PrairieSky RoyaltyTSX:PSK +0.50%92 Gross Margin % is 71.82% as of Mar. 2026, which is 22% above its 10-year median of 59.08. GuruFocus rates TSX:PSK with a GF Score™ of 92/100 and a GF Value™ of C$27.47 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 869 Oil & Gas companies, PrairieSky Royalty ranks better than 91.94% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
PrairieSky Royalty had a gross margin of 71.82% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
PrairieSky Royalty Gross Margin % Related Terms
PrairieSky Royalty Gross Margin % Historical Data
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The historical data trend for PrairieSky Royalty's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:PSK vs COP, EOG, FANG: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, PrairieSky Royalty's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PrairieSky Royalty Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, PrairieSky Royalty's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PrairieSky Royalty's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
PrairieSky Royalty (TSX:PSK) has a Gross Margin % of 71.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PrairieSky Royalty and its competitors. This is 22% above median its historical median of 59.08. Over the past decade, PrairieSky Royalty's Gross Margin % has ranged from 24.98 to 76.31. According to the industry distribution chart, PrairieSky Royalty ranks #70 out of 869 companies in the Oil & Gas industry, placing it in the top 8.1%.
Is PrairieSky Royalty's Gross Margin % too high?
PrairieSky Royalty's current Gross Margin % of 71.82% is 22% above median its 10-year median of 59.08. Over the past 10 years, this metric has ranged from a low of 24.98 to a high of 76.31. The Oil & Gas industry median Gross Margin % is 25.70. PrairieSky Royalty's value of 71.82% is 179.5% above this industry median. Based on the distribution chart, PrairieSky Royalty ranks #70 out of 869 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, PrairieSky Royalty has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PrairieSky Royalty's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, PrairieSky Royalty ranks #70 out of 869 companies for Gross Margin %. This places PrairieSky Royalty in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.70. PrairieSky Royalty's value of 71.82% is 179.5% above this benchmark. Historically, PrairieSky Royalty's own Gross Margin % has ranged from 24.98 to 76.31 over the past decade. While the company's 10-year median is 59.08 vs. the industry median of 25.70, PrairieSky Royalty has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 869 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PrairieSky Royalty's current Gross Margin % of 71.82% is 179.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on PrairieSky Royalty and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PrairieSky Royalty's current Gross Margin % is 71.82%, which is 22% above median its own 10-year median of 59.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PrairieSky Royalty stock overvalued right now?
Based on GuruFocus' analysis, PrairieSky Royalty (TSX:PSK) is currently considered Modestly Overvalued. The stock's GF Value™ is C$27.47, compared to a current price of C$31.94 — trading 16.3% above its estimated fair value. The current Gross Margin % is 71.82%, which is 22% above median its 10-year median of 59.08 and 179.5% above the Oil & Gas industry median of 25.70. PrairieSky Royalty's overall GF Score™ is 92/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For PrairieSky Royalty (TSX:PSK), the current Gross Margin % is 71.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PrairieSky Royalty (TSX:PSK) Overvalued in 2026?
Based on GuruFocus' analysis, PrairieSky Royalty stock appears to be overvalued.
The current stock price of C$31.94 is trading 16.3% above its estimated GF Value™ of C$27.47.
GuruFocus considers PrairieSky Royalty to be Modestly Overvalued.
Key valuation signals for TSX:PSK:
Gross Margin %: 71.82% (22% above median its 10-year median of 59.08)
GF Value™: C$27.47 vs. price of C$31.94 (16.3% above fair value)
Industry Position: 179.5% above the Oil & Gas median (#70 of 869)
No single metric tells the full story. See the TSX:PSK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PrairieSky Royalty Ltd is the owner of subsurface mineral rights on a variety of royalty properties in western Canada. The company encourages third parties to develop these properties, while also seeking additional petroleum and natural gas royalty assets. Once PrairieSky has given a third party the right to explore, develop, or produce on its properties, the company collects royalty revenue from the development of petroleum and natural gas. Property arrangements can be contracted as lease issuances, farmouts, drilling commitments, or seismic option agreements.
92GF Score
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