InPlay Oil Corp. (IPO) AI Stock Analysis

• Market Cap: C$264.59M
• Dividend Yield: 11.37%
• Average Volume (3M): 101.17K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 0.83
• Revenue Growth: -14.73%
• EPS Growth: -71.36%
• Country: CA
• Employees: 25
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.18
• Shares Outstanding: 27,939,402
• 10 Day Avg. Volume: 114,907
• 30 Day Avg. Volume: 101,171
• PEG Ratio: -0.08
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$9.07
• Price Target Upside: -4.53% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: ―

InPlay Oil Corp. receives an overall score of 61, reflecting a combination of mixed financial performance and bearish technical indicators, offset by an attractive valuation. The company's declining revenue and net income, alongside the pressures on margins, are significant drawbacks. Technical indicators show strong downward momentum, which might deter short-term investors. However, the low P/E ratio and high dividend yield offer a compelling case for value and income investors. Addressing revenue growth and managing financial leverage will be crucial for improving the company's prospects.

InPlay Oil Corp. Business Overview & Revenue Model

Company Description

InPlay Oil Corp. (IPO) is a publicly traded oil and gas exploration and production company based in Canada. The company primarily focuses on the acquisition, development, and production of oil and natural gas properties in the Western Canadian Sedimentary Basin. InPlay Oil Corp. aims to leverage its expertise in horizontal drilling and multi-stage fracturing to efficiently extract hydrocarbons, targeting light oil and natural gas liquids (NGLs) as its core products.

How the Company Makes Money

InPlay Oil Corp. generates revenue through the exploration, development, and production of oil and natural gas. The company's primary revenue streams include the sale of crude oil, natural gas, and natural gas liquids, which are extracted from its operated wells in the Western Canadian Sedimentary Basin. InPlay Oil Corp. sells its production to various marketers and oil and gas purchasers at prevailing market prices. The company may also enter into hedging contracts to manage commodity price risks, thereby stabilizing cash flows. Additionally, strategic partnerships and joint ventures help InPlay Oil Corp. optimize its operations and reduce costs, contributing to its overall profitability.

InPlay Oil Corp. Financial Statement Overview

Summary

InPlay Oil Corp. exhibits a mixed financial performance. The income statement indicates declining revenue and net income, while margins remain positive but under pressure. The balance sheet shows a stable equity base with manageable debt, though an increasing debt trend could be a concern. Cash flow analysis reveals strong operational cash generation but weak free cash flow, pointing to potential capital efficiency issues. The company needs to address revenue growth and manage its financial leverage to improve its overall financial health.

Income Statement

InPlay Oil Corp. has shown fluctuating revenue, with a notable decrease from 2022 to 2023, and a further decline into 2024. Despite this, the company maintained positive net income in 2023 and 2024, albeit lower than in 2022. Gross profit margin and EBITDA margin are strong, though the EBIT margin in 2024 is nonexistent due to zero EBIT. The net profit margin declined significantly from 2023 to 2024, suggesting challenges in maintaining profitability.

Balance Sheet

The company has a moderate debt-to-equity ratio, indicating manageable leverage, with a slight increase in total debt by 2024. Stockholders' equity has remained relatively stable from 2023 to 2024. The equity ratio indicates a solid proportion of assets financed by equity, reflecting financial stability. However, the increasing debt might pose future risks.

Cash Flow

Operating cash flow remains strong, but there is a significant decline in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is weaker, suggesting challenges in capital management and investment efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	149.59M	153.71M	156.85M	238.59M	113.85M	41.93M
Gross Profit	80.27M	85.54M	104.14M	156.91M	74.82M	18.13M
EBITDA	64.69M	70.43M	87.36M	135.36M	125.29M	-56.61M
Net Income	4.89M	9.47M	32.70M	83.90M	115.07M	-112.63M
Balance Sheet
Total Assets	521.61M	476.25M	472.96M	430.91M	406.48M	211.03M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	-320.00K	-578.00K	-553.00K
Total Debt	68.54M	66.99M	51.29M	29.53M	79.70M	64.39M
Total Liabilities	234.93M	185.53M	178.60M	157.85M	217.12M	165.31M
Stockholders Equity	286.68M	290.73M	294.35M	273.06M	189.36M	45.72M
Cash Flow
Free Cash Flow	10.47M	7.81M	1.22M	45.29M	4.98M	-16.27M
Operating Cash Flow	62.24M	70.88M	86.01M	122.89M	38.41M	8.47M
Investing Cash Flow	-58.86M	-69.66M	-87.93M	-70.36M	-63.93M	-18.07M
Financing Cash Flow	-3.38M	-1.22M	1.92M	-52.53M	25.52M	9.60M

InPlay Oil Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IPO, the sentiment is Positive. The current price of 9.5 is below the 20-day moving average (MA) of 9.52, above the 50-day MA of 8.71, and above the 200-day MA of 9.01, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 80.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IPO.

InPlay Oil Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCP	77 Outperform	$11.61B	6.13	16.40%	7.74%	5.56%	35.85%
PXT	75 Outperform	$1.39B	12.52	4.22%	10.76%	-9.92%	-78.49%
BTE	74 Outperform	$2.08B	6.76	8.02%	3.42%	10.55%	―
TOU	73 Outperform	C$24.47B	18.48	8.35%	9.49%	-8.29%	-30.52%
VET	63 Neutral	$1.62B	―	-1.19%	4.96%	1.04%	94.48%
IPO	61 Neutral	C$264.59M	28.84	1.69%	11.37%	-14.73%	-71.36%
Sector *	52 Neutral	C$2.90B	-1.06	-3.46%	5.87%	3.01%	-47.13%