Advantage Energy (AAV) AI Stock Analysis

• Market Cap: $1.98B
• Dividend Yield: N/A
• Average Volume (3M): 486.38K
• Price to Earnings (P/E): 36.7
• Beta (1Y): 1.05
• Revenue Growth: 24.90%
• EPS Growth: -33.81%
• Country: CA
• Employees: 85
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.41
• Shares Outstanding: 166,938,130
• 10 Day Avg. Volume: 426,103
• 30 Day Avg. Volume: 486,376
• PEG Ratio: -0.95
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 2.94
• P/FCF Ratio: -18.90
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 4.31
• Enterprise Value/Gross Profit: 8.81
• Enterprise Value/Ebitda: 7.94
• 1Y Price Target: $13.68
• Price Target Upside: 15.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: C$11.50 ▼(-3.04% Downside)

Advantage Energy's overall stock score reflects mixed financial performance and technical indicators. While revenue growth is positive, profitability and cash flow issues are concerning. The technical analysis suggests a neutral to bearish trend, and the high P/E ratio indicates potential overvaluation.

Positive Factors

Negative Factors

Advantage Energy Business Overview & Revenue Model

Company Description

Advantage Energy Ltd., together with its subsidiaries, acquires, exploits, develops, and produces crude oil, natural gas, and natural gas liquids in the Province of Alberta, Canada. The company focuses on the development and production of oil and natural gas resource that includes 228 net sections covering an area of 145,920 net acres of Doig/Montney rights in Glacier, Valhalla, Progress, and Pipestone/Wembley. It provides natural gas, oil, and natural gas liquids primarily through marketing companies. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.

How the Company Makes Money

Advantage Energy generates revenue through the sale of crude oil and natural gas. The company's primary revenue streams include the production and sale of hydrocarbons, which are influenced by market prices for oil and gas. Additionally, Advantage Energy benefits from long-term contracts and spot market sales. The company often engages in hedging strategies to manage price volatility, thus stabilizing its revenue. Significant partnerships with refining and marketing companies also contribute to its earnings by securing stable outlets for its products. Furthermore, Advantage Energy may derive ancillary income from service agreements or joint ventures with other exploration and production companies.

Advantage Energy Financial Statement Overview

Summary

Advantage Energy shows a mixed financial performance. Positive revenue growth of 11.07% is overshadowed by a negative net profit margin of -4.84%, indicating profitability challenges. The balance sheet is stable with a manageable debt-to-equity ratio of 0.45, but cash flow issues persist with a negative free cash flow growth rate of -16.40%.

Income Statement

Advantage Energy shows a mixed performance in its income statement. The TTM data indicates a positive revenue growth rate of 11.07%, suggesting a recovery trend. However, the net profit margin is negative at -4.84%, indicating challenges in profitability. The gross profit margin remains healthy at 48.47%, but the EBIT and EBITDA margins have declined compared to previous years, reflecting increased operational costs or reduced pricing power.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is manageable at 0.45, indicating a balanced leverage. However, the return on equity is negative at -1.88%, highlighting inefficiencies in generating returns for shareholders. The equity ratio is stable, suggesting a solid asset base relative to equity.

Cash Flow

Cash flow analysis reveals some concerns. The free cash flow growth rate is negative at -16.40%, and the free cash flow to net income ratio is also negative, indicating cash flow challenges. The operating cash flow to net income ratio is relatively strong at 0.85, suggesting that operating activities are generating cash, albeit not enough to cover free cash flow deficits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	677.26M	550.10M	509.42M	964.37M	492.04M	245.09M
Gross Profit	331.17M	298.14M	330.99M	719.44M	357.72M	123.72M
EBITDA	367.44M	290.99M	316.34M	597.24M	660.25M	-237.45M
Net Income	54.12M	21.72M	101.60M	338.67M	411.52M	-284.05M
Balance Sheet
Total Assets	3.03B	2.95B	2.30B	2.22B	1.99B	1.53B
Cash, Cash Equivalents and Short-Term Investments	73.75M	20.15M	19.26M	48.94M	25.24M	3.28M
Total Debt	767.56M	698.03M	353.98M	192.90M	167.34M	249.38M
Total Liabilities	1.35B	1.31B	742.63M	652.28M	534.87M	493.55M
Stockholders Equity	1.68B	1.64B	1.56B	1.56B	1.46B	1.04B
Cash Flow
Free Cash Flow	-56.68M	-85.53M	49.73M	260.59M	85.31M	-57.91M
Operating Cash Flow	306.10M	217.53M	323.35M	502.38M	223.15M	100.71M
Investing Cash Flow	-327.12M	-697.73M	-282.76M	-269.58M	-117.78M	-158.62M
Financing Cash Flow	75.41M	481.08M	-70.26M	-209.09M	-83.41M	48.09M

Advantage Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AAV, the sentiment is Positive. The current price of 11.86 is above the 20-day moving average (MA) of 11.47, above the 50-day MA of 11.12, and above the 200-day MA of 10.52, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 76.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AAV.

Advantage Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWX	74 Outperform	$1.81B	9.73	25.93%	5.69%	8.47%	-1.60%
FRU	69 Neutral	$2.28B	18.20	11.89%	7.76%	-0.92%	-23.14%
BTE	67 Neutral	$2.54B	7.02	9.05%	2.73%	-7.76%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
AAV	60 Neutral	$1.98B	36.67	3.28%	―	24.90%	-33.81%
VET	57 Neutral	$1.79B	―	4.40%	4.37%	-1.60%	76.21%
BIR	55 Neutral	C$1.59B	20.67	3.27%	3.25%	-15.60%	85.49%

Advantage Energy Corporate Events

Advantage Energy Reports Strong Q2 2025 Results Amid Strategic Growth

Advantage Energy Ltd. reported strong second-quarter 2025 financial results, with significant cash flow and reduced net debt. The company achieved an 18% increase in production compared to the previous year, despite challenges such as third-party facility delays. Advantage’s strategic focus on maximizing adjusted funds flow per share and operational efficiency has led to a reduction in operating costs and improved financial metrics. The company’s market diversification efforts and hedging strategies are expected to support future growth, with a focus on achieving a new conservative debt target and resuming aggressive share buybacks.

The most recent analyst rating on (TSE:AAV) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Advantage Energy stock, see the TSE:AAV Stock Forecast page.

Entropy Expands Carbon Storage Operations with Strategic Acquisition

Entropy Inc. has entered a definitive agreement to acquire interests in three carbon storage hubs in Saskatchewan and Alberta for $20 million, with additional contingent payments. This acquisition, funded through convertible debentures from strategic investment agreements, will expand Entropy’s operations and customer base, enhancing its commitment to carbon capture and sequestration in Canada. The company continues to advance its Glacier gas plant operations, with Phase 2 expected to reach commercial operations by Q2 2026, despite challenges from tariffs and inflation.

The most recent analyst rating on (TSE:AAV) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Advantage Energy stock, see the TSE:AAV Stock Forecast page.