PRAIRIESKY ROYALTY LTD (PSK.CA) Stock Fundamental Analysis
TSX:PSK - Toronto Stock Exchange - CA7397211086 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to PSK. PSK was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While PSK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PSK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PSK had positive earnings in the past year.
In the past year PSK had a positive cash flow from operations.
PSK had positive earnings in each of the past 5 years.
PSK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PSK (7.07%) is better than 83.58% of its industry peers.
PSK has a Return On Equity (8.37%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.05%, PSK is in the better half of the industry, outperforming 79.60% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PSK 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 Rank | Sector 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%
1.3 Margins
PSK has a better Profit Margin (43.84%) than 96.52% of its industry peers.
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.
PSK's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSK is still 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
PSK has an Altman-Z score of 7.88. This indicates that PSK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.88, PSK belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.46, PSK belongs to the best of the industry, outperforming 94.53% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that PSK is not too dependend on debt financing.
PSK's Debt to Equity ratio of 0.00 is amongst the best of the industry. PSK outperforms 82.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | 7.88 |
ROIC/WACC1.04
WACC7.76%
2.3 Liquidity
A Current Ratio of 0.30 indicates that PSK may have some problems paying its short term obligations.
PSK's Current ratio of 0.30 is on the low side compared to the rest of the industry. PSK is outperformed by 87.56% of its industry peers.
A Quick Ratio of 0.30 indicates that PSK may have some problems paying its short term obligations.
The Quick ratio of PSK (0.30) is worse than 86.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 146.30% over the past year.
The Earnings Per Share has been growing by 21.13% on average over the past years. This is a very strong growth
The Revenue has decreased by -3.22% in the past year.
Measured over the past years, PSK shows a quite strong growth in Revenue. The Revenue has been growing by 13.23% on average per year.
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
Based on estimates for the next years, PSK will show a decrease in Earnings Per Share. The EPS will decrease by -6.97% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
PSK is valuated rather expensively with a Price/Earnings ratio of 20.56.
The rest of the industry has a similar Price/Earnings ratio as PSK.
Compared to an average S&P500 Price/Earnings ratio of 28.35, PSK is valued a bit cheaper.
The Price/Forward Earnings ratio is 29.20, which means the current valuation is very expensive for PSK.
PSK's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 95.00. PSK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 29.2 |
4.2 Price Multiples
PSK's Enterprise Value to EBITDA ratio is in line with the industry average.
PSK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSK is cheaper than 60.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20 | ||
| EV/EBITDA | 11.03 |
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%
5. Dividend
5.1 Amount
PSK has a Yearly Dividend Yield of 3.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.59, PSK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, PSK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
The dividend of PSK has a limited annual growth rate of 4.43%.
PSK has been paying a dividend for at least 10 years, so it has 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
5.3 Sustainability
PSK pays out 100.43% of its income as dividend. This is not a sustainable payout ratio.
PSK's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP100.43%
EPS Next 2Y-16.07%
EPS Next 3Y-4.42%
PRAIRIESKY ROYALTY LTD
TSX:PSK (2/5/2025, 7:00:00 PM)
27.35
-0.12 (-0.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners66.49%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap6.54B
Analysts71.25
Price Target31.53 (15.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 29.2 | ||
| P/S | 12.42 | ||
| P/FCF | 20 | ||
| P/OCF | 16.97 | ||
| P/B | 2.37 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 11.03 |
EPS(TTM)1.33
EY4.86%
EPS(NY)0.94
Fwd EY3.43%
FCF(TTM)1.37
FCFY5%
OCF(TTM)1.61
OCFY5.89%
SpS2.2
BVpS11.53
TBVpS8.89
PEG (NY)N/A
PEG (5Y)0.97
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 7.88 |
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%