📊 PROP Key Takeaways
Is Prairie Operating Co. (PROP) a Good Investment?
Prairie Operating Co. faces existential financial distress with stockholders' equity of only $400K against $836M in liabilities and extreme leverage of 967.5x debt-to-equity ratio. Despite revenue growth of 2,943.8%, the core business is deeply unprofitable with -183% net margin and -229% operating margin, while critical liquidity metrics (0.24x current ratio, $263K cash) indicate imminent solvency risk.
Prairie Operating Co. Key Strengths (PROP)
- Operating cash flow positive at $42.3M despite substantial net losses
- Strong revenue growth of 2,943.8% year-over-year signals potential operational recovery
- Free cash flow of $42.1M and 50.4% FCF margin suggest some underlying cash generation capability
PROP Stock Risks: Prairie Operating Co. Investment Risks
- Technical insolvency: stockholders' equity of $400K is essentially worthless relative to $836M in liabilities
- Critical liquidity crisis: current ratio of 0.24x with only $263K cash cannot support $387M debt obligations
- Extreme leverage of 967.5x debt-to-equity with negative interest coverage of -23.3x; unable to service debt from operations
- Core business deeply unprofitable: -183% net margin and -229% operating margin with 0.1% gross margin
- Negative operating income of -$191M cannot sustain long-term operations despite positive OCF
Key Metrics to Watch
- Cash balance and liquidity runway; ability to avoid default in next 12 months
- Path to operating profitability; whether business model can reach positive EBIT
- Debt refinancing and covenant compliance; any asset sales or capital restructuring
- Stockholders' equity trend; risk of further dilution or complete wipeout
Prairie Operating Co. (PROP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 50.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
PROP Profit Margin, ROE & Profitability Analysis
PROP vs Energy Sector: How Prairie Operating Co. Compares
How Prairie Operating Co. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Prairie Operating Co. Stock Overvalued? PROP Valuation Analysis 2026
Based on fundamental analysis, Prairie Operating Co. shows some fundamental concerns relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Prairie Operating Co. Balance Sheet: PROP Debt, Cash & Liquidity
PROP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Prairie Operating Co.'s revenue has grown significantly by 1,638% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.65 indicates the company is currently unprofitable.
PROP Revenue Growth, EPS Growth & YoY Performance
PROP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $13.6M | -$2.6M | $-2.16 |
| Q3 2025 | N/A | $1.3M | $-0.44 |
| Q1 2023 | $385.1K | -$971.4K | N/A |
| Q3 2022 | $8.0K | -$602.1K | N/A |
| Q2 2022 | $166.6K | -$1.9M | N/A |
| Q1 2022 | $172.7K | -$2.5M | N/A |
| Q3 2021 | $148.4K | N/A | $-0.07 |
| Q2 2021 | $226.7K | -$390.4K | $-0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Prairie Operating Co. Dividends, Buybacks & Capital Allocation
PROP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Prairie Operating Co. (CIK: 0001162896)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PROP
What is the AI rating for PROP?
Prairie Operating Co. (PROP) has an AI grade of D with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PROP's key strengths?
Claude: Operating cash flow positive at $42.3M despite substantial net losses. Strong revenue growth of 2,943.8% year-over-year signals potential operational recovery.
What are the risks of investing in PROP?
Claude: Technical insolvency: stockholders' equity of $400K is essentially worthless relative to $836M in liabilities. Critical liquidity crisis: current ratio of 0.24x with only $263K cash cannot support $387M debt obligations.
What is PROP's revenue and growth?
Prairie Operating Co. reported revenue of $83.4M.
Does PROP pay dividends?
Prairie Operating Co. does not currently pay dividends.
Where can I find PROP SEC filings?
Official SEC filings for Prairie Operating Co. (CIK: 0001162896) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PROP's EPS?
Prairie Operating Co. has a diluted EPS of $-2.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PROP's fundamental grade?
Based on our AI fundamental analysis in May 2026, Prairie Operating Co. has a D grade with 95% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PROP stock overvalued or undervalued?
Valuation metrics for PROP: ROE of -38,168.3% (sector avg: 14%), net margin of -183.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is PROP's AI grade for 2026?
Our dual AI analysis gives Prairie Operating Co. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PROP's free cash flow?
Prairie Operating Co.'s operating cash flow is $42.3M, with capital expenditures of $200.0K. FCF margin is 50.4%.
How does PROP compare to other Energy stocks?
Vs Energy sector averages: Net margin -183.0% (avg: 12%), ROE -38,168.3% (avg: 14%), current ratio 0.24 (avg: 1.3).
Is Prairie Operating Co. carrying too much debt?
PROP has a debt-to-equity ratio of 967.50x, which is above the Energy sector average of 0.6x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.