Mesa Royalty Trust (MTR): fair value, margin of safety and Wheel Score

Is MTR undervalued?

At 1.94 (close of 5 Nov 2026), MTR trades 16% under the GLS average fair value of 2.30. 5 of the 7 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS scan; 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 (0.5738) and DCF (4.62). 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 MTR under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan. It also carries the Income tag (Income = a dividend yield of 4% or more).

Nine valuation models for MTR

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

Mesa Royalty Trust scores only 2 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. On durability MTR scores 6.8/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.

Returns on capital are high - ROIC 16.2%, ROE 16.2%, ROA 15.5% - with debt at 0.00 times equity and negative free cash flow.

The dividend yield is high at 7.14% (payout ratio 0%). 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.

Institutional ownership scores 2/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 23: No options

No options are listed on Mesa Royalty Trust in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 23, under 70) and is left out of every options scan; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 4k shares a day on a market cap of $4M, with a beta of 0.38 - 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 MTR in the nightly calendar.

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 Mesa Royalty Trust 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.

⚖ Compare MTR with 7 of them   All Energy stocks →