North European Oil Royalty (NRT) AI Stock Analysis

North European Oil Royalty

(NYSE:NRT)

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Rating:66Neutral

Price Target:$7.50▲(10.29% Upside)

Action:downgraded

Date:10/31/26

NRT earns a moderate score. Its strongest attribute is financial quality: near-total profit margins, no debt, no capital expenditures, and full conversion of earnings into distributable cash, with TTM revenue up 39%. Valuation also supports the score, with a P/E of 6.7 and a 14.9% yield. These positives are tempered by extreme commodity-driven earnings volatility, a very thin equity base with no downside buffer, and results still well below the fiscal 2023 peak. The main drag is technical: the stock trades below all key moving averages with a negative MACD and depressed RSI and Stochastic readings, signaling persistent selling pressure.

Positive Factors

Exceptional ProfitabilityThe royalty structure produces exceptionally high margins because the trust collects income without operating wells or conducting exploration. This supports durable cash generation and limits operating-cost pressure, although profitability still depends on the performance of the underlying concessions.

Negative Factors

Revenue VolatilityLarge year-to-year revenue swings reduce earnings visibility and make future distributions harder to forecast. The rebound demonstrates recovery potential, but the sharp prior decline shows that royalty income can change materially across periods rather than following a stable growth path.

North European Oil Royalty (NRT) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $62.50M
Dividend Yield: 14.85%
Average Volume (3M): 36.76K
Price to Earnings (P/E): 6.7
Beta (1Y): 0.06
Revenue Growth: 63.47%
EPS Growth: 70.01%
Country: US
Employees: 2
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Exploration & Production

North European Oil Royalty Business Overview & Revenue Model

Company Description

The North European Oil Royalty Trust (NEORT) functions as a grantor trust, possessing overriding royalty interests tied to petroleum and natural gas extraction from various licensed areas and concessions within Germany. These rights stem from agreeme...

How the Company Makes Money

NRT makes money by receiving royalty payments tied to the sale of oil and natural gas produced from the specific German concessions in which it holds royalty interests. These royalties are calculated based on production and realized commodity sales p...

North European Oil Royalty Financial Statement Overview

Summary

NRT operates as an asset-light royalty structure with exceptional economics: TTM revenue of about $10.3 million converted into $9.4 million of net income (roughly 91% net margin), zero debt in every period, no capital spending, and operating cash flow that equals free cash flow (about $7.0 million TTM). Recent momentum is positive with revenue up 39% on a TTM basis. Offsetting this, earnings are entirely driven by European gas prices and volumes and have swung from +287% to -74% year over year, TTM revenue remains less than half the $22.0 million fiscal 2023 peak, free cash flow has slipped from $8.7 million in fiscal 2025, and the minimal $2.0 million equity base leaves no cushion if royalty income weakens.

Income Statement

74Positive

Balance Sheet

72Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	10.34M	8.65M	5.79M	22.02M	17.80M	4.60M
Gross Profit	9.53M	8.65M	5.79M	22.02M	17.80M	4.60M
EBITDA	9.40M	7.94M	5.06M	21.17M	17.09M	3.98M
Net Income	9.40M	7.94M	5.06M	21.17M	17.09M	3.98M
Balance Sheet
Total Assets	4.36M	4.79M	1.63M	795.20K	7.19M	1.41M
Cash, Cash Equivalents and Short-Term Investments	4.36M	4.79M	1.63M	795.20K	7.19M	1.41M
Total Debt	0	0	0	0	0	0
Total Liabilities	2.39M	2.85M	183.81K	0	6.80M	1.29M
Stockholders Equity	1.97M	1.94M	1.44M	795.20K	392.42K	122.75K
Cash Flow
Free Cash Flow	7.01M	8.73M	5.86M	22.14M	17.80M	4.60M
Operating Cash Flow	7.01M	8.73M	5.86M	22.14M	17.80M	4.60M
Investing Cash Flow	0	0	0	0	0	0
Financing Cash Flow	-9.99M	-5.57M	-5.03M	-28.54M	-12.02M	-3.84M

North European Oil Royalty Technical Analysis

Technical Analysis SentimentNegative

Last Price6.80

Price Trends

50DMA8.66Negative

100DMA8.25Negative

200DMA8.18Negative

Market Momentum

MACD-0.17Positive

RSI20.50Positive

STOCH19.61Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRT, the sentiment is Negative. The current price of 6.80 is below the 20-day moving average (MA) of 8.40, below the 50-day MA of 8.66, and below the 200-day MA of 8.18, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 20.50 is Positive, neither overbought nor oversold. The STOCH value of 19.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NRT.

North European Oil Royalty Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

NRT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRT	66Neutral	$62.50M	6.67	491.22%	14.85%	63.47%	70.01%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PRT	57Neutral	$17.28M	6.04	7.51%	13.54%	-41.56%	-46.62%
PVL	54Neutral	$60.06M	10.40	15.04%	10.77%	71.83%	86.17%

* Energy Sector Average

Performance Comparison

NRT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NRT	North European Oil Royalty	6.80	1.37	25.23%
CRT	Cross Timbers Royalty Trust	13.09	5.96	83.51%
PVL	Permianville Royalty	1.82	0.19	11.59%
MTR	Mesa Royalty Trust	1.95	-2.63	-57.39%
VOC	Voc Energy Trust	3.07	0.68	28.61%
PRT	Permrock Royalty	1.42	-2.19	-60.68%

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: Oct 31, 2026

North European Oil Royalty AI Stock Analysis