

DMC Global vs Cross Timbers Royalty Trust
This page compares DMC Global and Cross Timbers Royalty Trust, examining their business models, financial performance, and market context in a neutral, accessible way. It highlights how each organisation approaches growth, risk, and value creation within its sector, without endorsing any investment action. Educational content, not financial advice.
This page compares DMC Global and Cross Timbers Royalty Trust, examining their business models, financial performance, and market context in a neutral, accessible way. It highlights how each organisat...
Investment Analysis

DMC Global
BOOM
Pros
- DMC Global reduced its net debt by 47% since the start of 2025, demonstrating improved financial discipline.
- Revenue in Q3 2025 exceeded expectations by 4.43%, reaching $151.5 million despite a slight year-over-year sales decline.
- NobelClad segment secured the largest order in company history, valued at $25 million, indicating strong demand for key products.
Considerations
- The company reported an adjusted EPS loss of -$0.08 in Q3 2025, missing forecasts and showing ongoing profitability challenges.
- Net income remains negative with a significant net loss of $170 million annually, reflecting persistent earnings weakness.
- The stock trades at a steep discount due to market concerns over cyclicality and the need for a clearer turnaround in margins and profitability.
Pros
- Cross Timbers Royalty Trust holds 90% net profits interests in multiple producing and nonproducing royalty properties across Texas, Oklahoma, and New Mexico, providing diversified asset exposure.
- The trust operates with a generally stable royalty income model less sensitive to operational risk compared to direct operators.
- Cross Timbers Royalty Trust's Price-to-Earnings ratio of 10.0x is significantly lower than the energy sector average, indicating relatively attractive valuation.
Considerations
- The trust's Price-to-Book ratio is very high at 25.5x, suggesting a potentially stretched market valuation relative to book value.
- Exposure to commodity price fluctuations and energy market cyclicality could impact royalty income and distributions unpredictably.
- Limited analyst coverage and upside visibility on price targets may constrain investor interest and liquidity.
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