Dorchester Minerals, L.P. (DMLP)
Valuation Overview•Is Dorchester Minerals, L.P. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
High-quality fundamentals with a strong composite quality score of 78/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though growth presents a headwind.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
DMLP exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is backed by a fortress balance sheet, holding significant net cash ($41M) and minimal debt risk.
The company is facing top-line contraction (-3.6% 3Y CAGR) however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 50.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $58.9M | -5.4% | -3.6% | +26.6% | +17.0% | |
| EBITDA | $50.0M | — | -6.2% | — | — | |
| Net Income | $29.1M | -38.0% | -24.0% | — | +15.8% | |
| EPS (Diluted) | $0.60 | -43.7% | -29.0% | +14.5% | +11.1% | |
| Free Cash Flow | $23.9M | -0.1% | -3.4% | +27.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 58.8% | 62.5% | 69.9% | 71.2% |
| Operating Margin | 50.9% | 54.8% | 63.2% | 62.6% |
| Net Margin | 40.8% | 54.1% | 62.7% | 62.4% |
| FCF Margin | 73.0% | 84.7% | 83.1% | 81.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $0.60 | — | ||
| Q2'26 | — | $0.59 | — | ||
| Q1'26 | — | $0.32 | — | ||
| Q4'25 | — | $0.23 | — | ||
| Q3'25 | — | $0.25 | — | ||
| Q2'25 | — | $0.36 | — | ||
| Q1'25 | — | $0.24 | — | ||
| Q4'24 | — | $0.87 | — |
Total return is -1.3% (1Y), lagging the benchmark by -26.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +12.8% | +3.5% | — |
| 1Y | -1.3% | -26.3% | +9.1% |
| 3YCAGR | +5.5% | -13.2% | +31.1% |
| 5YCAGR | +19.9% | +8.4% | +94.2% |
| 10YCAGR | +12.3% | -0.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Dorchester Minerals, L.P. (DMLP) valuation, health, and returns.
Dorchester Minerals, L.P. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly cheap versus peers compared to industry peers. undervalued (implying +26.2% upside to DCF intrinsic value of $31.54)
Dorchester Minerals, L.P. has multiple valuation anchors: DCF Intrinsic Value: $31.54 | Peer Relative Fair Value: $26.90. A convergence of these signals offers higher conviction.
Dorchester Minerals, L.P. displays good financial health with a composite quality score of 78/100, supported by a Altman Z-Score of 100.0 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 14.7%.
Dorchester Minerals, L.P. pays a 11.1% dividend yield, covered by a 230% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Dorchester Minerals, L.P.'s current growth trajectory is Stable. The company achieved -5.4% 1Y revenue growth and -43.7% 1Y EPS growth, compared to its 3Y revenue CAGR of -3.6%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Dorchester Minerals, L.P. include: -24.0% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of -0.16x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.