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SRR

Source Rock Royalties TSXV:SRR Stock Report

Last Price

CA$0.69

Market Cap

CA$31.0m

7D

-6.8%

1Y

n/a

Updated

28 Sep, 2022

Data

Company Financials
SRR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends4/6

SRR Stock Overview

Source Rock Royalties Ltd. acquires and manages oil and gas royalties and mineral title interests.

Source Rock Royalties Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Source Rock Royalties
Historical stock prices
Current Share PriceCA$0.69
52 Week HighCA$1.01
52 Week LowCA$0.65
Beta0
1 Month Change-10.39%
3 Month Change-14.29%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-18.82%

Recent News & Updates

Sep 06
We Think Source Rock Royalties' (CVE:SRR) Robust Earnings Are Conservative

We Think Source Rock Royalties' (CVE:SRR) Robust Earnings Are Conservative

Source Rock Royalties Ltd. ( CVE:SRR ) just reported healthy earnings but the stock price didn't move much. We think...

Shareholder Returns

SRRCA Oil and GasCA Market
7D-6.8%-10.1%-5.5%
1Yn/a20.5%-7.3%

Return vs Industry: Insufficient data to determine how SRR performed against the Canadian Oil and Gas industry.

Return vs Market: Insufficient data to determine how SRR performed against the Canadian Market.

Price Volatility

Is SRR's price volatile compared to industry and market?
SRR volatility
SRR Average Weekly Movement6.1%
Oil and Gas Industry Average Movement10.5%
Market Average Movement9.8%
10% most volatile stocks in CA Market18.1%
10% least volatile stocks in CA Market3.8%

Stable Share Price: SRR is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SRR's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2012n/aBrad Dochertyhttps://www.sourcerockroyalties.com

Source Rock Royalties Ltd. acquires and manages oil and gas royalties and mineral title interests. The company has a light oil focused portfolio of royalty interests concentrated in S.E. Saskatchewan, east-central Alberta, west-central Alberta, and west-central Saskatchewan.

Source Rock Royalties Fundamentals Summary

How do Source Rock Royalties's earnings and revenue compare to its market cap?
SRR fundamental statistics
Market CapCA$30.98m
Earnings (TTM)CA$2.21m
Revenue (TTM)CA$5.84m

14.0x

P/E Ratio

5.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRR income statement (TTM)
RevenueCA$5.84m
Cost of RevenueCA$0
Gross ProfitCA$5.84m
Other ExpensesCA$3.63m
EarningsCA$2.21m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.049
Gross Margin100.00%
Net Profit Margin37.78%
Debt/Equity Ratio0.0%

How did SRR perform over the long term?

See historical performance and comparison

Dividends

8.7%

Current Dividend Yield

71%

Payout Ratio

Does SRR pay a reliable dividends?

See SRR dividend history and benchmarks
When do you need to buy SRR by to receive an upcoming dividend?
Source Rock Royalties dividend dates
Ex Dividend DateSep 28 2022
Dividend Pay DateOct 14 2022
Days until Ex dividend1 day
Days until Dividend pay date15 days

Does SRR pay a reliable dividends?

See SRR dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is SRR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SRR?

Other financial metrics that can be useful for relative valuation.

SRR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA3.1x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does SRR's PE Ratio compare to its peers?

SRR PE Ratio vs Peers
The above table shows the PE ratio for SRR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average4.4x
VUX Vital Energy
1.9xn/aCA$28.4m
RZE Razor Energy
1.6xn/aCA$42.0m
PUL Pulse Oil
10.9xn/aCA$23.3m
TNZ Tenaz Energy
3.2x-41.6%CA$45.1m
SRR Source Rock Royalties
14xn/aCA$31.0m

Price-To-Earnings vs Peers: SRR is expensive based on its Price-To-Earnings Ratio (14x) compared to the peer average (4.4x).


Price to Earnings Ratio vs Industry

How does SRR's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

Price-To-Earnings vs Industry: SRR is expensive based on its Price-To-Earnings Ratio (14x) compared to the Canadian Oil and Gas industry average (5.4x)


Price to Earnings Ratio vs Fair Ratio

What is SRR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SRR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SRR's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of SRR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SRR (CA$0.69) is trading below our estimate of fair value (CA$4.02)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Source Rock Royalties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


1.0%

Forecasted Energy industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Source Rock Royalties has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine Source Rock Royalties's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Source Rock Royalties competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Source Rock Royalties performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


110.9%

Last years revenue growth

Earnings and Revenue History

Quality Earnings: SRR has high quality earnings.

Growing Profit Margin: SRR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SRR has become profitable over the past 5 years.

Accelerating Growth: SRR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SRR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (176.9%).


Return on Equity

High ROE: SRR's Return on Equity (8%) is considered low.


