Natural Resource PRN (NRP) AI Stock Analysis

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Natural Resource PRN

(NYSE:NRP)

74Outperform

NRP's solid financial health, particularly its strong balance sheet and cash flow, are tempered by concerns over declining income and market conditions. Technical indicators suggest stability, while valuation remains attractive. However, risks from reduced commodity prices and strategic market challenges impact the outlook.

Natural Resource PRN (NRP) vs. S&P 500 (SPY)

Market Cap

$1.35B

Dividend Yield2.91%

Average Volume (3M)22.14K

Price to Earnings (P/E)9.1

Beta (1Y)0.62

Revenue Growth-16.56%

EPS Growth-24.95%

CountryUS

Employees56

SectorEnergy

Sector Strength47

IndustryCoal

Share Statistics

EPS (TTM)2.97

Shares Outstanding13,138,097

10 Day Avg. Volume12,014

30 Day Avg. Volume22,135

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.18

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit5.96

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

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 MoneyNRP generates revenue through a combination of consultancy fees, project management contracts, and long-term service agreements with governments, non-governmental organizations, and private sector clients. The company also engages in strategic partnerships with technology firms to develop innovative solutions for resource management, which can lead to diversified income streams through joint ventures. Additionally, NRP may receive grants or funding from environmental agencies and international bodies to support its sustainability projects.

Natural Resource PRN Financial Statement Overview

Summary

NRP demonstrates strong balance sheet and cash flow management with low debt levels and significant free cash flow generation. However, declining net income and revenue are notable concerns.

Income Statement

―

The company's income statement reveals mixed results. Gross profit margins are strong, with the most recent year showing a 100% margin due to revenue equaling gross profit. However, net profit margins have been declining due to a decrease in net income from $274.4M in 2023 to $3.1M in 2024. Revenue declined by 8.73% from 2023 to 2024, which is a concern. EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 71.3% in 2024, up from previous years. Debt-to-equity ratio is low at 0.03, indicating very low leverage, which is a positive indicator of financial health. ROE has drastically decreased because of low net income, but overall stability is maintained through strong stockholder equity.

Cash Flow

―

The cash flow statement is robust, with significant free cash flow in 2024, matching the operating cash flow at $248.5M, demonstrating strong cash generation. Free cash flow growth is negative due to a decrease from 2023, but the company maintains a positive cash flow to net income ratio, indicating good cash management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
245.03M	293.66M	328.08M	194.25M	129.01M
	Gross Profit
268.01M	261.34M	305.57M	175.17M	119.81M
	EBIT
199.20M	292.54M	305.23M	147.78M	91.45M
	EBITDA
214.73M	311.03M	317.29M	166.85M	-34.65M
	Net Income Common Stockholders
3.10M	274.42M	268.49M	48.16M	-136.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.44M	11.99M	39.09M	135.52M	99.79M
	Total Assets
772.91M	797.88M	235.09M	953.82M	921.88M
	Total Debt
14.19M	155.06M	168.28M	433.55M	471.50M
	Net Debt
-16.25M	143.07M	129.19M	298.02M	371.71M
	Total Liabilities
221.80M	219.64M	235.09M	513.89M	549.02M
	Stockholders Equity
551.11M	570.23M	404.80M	3.21M	322.00K
Cash Flow		Free Cash Flow
248.49M	310.97M	266.72M	121.80M	89.27M
	Operating Cash Flow
248.49M	310.98M	266.84M	121.80M	89.27M
	Investing Cash Flow
7.51M	5.42M	2.69M	2.41M	1.68M
	Financing Cash Flow
-237.55M	-343.50M	-365.95M	-88.49M	-89.43M

Natural Resource PRN Technical Analysis

Technical Analysis Sentiment

Positive

Last Price102.00

Price Trends

50DMA

101.62

Positive

100DMA

102.57

Negative

200DMA

97.93

Positive

Market Momentum

MACD

0.47

Negative

RSI

51.27

Neutral

STOCH

50.73

Neutral

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 102 is above the 20-day moving average (MA) of 99.38, above the 50-day MA of 101.62, and above the 200-day MA of 97.93, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 50.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRP.

