Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, iron ore royalty trust Mesabi Trust
With that in mind, let's take a closer look at Mesabi's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||New York (1919)|
|Market Cap||$716.4 million|
|Trailing-12-Month Revenue||$28 million|
|Compound Annual Revenue and Net Income Growth (Over Past 3 Years)||11.5% and 11.6%|
|Cash/Debt||$11.4 million / $0|
Great Northern Iron Ore Properties
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 291 members who have rated Mesabi believe the stock will outperform the S&P 500 going forward. These bulls include All-Star TinyCapsWatch, who is ranked in the top 4% of our community, and georgevt.
Just a couple of months ago, TinyCapsWatch tapped Mesabi as an ideal opportunity: "This comes close to the perfect stock, qualifying under several alternate screens I've used. ... This is both a top quality growth stock and a high flying dividend stock that has a long, successful track record."
Mesabi's potent combo of income and growth characteristics make it one of our community's favorite plays on iron ore prices. In fact, Mesabi's total return over the past five years (29% compounded) is higher than that of close rival Great Northern (9.1%), as well as the world's three largest iron ore suppliers, BHP Billiton (24.1%), Rio Tinto
CAPS member georgvt expands on why Mesabi should continue to outperform:
[L]ooking at their fundamentals I am very impressed with their value and growth. They have about $378M in cash, very minimal debt, and great cash flow over $50M per quarter. Virtually all the growth and earnings indicators on my screen are lit up, so I have no reservations calling this a growth company, with good value and low risk to reward ratio.
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