Prairiesky Royalty Ltd
TSX:PSK

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Prairiesky Royalty Ltd Logo
Prairiesky Royalty Ltd
TSX:PSK
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Price: 24.19 CAD 0.83% Market Closed
Market Cap: 5.7B CAD

Operating Margin
Prairiesky Royalty Ltd

59.5%
Current
62%
Average
11.6%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
59.5%
=
Operating Profit
300.2m
/
Revenue
504.6m

Operating Margin Across Competitors

Prairiesky Royalty Ltd
Glance View

Market Cap
5.7B CAD
Industry
Energy

Prairiesky Royalty Ltd., a unique player in the Canadian energy sector, operates not in the typical manner of exploration and production companies but rather as a purveyor of mineral rights. Born out of a spinoff from Encana Corporation in 2014, this Calgary-based company boasts a considerable land base of petroleum and natural gas interests, making it one of the largest owners of such rights in Canada. Without delving into the complexities and capital intensity of drilling and extracting energy resources, Prairiesky instead focuses on managing these vast landholdings, strategically licensing exploration and development rights to other companies. This approach allows it to capitalize on the energy market without the inherent risks and costs associated with extraction endeavors. The company's revenue streams flow from leasing agreements where it collects royalties from energy production conducted by partners on its lands. These royalties typically represent a percentage of the production value, granting Prairiesky a consistent cash flow with low overhead. The company prides itself on maximizing the efficiency of its royalty portfolio, actively seeking optimization through creative lease and royalty negotiations while carefully watching commodity prices. Consequently, Prairiesky has established itself as a stable entity, providing investors with exposure to the oil and gas industry via the relative security of a diversified and effectively managed royalty base. This model offers a longstanding partnership within the resource sector, aligning incentives between energy producers and its shareholders, all without the direct burden of operational involvement.

PSK Intrinsic Value
12.46 CAD
Overvaluation 49%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
59.5%
=
Operating Profit
300.2m
/
Revenue
504.6m
What is the Operating Margin of Prairiesky Royalty Ltd?

Based on Prairiesky Royalty Ltd's most recent financial statements, the company has Operating Margin of 59.5%.

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