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Southern Energy (TSE:SOU)
:SOU
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Southern Energy (SOU) AI Stock Analysis

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TSE:SOU

Southern Energy

(SOU)

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Neutral 46 (OpenAI - Gpt-5.6Sol)
Rating:46Neutral
Price Target:
C$0.07
▼(-7.50% Downside)
Action:Reiterated
Date:10/16/26
The score is held down primarily by weak financial performance—continued losses, materially lower revenue versus 2022, and higher leverage—partially offset by improving cash generation and positive free cash flow in the TTM period. Technicals are mixed (price above moving averages but weak momentum), while valuation remains unattractive/unclear due to negative earnings and no dividend support.
Positive Factors
Improving Cash Generation
The improvement in operating cash flow and the return to positive free cash flow provide a stronger internal funding base than in 2025. If sustained, this can support ongoing operations and reduce reliance on external financing, although consistency remains important.
Negative Factors
Material Revenue Contraction
The substantial reduction in revenue from the 2022 peak indicates that the company has not yet restored its prior operating scale. A smaller revenue base limits fixed-cost absorption, reduces potential cash generation, and makes a durable recovery in profitability more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Cash Generation
The improvement in operating cash flow and the return to positive free cash flow provide a stronger internal funding base than in 2025. If sustained, this can support ongoing operations and reduce reliance on external financing, although consistency remains important.
Read all positive factors

Southern Energy (SOU) vs. iShares MSCI Canada ETF (EWC)

Southern Energy Business Overview & Revenue Model

Company Description
Southern Energy Corp. is a Canadian enterprise primarily engaged in the exploration and production of crude oil and natural gas. Its primary holdings are concentrated in the Central Mississippi Assets, a substantial area spanning approximately 30,...

Southern Energy Financial Statement Overview

Summary
Overall financials indicate an early-stage recovery but still weak fundamentals: revenue is down materially from the 2022 peak, net margin remains deeply negative (TTM -32.6%), and leverage has increased to about debt-to-equity ~1.03. Offsetting this, operating cash flow improved (TTM 2.9M) and free cash flow turned positive (TTM +1.3M), but cash flow sustainability has been volatile and de-leveraging capacity remains limited.
Income Statement
28
Negative
Balance Sheet
46
Neutral
Cash Flow
55
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue15.24M14.62M16.08M19.31M45.22M19.94M
Gross Profit2.38M1.27M-233.00K-450.00K22.40M6.88M
EBITDA5.27M3.24M-991.64K-34.57M17.39M15.55M
Net Income-4.96M-7.64M-11.52M-62.03M9.30M10.09M
Balance Sheet
Total Assets48.80M49.31M53.80M67.31M97.65M46.21M
Cash, Cash Equivalents and Short-Term Investments8.57M553.99K2.39M3.11M28.35M9.62M
Total Debt13.91M14.09M3.36M15.98M6.34M8.97M
Total Liabilities35.30M37.86M39.04M41.49M30.25M22.40M
Stockholders Equity13.49M11.45M14.76M34.03M67.40M23.81M
Cash Flow
Free Cash Flow1.31M-2.03M2.97M-38.08M-11.26M345.00K
Operating Cash Flow2.92M864.88K3.85M3.70M18.60M2.91M
Investing Cash Flow1.32M-2.43M-860.00K-43.34M-29.08M-831.00K
Financing Cash Flow1.71M-304.23K-3.67M14.35M29.27M6.58M

Southern Energy Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.08
Price Trends
50DMA
0.07
Positive
100DMA
0.07
Negative
200DMA
0.07
Negative
Market Momentum
MACD
<0.01
Negative
RSI
54.57
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SOU, the sentiment is Neutral. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SOU.

Southern Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
52
Neutral
C$20.74M-12.35-3.30%―-1.78%49.69%
47
Neutral
C$62.24M-4.30-196.18%―-100.00%-37.67%
46
Neutral
C$25.64M-3.45-36.91%―8.07%75.76%
46
Neutral
C$57.39M-25.14-8.75%――51.51%
43
Neutral
C$18.40M-6.02-666.70%―-24.51%1.06%
41
Neutral
C$13.69M-1.70-12.06%230.77%-14.21%37.17%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SOU
Southern Energy
0.07
<0.01
7.69%
TSE:DME
Desert Mountain Energy Corp
0.20
-0.25
-55.56%
TSE:AVN
Avanti Energy
0.45
0.21
85.42%
TSE:JEV
Jericho Energy Ventures
0.19
0.05
42.31%
TSE:TAO
TAG Oil
0.04
-0.08
-66.67%
TSE:WIL
Wilton Resources
0.23
-0.15
-40.00%
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 16, 2026