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PrairieSky Royalty

TSX:PSK
Snowflake Description

Mediocre balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PSK
TSX
CA$2B
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

PrairieSky Royalty Ltd. holds crude oil and natural gas royalty interests in Alberta, Saskatchewan, British Columbia, and Manitoba of Canada. The last earnings update was 47 days ago. More info.


Add to Portfolio Compare Print
  • PrairieSky Royalty has significant price volatility in the past 3 months.
PSK Share Price and Events
7 Day Returns
-7.5%
TSX:PSK
15.2%
CA Oil and Gas
11.4%
CA Market
1 Year Returns
-62.1%
TSX:PSK
-41.5%
CA Oil and Gas
-22%
CA Market
PSK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PrairieSky Royalty (PSK) -7.5% -45.1% -54.6% -62.1% -75.7% -78.3%
CA Oil and Gas 15.2% -37.6% -42.4% -41.5% -49.8% -53.6%
CA Market 11.4% -22.2% -23.5% -22% -19.8% -13.3%
1 Year Return vs Industry and Market
  • PSK underperformed the Oil and Gas industry which returned -41.5% over the past year.
  • PSK underperformed the Market in Canada which returned -22% over the past year.
Price Volatility
PSK
Industry
5yr Volatility vs Market

PSK Value

 Is PrairieSky Royalty undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PrairieSky Royalty to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PrairieSky Royalty.

TSX:PSK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:PSK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.825 (1 + (1- 26.5%) (0.56%))
0.885
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (0.885 * 5.44%)
6.26%

Discounted Cash Flow Calculation for TSX:PSK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for PrairieSky Royalty is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:PSK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 6.26%)
2020 157.17 Analyst x6 147.91
2021 170.37 Analyst x6 150.90
2022 246.00 Analyst x1 205.06
2023 258.00 Analyst x1 202.40
2024 267.00 Analyst x1 197.12
2025 274.04 Est @ 2.64% 190.41
2026 280.28 Est @ 2.28% 183.28
2027 285.95 Est @ 2.03% 175.98
2028 291.24 Est @ 1.85% 168.68
2029 296.27 Est @ 1.73% 161.49
Present value of next 10 years cash flows CA$1,783.00
TSX:PSK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$296.27 × (1 + 1.44%) ÷ (6.26% – 1.44%)
CA$6,240.27
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$6,240.27 ÷ (1 + 6.26%)10
CA$3,401.45
TSX:PSK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,783.00 + CA$3,401.45
CA$5,184.45
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$5,184.45 / 232.96
CA$22.25
TSX:PSK Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$22.25
Current discount Discount to share price of CA$6.83
= -1 x (CA$6.83 - CA$22.25) / CA$22.25
69.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price PrairieSky Royalty is available for.
Intrinsic value
>50%
Share price is CA$6.83 vs Future cash flow value of CA$22.25
Current Discount Checks
For PrairieSky Royalty to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PrairieSky Royalty's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • PrairieSky Royalty's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PrairieSky Royalty's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PrairieSky Royalty's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:PSK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$0.48
TSX:PSK Share Price ** TSX (2020-03-27) in CAD CA$6.83
Canada Oil and Gas Industry PE Ratio Median Figure of 55 Publicly-Listed Oil and Gas Companies 6.35x
Canada Market PE Ratio Median Figure of 499 Publicly-Listed Companies 10.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PrairieSky Royalty.

TSX:PSK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:PSK Share Price ÷ EPS (both in CAD)

= 6.83 ÷ 0.48

14.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PrairieSky Royalty is overvalued based on earnings compared to the CA Oil and Gas industry average.
  • PrairieSky Royalty is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does PrairieSky Royalty's expected growth come at a high price?
Raw Data
TSX:PSK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-9.6%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 29 Publicly-Listed Oil and Gas Companies -0.04x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

TSX:PSK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.32x ÷ -9.6%

-1.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PrairieSky Royalty earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on PrairieSky Royalty's assets?
Raw Data
TSX:PSK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$10.66
TSX:PSK Share Price * TSX (2020-03-27) in CAD CA$6.83
Canada Oil and Gas Industry PB Ratio Median Figure of 198 Publicly-Listed Oil and Gas Companies 0.38x
Canada Market PB Ratio Median Figure of 2,352 Publicly-Listed Companies 1x
TSX:PSK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:PSK Share Price ÷ Book Value per Share (both in CAD)

