Executive Summary
PrairieSky Royalty Ltd. holds crude oil and natural gas royalty interests in Alberta, Saskatchewan, British Columbia, and Manitoba of Canada.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -9.6% per year for the next 3 years
Dividend of 5.4% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Proven track record with mediocre balance sheet.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.5%
PSK
0.6%
CA Oil and Gas
0.6%
CA Market
1 Year Return
-22.2%
PSK
0.2%
CA Oil and Gas
5.8%
CA Market
Return vs Industry: PSK underperformed the Canadian Oil and Gas industry which returned 0.2% over the past year.
Return vs Market: PSK underperformed the Canadian Market which returned 5.8% over the past year.
Shareholder returns
| PSK | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.5% | 0.6% | 0.6% |
| 30 Day | -7.3% | -2.3% | 0.5% |
| 90 Day | 6.6% | 3.8% | 3.6% |
| 1 Year | -18.5%-22.2% | 4.6%0.2% | 9.1%5.8% |
| 3 Year | -46.3%-51.7% | -7.0%-16.9% | 15.4%5.0% |
| 5 Year | -40.2%-50.3% | -9.6%-24.0% | 33.6%14.0% |
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
10 hours ago | Simply Wall St
The President of PrairieSky Royalty Ltd. (TSE:PSK), Andrew Phillips, Just Bought 0.7% More Shares1 week ago | Simply Wall St
Are PrairieSky Royalty's (TSE:PSK) Statutory Earnings A Good Guide To Its Underlying Profitability?3 weeks ago | Simply Wall St
Don't Race Out To Buy PrairieSky Royalty Ltd. (TSE:PSK) Just Because It's Going Ex-DividendValuation
Is PrairieSky Royalty undervalued compared to its fair value and its price relative to the market?
30.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PSK (CA$14.45) is trading below our estimate of fair value (CA$20.79)
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 (30.3x) compared to the Oil and Gas industry average (11x).
PE vs Market: PSK is poor value based on its PE Ratio (30.3x) compared to the Canadian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: PSK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: PSK is overvalued based on its PB Ratio (1.4x) compared to the CA Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is PrairieSky Royalty forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-9.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSK's earnings are forecast to decline over the next 3 years (-9.6% per year).
Earnings vs Market: PSK's earnings are forecast to decline over the next 3 years (-9.6% per year).
High Growth Earnings: PSK's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PSK's revenue (2.1% per year) is forecast to grow slower than the Canadian market (4.9% per year).
High Growth Revenue: PSK's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PSK's Return on Equity is forecast to be low in 3 years time (3%).
Next Steps
Past Performance
How has PrairieSky Royalty performed over the past 5 years?
-13.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSK has high quality earnings.
Growing Profit Margin: PSK's current net profit margins (44.7%) are higher than last year (31.8%).
Past Earnings Growth Analysis
Earnings Trend: PSK's earnings have declined by -13.7% per year over the past 5 years.
Accelerating Growth: PSK's earnings growth over the past year (40.3%) exceeds its 5-year average (-13.7% per year).
Earnings vs Industry: PSK earnings growth over the past year (40.3%) exceeded the Oil and Gas industry 6%.
Return on Equity
High ROE: PSK's Return on Equity (4.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is PrairieSky Royalty's financial position?
Financial Position Analysis
Short Term Liabilities: PSK's short term assets (CA$37.9M) do not cover its short term liabilities (CA$41.0M).
Long Term Liabilities: PSK's short term assets (CA$37.9M) do not cover its long term liabilities (CA$192.8M).
Debt to Equity History and Analysis
Debt Level: PSK's debt to equity ratio (0.3%) 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 (2872.6%).
Interest Coverage: PSK's interest payments on its debt are well covered by EBIT (69.3x coverage).
Balance Sheet
Inventory Level: PSK has a high level of physical assets or inventory.
Debt Coverage by Assets: PSK's debt is covered by short term assets (assets are 5.2x debt).
Next Steps
Dividend
What is PrairieSky Royalty's current dividend yield, its reliability and sustainability?
5.40%
Current Dividend Yield
Upcoming Dividend Payment
Purchase PrairieSky Royalty before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PSK's dividend (5.4%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).
High Dividend: PSK's dividend (5.4%) is in the top 25% of dividend payers in the Canadian market (5.32%)
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 6 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (163.6%), PSK's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PSK's dividends in 3 years are not forecast to be well covered by earnings (185.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.0yrs
Average management tenure
CEO
Andrew Phillips (41yo)
5.8yrs
Tenure
CA$4,291,000
Compensation
Mr. Andrew M. Phillips has been the Chief Executive Officer and President at PrairieSky Royalty Ltd. since April 11, 2014. Mr. Phillips served as the Chief Executive Officer and President of Home Quarter R ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD3.24M) is about average for companies of similar size in the Canadian market ($USD2.85M).
Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.8yrs | CA$4.29m | 0.29% CA$9.7m | |
| VP of Finance & CFO | 4.7yrs | CA$1.65m | 0.025% CA$835.9k | |
| COO & Corporate Secretary | 5yrs | CA$2.71m | 0.044% CA$1.5m | |
| Controller | 0yrs | CA$487.30k | no data |
5.0yrs
Average Tenure
Experienced Management: PSK's management team is seasoned and experienced (5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.8yrs | CA$4.29m | 0.29% CA$9.7m | |
| Independent Director | 5.2yrs | CA$160.00k | 0.045% CA$1.5m | |
| Independent Director | 0.8yrs | no data | 0.00094% CA$31.7k | |
| Independent Director | 5.8yrs | CA$170.00k | 0.012% CA$404.5k | |
| Independent Director | 1.7yrs | CA$85.90k | 0.0097% CA$325.0k | |
| Independent Director | 0.3yrs | no data | 0.0088% CA$296.0k | |
| Independent Director | 5.2yrs | CA$175.00k | 0.11% CA$3.8m | |
| Independent Chairman of the Board | 5.8yrs | CA$310.00k | 0.54% CA$18.2m |
5.2yrs
Average Tenure
59yo
Average Age
Experienced Board: PSK's board of directors are considered experienced (5.2 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$3.368b
- Shares outstanding: 233.07m
- Website: https://www.prairiesky.com
Number of Employees
Location
- PrairieSky Royalty Ltd.
- 350 - 7th Avenue SW
- Suite 1700
- Calgary
- Alberta
- T2P 3N9
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PSK | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | May 2014 |
| 7PS | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | May 2014 |
| PREK.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | May 2014 |
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 petroleum and/or natural gas rights; 1.1 million acres with coal titles; 7.8 million acres of gross overriding royalty interests; and other acreage. The company was incorporated in 2013 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 01:23 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.