Prairie Operating Co. Common Stock (PROP)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $0.40 on 2026-10-13, Prairie Operating has a market cap of $44.9 million and trades at 0.19 times book, which catches a Graham man's eye. But cheapness alone is not enough. This is a small oil-and-gas producer with 59 employees, so it has no meaningful pricing power or wide moat; it lives on commodity prices and capital discipline. The filed numbers are volatile. In FY2024, the fiscal year ended 2024-12-31, revenue was $7.9 million with a $40.9 million net loss; in FY2025, the fiscal year ended 2025-12-31, revenue jumped to $241.6 million with $32.1 million net income, yet diluted EPS was still -$1.35. In fiscal Q1 2026, the quarter ended 2026-03-31, the company lost $152.7 million, or -$2.16 per diluted share; then in fiscal Q2 2026, the quarter ended 2026-06-30, it earned $109.0 million, or $0.23 per share, on $98.9 million revenue. That is not steady compounding; it is a swing factor. FairStock's calculations show a negative P/E, P/B 0.19, EV/EBITDA 7.82, ROE -15.45%, ROCE 8.17%, and debt-to-equity 1.60. More worrying, trailing free cash flow is -$47.7 million and FCF yield is -106.2%, while Altman Z-Score of -0.05 signals distress. The Lynch category is TURNAROUND, which fits: a return to profit after losses. I would want evidence that the latest quarter is repeatable and that cash flow turns positive while debt is managed. Until then, the asset discount is compensation for risk, not a margin of safety.

In plain English: Prairie Operating is a small oil and gas company. It has grown revenue quickly, but its results are very uneven: it lost large amounts in some periods, burned cash over the last year, and then swung to a large profit in the latest reported quarter. At 40 cents per share, the price looks low compared with the company's accounting assets, but the business is risky and not clearly stable.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer