Mesabi Shs (MSB) AI Stock Analysis

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Mesabi Shs

(NYSE:MSB)

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Rating:64Neutral

Price Target:$24.50▲(38.34% Upside)

Action:reiterated

Date:06/13/26

The overall score of 64 reflects a mixed picture. Strong financial fundamentals, including high profitability and a debt-free balance sheet, are the primary positive drivers. However, technical indicators show a bearish trend, and the stock appears overvalued based on its P/E ratio. A recent negative corporate event regarding bonus royalties adds further caution. While the company's financial health provides a cushion, the current price momentum and valuation limit upside potential.

Positive Factors

Debt-Free Balance SheetThe absence of debt limits financial risk, interest obligations, and refinancing needs. A high equity share of assets also provides resilience through weaker iron ore cycles and preserves flexibility for ongoing trust distributions.

Negative Factors

Sharp Revenue DeclineRevenue contraction indicates that royalty receipts remain highly dependent on iron ore shipments, pricing, and lessee operating decisions. Sustained weakness in these drivers could reduce the trust’s distributable income and weaken its long-term earnings base.

Mesabi Shs (MSB) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $232.36M
Dividend Yield: 5.03%
Average Volume (3M): 40.63K
Price to Earnings (P/E): 35.7
Beta (1Y): 1.05
Revenue Growth: -87.62%
EPS Growth: -93.01%
Country: US
Employees: 104
Sector: Basic Materials
Sector Strength: 61
Industry: Steel

Mesabi Shs Business Overview & Revenue Model

Company Description

Mesabi Trust, a royalty trust, engages in iron ore mining business in the United States. The company was incorporated in 1961 and is based in New York, New York.

How the Company Makes Money

Mesabi Trust makes money by earning royalties on iron ore produced and shipped from the mineral properties/lands subject to its lease. Its primary revenue stream is royalty income calculated under the lease terms (typically based on factors such as o...

Mesabi Shs Financial Statement Overview

Summary

MSB demonstrates strong profitability with high gross and net margins, a pristine balance sheet with no debt, and robust cash flow generation. However, revenue volatility due to the cyclical steel industry poses a risk.

Income Statement

72Positive

Balance Sheet

90Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2024	Jan 2023
Income Statement
Total Revenue	11.91M	17.52M	25.46M	7.74M	22.86M	71.46M
Gross Profit	9.61M	17.00M	98.27M	7.34M	22.61M	71.17M
EBITDA	6.49M	13.87M	93.27M	7.55M	18.54M	70.99M
Net Income	6.49M	13.87M	93.27M	5.31M	18.98M	68.77M
Balance Sheet
Total Assets	19.84M	24.36M	101.73M	14.12M	26.69M	53.91M
Cash, Cash Equivalents and Short-Term Investments	17.39M	23.16M	100.20M	13.97M	23.98M	47.73M
Total Debt	0	0	0	23.56K	1.96M	4.63M
Total Liabilities	2.25M	3.95M	78.40M	2.68M	5.72M	23.12M
Stockholders Equity	17.59M	20.40M	23.33M	11.44M	20.98M	30.79M
Cash Flow
Free Cash Flow	8.73M	14.40M	93.94M	13.86M	14.61M	62.84M
Operating Cash Flow	8.73M	14.40M	93.94M	13.86M	14.61M	62.84M
Investing Cash Flow	0	0	0	0	0	9.91M
Financing Cash Flow	-12.60M	-91.45M	-17.71M	-47.63M	-4.59M	-37.52M

Mesabi Shs Technical Analysis

Technical Analysis SentimentNegative

Last Price17.71

Price Trends

50DMA20.40Negative

100DMA22.17Negative

200DMA26.31Negative

Market Momentum

MACD-0.58Negative

RSI36.84Neutral

STOCH19.79Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSB, the sentiment is Negative. The current price of 17.71 is below the 20-day moving average (MA) of 18.37, below the 50-day MA of 20.40, and below the 200-day MA of 26.31, indicating a bearish trend. The MACD of -0.58 indicates Negative momentum. The RSI at 36.84 is Neutral, neither overbought nor oversold. The STOCH value of 19.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSB.

Mesabi Shs Risk Analysis

Mesabi Shs disclosed 2 risk factors in its most recent earnings report. Mesabi Shs reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

1 New Risk

1.The limited third party sales of iron ore products (processed at Northshore using Mesabi Trust iron ore) by Cliffs at prices below the annual adjusted bonus royalty threshold price eliminated a bonus royalty during the Trust's fiscal quarters ended April 30, 2026 and July 31, 2026, could continue to eliminate or reduce bonus royalties historically paid to the Trust and could result in potential disputes regarding the amount of royalties owed to the Trust.Q2, 2026

Mesabi Shs Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MSB against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MT	73Outperform	$44.68B	25.04	3.31%	1.21%	3.25%	-27.63%
TX	73Outperform	$10.36B	14.58	5.77%	4.17%	-0.65%	18.90%
MSB	64Neutral	$232.36M	35.73	33.51%	5.03%	-87.62%	-93.01%
GGB	63Neutral	$8.52B	15.56	5.06%	3.23%	10.25%	4.20%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CLF	54Neutral	$8.13B	-16.01	-8.14%	―	8.10%	75.20%
SID	35Underperform	$940.51M	-2.14	-18.55%	―	9.29%	-26.44%

* Basic Materials Sector Average

Performance Comparison

MSB and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MSB	Mesabi Trust Shs	17.71	-16.10	-47.62%
MT	ArcelorMittal	59.81	22.08	58.51%
CLF	Cleveland-Cliffs	14.25	2.38	20.05%
GGB	Gerdau	4.66	1.29	38.36%
SID	Companhia Siderúrgica Nacional	0.71	-1.00	-58.43%
TX	Ternium	52.77	18.70	54.90%

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.

Date of analysis: Jun 13, 2026

Mesabi Shs AI Stock Analysis