Stock fact sheet · data as of
Kimbell Royalty Partners, LP (KRP): fair value, margin of safety and Wheel Score
Energy · Oil & Gas Exploration & Production · United States · High Yield Income
Is KRP undervalued?
At 15.94 (close of 16 Oct 2026), KRP trades 29% under the GLS average fair value of 22.31. 4 of the 9 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
There is a wide gap between GLS Growth (2.71) and 10 Cap (49.30). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files KRP under High Yield Income: a dividend yield above 4%.
Nine valuation models for KRP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 39.36 | +147% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 12.61 | -21% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 14.93 | -6% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 3.70 | -77% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.71 | -83% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 49.30 | +209% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 44.34 | +178% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 23.54 | +48% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 10.28 | -35% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -3.64 | -123% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 19.00 | +19% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Kimbell Royalty Partners, LP scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 2.8/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 8.0%, ROE 13.2%, ROA 7.4% - with debt at 0.65 times equity and a free-cash-flow yield of 14.7%.
The dividend yield is high at 10.04% (payout ratio 184%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Oil and Gas 53%, Oil and Condensate 40%, Natural Gas, Midstream 7% (quarter Q2 FY2026).
Institutional ownership scores 4/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 8.0% |
|---|---|---|---|
| GLS Moat | 2.8 / 10 | ROE | 13.2% |
| Debt / equity | 0.65 | ROA | 7.4% |
| Free-cash-flow yield | 14.7% | Payout ratio | 184% |
| Institutions | 4 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 70: Good
With a Wheel Score of 70 - the Good band - Kimbell Royalty Partners, LP clears the Sunday Scan's "70 or higher" rule. The parts: Value 24/25, Health 13/20, Moat 4/15, Premium 13/20, Stability 15/20; Moat (4/15) scores lowest.
Implied volatility is 28% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (13 of 20 points). Chain open interest is 18,805 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.1M shares a day on a market cap of $1.6B, with a beta of 0.29 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 15 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 24 / 25 | 29% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 4 / 15 | moat 2.8/10 | |
| Premium | 13 / 20 | implied volatility 28% | |
| Stability | 15 / 20 | 1.1M shares/day, $1.6B cap, beta 0.29 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Oil & Gas Exploration & Production
The 12 companies below are the closest to Kimbell Royalty Partners, LP by market cap within the Oil & Gas Exploration & Production industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| NEXT Nextdecade Corp | 6.01 | - | - | 45Weak | $1.6B |
| KOS Kosmos Energy Ltd. | 2.68 | 4.74 | +43% | 45Weak | $1.6B |
| DMLP Dorchester Minerals, L.P. | 29.87 | 33.14 | +10% | 66Good | $1.5B |
| MNR Mach Natural Resources LP | 10.84 | 37.90 | +71% | 77Good | $1.8B |
| VET Vermilion Energy Inc. | 12.45 | 31.90 | +61% | 45Weak | $1.9B |
| HPK HighPeak Energy, Inc. | 9.95 | 7.12 | -40% | 37Weak | $1.3B |
| TBN Tamboran Resources Corp | 35.31 | 3.54 | -897% | 14No options | $1.2B |
| BKV BKV Corporation | 22.30 | 38.22 | +42% | 79Good | $2.4B |
| DEC Diversified Energy Company PLC | 14.43 | 223.31 | +94% | 39No options | $1.0B |
| REPX Riley Exploration Permian, Inc. | 46.43 | 83.64 | +44% | 77Good | $1.0B |
| NOG Northern Oil and Gas, Inc. | 25.75 | 26.49 | +3% | 45Weak | $2.7B |
| TALO Talos Energy Inc. | 17.03 | 45.88 | +63% | 45Weak | $2.8B |
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Start free See the Sunday ScanQuestions about KRP
Is KRP undervalued right now?
By the GLS models, moderately: at 15.94 the stock trades 29% below the average fair value of 22.31 (data as of 16 Oct 2026).
What is the Wheel Score of KRP and what does it mean?
KRP scores 70 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for KRP?
22.31 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Kimbell Royalty Partners, LP report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KRP have listed options, and how liquid are they?
Yes. The nightly snapshot found 108 listed contracts with 18,805 open interest across all expiries and implied volatility of 28% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.