PrairieSky Royalty (PSK) AI Stock Analysis

• Market Cap: C$7.21B
• Dividend Yield: 3.76%
• Average Volume (3M): 339.52K
• Price to Earnings (P/E): 30.7
• Beta (1Y): 0.75
• Revenue Growth: -1.59%
• EPS Growth: 0.09%
• Country: CA
• Employees: 75
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.19
• Shares Outstanding: 232,711,640
• 10 Day Avg. Volume: 379,332
• 30 Day Avg. Volume: 339,519
• PEG Ratio: -9.20
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 13.15
• P/FCF Ratio: 24.43
• 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$33.57
• Price Target Upside: 8.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.18
• Revenue Forecast (FY): C$475.33M

• Rating: 75 Outperform
• Price Target: C$34.00 ▲(10.03% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily driven by strong financial quality (high profitability and low leverage) and supportive technical trend/momentum. These positives are tempered by a relatively expensive P/E and the company’s cyclical, uneven revenue and free-cash-flow profile since the 2022 peak.

Positive Factors

High, sustainable profitability

PrairieSky’s royalty model drives very high net margins over the cycle because it captures production value without funding drilling or most operating costs. That structural margin advantage supports durable cash generation, distributions and reinvestment capacity across commodity cycles.

Conservative balance sheet with low leverage

A very low debt load provides financial flexibility and a meaningful cushion in downturns, enabling PrairieSky to maintain distributions, opportunistically acquire mineral rights or wait for favorable leasing terms without being forced sellers during weaker commodity periods.

Asset-light royalty model and consistent OCF

As a royalty holder PrairieSky avoids capex and operating expenditures tied to production, producing recurring, asset-light cash flow. Consistently positive operating cash flow relative to earnings underpins long-term payout ability and funds selective leasing or acquisitions.

Negative Factors

Revenue cyclicality since 2022 peak

Top-line has shown an uneven pattern since the 2022 high, reflecting the cyclic nature of commodity markets and drilling activity. Persistent flat or declining revenue constrains long-term growth potential and makes multi-year planning and payout smoothing more difficult.

Free cash flow volatility and 2025 decline

Volatile free cash flow reduces predictability for capital allocation and dividends; meaningful year-over-year declines increase the need to preserve balance sheet flexibility and may force curtailment of buybacks or acquisitions when commodity conditions weaken.

Earnings exposed to commodity and operator activity

PrairieSky’s revenues scale with commodity prices and operator drilling on its lands. The company cannot control operators' capex timing or commodity cyclicality, leaving structural exposure that can materially swing royalties and leasing income over multi-year periods.

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

Strong profitability and conservative financing: very high margins over time and low leverage (debt-to-equity generally under 0.10). The main offset is cyclicality—revenue has been lower/flat since the 2022 peak and free cash flow has been volatile, including a meaningful decline in 2025 vs. 2024.

Income Statement

Profitability is a clear strength: the company posted very high gross and operating profitability across the cycle, with net profit margins consistently strong (roughly ~20% in 2020 rising to ~43% in 2025). However, growth has been uneven—revenue peaked in 2022 and has since been lower/flat (2023–2025), and profitability has eased from the 2022 high even though it remains robust.

Balance Sheet

The balance sheet looks conservatively financed, with low leverage throughout the period (debt-to-equity generally under 0.10, and still low in 2025). Equity remains large relative to assets, providing a meaningful cushion. The main watch-out is variability in returns on equity (where provided), reflecting the commodity-driven earnings cycle rather than balance sheet strain.

