Source Rock Royalties Ltd. (SRR) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 8.96%
• Average Volume (3M): 34.17K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.32
• Revenue Growth: 15.70%
• EPS Growth: -5.46%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 69
• Industry: Oil & Gas Midstream
• EPS (TTM): <0.01
• Shares Outstanding: 45,582,726
• 10 Day Avg. Volume: 41,717
• 30 Day Avg. Volume: 34,175
• PEG Ratio: <0.01
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.94
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

Source Rock Royalties Ltd. presents a balanced investment profile. Its strong financial performance and positive corporate events are offset by high valuation concerns and neutral technical indicators. The attractive dividend yield enhances its appeal, despite the challenges in profit margins and cash flow management.

Source Rock Royalties Ltd. Business Overview & Revenue Model

Company Description

Source Rock Royalties Ltd. (SRR) is a company engaged in the acquisition and management of royalty interests in the oil and gas sectors. Their core focus lies in generating stable, long-term income streams by investing in royalty interests, which provide them with a percentage of the revenue from oil and gas production without the operational risks and costs associated with exploration and production activities.

How the Company Makes Money

Source Rock Royalties Ltd. makes money by acquiring and managing royalty interests in oil and gas properties. These interests entitle the company to a share of the revenue generated from the production of oil and gas, typically calculated as a percentage of the gross revenue or production from the property. This revenue model allows SRR to benefit from the production output and commodity price fluctuations without directly bearing the operational costs and risks associated with drilling and extraction. The company seeks to enhance its revenue through strategic acquisitions of royalty interests and leveraging partnerships with operators and producers in the oil and gas industry. Significant factors contributing to its earnings include the volume of production from its royalty interests, prevailing market prices for oil and gas, and the operational efficiency of the production activities conducted by its partners.

Source Rock Royalties Ltd. Financial Statement Overview

Summary

Source Rock Royalties Ltd. demonstrates strong financial health with consistent revenue growth and a robust balance sheet. However, challenges are evident in variable profit margins and recent negative free cash flow, indicating areas for improvement in profitability and cash flow management.

Income Statement

Source Rock Royalties Ltd. has shown consistent revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has fluctuated, primarily due to variable net income, which suggests some instability in profitability.

Balance Sheet

The company maintains a robust balance sheet with no debt, leading to a favorable debt-to-equity ratio. The equity ratio is strong, indicating the company is well-capitalized and financially stable. The return on equity is positive, reflecting effective use of equity to generate profits.

Cash Flow

Operating cash flow is solid and generally aligns well with net income, indicating healthy operations. However, free cash flow has been negative recently, which could pose challenges for funding future investments without external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.69M	6.65M	6.49M	4.26M	1.38M
	Gross Profit
3.75M	3.46M	4.31M	2.03M	339.25K
	EBIT
2.04M	5.02M	3.16M	2.61M	4.68M
	EBITDA
6.11M	5.02M	5.34M	4.84M	763.28K
	Net Income Common Stockholders
1.50M	1.57M	2.56M	176.54K	-2.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.64M	1.46M	13.15M	1.49M	913.56K
	Total Assets
26.59M	27.26M	28.82M	15.36M	16.46M
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-4.64M	-1.46M	-13.15M	-1.49M	-913.56K
	Total Liabilities
865.12K	401.50K	1.38M	795.93K	708.69K
	Stockholders Equity
25.72M	26.86M	27.44M	14.56M	15.75M
Cash Flow		Free Cash Flow
6.62M	-8.36M	1.70M	2.21M	460.66K
	Operating Cash Flow
6.65M	4.91M	5.32M	3.41M	1.15M
	Investing Cash Flow
-27.10K	-13.28M	-3.62M	-1.19M	-684.86K
	Financing Cash Flow
-3.45M	-3.33M	9.96M	-1.63M	-863.82K

Source Rock Royalties Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.87
• 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:SRR, the sentiment is Positive. The current price of 0.87 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.84, and above the 200-day MA of 0.84, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SRR.

