Mesabi Trust: Leads amongst peers with strong fundamentals

Mesabi Trust relative valuation is OVERVALUED and it has a fundamental analysis score of 71.

Our analysis is based on comparing Mesabi Trust with the following peers – Dominion Resources Black Warrior Trust, Marine Petroleum Trust, Applied Industrial Technologies, Inc., MSC Industrial Direct Co., Inc. Class A and Whiting USA Trust II Trust Units (DOMR-US, MARPS-US, AIT-US, MSM-US and WHZT-US).

Mesabi Trust has shown underwhelming performance over the last one year while growing strongly over the last month. Mesabi Trust’s price momentum over the last month, at 30.60% has been better than that over the last year, which was -22.19%. Also from a peer group perspective, Mesabi Trust has performed better, since the peer group performance was 0.13% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • Mesabi Trust currently trades at a higher Price/Book ratio (16.07) than its peer median (2.68).
  • MSB-US outperforms its peers with a relatively high operating performance and the market also expects faster growth relative to its peers
  • MSB-US has relatively high profit margins while operating with median asset turns.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • MSB-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • While MSB-US‘s revenues have increased slower than peer median, the market currently gives the company a higher than peer median P/E ratio and may be factoring in some sort of a strategic play.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • Our analysis rates Mesabi Trust as OVERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

MSB-US‘s share price performance of -22.19% over the last 12 months is above peer median of -38.72%. The 30-day trend in its share price performance of 30.60% is also above the peer median of 0.13% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

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Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Mesabi Trust’s price of USD 11.01 is greater than CapitalCube’s implied price of USD 4.86. At this level, CapitalCube believes that Mesabi Trust is overvalued. Over the last 52 week period, the stock has fluctuated between USD 3 and USD 14.18.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Mesabi Trust operates as a royalty trust. It holds interest in Peter Mitchell iron mine located near Babbitt, Minnesota at the Eastern end of the Mesabi iron range. The company was founded on July 18, 1961 and is headquartered in New York, NY.

Disclaimer

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