LandBridge Co LLC (NYSE: LB)

Sector: Energy Industry: Oil & Gas Equipment & Services CIK: 0001995807
Market Cap 1.17 Bn
P/B 4.29
P/E 47.56
P/S 6.52
ROIC (Qtr) 12.04
Div Yield % 0.78
Rev 1y % (Qtr) 78.44
Total Debt (Qtr) 367.01 Mn
Debt/Equity (Qtr) 1.35
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About

Investment thesis

Bull case

  • Healthy cash reserves of 28.32M provide 30.65x coverage of short-term debt 924000, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 112.58M exceeds capital expenditure of 2.51M by 44.85x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 115.08M provides 1.79x coverage of SG&A expenses 64.27M, showing efficient operational cost management.
  • Strong tangible asset base of 1.04B provides 2.82x coverage of total debt 367M, indicating robust asset backing and low credit risk.
  • Tangible assets of 1.04B provide exceptional 462.95x coverage of deferred revenue 2.24M, showing strong service capability backing.

Bear case

  • Operating cash flow of 115.08M barely covers its investment activities of (313.38M), with a coverage ratio of -0.37, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 115.08M provides thin coverage of dividend payments of (231.02M) with a -0.50 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 28.32M provide limited coverage of acquisition spending of (310.87M), which is -0.09x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 115.08M shows concerning coverage of stock compensation expenses of 44.77M, with a 2.57 ratio indicating potential earnings quality issues.
  • High financing cash flow of 212.20M relative to working capital of 43.55M, which is 4.87x suggests concerning dependence on external funding for operational needs.

Peer comparison

Companies in the Oil & Gas Equipment & Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SLB Slb Limited/Nv 59.56 Bn 20.77 2.67 11.64 Bn
2 BKR Baker Hughes Co 59.13 Bn 22.85 2.13 6.09 Bn
3 FTI TechnipFMC plc 28.99 Bn 127.65 1.96 1.34 Bn
4 HAL Halliburton Co 28.83 Bn 22.47 1.30 8.13 Bn
5 WFRD Weatherford International plc 7.39 Bn 17.15 1.50 1.64 Bn
6 NOV NOV Inc. 7.09 Bn 48.90 0.81 2.34 Bn
7 VAL Valaris Ltd 6.32 Bn 15.83 2.61 1.09 Bn
8 KGS Kodiak Gas Services, Inc. 4.56 Bn 91.00 3.58 2.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.33 1.17
EV to Cash from Ops. EV/CFO 12.43 -3.30
EV to Debt EV to Debt 3.90 10.99
EV to EBIT EV/EBIT 22.14 4.49
EV to EBITDA EV/EBITDA 12.68 6.54
EV to Free Cash Flow [EV/FCF] EV/FCF 12.70 31.31
EV to Market Cap EV to Market Cap 1.23 1.36
EV to Revenue EV/Rev 8.00 2.02
Price to Book Value [P/B] P/B 4.29 1.73
Price to Earnings [P/E] P/E 47.56 20.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.11 0.42
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.49
Dividend per Basic Share Div per Share (Qtr) 0.40 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 9.00 6.68
Interest Coverage Int. cover (Qtr) 2.09 -10.19
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -175.82 -37.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 96.41 1,334.16
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 304.20 -12.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 651.50 19.66
EBIT Growth (1y) % EBIT 1y % (Qtr) 375.51 -26.68
EBT Growth (1y) % EBT 1y % (Qtr) 179.36 39.97
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 27.30
FCF Growth (1y) % FCF 1y % (Qtr) 115.33 -867.31
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 99.37 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.17 0.74
Cash Payout Ratio Cash Payout (Qtr) 1.96 0.10
Cash Ratio Cash Ratio (Qtr) 2.05 0.62
Current Ratio Curr Ratio (Qtr) 4.15 2.25
Debt to Equity Ratio Debt/Equity (Qtr) 1.35 0.88
Interest Cover Ratio Int Coverage (Qtr) 2.09 -10.19
Times Interest Earned Times Interest Earned (Qtr) 2.09 -10.19
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 41.90 16.47
EBIT Margin % EBIT Margin % (Qtr) 36.12 -0.62
EBT Margin % EBT Margin % (Qtr) 18.87 4.39
Gross Margin % Gross Margin % (Qtr) 99.00 30.41
Net Profit Margin % Net Margin % (Qtr) 13.70 2.67