= 6.83 ÷ 10.66

0.64x

* Primary Listing of PrairieSky Royalty.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PrairieSky Royalty is overvalued based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess PrairieSky Royalty's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. PrairieSky Royalty has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PSK Future Performance

 How is PrairieSky Royalty expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-9.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PrairieSky Royalty expected to grow at an attractive rate?
  • PrairieSky Royalty's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.4%.
Growth vs Market Checks
  • PrairieSky Royalty's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • PrairieSky Royalty's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:PSK Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:PSK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -9.6%
TSX:PSK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts -2%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -3.9%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:PSK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:PSK Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31
2023-12-31 192
2022-12-31 182
2021-12-31 237 186 93 5
2020-12-31 220 179 76 6
2020-03-28
TSX:PSK Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 249 210 111
2019-09-30 225 222 93
2019-06-30 244 234 105
2019-03-31 254 230 86
2018-12-31 249 235 79
2018-09-30 275 249 113
2018-06-30 259 261 104
2018-03-31 257 275 120
2017-12-31 268 299 121
2017-09-30 262 280 97
2017-06-30 260 269 85
2017-03-31 234 233 39

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PrairieSky Royalty's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • PrairieSky Royalty's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:PSK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from PrairieSky Royalty Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PSK Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31
2021-12-31 0.36 0.41 0.27 3.00
2020-12-31 0.30 0.32 0.28 3.00
2020-03-28
TSX:PSK Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 0.48
2019-09-30 0.40
2019-06-30 0.45
2019-03-31 0.37
2018-12-31 0.34
2018-09-30 0.48
2018-06-30 0.44
2018-03-31 0.51
2017-12-31 0.51
2017-09-30 0.41
2017-06-30 0.37
2017-03-31 0.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • PrairieSky Royalty is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess PrairieSky Royalty's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PrairieSky Royalty has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PSK Past Performance

  How has PrairieSky Royalty performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PrairieSky Royalty's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • PrairieSky Royalty's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • PrairieSky Royalty's 1-year earnings growth exceeds its 5-year average (40.3% vs -13.7%)
  • PrairieSky Royalty's earnings growth has exceeded the CA Oil and Gas industry average in the past year (40.3% vs -0.1%).
Earnings and Revenue History
PrairieSky Royalty's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PrairieSky Royalty Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:PSK Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 249.10 111.40 23.70
2019-09-30 225.30 93.10 24.80
2019-06-30 244.10 104.90 22.70
2019-03-31 254.10 86.00 21.30
2018-12-31 249.40 79.40 20.00
2018-09-30 275.10 113.30 22.30
2018-06-30 259.00 104.20 26.10
2018-03-31 257.40 119.60 29.90
2017-12-31 268.00 120.60 30.10
2017-09-30 261.90 96.80 32.80
2017-06-30 259.70 85.30 32.00
2017-03-31 234.20 39.10 28.40
2016-12-31 203.30 20.00 30.80
2016-09-30 181.60 11.90 27.50
2016-06-30 171.50 18.10 24.70
2016-03-31 172.60 47.90 26.30
2015-12-31 173.10 63.00 24.70
2015-09-30 342.93 203.06 35.09
2015-06-30 322.51 219.02 33.86
2015-03-31 312.01 219.32 28.96
2014-12-31 340.63 233.66 24.69
2014-03-31 279.75 126.41 7.37
2013-12-31 252.58 113.75 6.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • PrairieSky Royalty has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • PrairieSky Royalty used its assets less efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
  • PrairieSky Royalty has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PrairieSky Royalty's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PrairieSky Royalty has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PSK Health

 How is PrairieSky Royalty's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PrairieSky Royalty's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PrairieSky Royalty's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • PrairieSky Royalty's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of PrairieSky Royalty's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PrairieSky Royalty Company Filings, last reported 2 months ago.

