PrairieSky Royalty (TSX:PSK) Gross Margin % : 67.77% (As of Mar. 2024)

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What is PrairieSky Royalty Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. PrairieSky Royalty's Gross Profit for the three months ended in Mar. 2024 was C$81.8 Mil. PrairieSky Royalty's Revenue for the three months ended in Mar. 2024 was C$120.7 Mil. Therefore, PrairieSky Royalty's Gross Margin % for the quarter that ended in Mar. 2024 was 67.77%.

The historical rank and industry rank for PrairieSky Royalty's Gross Margin % or its related term are showing as below:

TSX:PSK' s Gross Margin % Range Over the Past 10 Years
Min: 24.98 Med: 51.26 Max: 76.31
Current: 70.3

During the past 11 years, the highest Gross Margin % of PrairieSky Royalty was 76.31%. The lowest was 24.98%. And the median was 51.26%.

TSX:PSK's Gross Margin % is ranked better than
90.09% of 928 companies
in the Oil & Gas industry
Industry Median: 27.905 vs TSX:PSK: 70.30

PrairieSky Royalty had a gross margin of 67.77% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for PrairieSky Royalty was 11.40% per year.

PrairieSky Royalty Gross Margin % Historical Data

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.

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PrairieSky Royalty Gross Margin % Chart

PrairieSky Royalty Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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52.38

37.57

65.78

76.31

71.22

PrairieSky Royalty Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															71.61	70.10	71.53	71.52	67.77

Competitive Comparison of PrairieSky Royalty's Gross Margin %

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's Gross Margin % Distribution in the 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.

PrairieSky Royalty Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

PrairieSky Royalty's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	365.5	/	513.2
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(513.2 - 147.7)	/	513.2
	=	71.22 %

PrairieSky Royalty's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	81.8	/	120.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(120.7 - 38.9)	/	120.7
	=	67.77 %

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) Gross Margin % Explanation

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 67.77% for the quarter that ended in Mar. 2024 => 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

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PrairieSky Royalty (TSX:PSK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » PrairieSky Royalty Ltd (TSX:PSK) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

PREKF:USA 7PS:Germany

Address

350 - 7th Avenue S.W., Suite 1700, Calgary, AB, CAN, T2P 3N9

Website

https://www.prairiesky.com

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.

Executives

Leanne M. Bellegarde

Director