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PRAIRIESKY ROYALTY LTD (PSK.CA) Stock Fundamental Analysis

TSX:PSK - Toronto Stock Exchange - CA7397211086 - Common Stock - Currency: CAD

27.23  +0.08 (+0.29%)

Fundamental Rating

5

PSK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. PSK has an excellent profitability rating, but there are some minor concerns on its financial health. PSK has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

PSK had positive earnings in the past year.
PSK had a positive operating cash flow in the past year.
PSK had positive earnings in each of the past 5 years.
In the past 5 years PSK always reported a positive cash flow from operatings.
PSK.CA Yearly Net Income VS EBIT VS OCF VS FCFPSK.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M -600M

1.2 Ratios

The Return On Assets of PSK (7.07%) is better than 83.58% of its industry peers.
The Return On Equity of PSK (8.37%) is comparable to the rest of the industry.
The Return On Invested Capital of PSK (8.05%) is better than 79.60% of its industry peers.
PSK had an Average Return On Invested Capital over the past 3 years of 7.12%. This is in line with the industry average of 7.73%.
The 3 year average ROIC (7.12%) for PSK is below the current ROIC(8.05%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.07%
ROE 8.37%
ROIC 8.05%
ROA(3y)6.56%
ROA(5y)5%
ROE(3y)8.15%
ROE(5y)6.06%
ROIC(3y)7.12%
ROIC(5y)5.13%
PSK.CA Yearly ROA, ROE, ROICPSK.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

With an excellent Profit Margin value of 43.84%, PSK belongs to the best of the industry, outperforming 96.52% of the companies in the same industry.
PSK's Profit Margin has improved in the last couple of years.
The Operating Margin of PSK (60.19%) is better than 99.50% of its industry peers.
In the last couple of years the Operating Margin of PSK has grown nicely.
Industry RankSector Rank
OM 60.19%
PM (TTM) 43.84%
GM N/A
OM growth 3Y38.73%
OM growth 5Y10.15%
PM growth 3Y33.85%
PM growth 5Y8.87%
GM growth 3YN/A
GM growth 5YN/A
PSK.CA Yearly Profit, Operating, Gross MarginsPSK.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

6

2. Health

2.1 Basic Checks

PSK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PSK has about the same amount of shares outstanding.
The number of shares outstanding for PSK has been increased compared to 5 years ago.
Compared to 1 year ago, PSK has an improved debt to assets ratio.
PSK.CA Yearly Shares OutstandingPSK.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
PSK.CA Yearly Total Debt VS Total AssetsPSK.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

An Altman-Z score of 7.83 indicates that PSK is not in any danger for bankruptcy at the moment.
PSK has a Altman-Z score of 7.83. This is amongst the best in the industry. PSK outperforms 90.55% of its industry peers.
PSK has a debt to FCF ratio of 0.46. This is a very positive value and a sign of high solvency as it would only need 0.46 years to pay back of all of its debts.
PSK has a better Debt to FCF ratio (0.46) than 94.53% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that PSK is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, PSK belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.46
Altman-Z 7.83
ROIC/WACC1.04
WACC7.76%
PSK.CA Yearly LT Debt VS Equity VS FCFPSK.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B

2.3 Liquidity

A Current Ratio of 0.30 indicates that PSK may have some problems paying its short term obligations.
PSK has a worse Current ratio (0.30) than 87.56% of its industry peers.
A Quick Ratio of 0.30 indicates that PSK may have some problems paying its short term obligations.
PSK has a Quick ratio of 0.30. This is amonst the worse of the industry: PSK underperforms 86.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.3
Quick Ratio 0.3
PSK.CA Yearly Current Assets VS Current LiabilitesPSK.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

4

3. Growth

3.1 Past

PSK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 146.30%, which is quite impressive.
PSK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.13% yearly.
PSK shows a decrease in Revenue. In the last year, the revenue decreased by -3.22%.
The Revenue has been growing by 13.23% on average over the past years. This is quite good.
EPS 1Y (TTM)146.3%
EPS 3Y41.44%
EPS 5Y21.13%
EPS Q2Q%-13.04%
Revenue 1Y (TTM)-3.22%
Revenue growth 3Y33.83%
Revenue growth 5Y13.23%
Sales Q2Q%-11.87%

3.2 Future

The Earnings Per Share is expected to decrease by -6.97% on average over the next years.
PSK is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.21% yearly.
EPS Next Y-29.12%
EPS Next 2Y-16.07%
EPS Next 3Y-4.42%
EPS Next 5Y-6.97%
Revenue Next Year-18.14%
Revenue Next 2Y-11.63%
Revenue Next 3Y-5.99%
Revenue Next 5Y-5.21%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
PSK.CA Yearly Revenue VS EstimatesPSK.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M
PSK.CA Yearly EPS VS EstimatesPSK.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6 0.8 1

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 20.47 indicates a rather expensive valuation of PSK.
Compared to the rest of the industry, the Price/Earnings ratio of PSK is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PSK to the average of the S&P500 Index (28.12), we can say PSK is valued slightly cheaper.
The Price/Forward Earnings ratio is 29.07, which means the current valuation is very expensive for PSK.
The rest of the industry has a similar Price/Forward Earnings ratio as PSK.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.77, PSK is valued rather cheaply.
Industry RankSector Rank
PE 20.47
Fwd PE 29.07
PSK.CA Price Earnings VS Forward Price EarningsPSK.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

