# PrairieSky Royalty Ltd. (PSK.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Energy / Oil, Gas & Consumable Fuels. Price C$36.31, market value C$8.4 billion.

## Valuation
- **P/E (trailing): 34.9×** (5-yr avg 23.5×, 3-yr avg 27.4×). PrairieSky Royalty Ltd. trades at 34.9× trailing earnings, well above its own five-year average of 23.5×: 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 33.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 15.7×**. Each dollar of revenue is priced at 15.7×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 3.3×**. The shares trade at 3.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 18.1×**. Enterprise value is 18.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.1%** (5-yr avg 4.0%). Free cash flow equals 4.1% of the market value, in line with its five-year average of 4.0%.
- **Earnings yield: 2.9%**. The inverse of the P/E: 2.9% of the price is earned each year.

## Profitability
- **Gross margin: 71.6%**. PrairieSky Royalty Ltd. keeps 71.6% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 61.4%**. 61.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 42.9%**. 42.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.1%**. 8.1% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 9.0%**. Return on all capital, debt included, is 9.0%.
- **Return on assets: 7.7%**. Each dollar of assets produces 7.7% of profit.

## Growth
- **Revenue growth (1 yr): 1.7%** (3-yr -8.3%/yr, 5-yr 24.5%/yr). Revenue grew 1.7% over the last year, against 24.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -3.3%** (3-yr -13.2%/yr, 5-yr 44.1%/yr). Earnings per share fell 3.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -22.4%/yr**. Free cash flow has compounded at -22.4% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.10**. Debt is 0.10 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.5×**. It would take 0.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 24.5×**. Operating profit covers interest 24.5× over, a safe margin.
- **Current ratio: 0.64** (quick 0.64). 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: 9.94**. A Z-score of 9.94 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.92%** (C$1.05 per share, trailing). PrairieSky Royalty Ltd. yields 2.92%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 118%** (70% of free cash flow). The dividend exceeds earnings (118% payout), though free cash flow still covers it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 22.6%/yr** (1-yr 4.0%). The dividend has compounded at 22.6% a year over five years, doubling roughly every 3 years at that pace.

## Analyst view
- **Analyst consensus: buy** (12 analysts). 12 analysts cover PrairieSky Royalty Ltd.; the consensus is buy, with an average price target of C$36.79 (+1% 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): 53.2%** (YTD 36.6%, 3-mo 7.3%). The shares are up 53.2% over twelve months including dividends.
- **From 52-week high: -2.6%** (51.0% above the low). Trading within 5% of 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): 57**. An RSI of 57 is neutral.
- **Beta (1 yr): 0.00** (volatility 22%). Beta of 0.00 against the S&P/TSX Composite: the shares move much less than the market.

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

Not investment advice.