Natural Resource Partners L.P. (NRP)
Valuation Overview•Is Natural Resource Partners L.P. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
High-quality fundamentals with a strong composite quality score of 77/100, 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 is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
NRP exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company is facing top-line contraction (-14.9% 3Y CAGR) however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 67.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $39.4M | -17.4% | -14.9% | +9.4% | -7.5% | |
| EBITDA | $28.2M | — | -22.2% | — | — | |
| Net Income | $392K | -27.2% | -20.7% | — | — | |
| EPS (Diluted) | $0.03 | -11.5% | -9.2% | — | — | |
| Free Cash Flow | $33.0M | -33.3% | -14.6% | +13.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 69.9% | 90.1% | 90.7% | 90.4% |
| Operating Margin | 67.0% | 83.3% | 83.8% | 61.6% |
| Net Margin | 51.6% | 78.1% | 74.5% | 42.0% |
| FCF Margin | 89.1% | 96.4% | 86.7% | 72.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.25 | $1.44 | +476.0% | ||
| Q1'26 | $1.60 | $2.27 | +41.9% | ||
| Q4'25 | — | $2.28 | — | ||
| Q3'25 | — | $2.52 | — | ||
| Q2'25 | — | $2.97 | — | ||
| Q1'25 | — | $3.15 | — | ||
| Q4'24 | — | $2.00 | — | ||
| Q3'24 | — | $2.29 | — |
Total return is +9.3% (1Y), lagging the benchmark by -15.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -1.5% | -10.8% | — |
| 1Y | +9.3% | -15.7% | +3.3% |
| 3YCAGR | +32.6% | +12.9% | +26.2% |
| 5YCAGR | +44.3% | +31.1% | +104.9% |
| 10YCAGR | +21.8% | +11.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Natural Resource Partners L.P. (NRP) valuation, health, and returns.
Natural Resource Partners L.P. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Slightly cheap versus peers compared to industry peers. trading near fair value (DCF: $87.49)
Natural Resource Partners L.P. has multiple valuation anchors: DCF Intrinsic Value: $87.49 | Peer Relative Fair Value: $108.48. A convergence of these signals offers higher conviction.
Natural Resource Partners L.P. displays good financial health with a composite quality score of 77/100, supported by a Altman Z-Score of 7.7 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 16.1%.
Natural Resource Partners L.P. pays a 4.2% dividend yield, covered by a 42% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Natural Resource Partners L.P.'s current growth trajectory is Decelerating. The company achieved -17.4% 1Y revenue growth and -11.5% 1Y EPS growth, compared to its 3Y revenue CAGR of -14.9%.
Wall Street consensus is Hold based on 10 analysts, beating EPS expectations in 83% of recent quarters with a 6-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Natural Resource Partners L.P. include: -20.3% 1-year max drawdown. Volatility risk is characterized by a beta of 0.01x.
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.