Barnwell Industries Inc (NYSE: BRN)

Sector: Energy Industry: Oil & Gas E&P CIK: 0000010048
Market Cap 9.30 Mn
P/B 1.33
P/E -1.31
P/S 0.68
ROIC (Qtr) -84.66
Div Yield % 0.00
Rev 1y % (Qtr) -19.50
Total Debt (Qtr) 93,000.00
Debt/Equity (Qtr) 0.01
Add ratio to table...

About

Barnwell Industries Inc., known by its ticker symbol BRN, operates in the oil and natural gas industry. The company's main business activities span across three primary segments: Oil and Natural Gas, Land Investment, and Contract Drilling. Barnwell has been in operation for 67 years, having been incorporated in Delaware in 1956. The Oil and Natural Gas segment is the backbone of Barnwell's revenue, contributing the majority of its income. This segment focuses on the acquisition, development, and production of crude oil and natural gas assets, primarily...

Read more

Investment thesis

Bull case

  • Operating cash flow of (1.87M) provides exceptional 233.50x coverage of minority interest expenses (8000), showing strong core operations.
  • Strong tangible asset base of 20.81M provides 223.78x coverage of total debt 93000, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 20.81M provides 41.29x coverage of working capital 504000, indicating strong operational backing.
  • Tangible assets of 20.81M provide robust 8.18x coverage of other current liabilities 2.54M, indicating strong asset backing.
  • Cash reserves of 2.89M provide comfortable 160.33x coverage of tax obligations 18000, showing strong fiscal management.

Bear case

  • Operating cash flow of (1.87M) barely covers its investment activities of 773000, with a coverage ratio of -2.42, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (1.87M) shows concerning coverage of stock compensation expenses of 372000, with a -5.02 ratio indicating potential earnings quality issues.
  • Free cash flow of (2.22M) provides weak coverage of capital expenditures of 352000, with a -6.31 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (1.87M) provides minimal -26.31x coverage of tax expenses of 71000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (7.03M) show weak coverage of depreciation charges of 3.15M, with a -2.23 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Oil & Gas E&P
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 COP Conocophillips 136.62 Bn 17.10 2.22 23.44 Bn
2 CNQ Canadian Natural Resources Ltd 85.21 Bn 17.67 3.04 12.51 Bn
3 EOG Eog Resources Inc 66.33 Bn -60.48 8.67 8.13 Bn
4 FANG Diamondback Energy, Inc. 49.64 Bn -2,818.83 314.47 16.24 Bn
5 OXY Occidental Petroleum Corp /De/ 37.18 Bn 15.36 2.56 22.88 Bn
6 WDS Woodside Energy Group Ltd 34.64 Bn 11.73 2.51 -
7 TPL Texas Pacific Land Corp 29.74 Bn 126.16 78.66 0.02 Bn
8 DVN Devon Energy Corp/De 18.80 Bn 3.24 1.91 8.55 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.40 1.02
EV to Cash from Ops. EV/CFO -4.42 18.21
EV to Debt EV to Debt 88.78 54.57
EV to EBIT EV/EBIT -1.18 29.98
EV to EBITDA EV/EBITDA -2.23 19.64
EV to Free Cash Flow [EV/FCF] EV/FCF -3.72 39.33
EV to Market Cap EV to Market Cap 0.89 1.57
EV to Revenue EV/Rev 0.60 11.47
Price to Book Value [P/B] P/B 1.33 2.97
Price to Earnings [P/E] P/E -1.31 -25.98
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 26.80
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 31.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.78
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.05
Interest Coverage Int. cover (Qtr) -1,003.57 -4.97
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 86.64 -533.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -32.65 52.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.45
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -27.51 6.14
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1,856.87 105.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -31.26 75.94
EBT Growth (1y) % EBT 1y % (Qtr) -31.39 17.44
EPS Growth (1y) % EPS 1y % (Qtr) -26.79 3.07
FCF Growth (1y) % FCF 1y % (Qtr) -206.94 -43.36
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -42.49 149.32
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.66 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.61 1.32
Current Ratio Curr Ratio (Qtr) 1.11 2.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.34
Interest Cover Ratio Int Coverage (Qtr) -1,003.57 -4.97
Times Interest Earned Times Interest Earned (Qtr) -1,003.57 -4.97
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -28.30 16.19
EBIT Margin % EBIT Margin % (Qtr) -51.29 -16.83
EBT Margin % EBT Margin % (Qtr) -51.34 -24.06
Gross Margin % Gross Margin % (Qtr) 34.50 58.92
Net Profit Margin % Net Margin % (Qtr) -51.90 -28.75