PRAIRIESKY ROYALTY LTD (PSK.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PSK - CA7397211086 - Common Stock
28.61 CAD
+0.35 (+1.24%)
We assign a fundamental rating of 5 out of 10 to PSK. PSK was compared to 206 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year PSK was profitable.
- In the past year PSK had a positive cash flow from operations.
- In the past 5 years PSK has always been profitable.
- PSK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PSK has a Return On Assets of 6.97%. This is amongst the best in the industry. PSK outperforms 90.29% of its industry peers.
- Looking at the Return On Equity, with a value of 8.63%, PSK is in the better half of the industry, outperforming 75.73% of the companies in the same industry.
- The Return On Invested Capital of PSK (7.49%) is better than 90.29% of its industry peers.
- PSK had an Average Return On Invested Capital over the past 3 years of 8.35%. This is in line with the industry average of 6.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 8.63% | ||
| ROIC | 7.49% |
ROA(3y)7.63%
ROA(5y)5.52%
ROE(3y)9.18%
ROE(5y)6.73%
ROIC(3y)8.35%
ROIC(5y)5.96%
1.3 Margins
- Looking at the Profit Margin, with a value of 43.98%, PSK belongs to the top of the industry, outperforming 98.06% of the companies in the same industry.
- PSK's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 59.55%, PSK belongs to the top of the industry, outperforming 99.51% of the companies in the same industry.
- PSK's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.55% | ||
| PM (TTM) | 43.98% | ||
| GM | N/A |
OM growth 3Y2.85%
OM growth 5Y6.85%
PM growth 3Y1.84%
PM growth 5Y0.37%
GM growth 3YN/A
GM growth 5YN/A
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.
- PSK has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for PSK has been increased compared to 5 years ago.
- PSK has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.60 indicates that PSK is not in any danger for bankruptcy at the moment.
- The Altman-Z score of PSK (6.60) is better than 86.89% of its industry peers.
- The Debt to FCF ratio of PSK is 0.94, which is an excellent value as it means it would take PSK, only 0.94 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of PSK (0.94) is better than 91.75% of its industry peers.
- PSK has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- PSK has a better Debt to Equity ratio (0.10) than 72.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 6.6 |
ROIC/WACC0.94
WACC7.98%
2.3 Liquidity
- A Current Ratio of 0.64 indicates that PSK may have some problems paying its short term obligations.
- The Current ratio of PSK (0.64) is comparable to the rest of the industry.
- A Quick Ratio of 0.64 indicates that PSK may have some problems paying its short term obligations.
- PSK has a Quick ratio (0.64) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.13% over the past year.
- PSK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.88% yearly.
- PSK shows a decrease in Revenue. In the last year, the revenue decreased by -1.59%.
- Measured over the past years, PSK shows a quite strong growth in Revenue. The Revenue has been growing by 13.66% on average per year.
EPS 1Y (TTM)0.13%
EPS 3Y18.56%
EPS 5Y13.88%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)-1.59%
Revenue growth 3Y18.24%
Revenue growth 5Y13.66%
Sales Q2Q%-2.13%
3.2 Future
- PSK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.43% yearly.
- Based on estimates for the next years, PSK will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y-2.93%
EPS Next 2Y-1.57%
EPS Next 3Y1.43%
EPS Next 5YN/A
Revenue Next Year-2.4%
Revenue Next 2Y3.17%
Revenue Next 3Y0.38%
Revenue Next 5Y2.01%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 31.79, PSK can be considered very expensive at the moment.
- PSK's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of PSK to the average of the S&P500 Index (28.87), we can say PSK is valued inline with the index average.
- A Price/Forward Earnings ratio of 32.81 indicates a quite expensive valuation of PSK.
- PSK's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, PSK is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.79 | ||
| Fwd PE | 32.81 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSK.
- Based on the Price/Free Cash Flow ratio, PSK is valued a bit cheaper than 64.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.47 | ||
| EV/EBITDA | 15.2 |
4.3 Compensation for Growth
- The decent profitability rating of PSK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.29
EPS Next 2Y-1.57%
EPS Next 3Y1.43%
5. Dividend
5.1 Amount
- PSK has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.29, PSK pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PSK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
- The dividend of PSK has a limited annual growth rate of 4.87%.
- PSK has been paying a dividend for at least 10 years, so it has a reliable track record.
- PSK has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.87%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 109.60% of the earnings are spent on dividend by PSK. This is not a sustainable payout ratio.
- PSK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP109.6%
EPS Next 2Y-1.57%
EPS Next 3Y1.43%
PRAIRIESKY ROYALTY LTD / PSK.CA FAQ
Can you provide the ChartMill fundamental rating for PRAIRIESKY ROYALTY LTD?
ChartMill assigns a fundamental rating of 5 / 10 to PSK.CA.
What is the valuation status for PSK stock?
ChartMill assigns a valuation rating of 3 / 10 to PRAIRIESKY ROYALTY LTD (PSK.CA). This can be considered as Overvalued.
Can you provide the profitability details for PRAIRIESKY ROYALTY LTD?
PRAIRIESKY ROYALTY LTD (PSK.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for PSK stock?
The Price/Earnings (PE) ratio for PRAIRIESKY ROYALTY LTD (PSK.CA) is 31.79 and the Price/Book (PB) ratio is 2.6.
What is the expected EPS growth for PRAIRIESKY ROYALTY LTD (PSK.CA) stock?
The Earnings per Share (EPS) of PRAIRIESKY ROYALTY LTD (PSK.CA) is expected to decline by -2.93% in the next year.