Rubellite Energy Inc (RBY) AI Stock Analysis

• Market Cap: C$211.70M
• Dividend Yield: N/A
• Average Volume (3M): 28.13K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.96
• Revenue Growth: 88.34%
• EPS Growth: 106.47%
• Country: CA
• Employees: 46
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.35
• Shares Outstanding: 93,420,160
• 10 Day Avg. Volume: 12,543
• 30 Day Avg. Volume: 28,125
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$3.00
• Price Target Upside: 30.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ―

Rubellite Energy Inc's strong financial performance and undervaluation are key strengths, contributing significantly to its overall score. The strategic corporate event further bolsters its financial stability and growth potential. However, technical indicators suggest a bearish trend, slightly tempering the outlook. The absence of earnings call data does not affect the overall positive trajectory.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and profitability.

Strategic Recombination

The recombination enhances financial stability and positions Rubellite for growth, improving operational efficiencies and market competitiveness.

Cash Generation

Strong cash generation supports operational needs and strategic investments, ensuring financial health and growth potential.

Negative Factors

High Capital Expenditures

While investments may drive growth, high capital expenditures can strain cash flow, affecting liquidity and financial flexibility.

Negative Free Cash Flow

Negative free cash flow limits the company's ability to self-fund operations and investments, potentially increasing reliance on external financing.

Moderate Leverage

Moderate leverage can heighten financial risk, especially if liabilities grow, impacting the company's ability to manage debt sustainably.

Rubellite Energy Inc Business Overview & Revenue Model

Company Description

Rubellite Energy Inc. engages in the exploration, development, production, and sale of heavy crude oil from the Clearwater Formation in Eastern Alberta. The company was incorporated in 2021 and is headquartered in Calgary, Canada. Rubellite Energy Inc. is a subsidiary of Perpetual Energy Inc.

How the Company Makes Money

Rubellite Energy Inc generates revenue through the sale of crude oil and natural gas extracted from its exploration and production operations. Key revenue streams include the sale of these commodities to refineries, marketers, and other energy companies. The company may also engage in strategic partnerships or joint ventures to enhance its operational capabilities and expand its market reach. Additionally, Rubellite Energy focuses on optimizing production costs and increasing reserves through continuous exploration and development efforts, ensuring long-term profitability and sustainability in a competitive energy market.

Rubellite Energy Inc Financial Statement Overview

Summary

Rubellite Energy Inc exhibits strong growth and profitability, particularly in revenue and net income. The company is financially stable with manageable debt levels and strong equity returns. However, high capital expenditures impact free cash flow, posing a potential risk. Overall, the company is on a positive trajectory with robust financial health.

Income Statement

Rubellite Energy Inc has demonstrated strong revenue growth, with a significant increase in revenue from the previous year. The gross profit margin is healthy, reflecting efficient cost management. However, the EBIT margin is unavailable for 2024, though EBITDA margin is robust. Net profit margin has improved considerably, indicating enhanced profitability.

Balance Sheet

The company maintains a solid equity base with a debt-to-equity ratio that is manageable, reflecting financial stability. The return on equity (ROE) is impressive, showcasing strong returns on shareholders' investments. However, the equity ratio indicates a moderate level of leverage, suggesting potential risks if liabilities increase.

Cash Flow

Operating cash flow has increased significantly, indicating strong cash generation capabilities. However, the free cash flow remains negative due to high capital expenditures. The operating cash flow to net income ratio is favorable, but the free cash flow to net income ratio is affected by high investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	201.22M	168.38M	80.45M	54.49M	4.92M
Gross Profit	89.73M	81.57M	73.08M	30.92M	2.24M
EBITDA	137.52M	115.78M	56.14M	23.68M	-4.61M
Net Income	55.29M	49.97M	18.56M	24.61M	7.70M
Balance Sheet
Total Assets	551.89M	562.61M	271.15M	204.03M	115.86M
Cash, Cash Equivalents and Short-Term Investments	0.00	2.56M	0.00	1.95M	15.29M
Total Debt	127.20M	132.49M	29.32M	12.00M	0.00
Total Liabilities	239.54M	252.59M	71.84M	44.53M	20.38M
Stockholders Equity	312.35M	310.02M	199.31M	159.50M	95.48M
Cash Flow
Free Cash Flow	-60.66M	-60.72M	-16.14M	-43.76M	-16.24M
Operating Cash Flow	106.43M	95.79M	55.39M	23.87M	1.11M
Investing Cash Flow	-173.15M	-173.03M	-94.35M	-86.27M	-67.16M
Financing Cash Flow	66.73M	79.80M	37.01M	49.06M	81.33M

Rubellite Energy Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.30
• 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:RBY, the sentiment is Positive. The current price of 2.3 is above the 20-day moving average (MA) of 2.25, above the 50-day MA of 2.23, and above the 200-day MA of 1.99, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 79.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RBY.

Rubellite Energy Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HME	―	C$196.03M	6.32	42.32%	8.80%	6.65%	9.78%
RBY	―	C$211.70M	3.15	21.98%	―	88.34%	106.47%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ORC.B	―	C$166.01M	―	-1.46%	2.17%	13.53%	-178.66%
PRQ	―	C$221.06M	25.11	2.78%	7.14%	-16.34%	-67.99%
TPL	―	$136.68M	―	-32.89%	0.86%	-21.14%	-459.95%
RECO	―	C$147.24M	―	-12.28%	―	―	―

Rubellite Energy Inc Corporate Events

Rubellite Energy Reports Record Q4 Production and Strategic Recombination

Rubellite Energy Inc. reported a successful fourth quarter in 2024, marked by record production levels and a strategic recombination with Perpetual Energy Inc. This transaction resulted in a significant restructuring of ownership and conversion of senior notes into equity, enhancing the company’s financial stability. The company’s production growth was driven by a robust drilling program and strategic acquisitions, positioning Rubellite for continued expansion in 2025.