# Peyto Exploration & Development Corp. (PEY.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Energy / Oil, Gas & Consumable Fuels. Price C$25.35, market value C$5.2 billion.

## Valuation
- **P/E (trailing): 10.6×** (5-yr avg 8.0×, 3-yr avg 9.3×). Peyto Exploration & Development Corp. trades at 10.6× trailing earnings, well above its own five-year average of 8.0×: investors are paying up relative to the company's past. The Energy median in the September 2026 study was 16.8×. Forward P/E is 11.7×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.26**. A PEG of 0.26 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 4.2×**. Each dollar of revenue is priced at 4.2×.
- **Price / book: 1.7×**. The shares trade at 1.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.1×**. Enterprise value is 6.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 8.8%** (5-yr avg 10.7%). Free cash flow equals 8.8% of the market value, in line with its five-year average of 10.7%. Above 5% is generally attractive.
- **Earnings yield: 9.4%**. The inverse of the P/E: 9.4% of the price is earned each year.

## Profitability
- **Gross margin: 53.2%**. Peyto Exploration & Development Corp. keeps 53.2% of revenue after the direct cost of what it sells.
- **Operating margin: 38.6%**. 38.6% of revenue is left after running the business, an exceptional level.
- **Net margin: 39.6%**. 39.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.7%**. 14.7% on shareholders' equity is solid.
- **Return on invested capital: 9.3%**. Return on all capital, debt included, is 9.3%.
- **Return on assets: 9.0%**. Each dollar of assets produces 9.0% of profit.

## Growth
- **Revenue growth (1 yr): 16.3%** (3-yr -13.5%/yr, 5-yr 21.4%/yr). Revenue grew 16.3% over the last year, against 21.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 45.1%** (3-yr -2.6%/yr). Earnings per share rose 45.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 8.0%/yr**. Free cash flow has compounded at 8.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.41**. Debt is 0.41 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 1.1×**. It would take 1.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 7.4×**. Operating profit covers interest 7.4× over, a safe margin.
- **Current ratio: 0.98** (quick 0.98). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.33**. A Z-score of 2.33 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 5.68%** (C$1.34 per share, trailing). Peyto Exploration & Development Corp. yields 5.68%, an income-level yield.
- **Payout ratio: 63%** (59% of free cash flow). 63% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 71.1%/yr** (1-yr 0.0%). The dividend has compounded at 71.1% a year over five years, doubling roughly every 1 years at that pace.

## Analyst view
- **Analyst consensus: buy** (10 analysts). 10 analysts cover Peyto Exploration & Development Corp.; the consensus is buy, with an average price target of C$27.75 (+9% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 42.9%** (YTD 14.7%, 3-mo 1.0%). The shares are up 42.9% over twelve months including dividends.
- **From 52-week high: -13.2%** (41.5% above the low). Trading 13% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 55**. An RSI of 55 is neutral.
- **Beta (1 yr): 0.04** (volatility 28%). Beta of 0.04 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PEY.TO · Page: https://foliofundamentals.com/stocks/pey.to

Not investment advice.