(MSB) Mesabi Trust - Ratings and Ratios

Mesabi Trust (NYSE:MSB) operates as a royalty trust focused on the iron ore mining industry in the United States. Established in 1961 and headquartered in New York, the trust generates revenue primarily through royalties from iron ore mined at the Peter Mitchell Mine in Minnesota, a key producer of iron ore pellets. The trust does not engage in direct mining operations but collects royalties based on the volume and price of iron ore produced and sold from the mine.

The trusts financial performance is closely tied to the global demand for steel and iron ore, as well as the profitability of its mining operator. Mesabi Trust distributes a significant portion of its income to shareholders in the form of dividends, making it a notable investment for income-focused investors. The trusts operations are relatively straightforward, with minimal overhead costs, as it relies on its operator to manage the mining activities.

Based on the provided data, Mesabi Trusts stock has shown recent strength, with the 20-day moving average (SMA 20) at 26.52, above the SMA 50 at 24.84, indicating short-term upward momentum. The SMA 200 at 18.72 reflects longer-term growth. The Average True Range (ATR) of 1.82 suggests moderate volatility. On the fundamental side, the trusts market cap of $425.88 million and a price-to-earnings (P/E) ratio of 4.63 indicate undervaluation relative to its earnings. The price-to-book (P/B) ratio of 4.02 and price-to-sales (P/S) ratio of 15.62 highlight a premium valuation relative to book value and sales. The return on equity (RoE) of 96.41% underscores strong profitability.

3-Month Forecast: Based on the technical and fundamental data, Mesabi Trusts stock is expected to trade in a range of $26 to $30 over the next three months. The SMA 20 and SMA 50 suggest continued upward momentum, while the ATR indicates potential price fluctuations of $1.82 on average. Fundamental strength, including high RoE and low P/E, supports a bullish outlook. However, the high P/S ratio may act as a resistance level. The stock is likely to remain sensitive to iron ore prices and broader market conditions.