PSK's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PSK is valued a bit cheaper than the industry average as 60.70% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.92
EV/EBITDA 10.95
PSK.CA Per share dataPSK.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

PSK has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PSK's earnings are expected to decrease with -4.42% in the coming years.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y-16.07%
EPS Next 3Y-4.42%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.63%, PSK has a reasonable but not impressive dividend return.
PSK's Dividend Yield is a higher than the industry average which is at 6.59.
Compared to an average S&P500 Dividend Yield of 2.29, PSK pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.63%

5.2 History

The dividend of PSK has a limited annual growth rate of 4.43%.
PSK has paid a dividend for at least 10 years, which is a reliable track record.
PSK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.43%
Div Incr Years2
Div Non Decr Years2
PSK.CA Yearly Dividends per sharePSK.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

100.43% of the earnings are spent on dividend by PSK. This is not a sustainable payout ratio.
The Dividend Rate of PSK has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP100.43%
EPS Next 2Y-16.07%
EPS Next 3Y-4.42%
PSK.CA Yearly Income VS Free CF VS DividendPSK.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M -600M
PSK.CA Dividend Payout.PSK.CA Dividend Payout, showing the Payout Ratio.PSK.CA Dividend Payout.PayoutRetained Earnings

PRAIRIESKY ROYALTY LTD

TSX:PSK (2/7/2025, 7:00:00 PM)

27.23

+0.08 (+0.29%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-28 2024-10-28/amc
Earnings (Next)02-10 2025-02-10/amc
Inst Owners66.49%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap6.51B
Analysts71.25
Price Target31.53 (15.79%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.63%
Yearly Dividend0.96
Dividend Growth(5Y)4.43%
DP100.43%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.04%
Min EPS beat(2)-29.28%
Max EPS beat(2)-20.79%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)3.69%
Min Revenue beat(2)-7.36%
Max Revenue beat(2)14.75%
Revenue beat(4)3
Avg Revenue beat(4)8.85%
Min Revenue beat(4)-7.36%
Max Revenue beat(4)19.8%
Revenue beat(8)5
Avg Revenue beat(8)3.37%
Revenue beat(12)9
Avg Revenue beat(12)38.79%
Revenue beat(16)13
Avg Revenue beat(16)37.56%
PT rev (1m)-0.89%
PT rev (3m)2.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.44%
EPS NY rev (3m)-5.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.44%
Valuation
Industry RankSector Rank
PE 20.47
Fwd PE 29.07
P/S 12.37
P/FCF 19.92
P/OCF 16.9
P/B 2.36
P/tB 3.06
EV/EBITDA 10.95
EPS(TTM)1.33
EY4.88%
EPS(NY)0.94
Fwd EY3.44%
FCF(TTM)1.37
FCFY5.02%
OCF(TTM)1.61
OCFY5.92%
SpS2.2
BVpS11.53
TBVpS8.89
PEG (NY)N/A
PEG (5Y)0.97
Profitability
Industry RankSector Rank
ROA 7.07%
ROE 8.37%
ROCE 10.51%
ROIC 8.05%
ROICexc 8.05%
ROICexgc 10.18%
OM 60.19%
PM (TTM) 43.84%
GM N/A
FCFM 62.11%
ROA(3y)6.56%
ROA(5y)5%
ROE(3y)8.15%
ROE(5y)6.06%
ROIC(3y)7.12%
ROIC(5y)5.13%
ROICexc(3y)7.12%
ROICexc(5y)5.13%
ROICexgc(3y)12.32%
ROICexgc(5y)9.08%
ROCE(3y)9.3%
ROCE(5y)6.72%
ROICexcg growth 3Y60.18%
ROICexcg growth 5Y10.58%
ROICexc growth 3Y85.91%
ROICexc growth 5Y21.44%
OM growth 3Y38.73%
OM growth 5Y10.15%
PM growth 3Y33.85%
PM growth 5Y8.87%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.16
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.46
Debt/EBITDA 0
Cap/Depr 20.17%
Cap/Sales 11.1%
Interest Coverage 20.69
Cash Conversion 63.53%
Profit Quality 141.67%
Current Ratio 0.3
Quick Ratio 0.3
Altman-Z 7.83
F-Score5
WACC7.76%
ROIC/WACC1.04
Cap/Depr(3y)171.69%
Cap/Depr(5y)106.44%
Cap/Sales(3y)112.01%
Cap/Sales(5y)69.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)146.3%
EPS 3Y41.44%
EPS 5Y21.13%
EPS Q2Q%-13.04%
EPS Next Y-29.12%
EPS Next 2Y-16.07%
EPS Next 3Y-4.42%
EPS Next 5Y-6.97%
Revenue 1Y (TTM)-3.22%
Revenue growth 3Y33.83%
Revenue growth 5Y13.23%
Sales Q2Q%-11.87%
Revenue Next Year-18.14%
Revenue Next 2Y-11.63%
Revenue Next 3Y-5.99%
Revenue Next 5Y-5.21%
EBIT growth 1Y-7.88%
EBIT growth 3Y99.96%
EBIT growth 5Y24.89%
EBIT Next Year67.93%
EBIT Next 3Y21.42%
EBIT Next 5YN/A
FCF growth 1Y158.31%
FCF growth 3Y22.24%
FCF growth 5Y8.13%
OCF growth 1Y-2.63%
OCF growth 3Y27.93%
OCF growth 5Y6.28%