Discover strong past performing companies

Financial Health

How is Source Rock Royalties's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SRR's short term assets (CA$16.5M) exceed its short term liabilities (CA$1.2M).

Long Term Liabilities: SRR has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: SRR is debt free.

Reducing Debt: SRR has not had any debt for past 5 years.

Debt Coverage: SRR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SRR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Source Rock Royalties's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


8.70%

Current Dividend Yield

Dividend Yield vs Market

Source Rock Royalties Dividend Yield vs Market
How does Source Rock Royalties dividend yield compare to the market?
SegmentDividend Yield
Company (Source Rock Royalties)8.7%
Market Bottom 25% (CA)2.1%
Market Top 25% (CA)6.1%
Industry Average (Oil and Gas)5.0%
Analyst forecast in 3 Years (Source Rock Royalties)n/a

Notable Dividend: SRR's dividend (8.7%) is higher than the bottom 25% of dividend payers in the Canadian market (2.06%).

High Dividend: SRR's dividend (8.7%) is in the top 25% of dividend payers in the Canadian market (6.13%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SRR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SRR's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (70.7%), SRR's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (63.5%), SRR's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

9.3yrs

Average board tenure


CEO

Brad Docherty (41 yo)

9.92yrs

Tenure

CA$440,000

Compensation

Mr. Bradley Robert Docherty, also known as Brad, serves as the Chief Executive Officer and President of Exito Energy II Inc. Mr. Docherty is the Founder of Source Rock Royalties Ltd. and serves as its Chai...


CEO Compensation Analysis

Brad Docherty's Compensation vs Source Rock Royalties Earnings
How has Brad Docherty's remuneration changed compared to Source Rock Royalties's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

CA$2m

Mar 31 2022n/an/a

CA$1m

Dec 31 2021CA$440kCA$240k

CA$177k

Compensation vs Market: Brad's total compensation ($USD321.40K) is above average for companies of similar size in the Canadian market ($USD177.09K).

Compensation vs Earnings: Insufficient data to compare Brad's compensation with company performance.


Board Members

Experienced Board: SRR's board of directors are considered experienced (9.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

TSXV:SRR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
21 Sep 22BuyCA$7,400Bradley DochertyIndividual10,000CA$0.74
21 Sep 22BuyCA$7,320Bradley DochertyIndividual10,000CA$0.74
01 Mar 22BuyCA$98,560Bradley DochertyIndividual112,000CA$0.88
01 Mar 22BuyCA$23,408Jordan KevolIndividual26,600CA$0.88
01 Mar 22BuyCA$19,536Gary McMurrenIndividual22,200CA$0.88

Ownership Breakdown

What is the ownership structure of SRR?
Owner TypeNumber of SharesOwnership Percentage
Institutions1,756,5003.9%
Individual Insiders4,291,9259.6%
Private Companies9,379,40020.9%
General Public29,468,82065.6%

Dilution of Shares: SRR only recently listed within the past 12 months.


Top Shareholders

Top 16 shareholders own 34.36% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
20.84%
CN Canadian Master Trust Fund
9,354,400CA$6.5m0%no data
5.05%
Bradley Docherty
2,268,757CA$1.6m0%no data
2.51%
Jordan Kevol
1,124,989CA$776.2k0%no data
1.56%
Spartan Fund Management Inc.
700,900CA$483.6k0%0.07%
1.11%
U.S. Global Investors, Inc.
500,000CA$345.0k0%0.01%
0.62%
Maxam Capital Management Ltd.
277,800CA$191.7k0%0.25%
0.62%
Next Edge Capital Corp.
277,800CA$191.7k0%1.28%
0.59%
Sean Clausen
265,635CA$183.3k0%no data
0.34%
Brody Loster
153,213CA$105.7k0%no data
0.27%
Gary McMurren
123,390CA$85.1k0%no data
0.24%
Scott Rideout
109,826CA$75.8k0%no data
0.21%
Lucas Tomei
92,898CA$64.1k0%no data
0.19%
Shaun Thiessen
87,306CA$60.2k0%no data
0.1%
John Bell
45,029CA$31.1k0%no data
0.056%
Dpx Inc.
25,000CA$17.3k0%no data
0.047%
Dean Potter
20,882CA$14.4k-54.49%no data

Company Information

Source Rock Royalties Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Source Rock Royalties Ltd.
  • Ticker: SRR
  • Exchange: TSXV
  • Founded: 2012
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: CA$30.979m
  • Shares outstanding: 44.90m
  • Website: https://www.sourcerockroyalties.com

Location

  • Source Rock Royalties Ltd.
  • 421 - 7th Ave S.W.
  • 30th Floor
  • Calgary
  • Alberta
  • T2P 4K9
  • Canada


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRRTSXV (TSX Venture Exchange)YesCommon SharesCACADMar 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.