Peyto Exploration & Development

PEYUF

Oil & Gas Exploration & Production · Energy

Price

$17.88

+0.15 (+0.85%)

Market Cap

$3.66B

Exchange

Other OTC

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+19.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 170.1M (2021) → 203.1M (2025)

Peyto Exploration & Development Corp. is a Canadian natural gas producer focused almost entirely on the deep basin of Alberta, Canada. The company drills for and produces natural gas and natural gas liquids, selling primarily to utilities, industrial buyers, and energy marketers across Canada. Peyto is known as one of the lowest-cost natural gas producers in Canada, which sets it apart from many peers in the industry.

Peyto makes money by selling the natural gas and liquids it extracts from the ground, with revenue tied directly to commodity prices. It operates exclusively in Alberta, making it a focused regional producer rather than a diversified global energy company. Its cost advantage — built through decades of efficient drilling in a concentrated area — acts as its main competitive moat. The biggest risk the company faces is falling natural gas prices, which can quickly squeeze profits given that nearly all revenue depends on a single commodity.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+31.3% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+47.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

3.2%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$72M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Peyto Exploration & Development grew revenue 31% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

56.2%

Premium pricing power — 56.2% gross margin

Operating Margin

53.4%

Excellent — 53.4% operating margin

ROCE

5.2%

Weak — 5.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+24.2%

Fast-growing sales (+24.2% YoY)

EPS YoY

+57.7%

Earnings growing fast (+57.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion

191%

Turns 191% of profit into real cash

FCF Margin

33.1%

Converts sales into free cash efficiently (33.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.36

Conservative — low debt load (0.36)

Interest Cover

6.47x

Adequate interest coverage (6.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

7.6x

Attractive valuation — P/E 7.6

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

-3.8

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield

5.42%

Healthy income — 5.42% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth

+5.3%

Dividend growing modestly (5.3% YoY)

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