San Juan Basin Royalty Trust vs FutureFuel

San Juan Basin Royalty Trust and FutureFuel are compared to shed light on their business models, financial performance, and market context. The page presents core activities, revenue drivers, and competitive environment in clear terms, helping readers understand strengths and risks without urging a course of action. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

SJT

Metric

$269.86M

Market Cap

$143.67M

N/A

Potential Profit

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Analyst Rating

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Investment Analysis

San Juan Basin Royalty Trust

SJT

Pros

San Juan Basin Royalty Trust holds a substantial 75% net profit interest in significant oil and gas properties in a rich producing area in New Mexico.
It offers a high monthly dividend yield exceeding 6%, providing more frequent income payouts than typical quarterly dividend stocks.
The trust benefits from a legacy asset base in a relatively stable geographic region with diversified royalty interests across numerous leases.

Considerations

The stock trades at an extremely high price-to-book ratio around 100x, indicating it is expensive relative to peers and the industry average.
The trust has halted dividend payments since April 2024 after multiple payout reductions, highlighting income risk for investors.
Analyst price forecasts anticipate significant downside potential of approximately 45% over the next year, reflecting market concerns and negative technical indicators.

FutureFuel

Pros

FutureFuel Corporation is a specialty chemical manufacturer with diversified product lines reducing dependency on any single market segment.
It has demonstrated operational efficiency improvements in recent periods, enhancing profitability despite commodity input cost volatility.
The company possesses a solid balance sheet with manageable debt levels, providing financial flexibility for growth or capital expenditure.

Considerations

FutureFuel's financial performance is cyclically sensitive to oil prices and chemical product demand, creating earnings volatility.
The specialty chemicals sector faces increasing regulatory pressures and raw material cost inflation, which could constrain margins.
Execution risks remain around scaling new product lines and successfully penetrating end markets amid competitive industry dynamics.

About The Companies

San Juan Basin Royalty Trust (SJT)

San Juan Basin Royalty Trust (SJT) is an investment trust that holds a significant royalty interest in oil and natural gas properties. Its primary asset is a 75% net overriding royalty on production from lands in the San Juan Basin of northwestern New Mexico. Unlike a traditional energy company that explores for and produces oil and gas, the Trust's main function is to collect the income generated from these royalties. After paying its expenses, the Trust then distributes the remaining income to its unit holders. For investors, this structure offers a way to gain exposure to the energy sector, with potential returns directly linked to the production levels and market prices of oil and gas from its designated interests. It's important to remember that the value of these interests and the income they generate can fluctuate, and past performance is not a guarantee of future returns.

FutureFuel (FF)

FutureFuel Corp (FF) is a small‑cap company (market capitalisation approximately $176.53m) that operates in the alternative fuels and energy-transition space. The business focuses on developing and commercialising lower‑carbon fuel technologies and related processing capabilities; outcomes depend on successful scale‑up, cost reduction and market adoption. For investors, the appeal lies in exposure to potential growth from decarbonisation trends, partnerships or technology licences, but this comes with typical small‑cap risks: limited liquidity, higher volatility, capital intensity, and sensitivity to regulation and commodity cycles. Financial performance may be uneven while projects move from development to commercial scale. This is general educational information, not personalised advice — returns are not guaranteed and the stock may be more suitable for investors who can tolerate elevated risk and a long time horizon.

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6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

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Comparison Snapshot