BSM

Black Stone Minerals

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Energy

industry

Oil & Gas E&P

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/04/26

Business Summary

Black Stone Minerals operates as an oil and gas exploration and production entity that monetizes hydrocarbon assets through development and production activities. Cash generation is driven by extracting and selling oil and gas volumes, with profitability largely determined by commodity pricing and cost discipline. Its moat is not technological dominance but asset control and capital efficiency—high ROIC indicates strong returns from its reserve base. Financial resilience, evidenced by a high Altman Z-Score and strong liquidity, allows it to withstand commodity cycles better than weaker operators, reinforcing its staying power in a volatile industry.

VALUATION

P/E

11

Market Cap ($M USD)

$2,989

Forward P/E

11.7

PEG

-

PRICE TO SALES

7.1

PRICE TO BOOK

2.7

EV / EBITDA

9.1

5-Year Average P/E

DIVIDEND

Yield

9.10%

Annual Payout

$1.27

Payout Ratio

105.50%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

11.40%

Financial Health & Profitability

Earnings Per Share

$1.28

Next Year EPS Growth Estimate

$1.20

Next Year Revenue Growth Estimate

7.10%

Return on Equity (ROE)

24.00%

Operating Margin

61.80%

Debt-to-Equity

0.1

Piotroski F-Score

6

Altman Z-Score

9.7

Return on Invested Capital (ROIC)

22.70%%

Current Ratio

3.9

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 11x earnings and 11.7x forward earnings, BSM trades like a no-growth commodity extractor despite generating a 22.70% ROIC and maintaining a fortress-level Altman Z-Score of 9.7. That Z-score signals extremely low bankruptcy risk, while the modest forward multiple suggests the market is pricing in stagnation rather than distress. With a 24.00% operating margin and solid balance sheet metrics, this is not a financially impaired business—it’s a stable cash generator being valued conservatively. The market appears skeptical of durability rather than solvency, which creates a classic value setup if earnings stability holds.

AI Exposure / Tech Reliance

As an Oil & Gas E&P company, BSM is not a direct AI beneficiary, but operational optimization through data analytics, drilling efficiency modeling, and production forecasting can structurally improve margins. Technology adoption in energy increasingly drives cost efficiency and asset optimization rather than revenue disruption. The company’s 24.00% operating margin suggests it already operates with disciplined cost controls, which modern analytics can further enhance.

The Bull Case

A value-oriented or GARP investor buys BSM because the numbers show disciplined capital allocation and operational efficiency. A 22.70% ROIC against a market multiple of 11x earnings is a clear value spread—this business generates high returns on capital yet trades at a muted valuation. The Piotroski F-Score of 6 signals fundamentally stable operations without major balance sheet deterioration, while a 24.00% operating margin demonstrates resilience in a cyclical sector. Add a 3.9 current ratio and a 9.7 Altman Z-Score, and you have a company with substantial financial flexibility. The market cap of $2,989M against these profitability metrics suggests institutional underappreciation rather than structural weakness.

The Bear Case

The red flags are concentrated around growth visibility and market skepticism. The PEG Forward is not provided, and EPS Next Year is estimated at $1.28 versus current EPS of 9.1, implying a sharp earnings normalization that could justify the compressed multiple. Debt/Equity at 61.80% is manageable but meaningful in a commodity-driven industry where cash flows can compress quickly. Short interest at 11.40% of float is elevated enough to signal that a non-trivial portion of the market expects downside. Combined with a modest 7.10% ROE, the profitability profile may not be as structurally durable as the ROIC suggests, particularly if forward earnings decline materially.

Market Sentiment & Smart Money

Short Interest %

2.10%

Analyst Consensus

2.67

Average Analyst Price Target

$15.33

Institutional Ownership %

17.00%

1-Year Beta

0.18

Insider Buying % (6 Mo)

20.70%%

Distance to 52-Week High

90.90%%

Distance to 52-Week Low

119.50%%