Cash Flow

Cash generation is solid: operating cash flow has been consistently positive and comfortably supports reported earnings (operating cash flow to net income above ~3x in recent years). Free cash flow is positive in most years, but it has been volatile—negative in 2021 and down meaningfully in 2025 versus 2024—highlighting sensitivity to payout/capex timing and underlying commodity conditions.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	478.20M	470.30M	479.60M	619.30M	293.60M
Gross Profit	323.30M	466.40M	473.20M	612.70M	290.00M
EBITDA	432.80M	439.80M	455.50M	580.20M	264.60M
Net Income	205.00M	215.30M	227.60M	317.50M	123.30M
Balance Sheet
Total Assets	3.15B	3.21B	3.31B	3.42B	3.51B
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	0.00	0.00
Total Debt	242.50M	95.50M	188.10M	219.20M	645.00M
Total Liabilities	604.50M	465.70M	541.30M	647.10M	915.80M
Stockholders Equity	2.54B	2.74B	2.77B	2.77B	2.59B
Cash Flow
Free Cash Flow	257.50M	363.60M	306.50M	552.00M	-206.30M
Operating Cash Flow	357.40M	378.60M	318.90M	565.50M	252.00M
Investing Cash Flow	-99.20M	-49.10M	-57.90M	-30.60M	-986.40M
Financing Cash Flow	-258.20M	-329.50M	-261.00M	-534.90M	734.40M

PrairieSky Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.90
• 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:PSK, the sentiment is Positive. The current price of 30.9 is above the 20-day moving average (MA) of 30.32, above the 50-day MA of 28.58, and above the 200-day MA of 25.60, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 59.34 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 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
PEY	81 Outperform	C$5.44B	10.05	13.48%	5.77%	11.52%	24.76%
SCR	77 Outperform	C$6.72B	3.37	9.60%	2.99%	-11.41%	40.81%
PSK	75 Outperform	C$7.21B	30.68	8.16%	3.76%	-1.59%	0.09%
FRU	75 Outperform	$2.90B	16.54	13.00%	7.05%	2.52%	-8.32%
ATH	68 Neutral	$4.20B	11.82	27.19%	―	3.04%	115.77%
TVE	68 Neutral	$4.92B	-110.02	-4.70%	1.91%	-1.36%	-149.45%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

PrairieSky Royalty Corporate Events

PrairieSky Lifts Dividend as Record Oil Royalties Offset Weaker Prices

PrairieSky Royalty raised its annual dividend policy by 2% to $1.06 per share following a year of record oil royalty production and continued reserve growth, underscoring confidence in its long-term cash flow profile. The company also reduced net debt slightly and continued to repurchase shares, while executing nearly $100 million of acquisitions targeting strategic oil-weighted royalty assets.

For 2025, total royalty production rose 3% to 25,855 BOE per day and royalty production revenue reached $441.7 million, though funds from operations fell 7% to $353 million due to weaker benchmark oil prices. In the fourth quarter, higher oil and NGL royalty volumes supported revenue of $111.7 million, while an active drilling program and multilateral development on PrairieSky lands drove a 6.6% increase in proved plus probable oil reserves and strong growth in key plays such as the Clearwater, Mannville Stack and Duvernay.

The most recent analyst rating on (TSE:PSK) stock is a Buy with a C$35.00 price target. To see the full list of analyst forecasts on PrairieSky Royalty stock, see the TSE:PSK Stock Forecast page.

PrairieSky Royalty Sets February Date for Q4 and Year-End 2025 Results

PrairieSky Royalty Ltd. will release its fourth-quarter and year-end 2025 financial and operating results after markets close on February 9, 2026, followed by a conference call for the investment community on February 10, 2026. The company will make detailed financial statements, management’s discussion and analysis, and its annual information form available on its website and through SEDAR+, signaling continued transparency and ongoing engagement with investors as it reports on the performance of its royalty-based oil and gas portfolio.

The most recent analyst rating on (TSE:PSK) stock is a Buy with a C$30.00 price target. To see the full list of analyst forecasts on PrairieSky Royalty stock, see the TSE:PSK Stock Forecast page.

PrairieSky Royalty Declares Quarterly Dividend

PrairieSky Royalty Ltd. announced a quarterly dividend of CDN $0.26 per common share, to be paid on January 15, 2026, to shareholders recorded by December 31, 2025. This move reflects the company’s ongoing commitment to returning value to its shareholders and highlights its strong cash flow generation capabilities from its extensive property portfolio.

The most recent analyst rating on (TSE:PSK) stock is a Buy with a C$35.00 price target. To see the full list of analyst forecasts on PrairieSky Royalty stock, see the TSE:PSK Stock Forecast page.