PrairieSky Royalty Ltd. (PSK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Freehold Royalties Ltd.

Chemtrade Logistics Income Fund

Paramount Resources Ltd.

DRI Healthcare Trust

PrairieSky Royalty Ltd.

Bridgemarq Real Estate Services, Inc.

Wilmington Capital Management, Inc.

Dream Impact Trust

Strategem Capital Corp.

Greencastle Resources Ltd.

Big Banc Split Corp.

Why is PrairieSky Royalty Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 24.16

With ROE of 8.45%, it has a very attractive valuation with a 2.30 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.10%, its profits have fallen by -3.6%

Majority shareholders : Mutual Funds

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is PrairieSky Royalty Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

PrairieSky Royalty Ltd.

-100.0%

-0.03

23.49%

S&P/TSX 60

22.62%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.78%

EBIT Growth (5y)

48.35%

EBIT to Interest (avg)

24.16

Debt to EBITDA (avg)

0.70

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.18

Tax Ratio

23.27%

Dividend Payout Ratio

119.32%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

8.81%

ROE (avg)

7.17%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.94

EV to EBIT

27.28

EV to EBITDA

17.80

EV to Capital Employed

2.77

EV to Sales

16.11

PEG Ratio

Dividend Yield

ROCE (Latest)

10.14%

ROE (Latest)

8.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 136.27%

DIVIDEND PER SHARE(HY)

Highest at CAD 7.23

-24What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,543.59

ROCE(HY)

Lowest at 7.76%

NET SALES(Q)

Lowest at CAD 111.7 MM

PRE-TAX PROFIT(Q)

Lowest at CAD 58.5 MM

NET PROFIT(Q)

Lowest at CAD 44.4 MM

RAW MATERIAL COST(Y)

Grown by 8.56% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 9.54 %

INTEREST(Q)

Highest at CAD 3.9 MM

OPERATING PROFIT(Q)

Lowest at CAD 99.2 MM

EPS(Q)

Lowest at CAD 0.19

Here's what is working for PrairieSky Royalty Ltd.

Dividend per share

Highest at CAD 7.23

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 136.27%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for PrairieSky Royalty Ltd.

Interest Coverage Ratio

Lowest at 2,543.59 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CAD 111.7 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Interest

At CAD 3.9 MM has Grown at 11.43%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

Lowest at CAD 58.5 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 44.4 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Net Sales

At CAD 111.7 MM has Fallen at -11.01%

over average net sales of the previous four periods of CAD 125.52 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Interest

Highest at CAD 3.9 MM

in the last five periods and Increased by 11.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit

Lowest at CAD 99.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

EPS

Lowest at CAD 0.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Highest at 9.54 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 8.56% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales