PrairieSky Royalty (PSK) AI Stock Analysis

• Market Cap: $6.23B
• Dividend Yield: 3.76%
• Average Volume (3M): 339.52K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.97
• Revenue Growth: -1.59%
• EPS Growth: 0.09%
• Country: CA
• Employees: 75
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.20
• Shares Outstanding: 232,711,640
• 10 Day Avg. Volume: 379,332
• 30 Day Avg. Volume: 339,519
• PEG Ratio: -5.91
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 14.24
• P/FCF Ratio: 18.42
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 13.52
• Enterprise Value/Gross Profit: 14.84
• Enterprise Value/Ebitda: 14.04
• 1Y Price Target: $32.17
• Price Target Upside: 20.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$31.00 ▲(15.80% Upside)

The score is driven primarily by strong financial performance (profitability, low leverage, and strong cash conversion). Corporate events reinforce shareholder returns and operating momentum, while technicals are only moderately supportive. Valuation is the key drag, with a higher P/E only partly balanced by the dividend yield.

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	465.90M	470.30M	479.60M	619.30M	293.60M	159.70M
Gross Profit	424.70M	466.40M	473.20M	612.70M	290.00M	157.20M
EBITDA	448.90M	439.80M	455.50M	580.20M	264.60M	143.80M
Net Income	220.80M	215.30M	227.60M	317.50M	123.30M	31.70M
Balance Sheet
Total Assets	3.17B	3.21B	3.31B	3.42B	3.51B	2.61B
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	0.00	0.00	0.00
Total Debt	245.90M	95.50M	188.10M	219.20M	645.00M	45.10M
Total Liabilities	608.90M	465.70M	541.30M	647.10M	915.80M	266.20M
Stockholders Equity	2.56B	2.74B	2.77B	2.77B	2.59B	2.34B
Cash Flow
Free Cash Flow	311.90M	363.60M	306.50M	552.00M	-206.30M	145.10M
Operating Cash Flow	363.40M	378.60M	318.90M	565.50M	252.00M	152.30M
Investing Cash Flow	-102.60M	-49.10M	-57.90M	-30.60M	-986.40M	-8.60M
Financing Cash Flow	-260.80M	-329.50M	-261.00M	-534.90M	734.40M	-143.70M

PrairieSky Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.77
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 26.77 is below the 20-day moving average (MA) of 26.82, below the 50-day MA of 26.78, and above the 200-day MA of 24.57, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 65.23 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$4.54B	12.01	13.48%	5.77%	11.52%	24.76%
PSK	75 Outperform	$6.23B	28.73	8.16%	3.76%	-1.59%	0.09%
FRU	75 Outperform	$2.53B	19.13	13.00%	7.05%	2.52%	-8.32%
SCR	69 Neutral	C$5.61B	5.11	9.60%	2.99%	-11.41%	40.81%
ATH	68 Neutral	C$3.36B	7.79	27.19%	―	3.04%	115.77%
TVE	67 Neutral	$3.97B	―	-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 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.

PrairieSky Royalty Reports Increased Oil Production and Strategic Acquisitions in Q3 2025

PrairieSky Royalty Ltd. reported an 11% increase in oil royalty production in Q3 2025 compared to the previous year, averaging 14,127 barrels per day. Despite a decrease in US$ WTI benchmark pricing, total royalty production revenue reached $107.7 million. The company declared a dividend of $60.5 million and repurchased 2,739,587 common shares. Acquisitions focused on fee lands and royalty interests in Mannville heavy oil and Duvernay light oil. The appointment of Ian Dundas to the Board of Directors is expected to strengthen the leadership team.

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.