Peyto Exploration & Development

PEY.TO

Oil & Gas Exploration & Production · Energy

Also trades as: 0VCO.L

Price

C$25.29

-0.03 (-0.12%)

Market Cap

C$5.19B

Exchange

Toronto Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Exceptional

Cash Flow

Exceptional

Stability

Strong

Valuation

Good

Dividends

Strong

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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)

Winston Score History

The full picture

Peyto Exploration & Development Corp. is a Canadian energy company that finds and produces natural gas and natural gas liquids deep underground in Alberta. It sells this gas mainly to utilities, industrial buyers, and energy marketers across Canada. Peyto is one of the lowest-cost natural gas producers in the Western Canadian Sedimentary Basin, which is one of North America's most active energy regions.

Peyto makes money by selling the natural gas and liquids it extracts, with revenue tied directly to commodity prices. It operates entirely in Alberta, making it a focused, single-region producer with a market cap around $5.2 billion. Its cost advantage comes from owning its own processing infrastructure and drilling in a concentrated area, which keeps expenses low. The biggest risk the company faces is falling natural gas prices, since its earnings are heavily exposed to commodity price swings it cannot control.

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

+13.8% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+18.2% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

C$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

3.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

C$92M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

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

Growth + cash flow

Peyto Exploration & Development is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

40.9%

Healthy — 40.9% gross margin

Profit after running costs

Operating Margin

37.0%

Excellent — 37.0% operating margin

Return on the money invested

ROCE

11.6%

Below par — 11.6% 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 growth

Sales YoY

+20.8%

Fast-growing sales (+20.8% YoY)

Profit growth

EPS YoY

+45.5%

Earnings growing fast (+45.5% YoY)

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

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

194%

Turns 194% of profit into real cash

Spare cash per sale

FCF Margin

37.7%

Converts sales into free cash efficiently (37.7%)

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

What it owes vs what it owns

Debt / Equity

0.35

Conservative — low debt load (0.35)

Covers its interest

Interest Cover

7.32x

Adequate interest coverage (7.3x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

10.4x

Attractive valuation — P/E 10.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

-1.4

SLOWING

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

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Dividends

Dividend

Dividend Yield

5.19%

Healthy income — 5.19% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record

Dividend Growth

+6.8%

Dividend growing modestly (6.8% YoY)

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