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Source Rock Royalties Ltd. (TSE:SRR)
:SRR
Canadian Market
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Source Rock Royalties Ltd. (SRR) AI Stock Analysis

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TSE:SRR

Source Rock Royalties Ltd.

(SRR)

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Outperform 81 (OpenAI - Gpt-5.6Sol)
Rating:81Outperform
Price Target:
C$1.00
â–¼(-2.91% Downside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by strong financial performance—especially the zero-debt balance sheet and solid profitability—supported by a constructive technical uptrend. Valuation is mixed: the high dividend yield helps, but the P/E around 24 reduces the valuation contribution.
Positive Factors
Zero-debt balance sheet
A zero-debt balance sheet materially reduces financial risk and interest burdens, preserving flexibility through commodity or operating cycles. Stable equity relative to assets also provides resilience, allowing the company to support distributions and pursue opportunities without relying heavily on external financing.
Negative Factors
Uneven revenue growth
The uneven multi-year revenue pattern makes the company’s growth profile less predictable than its current profitability suggests. A decline after a strong year can complicate planning, reduce operating leverage, and make sustained earnings expansion more dependent on recovering or volatile revenue drivers.
Read all positive and negative factors
Positive Factors
Negative Factors
Zero-debt balance sheet
A zero-debt balance sheet materially reduces financial risk and interest burdens, preserving flexibility through commodity or operating cycles. Stable equity relative to assets also provides resilience, allowing the company to support distributions and pursue opportunities without relying heavily on external financing.
Read all positive factors

Source Rock Royalties Ltd. (SRR) vs. iShares MSCI Canada ETF (EWC)

Source Rock Royalties Ltd. Business Overview & Revenue Model

Company Description
Source Rock Royalties Ltd., an oil and gas royalty company, engages in acquiring and managing oil and gas royalties and mineral title interests. It has an oil focused portfolio of royalty interests concentrated in S.E. Saskatchewan, central Albert...

Source Rock Royalties Ltd. Financial Statement Overview

Summary
Financials are strong overall, led by an exceptionally conservative balance sheet (93; zero debt) and solid profitability (78; ~56% gross margin and ~32% net margin in TTM). Cash flow is positive with good cash conversion (74; FCF ~91% of net income), but multi-year revenue and free-cash-flow volatility (including a large negative FCF year in 2023) keeps the score below top-tier.
Income Statement
78
Positive
Balance Sheet
93
Very Positive
Cash Flow
74
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue6.27M6.03M7.69M6.65M6.49M4.26M
Gross Profit3.54M3.07M3.75M3.46M4.31M2.03M
EBITDA5.12M4.61M6.11M5.02M5.34M3.47M
Net Income1.99M1.32M1.50M1.57M2.56M176.54K
Balance Sheet
Total Assets23.53M23.95M26.59M27.26M28.82M15.36M
Cash, Cash Equivalents and Short-Term Investments4.09M4.15M4.64M1.46M13.15M1.49M
Total Debt0.000.000.000.000.000.00
Total Liabilities491.02K531.09K865.12K401.50K1.38M795.93K
Stockholders Equity23.04M23.42M25.72M26.86M27.44M14.56M
Cash Flow
Free Cash Flow4.09M4.59M6.62M-8.36M1.70M2.21M
Operating Cash Flow4.51M4.62M6.65M4.91M5.32M3.41M
Investing Cash Flow-1.31M-830.89K-27.10K-13.28M-3.62M-1.19M
Financing Cash Flow-4.27M-4.27M-3.45M-3.33M9.96M-1.63M

Source Rock Royalties Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.03
Price Trends
50DMA
1.00
Positive
100DMA
0.98
Positive
200DMA
0.92
Positive
Market Momentum
MACD
0.02
Negative
RSI
59.15
Neutral
STOCH
62.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SRR, the sentiment is Positive. The current price of 1.03 is above the 20-day moving average (MA) of 1.02, above the 50-day MA of 1.00, and above the 200-day MA of 0.92, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.15 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SRR.

Source Rock Royalties Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
C$47.86M24.038.53%7.43%-11.22%51.92%
75
Outperform
C$8.44B34.919.48%2.89%6.68%11.02%
71
Outperform
C$2.89B20.5613.88%6.14%0.67%11.91%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SRR
Source Rock Royalties Ltd.
1.05
0.27
34.27%
TSE:FRU
Freehold Royalties
17.60
5.27
42.75%
TSE:PSK
PrairieSky Royalty
36.31
13.06
56.19%

Source Rock Royalties Ltd. Corporate Events

Business Operations and StrategyDividendsFinancial Disclosures
Source Rock Royalties Posts Record Q2 Revenue and Expands Western Canadian Royalty Footprint
Positive
Aug 31, 2026
Source Rock Royalties reported record quarterly royalty revenue of $2.13 million in the second quarter of 2026, up 40% year over year, despite a 7% decline in royalty production to 220 boe/d. Strong pricing lifted operating and corporate netbacks ...
Business Operations and StrategyDividends
Source Rock Royalties Declares Monthly Dividend to Support Growth-and-Yield Strategy
Positive
Aug 14, 2026
Source Rock Royalties Ltd., a Calgary-based pure-play oil and gas royalty company, operates an oil-focused portfolio of royalty interests across key producing regions in Saskatchewan and Alberta. The firm targets a blend of growth and income by re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2026