TSX:PSK Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 2,485.70 7.30
2019-09-30 2,509.20 4.90
2019-06-30 2,541.80 8.60
2019-03-31 2,548.50 16.60
2018-12-31 2,573.60 5.80
2018-09-30 2,622.50 0.50
2018-06-30 2,651.90 0.00 10.00
2018-03-31 2,680.20 0.00 12.10
2017-12-31 2,720.00 0.00 45.10
2017-09-30 2,735.00 0.00 102.00
2017-06-30 2,769.50 0.00 96.90
2017-03-31 2,784.60 0.00 92.40
2016-12-31 2,535.00 0.00 34.00
2016-09-30 2,569.60 0.00 159.40
2016-06-30 2,612.60 0.00 149.70
2016-03-31 2,665.20 0.00 182.70
2015-12-31 2,710.20 0.00 190.80
2015-09-30 1,083.30 0.00 203.80
2015-06-30 917.10 0.00 2.20
2015-03-31 932.60 0.00 50.80
2014-12-31 964.00 0.00 63.10
2014-03-31 193.29 0.00
2013-12-31 204.53 0.00
  • PrairieSky Royalty's level of debt (0.3%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if PrairieSky Royalty's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (2872.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 69.3x coverage).
X
Financial health checks
We assess PrairieSky Royalty's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PrairieSky Royalty has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PSK Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
11.42%
Current annual income from PrairieSky Royalty dividends. Estimated to be 7.42% next year.
If you bought CA$2,000 of PrairieSky Royalty shares you are expected to receive CA$228 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • PrairieSky Royalty's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.7%).
  • PrairieSky Royalty's dividend is above the markets top 25% of dividend payers in Canada (8.48%).
Upcoming dividend payment

Purchase PrairieSky Royalty before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:PSK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:PSK Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31 0.24 1.00
2022-12-31 0.24 1.00
2021-12-31 0.46 10.00
2020-12-31 0.59 12.00
2020-03-28
TSX:PSK Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-03-16 0.780 10.659
2020-02-06 0.780 6.506
2020-01-09 0.780 5.167
2019-12-10 0.780 5.137
2019-11-07 0.780 5.682
2019-10-03 0.780 5.228
2019-09-10 0.780 4.223
2019-08-08 0.780 4.644
2019-07-09 0.780 4.366
2019-06-10 0.780 4.298
2019-05-09 0.780 4.302
2019-04-08 0.780 4.068
2019-03-07 0.780 4.152
2019-02-14 0.780 4.008
2018-12-11 0.780 4.263
2018-11-12 0.780 4.340
2018-10-09 0.780 3.726
2018-09-10 0.780 3.338
2018-08-13 0.780 3.258
2018-07-11 0.780 3.200
2018-06-12 0.780 3.016
2018-05-14 0.780 2.898
2018-04-12 0.780 2.718
2018-02-26 0.780 2.782
2018-02-15 0.750 2.563
2018-01-15 0.750 2.460
2017-12-14 0.745 2.328
2017-11-15 0.750 2.300
2017-10-12 0.750 2.263
2017-09-14 0.750 2.340
2017-08-15 0.750 2.574
2017-07-12 0.750 2.542
2017-06-15 0.750 2.605
2017-05-15 0.750 2.556
2017-04-13 0.750 2.567
2017-02-27 0.750 2.599
2017-02-15 0.720 2.405
2017-01-12 0.720 2.338
2016-12-15 0.720 2.238
2016-11-15 0.720 2.271
2016-10-17 0.720 2.461
2016-09-15 0.720 2.636
2016-08-15 0.720 2.707
2016-07-18 0.720 2.787
2016-06-15 0.720 2.943
2016-05-16 0.720 2.883
2016-04-14 0.720 2.890
2016-03-17 0.720 2.976
2016-02-16 1.300 5.782
2016-01-19 1.300 6.836
2015-12-17 1.300 6.197
2015-11-17 1.300 5.389
2015-10-19 1.300 5.056
2015-09-21 1.300 4.872
2015-08-18 1.300 5.147
2015-07-14 1.300 4.774
2015-06-16 1.300 4.194
2015-05-14 1.300 3.996
2015-04-16 1.300 3.985
2015-03-17 1.300 4.181
2015-02-12 1.300 4.344
2015-01-19 1.300 4.803
2014-12-15 1.270 4.310
2014-11-17 1.270 3.755
2014-10-20 1.270 3.611
2014-09-09 1.270 3.664
2014-08-19 1.270 3.241
2014-07-21 1.270 3.157
2014-06-18 1.270 3.268

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, PrairieSky Royalty has been paying a dividend for less than 10 years.
  • PrairieSky Royalty has only been paying a dividend for 6 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of PrairieSky Royalty's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess PrairieSky Royalty's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PrairieSky Royalty afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PrairieSky Royalty has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PSK Management

