Peyto Exploration & Dev (PEY) AI Stock Analysis

• Market Cap: C$4.13B
• Dividend Yield: 5.89%
• Average Volume (3M): 967.15K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.89
• Revenue Growth: 11.52%
• EPS Growth: 24.76%
• Country: CA
• Employees: 53
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.45
• Shares Outstanding: 201,896,600
• 10 Day Avg. Volume: 974,472
• 30 Day Avg. Volume: 967,154
• PEG Ratio: -0.93
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 3.69
• P/FCF Ratio: 15.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$22.67
• Price Target Upside: 1.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: C$24.00 ▲(7.05% Upside)

Peyto Exploration & Dev's strong financial performance, positive earnings call, and reasonable valuation contribute significantly to its overall score. The company's robust profitability metrics, efficient operations, and strategic growth plans are key strengths. Technical indicators support a stable upward trend, enhancing the stock's attractiveness. However, potential risks from revenue volatility and external cost pressures should be monitored.

Positive Factors

Cash Flow Strength

Strong cash flow growth enhances financial stability, providing the company with the flexibility to invest in growth opportunities and manage debt effectively.

Production Efficiency

Increased production efficiency and high operating margins indicate effective resource management, supporting long-term profitability and competitive positioning.

Hedging Strategy

A successful hedging strategy mitigates market volatility, ensuring more predictable revenue streams and enhancing financial resilience.

Negative Factors

Revenue Volatility

Revenue volatility poses a risk to financial predictability, potentially impacting long-term planning and investment strategies.

High Government Costs

High government-related costs can pressure margins and reduce profitability, affecting the company's ability to reinvest in growth and innovation.

Debt Levels

Rising debt levels can limit financial flexibility and increase vulnerability to interest rate changes, impacting long-term financial health.

Peyto Exploration & Dev Business Overview & Revenue Model

Company Description

Peyto Exploration & Development Corp. (PEY) is a Canadian oil and gas company focused on the exploration, development, and production of natural gas and natural gas liquids in the Western Canadian Sedimentary Basin. Established in 1998, Peyto specializes in the development of high-quality, economically viable natural gas reserves, primarily targeting the Montney and Deep Basin formations. The company is known for its efficient operations, innovative technology, and commitment to sustainability in its resource extraction processes.

How the Company Makes Money

Peyto Exploration & Development generates revenue primarily through the sale of natural gas and natural gas liquids, which are produced from its various drilling operations. The company’s revenue model is based on the extraction, production, and marketing of hydrocarbons, with key revenue streams coming from long-term sales contracts and spot market sales. Peyto employs a strategy of maintaining low operating costs and optimizing production efficiency, which helps to maximize profit margins. Additionally, the company benefits from strategic partnerships with midstream operators for transportation and processing of its production, and it is influenced by market prices for natural gas and liquids, making it sensitive to fluctuations in commodity prices. The company also engages in hedging strategies to manage price volatility, ensuring a more stable cash flow.

Peyto Exploration & Dev Financial Statement Overview

Summary

Peyto Exploration & Dev shows strong financial health with robust profitability and cash flow metrics. The company maintains high margins and has a positive cash flow trajectory, though there are potential risks associated with debt levels and revenue volatility.

