PrairieSky Royalty Ltd.
PrairieSky Royalty Ltd. Fundamental Analysis
PrairieSky Royalty Ltd. (PREKF) shows weak financial fundamentals with a PE ratio of 34.46, profit margin of 42.87%, and ROE of 7.90%. The company generates $0.5B in annual revenue with weak year-over-year growth of -1.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PREKF's fundamental strength across five key dimensions:
Efficiency Score
WeakPREKF struggles to generate sufficient returns from assets.
Valuation Score
ModeratePREKF shows balanced valuation metrics.
Growth Score
WeakPREKF faces weak or negative growth trends.
Financial Health Score
ModeratePREKF shows balanced financial health with some risks.
Profitability Score
ModeratePREKF maintains healthy but balanced margins.
Key Financial Metrics
Is PREKF Expensive or Cheap?
P/E Ratio
PREKF trades at 34.46 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PREKF's PEG of -3.95 indicates potential undervaluation.
Price to Book
The market values PrairieSky Royalty Ltd. at 2.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.76 times EBITDA. This signals the market has high growth expectations.
How Well Does PREKF Make Money?
Net Profit Margin
For every $100 in sales, PrairieSky Royalty Ltd. keeps $42.87 as profit after all expenses.
Operating Margin
Core operations generate 59.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.90 in profit for every $100 of shareholder equity.
ROA
PrairieSky Royalty Ltd. generates $6.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PrairieSky Royalty Ltd. generates strong operating cash flow of $357.55M, reflecting robust business health.
Free Cash Flow
PrairieSky Royalty Ltd. generates strong free cash flow of $263.74M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.13 in free cash annually.
FCF Yield
PREKF converts 3.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How PREKF Stacks Against Its Sector Peers
| Metric | PREKF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.46 | 19.94 | Worse (Expensive) |
| ROE | 7.90% | 987.00% | Weak |
| Net Margin | 42.87% | -42983.00% (disorted) | Strong |
| Debt/Equity | 0.10 | -0.60 (disorted) | Distorted |
| Current Ratio | 0.64 | 4.67 | Weak Liquidity |
| ROA | 6.52% | -11498250.00% (disorted) | Weak |
PREKF outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PrairieSky Royalty Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
84.53%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
88.90%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
76.46%
Industry Style: Cyclical, Value, Commodity
High Growth