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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 50 (OpenAI - Gpt-5.6Sol)
Rating:50Neutral
Price Target:
C$0.07
▼(-12.50% Downside)
Action:Reiterated
Date:08/27/26
The score is held back primarily by weak financial performance—continued net losses, materially lower revenue versus 2022, and higher leverage—despite improving margins and a recent move to positive free cash flow. Technicals add support with price trading above key moving averages and a positive MACD, but overbought readings (RSI 68 and Stoch 100) temper the outlook. Valuation contributes negatively because the company is loss-making (negative P/E) and no dividend yield is available.
Positive Factors
Positive Free Cash Flow
The move to positive free cash flow improves Southern Energy’s ability to fund operations internally and reduces reliance on external capital. Although historical cash generation has been uneven, sustained improvement would strengthen financial resilience and support disciplined investment over coming quarters.
Negative Factors
Material Revenue Decline
Revenue remains substantially below the 2022 peak, showing that the company has not yet restored its prior scale. A smaller revenue base limits operating leverage, reduces room to absorb cost pressures, and makes the path to durable profitability more dependent on renewed production or sales growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive Free Cash Flow
The move to positive free cash flow improves Southern Energy’s ability to fund operations internally and reduces reliance on external capital. Although historical cash generation has been uneven, sustained improvement would strengthen financial resilience and support disciplined investment over coming quarters.
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
Financials show an early-stage recovery but remain weak overall: revenue is far below the 2022 peak (TTM 15.2M vs. 45.2M), net margin is still deeply negative (TTM -32.6%) and profitability has deteriorated into sustained losses since 2023. Positives include improving gross margin (~15.6% TTM) and a meaningful cash-flow turn (TTM OCF 2.9M and FCF +1.3M), but leverage is elevated (debt-to-equity ~1.03) and ROE remains strongly negative (~-37%), limiting flexibility.
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-1.36M-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
Negative
Last Price0.08
Price Trends
50DMA
0.07
Negative
100DMA
0.07
Negative
200DMA
0.08
Negative
Market Momentum
MACD
<0.01
Positive
RSI
35.43
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SOU, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.08, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 35.43 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
50
Neutral
C$25.64M-3.48-36.91%8.07%75.76%
47
Neutral
C$32.51M-4.26-12.06%230.77%-14.21%37.17%
45
Neutral
C$21.78M-12.65-3.30%-1.78%49.69%
45
Neutral
C$89.16M-6.09-107.07%-100.00%-37.67%
43
Neutral
C$58.02M-26.27-8.75%51.51%
41
Neutral
C$19.22M-5.75-666.70%-24.51%1.06%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SOU
Southern Energy
0.07
0.02
40.00%
TSE:DME
Desert Mountain Energy Corp
0.21
-0.02
-8.89%
TSE:AVN
Avanti Energy
0.47
0.21
78.85%
TSE:JEV
Jericho Energy Ventures
0.26
0.14
116.67%
TSE:TAO
TAG Oil
0.10
-0.04
-28.57%
TSE:WIL
Wilton Resources
0.22
-0.28
-56.12%
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: Aug 27, 2026