Source Rock Royalties Ltd. (TSE:SRR)
:SRR
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Source Rock Royalties Ltd.
(SRR)
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Rating:73Outperform
Price Target:
C$1.00
▲(13.64% Upside)
Action:ReiteratedDate:04/21/26
The score is driven primarily by strong financial quality—especially the debt-free balance sheet and solid operating cash flow—partly offset by revenue/free-cash-flow variability. Technicals are neutral-to-mildly positive, while valuation is only moderate given a 21.21 P/E despite a supportive 3.9% dividend yield.
Positive Factors
Debt-free balance sheet
A zero-debt balance sheet materially reduces financial distress risk and interest burdens, giving management durable flexibility to fund dividends, opportunistic M&A, or capex from internally generated cash. This structural strength supports resilience through commodity cycles and economic shocks over the next 2–6 months and beyond.
Negative Factors
Revenue volatility and 2025 decline
Volatile revenue, including a decline in 2025, reflects sensitivity to commodity prices and royalty volumes. That structural top-line variability makes forecasting cash flows and dividends less reliable, complicates capital allocation decisions, and raises risk for investors seeking predictable midterm income or growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt balance sheet materially reduces financial distress risk and interest burdens, giving management durable flexibility to fund dividends, opportunistic M&A, or capex from internally generated cash. This structural strength supports resilience through commodity cycles and economic shocks over the next 2–6 months and beyond.
Read all positive factors
Source Rock Royalties Ltd. (SRR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
N/A
Dividend Yield7.39%
Average Volume (3M)33.73K
Price to Earnings (P/E)32.5
Beta (1Y)0.24
Revenue Growth-21.57%
EPS Growth-11.85%
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. 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, an...
How the Company Makes Money
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Source Rock Royalties Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
90
Very Positive
Cash Flow
76
Positive
| Breakdown | Dec 2025 | 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
Neutral
0.88
Price Trends
0.94
Positive
0.90
Positive
0.86
Positive
Market Momentum
0.01
Positive
49.69
Neutral
71.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SRR, the sentiment is Neutral. The current price of 0.88 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 0.94, and above the 200-day MA of 0.86, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 49.69 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SRR.
Source Rock Royalties Ltd. Peers Comparison
UnderperformOutperform
Sector (65)
TSE:SRR
Source Rock Royalties Ltd.
0.98
0.21
27.27%
TSE:FRU
Freehold Royalties
17.37
6.41
58.49%
TSE:PSK
PrairieSky Royalty
33.39
11.13
50.00%
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...
Business Operations and StrategyDividends
Source Rock Royalties Declares Monthly Dividend as It Advances Growth-and-Yield Strategy
Positive
Feb 12, 2026
Source Rock Royalties Ltd. has declared a monthly cash dividend of $0.0065 per common share, payable on March 13, 2026 to shareholders of record as of February 27, 2026, and has designated the payment as an eligible dividend for Canadian income ta...
Business Operations and StrategyDividends
Source Rock Royalties Declares Monthly Dividend and Reaffirms Growth-and-Yield Strategy
Positive
Feb 12, 2026
Source Rock Royalties Ltd., a Calgary-based oil and gas royalty company with a portfolio of oil royalties in key Western Canadian producing regions, targets a low-cost, scalable business model that balances growth and income for shareholders. The ...
Business Operations and Strategy
Source Rock Expands Alberta Royalty Footprint With New Crown Mineral Leases
Positive
Feb 3, 2026
Source Rock Royalties Ltd. has expanded its footprint in Alberta through a joint acquisition with a private partner of 31 sections (19,840 acres) of Crown mineral rights, split between long-term oil sands leases and shorter-term petroleum and natu...
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.