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TSE:PSK

PrairieSky Royalty (PSK.TO)

36.19
-0.78 (2.11%)
as of Aug 28, 2026, 8:00:00 pm Market Open.
97 watching
0
Investor Insights
star iconAug 30, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

PrairieSky Royalty (PSK-T) has garnered attention from multiple experts, highlighting both its defensive qualities and challenges in valuation. Experts note that while the company is exceptionally well-run and has seen strong performance, it trades at relatively high multiples, indicating a lack of compelling upside at the current price. The company currently offers a yield of around 3%, which is not seen as overly attractive when compared to other investment opportunities. Additionally, opinions vary on the fair multiple for royalty companies, with some experts suggesting only modest potential for future gains, while others believe the defensive nature of the stock could appeal to investors focused on stability amid volatility in the oil market.

consensus icon
Consensus
Mixed
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Valuation
Fair Value
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Similar
FRU
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.
DON'T BUY
Believes company was over valued at IPO. Good management team that has been buying back stock and paying down debt. Thinks there are other Canadian energy stocks to hold. Not undervalued enough to justify investment.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A solid company for the sector. Balance sheet and cash flow looks good. Growth is positive and they managed the pandemic well. They cut dividends but it is now much higher than before. Their recent deal is good and is the right move for the company. Unlock Premium - Try 5i Free

WEAK BUY
Great long-term land position, tilted toward natural gas which should benefit them in coming quarters. Performance was especially poor in the downdraft, as it had been a darling. Cut dividend. He owns FRU instead, a bit smaller and has returned their dividend, and they have catalysts with acquisitions south of the border. Both names will do well, but he prefers FRU.
BUY ON WEAKNESS
Likes royalty because there is less business risk. However, it is not risk free. Probably a good buy on dips. The reflation trade is interesting. For the next 6-12 months, it is okay for a trade.
PAST TOP PICK
(A Top Pick Apr 25/19, Down 53%) They sold out when they were stopped out last July. It is tough in the energy space right now. Investors have to avoid trying to be a bottom feeder and trade with tight stop loss levels.
DON'T BUY
They reported results yesterday, which were pretty much in line with expectations. The corporate decline rate is 19%, which is manageable. He likes the management team. However, with a low beta to oil price recovery, he is looking elsewhere.
COMMENT
They've been pressured by the price of oil, but PSK is a low-risk way of playing oil. PSK is spread out over thousands of royalties. This is good is you expect oil to remain flat, but not so good is oil takes off.
TOP PICK
Great business. Around $20 or below is a great level. Well positioned going forward. When oil companies are flush with cash, money will go back into more production, and they'll benefit. Yield is 3.81%. (Analysts’ price target is $22.24)
TOP PICK

This is a controversial name because it is a long term asset being valued on near term momentum and missed numbers last quarter. They don’t give projections on production numbers. They have no debt. It is a buy and hold kind of stock. (Analysts’ target: $32.07).

PAST TOP PICK

(A Top Pick Mar 20/17, Up 4%) His only energy stock. It is not a producer but is a royalty company. They missed on production guidance by 900 barrels and they lost 8-9% and it makes no sense to him. He likes it. It is a way to have oil exposure without capital risk. It is nice light oil. The balance sheet is impeccable.

BUY

Is the only Canadian oil stock he owns. [see CPG-Tcomment today.]

TOP PICK

One of the oil patch casualties that has actually done okay. He likes royalty structures because you don’t have capital investment risks, and this one has no debt on the balance sheet. Oil price recovery gives them torque to the upside. During the horrific oil environment of 2015-2016, they proved their ability to generate good cash flow. Dividend yield of 2.7%. (Analysts’ price target is $34.75.)

SELL

He would Sell this in favour of more conventional producers. It’s an awesome company, but from a stock perspective, he is kind of challenged to be asked to pay 27X cash flow. Feels the stock is approaching fair value.

PAST TOP PICK

(A Top Pick Sept 2/15. Up 8.33%.) This is an easy one, because it is a royalty. There is no drilling involved. Essentially, all the cash flow can be paid out to shareholders. There is no debt involved in the story. However, the valuation is really stretched now.

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