Source Rock Royalties Ltd. (SRR) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 7.39%
• Average Volume (3M): 33.73K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.42
• Revenue Growth: -12.83%
• EPS Growth: 9.54%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.01
• Shares Outstanding: 45,582,726
• 10 Day Avg. Volume: 43,484
• 30 Day Avg. Volume: 33,733
• PEG Ratio: -4.79
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 5.08
• P/FCF Ratio: 5.89
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$0.99 ▲(12.50% Upside)

The score is driven primarily by strong financial resilience (high margins and a debt-free balance sheet). Technicals are supportive with price holding above key averages, while valuation is tempered by a higher P/E despite an attractive dividend yield; recent corporate actions reinforce the income profile and potential portfolio expansion.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides significant financial flexibility and reduces solvency risk, supporting long-term stability and growth.

High Margins

High margins indicate strong pricing power and operational efficiency, which can sustain profitability even in challenging market conditions.

Joint Venture for Growth

The joint venture expands the royalty portfolio, providing immediate drilling opportunities and long-term growth potential in the oil sands sector.

Negative Factors

Revenue Contraction

Declining revenue can impact future profitability and cash flow, challenging the company's ability to maintain growth and shareholder returns.

Free Cash Flow Volatility

Volatile free cash flow can hinder consistent capital allocation and investment, affecting long-term strategic initiatives and financial health.

Weaker Oil Prices Impact

Weaker oil prices can reduce revenue and profitability, impacting cash flow and limiting the ability to fund growth initiatives in the oil and gas sector.

Source Rock Royalties Ltd. Business Overview & Revenue Model

Company Description

Source Rock Royalties Ltd. acquires and manages oil and gas royalties and mineral title interests. The company has a light oil focused portfolio of royalty interests concentrated in S.E. Saskatchewan, east-central Alberta, west-central Alberta, and west-central Saskatchewan. Source Rock Royalties Ltd. was incorporated in 2012 and is headquartered in Calgary, Canada.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.57M	7.69M	6.65M	6.49M	4.26M	1.38M
Gross Profit	3.46M	3.75M	3.46M	4.31M	2.03M	339.25K
EBITDA	5.09M	6.11M	5.02M	5.34M	3.47M	763.28K
Net Income	1.52M	1.50M	1.57M	2.56M	176.54K	-2.86M
Balance Sheet
Total Assets	24.45M	26.59M	27.26M	28.82M	15.36M	16.46M
Cash, Cash Equivalents and Short-Term Investments	4.70M	4.64M	1.46M	13.15M	1.49M	913.56K
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	530.42K	865.12K	401.50K	1.38M	795.93K	708.69K
Stockholders Equity	23.92M	25.72M	26.86M	27.44M	14.56M	15.75M
Cash Flow
Free Cash Flow	5.22M	6.62M	-8.36M	1.70M	2.21M	460.66K
Operating Cash Flow	5.25M	6.65M	4.91M	5.32M	3.41M	1.15M
Investing Cash Flow	-137.26K	-27.10K	-13.28M	-3.62M	-1.19M	-684.86K
Financing Cash Flow	-4.27M	-3.45M	-3.33M	9.96M	-1.63M	-863.82K

Source Rock Royalties Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.88
• 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 0.88 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.87, and above the 200-day MA of 0.84, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.88 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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
SRR	75 Outperform	―	27.03	5.10%	7.39%	-12.83%	9.54%
OGN	69 Neutral	C$225.57M	49.22	9.02%	―	39.37%	―
ELE	68 Neutral	C$1.76B	93.79	2.92%	―	131.18%	150.47%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Source Rock Royalties Ltd. Corporate Events

Source Rock Royalties Declares Monthly Dividend and Reaffirms Yield-Focused Strategy

Source Rock Royalties Ltd. has declared a monthly cash dividend of $0.0065 per common share, payable on February 13, 2026 to shareholders of record as of January 30, 2026, and has designated the payment as an eligible dividend for Canadian income tax purposes. The announcement underscores the company’s commitment to returning capital to shareholders while continuing to execute its strategy of disciplined royalty acquisitions and operational efficiency, reinforcing its positioning as a yield-focused royalty vehicle within the Canadian oil and gas sector.

The most recent analyst rating on (TSE:SRR) stock is a Hold with a C$0.95 price target. To see the full list of analyst forecasts on Source Rock Royalties Ltd. stock, see the TSE:SRR Stock Forecast page.

Source Rock Royalties Declares Monthly Dividend for February 2026

Source Rock Royalties Ltd. has declared a monthly cash dividend of $0.0065 per common share, payable on February 13, 2026 to shareholders of record as of January 30, 2026, and has designated the payout as an eligible dividend for Canadian tax purposes. The decision underscores the company’s emphasis on delivering regular income to shareholders alongside growth via royalty acquisitions, reinforcing its position as an income-focused royalty player in the Western Canadian oil sector.

The most recent analyst rating on (TSE:SRR) stock is a Hold with a C$0.95 price target. To see the full list of analyst forecasts on Source Rock Royalties Ltd. stock, see the TSE:SRR Stock Forecast page.

Source Rock Royalties Declares Monthly Dividend

Source Rock Royalties Ltd. has declared a monthly dividend of $0.0065 per common share, payable on January 15, 2026, to shareholders of record on December 31, 2025. This move reflects the company’s strategy of maintaining a balanced growth and yield model, which could enhance its attractiveness to investors seeking stable returns from the oil and gas sector.

Source Rock Royalties Reports Q3 2025 Results Amidst Weaker Oil Prices

In its third quarter of 2025, Source Rock Royalties Ltd. reported a decline in royalty production and revenue due to weaker oil prices, which led to reduced drilling activity. Despite these challenges, the company maintained a strong cash flow and a manageable dividend payout ratio, while also exploring opportunities to acquire royalties and mineral interests at lower valuations. The company is leveraging its joint venture in oil sands Crown mineral rights leasing to create additional growth paths and aims to continue prudent capital deployment to drive free cash flow and achieve long-term value creation.

Source Rock Royalties Declares Monthly Dividend for December

Source Rock Royalties Ltd. has announced a monthly dividend of $0.0065 per common share, payable on December 15, 2025, to shareholders recorded by November 28, 2025. This move reflects the company’s commitment to providing shareholder value through dividends, supported by its strategic focus on maintaining a low-cost structure and growing funds from operations.

Source Rock Royalties Enters Joint Venture for Alberta Mineral Rights

Source Rock Royalties Ltd. has announced a joint acquisition agreement with a private company to lease Crown mineral rights in Alberta, focusing on oil sands and petroleum and natural gas leases. This joint venture aims to farm out the development rights in exchange for royalty interests, targeting heavy oil horizons within the Mannville Stack. The initiative is expected to expand Source Rock’s royalty portfolio, providing both immediate drilling opportunities and long-term growth potential.

Source Rock Royalties Declares Monthly Dividend

Source Rock Royalties Ltd. has declared a monthly dividend of $0.0065 per common share, payable on November 14, 2025, to shareholders of record on October 31, 2025. This move aligns with the company’s strategy of using funds from operations for both accretive royalty acquisitions and dividend payments, reinforcing its commitment to providing value to shareholders and maintaining a strong financial position.