PrairieSky Royalty (PSK) AI Stock Analysis

• Market Cap: C$5.76B
• Dividend Yield: 4.14%
• Average Volume (3M): 315.75K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.89
• Revenue Growth: -4.07%
• EPS Growth: -3.22%
• Country: CA
• Employees: 75
• Sector: Energy
• Sector Strength: 63
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.24
• Shares Outstanding: 233,626,790
• 10 Day Avg. Volume: 313,728
• 30 Day Avg. Volume: 315,754
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$30.12
• Price Target Upside: 22.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: ―

PrairieSky Royalty demonstrates overall strong financial health and strategic growth in oil production, supported by a sustainable dividend policy. However, technical analysis reflects caution due to bearish momentum, and valuation metrics indicate potential overvaluation. Challenges in natural gas production and market volatility pose risks, impacting the overall score.

PrairieSky Royalty Business Overview & Revenue Model

Company Description

PrairieSky Royalty Ltd. holds crude oil and natural gas royalty interests in Alberta, Saskatchewan, British Columbia, and Manitoba of Canada. It holds an interest in approximately 9.8 million acres with petroleum and/or natural gas rights; 8.5 million acres of gross overriding royalty interests; approximately 0.3 million acres of the GRT interests; and other acreage. The company was incorporated in 2013 and is headquartered in Calgary, Canada.

How the Company Makes Money

PrairieSky Royalty generates revenue primarily through the collection of royalties on the oil and gas produced from its extensive land holdings. The company leases these lands to exploration and production companies, who then extract the resources. In return, PrairieSky receives a percentage of the revenue generated from the production, known as a royalty. This model allows the company to earn income without directly engaging in the costly and risky process of exploration and production. Additionally, PrairieSky benefits from a diversified portfolio of land, which includes a variety of oil and gas plays, reducing its exposure to any single project or commodity price fluctuations. The company's earnings are also supplemented by strategic partnerships and agreements with various oil and gas operators, enhancing its ability to maximize royalty income.

PrairieSky Royalty Financial Statement Overview

Summary

PrairieSky Royalty exhibits strong profitability with solid gross and net profit margins. The balance sheet reflects a good financial position with low leverage. While cash flow remains stable, a decrease in free cash flow and revenue decline from 2022 to 2023 suggests some challenges in growth and cash retention.

Income Statement

PrairieSky Royalty's income statement shows strong profitability with a Gross Profit Margin of 71.0% and a Net Profit Margin of 43.8% for TTM. Revenue growth is modest at 1.5% over the previous year, indicating stability in revenue streams. The EBIT and EBITDA margins are healthy at 59.3% and 87.6%, respectively, reflecting robust operational efficiency. However, the decline in revenue from 2022 to 2023 indicates potential challenges in maintaining growth.

Balance Sheet

The balance sheet demonstrates a solid financial position with a low Debt-to-Equity Ratio of 0.08 for TTM, indicating conservative leverage. Return on Equity stands at 8.5%, showcasing reasonable profitability relative to equity. The Equity Ratio of 81.1% suggests strong equity financing. However, the slight decline in stockholders' equity from the previous year signals caution in capital management.

Cash Flow

Cash flow analysis reveals stable operations with a Free Cash Flow to Net Income Ratio of 1.27 and Operating Cash Flow to Net Income Ratio of 1.73, indicating efficient cash generation relative to earnings. However, Free Cash Flow has decreased by 13.2% from the previous year, highlighting a need to improve cash retention strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	504.60M	509.20M	513.20M	643.30M	308.00M	171.40M
Gross Profit	352.20M	358.30M	365.50M	490.90M	202.60M	64.40M
EBITDA	448.20M	439.80M	455.50M	580.20M	264.60M	143.80M
Net Income	222.20M	215.30M	227.60M	317.50M	123.30M	31.70M
Balance Sheet
Total Assets	3.20B	3.21B	3.31B	3.42B	3.51B	2.61B
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	-900.00K	-1.60M	-2.20M
Total Debt	199.10M	95.50M	188.10M	219.20M	645.00M	45.10M
Total Liabilities	570.40M	465.70M	541.30M	647.10M	915.80M	266.20M
Stockholders Equity	2.63B	2.74B	2.77B	2.77B	2.59B	2.34B
Cash Flow
Free Cash Flow	283.80M	330.80M	261.00M	534.90M	-733.60M	142.90M
Operating Cash Flow	381.90M	379.90M	318.90M	565.50M	252.00M	152.30M
Investing Cash Flow	-97.40M	-49.10M	-57.90M	-30.60M	-986.40M	-8.60M
Financing Cash Flow	-284.50M	-330.80M	-261.00M	-534.90M	734.40M	-143.70M

