Permex Petroleum Corporation (OIL) AI Stock Analysis

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Permex Petroleum Corporation

(CNQX:OIL)

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Rating:32Underperform

Price Target:CAD 4.50▲(18.11% Upside)

Action:reiterated

Date:10/30/25

Permex Petroleum receives a critically low score of 32, reflecting severe financial distress that dominates the investment thesis. Financial performance (40% weight, score 20) is the primary driver—the company faces collapsing revenues, substantial operating losses, negative gross margins, deteriorating leverage, and chronic cash burn that threatens viability. Valuation (30% weight, score 25) provides no support; the negative P/E ratio signals unprofitability, and the absence of dividends eliminates income appeal. Technical analysis (30% weight, score 48) offers only mixed, neutral signals that cannot offset fundamental weaknesses. The stock faces high risk of further value erosion and potential insolvency without immediate operational stabilization or external capital injection. This is a high-risk, distressed position suitable only for speculative investors with high loss tolerance.

Positive Factors

Revenue GrowthDespite current challenges, the company has shown significant revenue growth, which could indicate potential for recovery and expansion.

Negative Factors

Profitability ChallengesConsistently negative profit margins and net income highlight ongoing profitability issues, which could hinder long-term financial health.

Permex Petroleum Corporation (OIL) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 2.10M
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): -0.4
Beta (1Y): 1.34
Revenue Growth: ―
EPS Growth: ―
Country: Canada
Employees: 1
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Exploration & Production

Permex Petroleum Corporation Business Overview & Revenue Model

Company Description

Permex Petroleum Corporation operates as an emerging oil and gas enterprise, concentrating on the acquisition, development, and production of hydrocarbon assets throughout the United States. The company's property portfolio includes stakes in Texas,...

How the Company Makes Money

Permex Petroleum Corporation generates revenue primarily through the sale of crude oil and natural gas. The company's revenue model is based on the extraction of hydrocarbons from its leased properties, which are then sold to various customers, inclu...

Permex Petroleum Corporation Financial Statement Overview

Summary

Severe financial distress across all metrics. Income statement shows negative gross profit margin (-140.1%), collapsing revenue (-46.3% YoY), and persistent net losses (-34.4% margin). Balance sheet deterioration includes sharply rising debt-to-equity (0.92) and deeply negative ROE (-97.2%). Cash flows remain significantly negative (OCF and FCF both -$2.3M) with unclear liquidity sustainability. Combined, these indicators reflect critical operational and financial challenges with high insolvency risk absent near-term turnaround.

Income Statement

16Very Negative

Balance Sheet

23Negative

Cash Flow

21Negative

Financial statement breakdown
Breakdown	TTM	Sep 2024	Sep 2023	Dec 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	342.23K	116.03K	688.83K	878.46K	106.89K	917.72K
Gross Profit	-472.14K	-162.61K	-345.48K	-56.24K	-91.75K	168.20K
EBITDA	-3.81M	-3.42M	-3.75M	-2.61M	-549.25K	-1.10M
Net Income	-5.68M	-3.99M	-3.94M	-2.53M	-1.58M	-1.69M
Balance Sheet
Total Assets	12.91M	12.06M	10.94M	17.19M	10.37M	9.33M
Cash, Cash Equivalents and Short-Term Investments	2.09M	1.51M	82.74K	4.51M	32.79K	7,356
Total Debt	3.76M	3.78M	284.46K	283.20K	239.23K	295.59K
Total Liabilities	10.99M	7.96M	3.77M	2.10M	2.84M	4.91M
Stockholders Equity	1.93M	4.11M	7.17M	10.46M	7.32M	4.43M
Cash Flow
Free Cash Flow	-3.19M	-2.29M	-3.74M	-5.07M	-1.34M	-195.64K
Operating Cash Flow	-3.00M	-2.29M	-2.30M	-2.77M	-951.57K	5,510
Investing Cash Flow	-188.94K	66.77K	-1.45M	-2.31M	1.11M	-176.15K
Financing Cash Flow	4.86M	3.65M	523.48K	9.55M	-129.89K	174.42K

Permex Petroleum Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price3.81

Price Trends

50DMA3.81Negative

100DMA3.81Negative

200DMA3.84Negative

Market Momentum

MACD-0.00Negative

RSI33.85Neutral

STOCH100.00Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OIL, the sentiment is Negative. The current price of 3.81 is below the 20-day moving average (MA) of 3.81, below the 50-day MA of 3.81, and below the 200-day MA of 3.84, indicating a bearish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 33.85 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OIL.

Permex Petroleum Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

TSE:OIL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TSE:WCE	54Neutral	CAD 5.42M	20.34	24.45%	―	50.89%	―
TSE:SQX	41Neutral	CAD 4.33M	-7.00	16.77%	―	―	-28.95%
TSE:OIL	32Underperform	CAD 2.10M	-0.38	-70.77%	―	―	―

* Energy Sector Average

Performance Comparison

TSE:OIL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:OIL	Permex Petroleum Corp	3.81	-1.09	-22.24%
TSE:CTA	Centaurus Energy Inc.	4.81	2.35	95.53%
TSE:JEC	Jura Energy	0.05	0.02	66.67%
TSE:WCE	Wescan Energy	0.13	0.05	70.67%
TSE:SQX	Squatex Energy and Ressources Inc	0.04	0.02	75.00%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 30, 2025

Permex Petroleum Corporation AI Stock Analysis