.27% | -12.79% | -134.14% | |
67 Neutral | $3.89B | 31.26 | 3.87% | 0.94% | -5.83% | -73.88% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $3.37B | 83.37 | 1.95% | 0.50% | -27.62% | -90.48% | |
57 Neutral | $2.21B | 64.14 | -2.29% | 0.36% | -29.63% | -108.26% |
* Energy Sector Average
NRP
Natural Resource PRN
108.02
11.90
12.38%
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HCC
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64.17
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BTU
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.