TSX:PSK

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PrairieSky Royalty

Market Cap

CA$3.1b

Last Updated

2021/08/03 23:34 UTC

Data Sources

Company Financials +

Executive Summary

PrairieSky Royalty Ltd. holds crude oil and natural gas royalty interests in Alberta, Saskatchewan, British Columbia, and Manitoba of Canada. More Details


Snowflake Analysis

Solid track record and fair value.

Share Price & News

How has PrairieSky Royalty's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PSK is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PSK's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.0%

PSK

0.7%

CA Oil and Gas

1.4%

CA Market


1 Year Return

58.6%

PSK

33.2%

CA Oil and Gas

28.0%

CA Market

Return vs Industry: PSK exceeded the Canadian Oil and Gas industry which returned 36.9% over the past year.

Return vs Market: PSK exceeded the Canadian Market which returned 29.1% over the past year.


Shareholder returns

PSKIndustryMarket
7 Day3.0%0.7%1.4%
30 Day-6.0%-5.7%-0.2%
90 Day5.2%1.4%2.8%
1 Year62.1%58.6%40.2%33.2%31.8%28.0%
3 Year-33.3%-40.3%-5.7%-17.4%33.0%20.1%
5 Year-37.4%-46.8%-1.4%-19.1%50.7%28.5%

Long-Term Price Volatility Vs. Market

How volatile is PrairieSky Royalty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PrairieSky Royalty undervalued compared to its fair value and its price relative to the market?

26.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSK (CA$14.1) is trading below our estimate of fair value (CA$19.05)

Significantly Below Fair Value: PSK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PSK is poor value based on its PE Ratio (45.7x) compared to the Canadian Oil and Gas industry average (8.6x).

PE vs Market: PSK is poor value based on its PE Ratio (45.7x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PSK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PSK is good value based on its PB Ratio (1.3x) compared to the CA Oil and Gas industry average (1.7x).


Future Growth

How is PrairieSky Royalty forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PSK's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if PSK's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PSK's revenue (5.2% per year) is forecast to grow faster than the Canadian market (5.2% per year).

High Growth Revenue: PSK's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PSK's Return on Equity is forecast to be high in 3 years time


Past Performance

How has PrairieSky Royalty performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSK has high quality earnings.

Growing Profit Margin: PSK's current net profit margins (33.5%) are higher than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: PSK's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: PSK's earnings growth over the past year (41.1%) exceeds its 5-year average (3.7% per year).

Earnings vs Industry: PSK earnings growth over the past year (41.1%) exceeded the Oil and Gas industry -24.9%.


Return on Equity

High ROE: PSK's Return on Equity (3%) is considered low.


Financial Health

How is PrairieSky Royalty's financial position?


Financial Position Analysis

Short Term Liabilities: PSK's short term assets (CA$40.8M) do not cover its short term liabilities (CA$76.5M).

Long Term Liabilities: PSK's short term assets (CA$40.8M) do not cover its long term liabilities (CA$199.5M).


Debt to Equity History and Analysis

Debt Level: PSK's debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PSK's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PSK's debt is well covered by operating cash flow (517%).

Interest Coverage: PSK's interest payments on its debt are well covered by EBIT (46.2x coverage).


Balance Sheet


Dividend

What is PrairieSky Royalty current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSK's dividend (2.55%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: PSK's dividend (2.55%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PSK has been paying a dividend for less than 10 years.

Growing Dividend: PSK has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81%), PSK's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSK's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Andrew Phillips (43 yo)

7.33yrs

Tenure

CA$3,691,000

Compensation

Mr. Andrew M. Phillips has been the Chief Executive Officer and President at PrairieSky Royalty Ltd. since April 11, 2014. Mr. Phillips served as the Chief Executive Officer and President of Home Quarter R...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD2.94M) is about average for companies of similar size in the Canadian market ($USD3.01M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PSK's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: PSK's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PSK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PrairieSky Royalty Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PrairieSky Royalty Ltd.
  • Ticker: PSK
  • Exchange: TSX
  • Founded: 2013
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$3.135b
  • Shares outstanding: 222.32m
  • Website: https://www.prairiesky.com

Number of Employees


Location

  • PrairieSky Royalty Ltd.
  • 350 - 7th Avenue SW
  • Suite 1700
  • Calgary
  • Alberta
  • T2P 3N9
  • Canada

Listings


Biography

PrairieSky Royalty Ltd. holds crude oil and natural gas royalty interests in Alberta, Saskatchewan, British Columbia, and Manitoba of Canada. It hold interests in approximately 7.8 million acres with petro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:34
End of Day Share Price2021/08/03 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.