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KRPKimbell Royalty Partners, LP
$14.41$1.4B
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  4. Financial Ratios

Kimbell Royalty Partners, LP (KRP) Financial Ratios

Latest Ratios: P/E Ratio 31.3x · EV/EBITDA 13.7x · ROE 11.1%. (2013–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

KRP Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1.4B$1.4B$1.9B$1.4B$1.1B$831M$273M$360M$250M$268M—
Enterprise Value$1.8B$1.8B$2.1B$1.7B$1.3B$1.0B$438M$449M$322M$293M—
P/E Ratio →31.3325.57—16.549.7126.73———219.89—
P/S Ratio4.264.276.065.133.864.662.943.283.748.75—
P/B Ratio2.261.852.181.361.352.380.720.560.381.02—
P/FCF5.795.817.51—43.6723.49—5.30—14.34—
P/OCF5.775.797.518.046.609.094.394.467.5414.30—

P/E links to full P/E history page with 30-year chart

KRP EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—5.496.736.104.605.854.714.094.819.57—
EV / EBITDA13.7313.7712.138.066.9912.08—23.18—16.57—
EV / EBIT13.7713.8156.5514.788.8920.19———143.15—
EV / FCF—7.468.34—52.0429.50—6.61—15.69—

KRP Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin93.9%93.9%49.9%57.2%76.7%73.5%41.5%45.6%55.8%-17097.0%47.7%
Operating Margin39.8%39.8%11.9%40.2%48.0%27.6%-269.8%-29.9%-72.0%6.7%-159.9%
Net Profit Margin27.2%27.2%3.9%24.3%39.3%19.0%-171.7%-143.9%-75.4%4.0%-172.3%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE11.1%11.1%1.3%7.2%19.3%9.3%-31.3%-24.3%-10.9%0.9%-54.3%
ROA7.7%7.7%1.0%5.5%13.3%5.8%-24.3%-21.1%-9.6%0.8%-25.6%
ROIC8.8%8.8%2.3%7.1%13.0%6.7%-29.6%-3.4%-7.1%1.0%-19.6%
ROCE11.4%11.4%3.0%9.2%16.8%8.7%-38.6%-4.4%-9.2%1.3%-25.5%

KRP Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.580.580.280.290.290.630.460.160.130.121.23
Debt / EBITDA3.393.391.411.431.262.54—5.33—1.74—
Net Debt / Equity—0.530.240.260.260.610.440.140.110.101.17
Net Debt / EBITDA3.063.061.211.281.122.46—4.59—1.42—
Debt / FCF—1.660.83—8.376.01—1.31—1.3510.20
Interest Coverage3.853.851.394.3410.665.63-38.96-26.06-11.772.59-13.58

KRP Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio8.648.646.697.954.011.603.236.289.905.631.13
Quick Ratio8.648.646.697.954.201356.253.235.739.115.631.13
Cash Ratio4.294.292.682.391.310.251.122.614.152.500.43
Asset Turnover—0.270.280.200.260.300.160.150.090.100.18
Inventory Turnover———————20.279.93——
Days Sales Outstanding—40.0057.2181.1364.7478.1572.7763.64102.8183.6782.83

KRP Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield9.9%12.1%8.9%10.9%11.5%8.3%18.3%19.7%15.3%5.2%—
Payout Ratio189.9%189.9%1368.5%228.8%113.3%203.5%———1134.1%—

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield3.2%3.9%—6.0%10.3%3.7%———0.5%—
FCF Yield17.3%17.2%13.3%—2.3%4.3%—18.9%—7.0%—
Buyback Yield12.7%12.6%0.0%0.0%0.3%0.3%22.5%0.1%0.0%0.0%—
Total Shareholder Yield22.5%24.7%8.9%10.9%11.9%8.6%40.8%19.8%15.3%5.2%—
Shares Outstanding—$121M$116M$93M$66M$61M$35M$21M$18M$17M$16M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrong
Balance SheetHealthy
Cash FlowRobust
Top Statement Risk

Commodity price volatility and operator consolidation

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Margin Volatility Masks Structural Strength

KRP's gross margin swung from 49.2% to 135.8% over ten quarters, yet operating margin held near 47% in 2026Q2, reflecting the royalty model's low-cost structure. According to quarterly filings, this volatility stems from non-cash adjustments and revenue lags.

The reported gross margin of 135.8% in 2025Q4 is an accounting artifact, likely due to revenue true-ups or non-cash items, while the underlying royalty model sustains structurally high margins. Operating margin of 47.0% in 2026Q2, up from 20.0% in 2024Q1, indicates strong operating leverage as G&A remains flat despite revenue growth. Net margin of 32.4% in 2026Q2 is depressed by non-cash DD&A, so investors should focus on cash-based metrics like distributable cash flow to assess true earning power.

