MeritValue

RESERVE PETROLEUM CO

RSRVdata completeness 75%16 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

RESERVE PETROLEUM CO earns about 7% on equity. The applicable estimate puts fair value near $135.71 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$9.03M1$14.9M2$12.5M3$15.1M4$16.7M4
Net income$1.25M5$4M6−$89,5337$1.99M8$4.86M8
Operating cash flow$3.78M9$8.63M10$5.59M11$7.92M12$9.94M12
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$10.1M13$7.3M14$5.22M15$3.92M16$2.05M16
Diluted shares0156,163155,915153,930151,722

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$2,225.46
your share of equity
Profit it earned you last year
$320.6
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $2,225.46 of net worth that earned you $320.6 last year.

iii. Is this a good business?
Moat signal · return on equity
7% avg · 5y
FY21 4%FY22 12%FY23 -0%FY24 7%FY25 14%

It earned an average 7% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
— shares · 5y

Not enough history to read capital allocation.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$135.71
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.99M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001437749-23-008767 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000083350-24-000005 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000083350-25-000004 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0000083350-26-000003 (RevenueFromContractWithCustomerIncludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001437749-23-008767 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0000083350-24-000005 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0000083350-25-000004 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0000083350-26-000003 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001437749-23-008767 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0000083350-24-000005 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0000083350-25-000004 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0000083350-26-000003 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001437749-23-008767 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0000083350-24-000005 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0000083350-25-000004 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0000083350-26-000003 (CashAndCashEquivalentsAtCarryingValue)