Mesabi Trust (NYSE: MSB)

Sector: Basic Materials Industry: Steel CIK: 0000065172
Market Cap 433.11 Mn
P/B 99.81
P/E 23.06
P/S 21.61
ROIC (Qtr) 78.46
Div Yield % 5.03
Rev 1y % (Qtr) -95.46
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Strong operating cash flow of 19.38M provides 5.96x coverage of SG&A expenses 3.25M, showing efficient operational cost management.
  • Operating cash flow of 19.38M provides strong 59.90x coverage of operating expenses 323637, showing operational efficiency.
  • Strong free cash flow of 19.38M provides 5.96x coverage of SG&A expenses 3.25M, indicating efficient cost management.
  • Free cash flow of 19.38M provides solid 59.90x coverage of operating expenses 323637, showing operational efficiency.
  • Operating cash flow of 19.38M exceeds receivables of 1.52M by 12.73x, demonstrating excellent collection efficiency.

Bear case

  • Operating cash flow of 19.38M provides thin coverage of dividend payments of (92.10M) with a -0.21 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • R&D investment of 0 represents just 0x of SG&A expenses of 3.25M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Other current assets of 1.28M provide weak coverage of payables of 4.46M, which is 0.29x, suggesting potential working capital stress in near term.

Peer comparison

Companies in the Steel
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NUE Nucor Corp 58.33 Bn 74.96 2.91 6.85 Bn
2 STLD Steel Dynamics Inc 40.60 Bn 83.81 4.34 3.78 Bn
3 RS Reliance, Inc. 26.37 Bn 77.34 2.59 1.69 Bn
4 PKX Posco Holdings Inc. 19.54 Bn 56.38 0.39 19.69 Bn
5 CMC COMMERCIAL METALS Co 9.18 Bn 198.05 2.39 3.35 Bn
6 CLF Cleveland-Cliffs Inc. 5.34 Bn -3.62 0.29 7.25 Bn
7 WS Worthington Steel, Inc. 2.24 Bn 18.89 0.72 0.28 Bn
8 MTUS Metallus Inc. 0.97 Bn -116.67 0.86 0.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 16.64 1.89
EV to Cash from Ops. EV/CFO 23.34 4.54
EV to Debt EV to Debt 0.00 -3.26
EV to EBIT EV/EBIT 23.03 -15.16
EV to EBITDA EV/EBITDA 23.03 -139.64
EV to Free Cash Flow [EV/FCF] EV/FCF 23.34 46.24
EV to Market Cap EV to Market Cap 1.00 -0.56
EV to Revenue EV/Rev 21.58 2.70
Price to Book Value [P/B] P/B 99.81 8.16
Price to Earnings [P/E] P/E 23.06 22.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.19 -41.90
Dividend Payout Ratio % Div Payout % (Qtr) 531.50 41.41
Dividend per Basic Share Div per Share (Qtr) 6.97 0.99
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 471.90 24.68
Interest Coverage Interest Coverage 0.00 10.33
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -25.11
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -75.82 72.27
Dividend Growth (1y) % Div 1y % (Qtr) 416.30 24.03
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -81.27 -69.57
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -81.27 -69.57
EBIT Growth (1y) % EBIT 1y % (Qtr) -81.27 -69.73
EBT Growth (1y) % EBT 1y % (Qtr) -81.27 -89.44
EPS Growth (1y) % EPS 1y % (Qtr) -81.28 -67.10
FCF Growth (1y) % FCF 1y % (Qtr) -78.51 -11.81
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -78.78 -592.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.80 0.83
Cash Payout Ratio Cash Payout (Qtr) 4.75 0.30
Cash Ratio Cash Ratio 0.00 11.50
Current Ratio Current Ratio 0.00 15.74
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.62
Interest Cover Ratio Interest Cover Ratio 0.00 10.33
Times Interest Earned Times Interest Earned 0.00 10.33
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 82.80 -0.83
EBIT Margin % EBIT Margin % (Qtr) 82.80 571.21
EBT Margin % EBT Margin % (Qtr) 82.80 -4.72
Gross Margin % Gross Margin % (Qtr) 100.00 17.71
Net Profit Margin % Net Margin % (Qtr) 82.80 -4.68