Income Statement

Peyto Exploration & Dev has demonstrated strong revenue growth with a 7.65% increase in the TTM period. The company maintains robust profitability metrics, with a gross profit margin of 49.37% and a net profit margin of 31.66%. The EBIT and EBITDA margins are also impressive at 51.01% and 92.43%, respectively, indicating efficient operations. However, the historical volatility in revenue growth rates suggests potential risks in maintaining consistent growth.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.52, reflecting a balanced approach to leveraging. Return on equity stands at 11.00%, indicating effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Peyto's cash flow performance is strong, with an 8.92% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 1.92 indicates good cash generation relative to net income. The free cash flow to net income ratio of 0.37 further supports the company's ability to generate cash. Despite past fluctuations in free cash flow growth, the recent positive trend is encouraging.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00B	908.25M	945.51M	1.63B	911.98M	399.99M
Gross Profit	538.30M	421.22M	424.58M	1.07B	575.60M	124.26M
EBITDA	905.00M	849.88M	778.10M	872.94M	517.66M	261.29M
Net Income	331.21M	280.57M	292.63M	390.66M	152.25M	-35.55M
Balance Sheet
Total Assets	5.42B	5.51B	5.51B	4.01B	3.78B	3.60B
Cash, Cash Equivalents and Short-Term Investments	31.68M	13.63M	37.18M	11.90M	5.72M	9.31M
Total Debt	1.29B	1.36B	1.40B	864.52M	1.07B	1.18B
Total Liabilities	2.69B	2.81B	2.79B	1.95B	2.02B	1.92B
Stockholders Equity	2.73B	2.70B	2.71B	2.06B	1.77B	1.68B
Cash Flow
Free Cash Flow	276.19M	215.49M	233.84M	304.92M	92.82M	-32.65M
Operating Cash Flow	727.15M	672.36M	644.87M	811.78M	457.87M	203.05M
Investing Cash Flow	-465.70M	-432.24M	-1.15B	-516.91M	-351.43M	-232.58M
Financing Cash Flow	-252.22M	-263.66M	527.27M	-288.68M	-110.03M	32.66M

Peyto Exploration & Dev Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PEY, the sentiment is Positive. The current price of 22.42 is above the 20-day moving average (MA) of 21.37, above the 50-day MA of 20.01, and above the 200-day MA of 18.22, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 64.44 is Neutral, neither overbought nor oversold. The STOCH value of 72.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PEY.

Peyto Exploration & Dev Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEY	82 Outperform	C$4.13B	12.25	13.48%	5.89%	11.52%	24.76%
ATH	80 Outperform	$3.43B	7.75	27.19%	―	3.04%	115.77%
WCP	79 Outperform	$14.19B	9.98	10.88%	6.24%	36.36%	-19.92%
POU	74 Outperform	C$3.46B	2.53	41.81%	3.32%	-32.36%	282.99%
NVA	74 Outperform	C$3.58B	11.43	13.57%	―	-6.14%	14.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
IPCO	63 Neutral	C$2.64B	37.97	3.59%	―	-9.12%	-70.87%

Peyto Exploration & Dev Corporate Events

Peyto Exploration Confirms November Dividend Payout

Peyto Exploration & Development Corp. has announced a confirmed monthly dividend of $0.11 per common share for November 2025, payable on December 15, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders, reinforcing its stable financial position and its role as a key player in the energy industry.

The most recent analyst rating on (TSE:PEY) stock is a Hold with a C$21.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.

Peyto Reports Robust Q3 2025 Results and Outlines 2026 Capital Plans

Peyto Exploration & Development Corp. reported strong third-quarter results for 2025, with $198.9 million in funds from operations and $90.7 million in earnings, driven by low cash costs and strategic hedging. The company increased production by 8% year over year and plans to invest $450 to $500 million in 2026 to offset production decline, while maintaining a strong financial position with reduced net debt.

The most recent analyst rating on (TSE:PEY) stock is a Hold with a C$21.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.

Peyto Exploration & Development Corp. Confirms October 2025 Dividend

Peyto Exploration & Development Corp. has announced a monthly dividend of $0.11 per common share for October 2025, payable on November 14, 2025. This announcement underscores Peyto’s commitment to providing returns to its shareholders, reflecting its stable financial position and ongoing efforts to maintain investor confidence.

The most recent analyst rating on (TSE:PEY) stock is a Buy with a C$22.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.

Peyto Exploration’s Earnings Call Highlights Growth and Strategy

The recent earnings call for Peyto Exploration & Development showcased a generally positive sentiment, with the company reporting substantial production growth, effective cost management, and successful hedging strategies. These factors contributed to increased funds from operations and significant debt reduction, overshadowing challenges such as operational interruptions from fires and higher property taxes.

Peyto Exploration & Development Corp. Confirms August Dividend

Peyto Exploration & Development Corp. has announced a monthly dividend of $0.11 per common share for August 2025, payable on September 15, 2025, to shareholders of record by August 31, 2025. This dividend declaration underscores Peyto’s ongoing commitment to delivering shareholder value and highlights its stable financial performance amidst the dynamic energy market.

The most recent analyst rating on (TSE:PEY) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on Peyto Exploration & Dev stock, see the TSE:PEY Stock Forecast page.