Source Rock Royalties Ltd. (TSE:SRR)
:SRR
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Source Rock Royalties Ltd.
(SRR)
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Rating:70Outperform
Price Target:
C$1.00
â–²(13.64% Upside)
Action:Reiterated
Date:05/31/26
The score is primarily driven by strong financial resilience (debt-free balance sheet) and solid profitability/cash conversion, partially offset by weakening growth and softer cash-flow momentum. Technicals are neutral with only modest longer-term trend support, and valuation is a trade-off between a high dividend yield and an elevated P/E.
Positive Factors
Debt-free Balance Sheet
A zero-debt capital structure materially reduces financial risk and preserves flexibility across commodity and cycle swings. With equity nearly equal to assets, the company can fund operations or withstand downturns without interest burdens, supporting durable capital-allocation optionality.
Negative Factors
Weakening Revenue Growth
A declining top line erodes the base for future earnings and limits scalability of profits. When growth is negative, the company must rely on margin expansion to sustain earnings, which can be harder to maintain and increases sensitivity to cost or price shocks over a multi-month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free Balance Sheet
A zero-debt capital structure materially reduces financial risk and preserves flexibility across commodity and cycle swings. With equity nearly equal to assets, the company can fund operations or withstand downturns without interest burdens, supporting durable capital-allocation optionality.
Read all positive factors
Source Rock Royalties Ltd. (SRR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$45.13M
Dividend Yield7.39%
Average Volume (3M)33.73K
Price to Earnings (P/E)34.3
Beta (1Y)0.19
Revenue Growth-25.89%
EPS Growth-19.50%
CountryCA
EmployeesN/A
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.03
Shares Outstanding45,582,726
10 Day Avg. Volume43,484
30 Day Avg. Volume33,733
Financial Highlights & Ratios
PEG Ratio-2.50
Price to Book (P/B)1.71
Price to Sales (P/S)6.65
P/FCF Ratio8.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Source Rock Royalties Ltd. Business Overview & Revenue Model
Company Description
Source Rock Royalties Ltd. is dedicated to securing and actively overseeing hydrocarbon royalties and sub-surface mineral rights. The company's investment portfolio primarily emphasizes light crude oil royalty assets, which are strategically locat...
How the Company Makes Money
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Source Rock Royalties Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
68
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.03M | 7.69M | 6.65M | 6.49M | 4.26M |
| Gross Profit | 3.07M | 3.75M | 3.46M | 4.31M | 2.03M |
| EBITDA | 4.61M | 6.11M | 5.02M | 5.34M | 3.47M |
| Net Income | 1.32M | 1.50M | 1.57M | 2.56M | 176.54K |
Balance Sheet | |||||
| Total Assets | 23.95M | 26.59M | 27.26M | 28.82M | 15.36M |
| Cash, Cash Equivalents and Short-Term Investments | 4.15M | 4.64M | 1.46M | 13.15M | 1.49M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 531.09K | 865.12K | 401.50K | 1.38M | 795.93K |
| Stockholders Equity | 23.42M | 25.72M | 26.86M | 27.44M | 14.56M |
Cash Flow | |||||
| Free Cash Flow | 4.59M | 6.62M | -8.36M | 1.70M | 2.21M |
| Operating Cash Flow | 4.62M | 6.65M | 4.91M | 5.32M | 3.41M |
| Investing Cash Flow | -830.89K | -27.10K | -13.28M | -3.62M | -1.19M |
| Financing Cash Flow | -4.27M | -3.45M | -3.33M | 9.96M | -1.63M |
Source Rock Royalties Ltd. Technical Analysis
Positive
0.88
Price Trends
0.98
Positive
0.95
Positive
0.89
Positive
Market Momentum
<0.01
Positive
51.86
Neutral
42.86
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 below the 20-day moving average (MA) of 0.99, below the 50-day MA of 0.98, and below the 200-day MA of 0.89, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$2.70B | 30.09 | 8.81% | 7.05% | -7.99% | -44.67% | |
73 Outperform | C$7.42B | 36.47 | 7.89% | 3.76% | -6.33% | -8.64% | |
70 Outperform | C$45.13M | 34.25 | 5.53% | 7.39% | -25.89% | -19.50% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
TSE:SRR
Source Rock Royalties Ltd.
0.99
0.19
24.06%
TSE:FRU
Freehold Royalties
16.44
4.50
37.69%
TSE:PSK
PrairieSky Royalty
31.93
9.19
40.41%
Source Rock Royalties Ltd. Corporate Events
Business Operations and StrategyDividends
Source Rock Royalties Declares Monthly Dividend in Support of Growth-and-Yield Strategy
Positive
Apr 15, 2026
Source Rock Royalties Ltd. has declared a monthly cash dividend of $0.0065 per common share, payable on May 15, 2026 to shareholders of record as of April 30, 2026, and designated the payout as an eligible dividend for Canadian income tax purposes...
Business Operations and StrategyFinancial Disclosures
Source Rock Royalties Posts Lower 2025 Revenue but Scores Win on Crown Lease Sale
Neutral
Mar 24, 2026
Source Rock Royalties reported unaudited 2025 results showing average royalty production of 230 boe/d, 92% weighted to oil and NGLs, with royalty revenue of $6.03 million, down 22% year over year. Fourth-quarter production averaged 226 boe/d with ...
Business Operations and StrategyDividends
Source Rock Royalties Declares Monthly Dividend as It Pursues Growth-and-Yield Strategy
Positive
Mar 16, 2026
Source Rock Royalties Ltd. has declared a monthly cash dividend of $0.0065 per common share, payable on April 15, 2026, to shareholders of record as of March 31, 2026. The dividend has been designated as an eligible dividend for Canadian tax purpo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.