 What is the CEO of PrairieSky Royalty's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Phillips
COMPENSATION CA$4,206,000
AGE 41
TENURE AS CEO 5.9 years
CEO Bio

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 Resources Ltd. (Home Quarter), a private oil and natural gas company founded by Mr. Phillips in 2010 with producing properties and royalty interests in southwest Saskatchewan and Alberta. Prior thereto, Mr. Phillips was the Vice President, Exploration at Evolve Exploration Ltd., a private junior oil and natural gas company with assets in western Canada, and an exploration geologist at each of Profico Energy Management Ltd. and at Renaissance Energy Ltd., both of which were Canadian oil and natural gas exploration companies. He has been a Non-Independent Director at PrairieSky Royalty Ltd. since April 11, 2014. He holds a Bachelor of Science, Geology degree from the University of Calgary and is a member of the Association of Professional Engineers and Geoscientists of Alberta and the Canadian Society of Petroleum Geologists.

CEO Compensation
  • Andrew's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andrew's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the PrairieSky Royalty management team in years:

5.1
Average Tenure
  • The average tenure for the PrairieSky Royalty management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Andrew Phillips

TITLE
President
COMPENSATION
CA$4M
AGE
41
TENURE
5.9 yrs

Pamela Kazeil

TITLE
VP of Finance & CFO
COMPENSATION
CA$2M
TENURE
4.8 yrs

Cam Proctor

TITLE
COO & Corporate Secretary
COMPENSATION
CA$3M
TENURE
5.1 yrs

Matthew J. McMahon

TITLE
General Counsel
COMPENSATION
CA$408K

Amber Vrataric

TITLE
Controller
COMPENSATION
CA$482K
Board of Directors Tenure

Average tenure and age of the PrairieSky Royalty board of directors in years:

5.3
Average Tenure
59
Average Age
  • The tenure for the PrairieSky Royalty board of directors is about average.
Board of Directors

Jim Estey

TITLE
Independent Chairman of the Board
COMPENSATION
CA$264K
AGE
66
TENURE
5.9 yrs

Andrew Phillips

TITLE
President
COMPENSATION
CA$4M
AGE
41
TENURE
5.9 yrs

Margaret McKenzie

TITLE
Independent Director
COMPENSATION
CA$175K
AGE
57
TENURE
5.3 yrs

Myron Stadnyk

TITLE
Independent Director
COMPENSATION
CA$160K
AGE
56
TENURE
1.8 yrs

Sheldon Steeves

TITLE
Independent Director
COMPENSATION
CA$170K
AGE
65
TENURE
5.9 yrs

Grant Zawalsky

TITLE
Independent Director
COMPENSATION
CA$160K
AGE
59
TENURE
5.3 yrs

P. Gavan

TITLE
Independent Director
COMPENSATION
CA$97K
AGE
59
TENURE
0.8 yrs

Bob Robotti

TITLE
Independent Director
COMPENSATION
CA$39K
AGE
65
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by PrairieSky Royalty individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
04. Mar 20 Buy P. Gavan Individual 04. Mar 20 04. Mar 20 2,800 CA$12.55 CA$35,142
13. Feb 20 Buy Andrew Phillips Individual 13. Feb 20 13. Feb 20 5,000 CA$14.17 CA$70,825
07. Nov 19 Buy Robert Robotti Individual 07. Nov 19 07. Nov 19 20,000 CA$13.19 CA$263,734
05. Nov 19 Buy P. Gavan Individual 05. Nov 19 05. Nov 19 2,200 CA$13.62 CA$29,953
01. Nov 19 Buy James Estey Individual 01. Nov 19 01. Nov 19 10,000 CA$13.06 CA$130,600
30. Oct 19 Buy Andrew Phillips Individual 30. Oct 19 30. Oct 19 10,000 CA$13.24 CA$132,400
30. Oct 19 Buy Cameron Proctor Individual 30. Oct 19 30. Oct 19 4,500 CA$12.99 CA$58,427
30. Oct 19 Buy James Estey Individual 30. Oct 19 30. Oct 19 10,000 CA$13.01 CA$130,100
30. Oct 19 Buy Pamela Kazeil Individual 30. Oct 19 30. Oct 19 2,500 CA$13.00 CA$32,500
X
Management checks
We assess PrairieSky Royalty's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PrairieSky Royalty has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PSK News

Simply Wall St News

Does PrairieSky Royalty Ltd. (TSE:PSK) Have A Place In Your Dividend Stock Portfolio?

