TSE:PSK

PrairieSky Royalty (PSK.TO)

34.14
-0.65 (1.87%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
96 watching
0
Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 2 opinions in the last 12 months.

PrairieSky Royalty (PSK-T) has garnered favorable reviews, being recognized as exceptionally well run and reaching an all-time high recently. However, there are concerns regarding its valuation, with a high price-to-earnings (PE) ratio of 19.5x and an expected 18x for the upcoming year, which raises questions about the fair multiple for a royalty company. While its business model showcases strong performance in sectors like Clearwater, the growth potential seems limited, with analysts estimating only about a 10% upside from the current price. Additionally, the free cash flow yield of 5% and a dividend yield of 3% or 3.8% do not appear compelling to some experts, suggesting that revenue growth may not keep pace with its heightened valuation.

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Consensus
Mixed
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Valuation
Overvalued
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Similar
FRU,FRU

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HOLD

Exceptionally well run. All-time high today. His struggle has always been what's the fair multiple on a royalty company? Trades at 19.5x PE, 18x for next year, and FCF yield is 5% (not compelling). Yield is 3%.

He owns some in his income fund. If you're really bullish on oil, royalty is not the way to go.

DON'T BUY

Strong performer over past several years, so trades at fairly high multiple (for example, twice that of FRU earlier this year). Extraordinarily good exposure to the Clearwater, good job with its business model. He struggles with what a fair multiple is. About 10% upside from here, and that doesn't do it for him. Yield is 3.8%, not overly compelling.

WEAK BUY

Second in line behind TPZ for what he'd want to own in terms of O&G royalty companies and infrastructure.

COMMENT

Excellent company. Trades at 18x cashflow. FRU is cheaper at about 9x.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 20/23, Up 23.3%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with PSK has triggered its stop at $23.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 27%, when combined with our previous recommendations.  

DON'T BUY

Trades at a massive and unjustified premium of 14x. He holds FRU instead, trading at 8.5x.

HOLD
FRU vs. PSK

FRU is such a low-cost producer, it hasn't benefited as much as marginal producers have in the uptick in oil/gas prices. So its margins haven't increased as much. FRU asset package is so good, he's happy to own it despite this year's price action. He likes both names.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 20/22, Up 46.5%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with PSK is progressing well.  To remain disciplined, we recommend trailing up the stop (from $20) to $23 at this time.  

HOLD
Always trading at premium since IPO. Doesn't have same reverence as other royalty names in the market. Sees 50% upside and not as much as other energy companies. Better names out there.
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Curated by Michael O'Reilly since 2020.
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PAST TOP PICK
(A Top Pick Sep 20/22, Up 20.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PSK has achieved its $22.50 target. To remain disciplined, we recommend covering half the position at this time and maintaining the stop at $20. If triggered, this would result in a net investment gain of 15%, when combined with this recommendation to cover half.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 20/22, Up 18.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PSK is progressing well. To remain disciplined, we recommend trailing up the stop to $20 at this time.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate PSK, a oil and gas royalty, generating strong cash flow, as a TOP PICK. The company avoids the capital investment treadmill of a traditional oil and gas producer, yet it has tripled its acreage exposure over the past eight years and has used its free cash flow to rapidly pay down debt. Even at $50 WTI prices, the company will produce sufficient free cash flow to allow it to expand its portfolio further. We recommend trailing up the stop loss (from $14.50) to $15.75, looking to achieve $22.50 -- upside potential over 19%. Yield 2.54% (Analysts’ price target is $22.21)
BUY
Has it peaked? The answer is how you feel on the oil price? They don't have exposure to costs, they just collect the royalty stream. Safer way to play the energy markets, as you just sit and collect the yield, but you don't get quite the same leverage.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly As a royalty, the company avoids the capital investment treadmill of a traditional oil and gas producer. Yet it has tripled its acreage exposure over the past eight years and has used its free cash flow to rapidly pay down debt. Even at $50 WTI prices, the company will produce sufficient free cash flow to allow it to expand its portfolio further. We recommend setting a stop loss at $14.50, looking to achieve $22.50 -- upside potential over 27%. Yield 2.68% (Analysts’ price target is $22.21)
HOLD
Sell? Commodities are a trade. But PSK is a royalty, so it's even safer than the other energy companies. When the price is high, trim; when the price goes away, add some back. The price of oil should stay up for a while and it'll be a good investment.
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PrairieSky Royalty (PSK.TO) Frequently Asked Questions

What is PrairieSky Royalty stock symbol?

PrairieSky Royalty is a Canadian stock, trading under the symbol PSK.TO (previously PSK-T on Stockchase) on the Toronto Stock Exchange (PSK-CT). It is usually referred to as TSX:PSK or PSK.TO

Is PrairieSky Royalty a buy or a sell?

In the last year, 3 stock analysts published opinions about PSK.TO (previously PSK-T on Stockchase). 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is HOLD. Read the latest stock experts' ratings for PrairieSky Royalty.

Is PrairieSky Royalty a good investment or a top pick?

PrairieSky Royalty was recommended as a Top Pick by Rick Stuchberry on 2022-07-07. Read the latest stock experts ratings for PrairieSky Royalty.

Why is PrairieSky Royalty stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for help on deciding if you should buy, sell or hold the stock.

Is PrairieSky Royalty worth watching?

3 stock analysts on Stockchase covered PrairieSky Royalty in the last year. It is a trending stock that is worth watching.

What is PrairieSky Royalty stock price?

On 2026-06-05, PrairieSky Royalty (PSK.TO) stock closed at a price of $34.14.