Source Rock Royalties Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OVV	76 Outperform	$10.88B	17.84	6.17%	2.87%	-14.46%	-67.20%
SRR	73 Outperform		24.23	6.30%	8.96%	15.70%	-5.46%
RBY	72 Outperform	C$177.73M	2.57	21.76%	―	83.19%	-43.74%
TPZ	70 Outperform	C$4.07B	74.35	4.22%	5.14%	2.02%	12.06%
FRU	69 Neutral	$2.13B	13.16	15.22%	8.15%	-1.62%	12.60%
PSK	65 Neutral	$5.72B	25.64	8.39%	4.07%	1.73%	3.68%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%

Source Rock Royalties Ltd. Corporate Events

Source Rock Royalties Reports Record 2024 Financial Results

Source Rock Royalties Ltd. reported record financial results for 2024, with significant increases in annual royalty production, revenue, and adjusted EBITDA. The company also declared substantial dividends and achieved a strong operating netback. These results reflect Source Rock’s strategic focus on leveraging industry relationships to acquire and manage oil-focused royalty interests, enhancing its market position and providing value to stakeholders.

Spark’s Take on TSE:SRR Stock

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

Source Rock Royalties Ltd. shows robust financial health with a strong balance sheet and consistent revenue growth. However, challenges in profit margins and cash flow management, combined with a potentially high valuation, balance the outlook. The neutral technical indicators suggest a stable market environment, while the attractive dividend yield provides a compensatory factor for potential valuation concerns.

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

Source Rock Royalties Declares Monthly Dividend

Source Rock Royalties Ltd. has declared a monthly dividend of $0.0065 per common share, payable on May 15, 2025, to shareholders of record as of April 30, 2025. This announcement reflects the company’s commitment to providing shareholder value through dividends, supported by its strategic focus on leveraging industry relationships for royalty acquisitions and maintaining a sustainable business model.

Spark’s Take on TSE:SRR Stock

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

Source Rock Royalties Ltd. shows robust financial health with a strong balance sheet and consistent revenue growth. However, challenges in profit margins and cash flow management, combined with a potentially high valuation, balance the outlook. The neutral technical indicators suggest a stable market environment, while the attractive dividend yield provides a compensatory factor for potential valuation concerns.

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

Source Rock Royalties Declares Monthly Dividend for Shareholders

Source Rock Royalties Ltd. has declared a monthly dividend of $0.0065 per common share, payable on April 15, 2025, to shareholders recorded by March 31, 2025. This announcement reflects the company’s commitment to providing shareholder value through regular dividends, supported by its strategic focus on maintaining a low-cost structure and enhancing funds from operations.

Source Rock Royalties Achieves Record Production and Revenue in 2024

Source Rock Royalties Ltd. announced record annual royalty production and revenue for fiscal 2024, marking the highest results in its 12-year history. The company reported a 21% increase in royalty production and a 16% rise in royalty revenue compared to 2023, driven by acquisitions and drilling activities. With a significant increase in working capital, Source Rock is actively pursuing additional royalty acquisitions to expand and diversify its production base.

Source Rock Royalties Declares Monthly Dividend Amid Growth Strategy

Source Rock Royalties Ltd. declared a monthly dividend of $0.0065 per common share, payable on March 14, 2025, to shareholders of record on February 28, 2025. This dividend announcement reflects the company’s strategy to provide returns to its shareholders while pursuing growth through accretive royalty acquisitions. By maintaining a low-cost structure and leveraging industry partnerships, Source Rock aims to enhance its market position and ensure sustainable business operations.

Source Rock Royalties Confirms January 2025 Dividend Payment Details

Source Rock Royalties Ltd. announced the record and payment dates for its January 2025 monthly dividend, confirming that shareholders of record as of January 31, 2025, will receive a cash dividend of $0.0065 per common share on February 14, 2025. This announcement ensures clarity for stakeholders following a late dividend notice issued by the TSX Venture Exchange, emphasizing Source Rock’s commitment to maintaining shareholder value and transparency in its financial operations.