PrairieSky Royalty has been paying a dividend for the past five years. … Conclusion To summarise, shareholders should always check that PrairieSky Royalty's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … There are a few too many issues for us to get comfortable with PrairieSky Royalty from a dividend perspective.

Simply Wall St -

Does PrairieSky Royalty Ltd.'s (TSE:PSK) CEO Pay Reflect Performance?

Andrew Phillips became the CEO of PrairieSky Royalty Ltd. … See our latest analysis for PrairieSky Royalty How Does Andrew Phillips's Compensation Compare With Similar Sized Companies? … Since shareholders would have lost about 21% over three years, some PrairieSky Royalty Ltd.

Simply Wall St -

Could The PrairieSky Royalty Ltd. (TSE:PSK) Ownership Structure Tell Us Something Useful?

See our latest analysis for PrairieSky Royalty TSX:PSK Ownership Summary, July 4th 2019 What Does The Institutional Ownership Tell Us About PrairieSky Royalty? … We can see that PrairieSky Royalty does have institutional investors; and they hold 62% of the stock. … Insider Ownership Of PrairieSky Royalty The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

Do These 3 Checks Before Buying PrairieSky Royalty Ltd. (TSE:PSK) For Its Upcoming Dividend

So we need to investigate whether PrairieSky Royalty can afford its dividend, and if the dividend could grow. … Cash is slightly more important than profit from a dividend perspective, but given PrairieSky Royalty's payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend. … The Bottom Line Should investors buy PrairieSky Royalty for the upcoming dividend?

Simply Wall St -

Is PrairieSky Royalty Ltd. (TSE:PSK) Struggling With Its 4.0% Return On Capital Employed?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for PrairieSky Royalty: 0.04 = CA$111m ÷ (CA$2.8b - CA$56m) (Based on the trailing twelve months to March 2019.) Therefore, PrairieSky Royalty has an ROCE of 4.0%. … Do PrairieSky Royalty's Current Liabilities Skew Its ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

If You Had Bought PrairieSky Royalty (TSE:PSK) Stock A Year Ago, You'd Be Sitting On A 34% Loss, Today

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. … We note that for PrairieSky Royalty the TSR over the last year was -32%, which is better than the share price return mentioned above. … A Different Perspective PrairieSky Royalty shareholders are down 32% for the year (even including dividends), but the broader market is up 1.7%.

Simply Wall St -

A Look At The Fair Value Of PrairieSky Royalty Ltd. (TSE:PSK)

by projecting its future cash flows and then discounting them to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model

Simply Wall St -

PrairieSky Royalty Ltd. (TSE:PSK): What Does Its Beta Value Mean For Your Portfolio?

Volatility is considered to be a measure of risk in modern finance theory. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.

Simply Wall St -

Is PrairieSky Royalty Ltd.'s (TSE:PSK) CEO Being Overpaid?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Andrew Phillips's Compensation Compare With Similar Sized Companies. … is worth CA$4.5b, and total annual CEO compensation is CA$4.3m.

Simply Wall St -

Have Insiders Been Buying PrairieSky Royalty Ltd. (TSE:PSK) Shares This Year?

PrairieSky Royalty Insider Transactions Over The Last Year. … In the last twelve months, the biggest single purchase by an insider was when President Andrew Phillips bought CA$179k worth of shares at a price of CA$23.92 per share. … In the last twelve months there was more buying than selling by PrairieSky Royalty insiders

Simply Wall St -

PSK Company Info

Description

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.

Details
Name: PrairieSky Royalty Ltd.
PSK
Exchange: TSX
Founded: 2013
CA$1,812,434,175
232,960,691
Website: http://www.prairiesky.com
Address: PrairieSky Royalty Ltd.
350 - 7th Avenue SW,
Suite 1700,
Calgary,
Alberta, T2P 3N9,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX PSK Common Shares The Toronto Stock Exchange CA CAD 29. May 2014
OTCPK PREK.F Common Shares Pink Sheets LLC US USD 29. May 2014
DB 7PS Common Shares Deutsche Boerse AG DE EUR 29. May 2014
Number of employees
Current staff
Staff numbers
63
PrairieSky Royalty employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 03:04
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/25
Last earnings filing: 2020/02/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.