ROIC Recovery After 2024 Dip

ROIC improved to 3.7% in 2026Q2 from a negative -2.6% in 2024Q4, as per financial statements, but remains below the cost of capital, suggesting value creation is still in early recovery. The trend indicates a cyclical rebound rather than structural improvement.

The negative ROIC in 2024Q4 was driven by a commodity downturn and non-cash impairments, while the subsequent recovery to 3.7% reflects higher prices and record production. However, ROIC remains low in absolute terms, partly due to the asset-heavy balance sheet (PP&E over 90% of assets) and the lag between acquisitions and production ramp-up. ROE of 5.3% in 2026Q2 is modest, but the partnership's distribution policy limits retained equity, so returns should be evaluated on a cash-on-cash basis rather than GAAP equity.

Working Capital Efficiency Improves

DSO improved to 36 days in 2026Q2 from 64 days in 2024Q4, as reported in quarterly data, indicating faster royalty collections. The cash conversion cycle is not calculable due to unavailable inventory data, but the trend suggests improved working capital management.

The sharp reduction in DSO from 64 to 36 days over six quarters suggests KRP is collecting royalty payments more quickly, possibly due to better operator reporting or a shift in revenue mix. DPO turned negative in 2025Q4, reflecting timing of payables, but this is not material given the low operating cost base. Asset turnover remains low at 0.10, consistent with the royalty model's asset intensity, but the improvement in DSO indicates that working capital is not a drag on cash flow.

Leverage Creep Amid Acquisition Spree

Debt-to-equity rose from 0.29 in 2024Q1 to 0.58 in 2026Q2, while interest coverage improved to 7.1x, as per balance sheet data. This suggests KRP is using debt to fund acquisitions, but coverage remains comfortable.

Total debt increased from $287.5M to $483.3M over the period, yet interest coverage of 7.1x in 2026Q2 is strong, indicating that EBITDA growth has kept pace with debt service. The D/EBITDA ratio of 5.38 in 2026Q2 is elevated relative to peers like BSM (10.71 EV/EBITDA), but the royalty model's stable cash flows support higher leverage. However, the doubling of D/E warrants monitoring, especially if commodity prices decline, as coverage could compress quickly.

Liquidity Ample but Cash Buffer Thin

Current ratio of 7.30 in 2026Q2 indicates strong short-term liquidity, but cash of $44.9M covers only about 1.2 quarters of distributions, as per recent filings. This suggests a tight cash buffer despite high liquidity.

The current ratio is inflated by the absence of significant current liabilities, typical for a royalty company with minimal payables. However, the cash balance is modest relative to quarterly distributions of $38.0M, implying that KRP relies on operating cash flow to fund payouts. Under a severe commodity downturn, the high current ratio provides a cushion, but the thin cash buffer could force distribution cuts if cash flows decline sharply.

P/E Misleads for Royalty Model

KRP's P/E of 32.83 is distorted by non-cash DD&A, making it appear expensive, while EV/EBITDA of 14.24 and P/FCF of 6.06 better reflect value, as per valuation data. Investors should use cash-based multiples for royalty firms.

The GAAP P/E is inflated because net income is reduced by large non-cash depletion charges, which do not affect distributable cash flow. In contrast, P/FCF of 6.06 and forward EV/EBITDA of 8.96 indicate that the market is pricing KRP at a reasonable multiple of cash generation. The 9.4% dividend yield, supported by a 56% FCF payout ratio, suggests the market is valuing the distribution stream rather than GAAP earnings. Therefore, EV/EBITDA or P/DCF are more appropriate valuation metrics for KRP than P/E.

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Includes 30+ ratios · 13 years · Updated daily

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KRP — Frequently Asked Questions

Quick answers to the most common questions about buying KRP stock.

What is Kimbell Royalty Partners, LP's P/E ratio?

Kimbell Royalty Partners, LP's current P/E ratio is 31.3x. The historical average is 19.6x. This places it at the 100th percentile of its historical range.

What is Kimbell Royalty Partners, LP's EV/EBITDA?

Kimbell Royalty Partners, LP's current EV/EBITDA is 13.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.3x.

What is Kimbell Royalty Partners, LP's ROE?

Kimbell Royalty Partners, LP's return on equity (ROE) is 11.1%. The historical average is -15.9%.

Is KRP stock overvalued?

Based on historical data, Kimbell Royalty Partners, LP is trading at a P/E of 31.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Kimbell Royalty Partners, LP's dividend yield?

Kimbell Royalty Partners, LP's current dividend yield is 9.88% with a payout ratio of 189.9%.

What are Kimbell Royalty Partners, LP's profit margins?

Kimbell Royalty Partners, LP has 93.9% gross margin and 39.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does Kimbell Royalty Partners, LP have?

Kimbell Royalty Partners, LP's Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.