PrairieSky Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PSK, the sentiment is Positive. The current price of 24.64 is above the 20-day moving average (MA) of 24.07, above the 50-day MA of 23.92, and below the 200-day MA of 25.05, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 64.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PSK.

PrairieSky Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.27B	7.60	4.09%	5.25%	4.03%	-61.87%
PSK	65 Neutral	C$5.76B	26.38	8.08%	4.14%	-4.07%	-3.22%
MEGEF	―	$5.29B	13.74	11.70%	1.38%	―	―
WCPRF	―	$9.33B	7.18	11.56%	6.83%	―	―
FRHLF	―	$1.59B	17.70	11.89%	7.99%	―	―
PEY	82 Outperform	C$3.70B	11.02	12.21%	7.17%	7.02%	7.16%
SCR	77 Outperform	C$8.11B	11.39	10.85%	2.80%	20.21%	7.08%

PrairieSky Royalty Corporate Events

PrairieSky Royalty Secures Shareholder Approval for Key Resolutions

PrairieSky Royalty Ltd. announced that all resolutions were approved at its annual general meeting of shareholders, including the appointment of seven directors and KPMG LLP as auditors. The approval of these resolutions reflects strong shareholder support for the company’s leadership and strategic direction.

Spark’s Take on TSE:PSK Stock

According to Spark, TipRanks’ AI Analyst, TSE:PSK is a Neutral.

PrairieSky Royalty’s overall stock score is driven by its robust financial health and positive earnings call highlights, including strong oil production growth and dividend increases. However, technical analysis suggests caution due to current downward momentum, and valuation metrics indicate the stock might be expensive. Natural gas and NGL challenges also pose risks that could affect future performance.

To see Spark’s full report on TSE:PSK stock, click here.

PrairieSky Royalty Reports Record Oil Production and Strategic Acquisitions in Q1 2025

PrairieSky Royalty Ltd. reported its first quarter 2025 results, highlighting a record oil royalty production of 13,502 barrels per day, contributing to a 10% increase in oil royalty revenue over the previous year. Despite a 3% decrease in total royalty production due to declines in natural gas and NGL production, the company achieved total revenues of $128.1 million. PrairieSky declared a dividend of $61.2 million and continued its capital allocation strategy by purchasing and cancelling shares under its normal course issuer bid. The company also completed acquisitions of royalty interests, enhancing its portfolio in key oil plays.

Spark’s Take on TSE:PSK Stock

According to Spark, TipRanks’ AI Analyst, TSE:PSK is a Neutral.

PrairieSky Royalty’s overall stock score is driven by its robust financial health and positive earnings call highlights, including strong oil production growth and dividend increases. However, technical analysis suggests caution due to current downward momentum, and valuation metrics indicate the stock might be expensive. Natural gas and NGL challenges also pose risks that could affect future performance.

To see Spark’s full report on TSE:PSK stock, click here.

PrairieSky Royalty Declares Quarterly Dividend of CDN $0.26

PrairieSky Royalty Ltd. has declared a quarterly dividend of CDN $0.26 per common share, payable on April 15, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and underscores its strong financial position, supported by its extensive portfolio of revenue-generating properties.

PrairieSky Royalty Reports Record Oil Production and Dividend Growth for 2024

PrairieSky Royalty Ltd. announced record annual oil royalty production for 2024, with a significant increase in both oil volume and annual dividend policy. Despite a decline in natural gas and NGL production, the company achieved a 6% rise in oil royalty production, contributing to total revenues of $509.2 million. The improved performance is attributed to strategic investments in low-cost oil plays, particularly in the Clearwater and Mannville Stack regions. The company also reduced net debt by 39% and increased its annual dividend by 4%, reflecting strong financial health and commitment to shareholder returns.