One-glance verdict
Within fair range
$8.00 our estimate vs market $8.62
8% above our estimate
Fundamentals snapshot
North European Oil Royalty Trust
NRT · NYQ · Energy · Oil & Gas E&P
Current price
$8.62
52-week range
$5.23 - $10.49
Market cap
$79.18M
Balance sheet
Healthy
93.11x Strong cushion
Net cash $4.36M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 49.5% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 13.4% above its 5-year average P/E.
- Risk Operating margin compressed from 96.1% to 93.1% over 3 years.
What this company does
North European Oil Royalty Trust
North European Oil Royalty Trust doesn't drill for energy itself; instead, it owns the rights to collect a small cut, called a royalty, on all the oil and natural gas sold by major energy firms from certain fields in Germany. Because the company just collects these payments, its income is tied directly to the amount of energy produced and the global prices for oil and gas.
How the company got here
North European Oil Royalty Trust was set up in 1975 to take over the royalty rights of two older oil companies. A royalty is a share of the sales from a natural resource, like oil or gas, paid to the owner of that resource. The Trust doesn't drill for oil or gas itself; it simply owns the right to receive a portion of the money when other companies sell the resources they extract from specific areas in Germany. Since 1981, shares of the Trust, called units, have been available for people to buy and sell on the New York Stock Exchange. The Trust's main purpose has always been to collect these royalty payments and pass them on to its unitholders (the people who own the shares) after covering its own small administrative costs.
What it actually does
Think of North European Oil Royalty Trust as a mailbox that collects checks and then divides them up. The checks come from major energy companies, like ExxonMobil and Shell, that are drilling for natural gas and oil in a region of Germany called Oldenburg. The Trust owns a right, called an "overriding royalty right," to a percentage of the money these companies make from selling the gas, oil, and other products like sulfur that they find there. The Trust itself has very few employees and its only job is to make sure the royalty payments are correct, collect the money, and then distribute it to its shareholders, usually every three months.
Mobil Royalty Agreement
This is the Trust's most significant source of income. It's an agreement that gives the Trust a 4% share of the money from sales of natural gas and oil from the western part of the Oldenburg area in Germany. The company paying this royalty is a German subsidiary of ExxonMobil. Historically, this agreement has brought in the majority of the Trust's money because it has a higher royalty percentage compared to its other main agreement. For investors, this segment is important because its higher rate means that changes in energy prices or production in this specific area have a big impact on the Trust's overall earnings.
OEG Royalty Agreement
This second stream of income comes from an agreement with a company called OEG, which is jointly owned by ExxonMobil and Shell. This agreement covers the entire Oldenburg region, a larger area than the Mobil agreement, but the royalty rate is much lower, at only 0.6667% of the sales. While it covers more ground, the lower percentage means it brings in less money for the Trust than the Mobil agreement. This part of the business provides a smaller, but still important, contribution to the total royalties collected.
What management is betting on now
The Trust's management doesn't make bets in the way a typical company does because it's a passive entity. It doesn't explore for oil, manage drilling operations, or make strategic decisions about production. Instead, its future success is tied to the decisions made by the operating companies, ExxonMobil and Shell, and external factors like the market price of natural gas in Europe and the exchange rate between the Euro and the U.S. dollar. The management's focus is on diligently collecting the royalties it is owed and distributing that income to its unitholders. Therefore, an investment in the Trust is a bet on the continued production from these specific German fields and on favorable energy prices.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $8.00 vs current price $8.62
Our most-likely fair value is $8.00 a share — about 7.1% away from today's price of $8.62, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $4.4M - more cash than debt. Interest coverage 93.1x.
Net debt
$-4.36M
Interest coverage
93.11x
North European Oil Royalty Trust's profit covers its interest bill about 93.1 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
NRT
BASELINE
North European Oil Royalty Trust
Total debt $0.00 Interest coverage 93.11x This is the baseline the peer rows are being compared against.
Total debt $0.00 Interest coverage 89.39x -4% vs NRT Has roughly the same debt cushion as NRT.
Total debt $0.00 Interest coverage 154.66x +66% vs NRT Carries about 1.7x more debt cushion than NRT.
What you should know
The case for and against NRT
3 Rewards
3 Risks
Rewards
-
Revenue grew 49.5% last year.
-
Free cash flow was positive in 3/10 years.
-
Trades at 8.4x P/E vs peer median 14.8x (42.8% cheaper).
Risks
-
Stock trades 13.4% above its 5-year average P/E.
-
Operating margin compressed from 96.1% to 93.1% over 3 years.
-
Insider ownership is only 3.2% (peer median: 3.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
8.45x
Forward P/E
—
P/B
40.07x
P/S
7.64x
EV/EBITDA
—
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
100.0%
Operating margin
93.1%
Net margin
90.7%
ROE
—
ROA
—
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
1.83x
Quick ratio
1.83x
Total debt
$0.00
Total cash
$4.36M
Growth
How the business has been compounding
Revenue TTM
$10.37M
Revenue 5Y CAGR
-21.4%
EPS TTM
1.02
EPS 5Y CAGR
-22.7%
Cash flow
How much cash the business throws off
Operating CF TTM
—
Free CF TTM
$3.16M
FCF margin
30.5%
Dividend
Shareholder payout
Yield
11.4%
Payout ratio
99.0%
Last ex-div date
2026-08-17