Mesabi Trust (MSB): fair value, margin of safety and Wheel Score

Is MSB undervalued?

Mesabi Trust (MSB) closed at 17.63 on 5 Nov 2026, close to the GLS average fair value of 16.76 (5.2% above fair value). 4 of the 9 models that produced a number sit above the price, 5 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.

The 9 models disagree widely: Graham Number gives 3.86 while GLS Growth gives 30.27. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

Ranked against every other company we cover, MSB is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 17, growth score 44, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).

Nine valuation models for MSB

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.

Quality and financial health

Financial health is weak: MSB passes 4 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 8.1 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.

Returns on capital are high - ROIC 68.0%, ROE 68.0%, ROA 56.9% - with debt at 0.00 times equity and a free-cash-flow yield of 3.8%.

The dividend yield is high at 5.05% (payout ratio 194%) - 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 Royalties From Leases 96%, Royalties From Lease Fees 5% (fiscal year FY2026).

Institutional ownership scores 6/10, insider activity 5/10 and Congressional trading 10/10 on the GLS smart-money scales; the last recorded Congressional buy was on 31 Jul 2026.

Wheel Score 30: Weak

MSB scores 30 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (724 open interest, 63 a day); and filter 3, below fair value - trades 5% above our fair value; and filter 4, financially healthy - Piotroski 4/9 (under 6); and filter 6, no serious red flags - Red Flags score 55 (under 60); and filter 8, big enough - market cap $231M (under $1.0B), and the parts are thin too - value weak, premium strong, moat strong, health fair, red flags weak, option trading weak, stability fair. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.

Implied volatility is 65% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. Chain open interest is thin - 724 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.

Volume runs at 33k shares a day on a market cap of $231M, with a beta of 0.33 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for MSB in the nightly calendar.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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