Natural Resource PRN Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARLP	79 Outperform	$3.49B	12.71	14.76%	10.31%	-8.53%	-53.30%
NRP	74 Outperform	$1.35B	9.08	32.48%	2.91%	-16.56%	-24.95%
AMR	73 Outperform	$1.65B	8.91	11.64%	0.36%	-14.81%	-71.49%
SXC	72 Outperform	$774.56M	8.39	14.26%	5.03%	-8.76%	51.59%
BTU	71 Outperform	$1.56B	4.74	10.41%	2.34%	-14.50%	-46.36%
HCC	67 Neutral	$2.49B	23.54	5.20%	0.68%	-21.04%	-75.78%
Sector *	56 Neutral	$7.00B	3.44	-4.86%	5.89%	-0.09%	-48.37%

* Energy Sector Average

Performance Comparison

NRP

Natural Resource PRN

102.00

16.08

18.72%

ARLP

Alliance Resource

27.21

5.99

28.23%

SXC

Suncoke Energy

8.99

-0.83

-8.45%

AMR

Alpha Metallurgical Resources

128.38

-168.26

-56.72%

HCC

Warrior Met Coal

47.30

-17.07

-26.52%

BTU

Peabody Energy Comm

13.53

-8.02

-37.22%

Natural Resource PRN Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 4.25%|

Next Earnings Date:Aug 01, 2025

Earnings Call Sentiment Neutral

The earnings call presents a mixed outlook. While the company demonstrates strong financial management and strategic debt reduction, it faces significant challenges from declining commodity prices and market slowdowns, particularly in soda ash and carbon-neutral initiatives.

Q1-2025 Updates

Positive Updates

Strong Free Cash Flow Generation

NRP generated $35 million of free cash flow in Q1 2025 and $214 million over the last 12 months, demonstrating strong financial management despite challenging market conditions.

Robust Capital Structure

NRP has a solid capital structure and expects to use robust free cash flow to pay off remaining debt of $118 million, potentially leading to significant increases in unit holder distributions as debt is paid off.

Strategic Debt Reduction

NRP continues to prioritize debt reduction and has made progress with lower interest payments due to less debt outstanding.

Positive Long-Term View on Soda Ash Investment

Despite current market challenges, NRP maintains a positive long-term view on its soda ash investment, noting that Sisecam Wyoming is one of the world's lowest-cost producers.

Negative Updates

Commodity Price Declines

Metallurgical coal, thermal coal, and soda ash prices have declined precipitously over the last year, negatively impacting NRP's results.

Decreased Cash Flow in Mineral Rights Segment

In Q1 2025, the mineral rights segment saw net income decrease by $15 million, and operating and free cash flow decreased by $27 million and $26 million respectively, compared to the prior year's first quarter.

Soda Ash Market Challenges

Soda ash prices remain at the lowest levels in decades, with cash distributions from Sisecam Wyoming dropping 80% from the previous year quarter due to a supply-demand imbalance and weak demand.

Carbon-Neutral Initiatives Slowdown

The general market slowdown for most carbon-neutral initiatives has materialized, with lackluster leasing interest for underground carbon sequestration due to political, regulatory, and market uncertainties.

Company Guidance

During the Natural Resource Partners L.P. first quarter 2025 earnings call, the company reported generating $35 million of free cash flow in Q1 2025 and $214 million over the past 12 months. Despite declines in metallurgical coal, thermal coal, and soda ash prices, NRP anticipates continued robust free cash flow to pay down its remaining $118 million debt. The mineral rights segment generated $44 million of free cash flow in Q1 2025, though net income and cash flow decreased compared to the prior year, primarily due to weaker steel demand affecting metallurgical coal prices. The soda ash business saw an 80% drop in cash distributions to $3 million from the previous year, attributed to a global supply-demand imbalance and reduced demand for flat glass. NRP paid a $0.75 per common unit distribution for Q1 2025 and a special $1.21 distribution in March 2025. The company prioritizes liquidity and balance sheet strength, with future cash flows potentially directed towards distributions and unit repurchases, while remaining cautious about acquisitions.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.