Southern Energy (SOU) AI Stock Analysis

Southern Energy

(TSXV:SOU)

Select Model

Rating:38Underperform

Price Target:CAD 0.07▲(1.43% Upside)

Action:reiterated

Date:10/16/26

The score is primarily constrained by weak profitability, elevated leverage, and a limited equity cushion. Positive operating cash flow provides some support, but technical weakness and a negative P/E ratio indicate that the recovery remains unproven.

Positive Factors

Improving Cash GenerationThe 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 ContractionThe 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.

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

Market Cap: CAD 18.50M
Dividend Yield: ―
Average Volume (3M): 303.66K
Price to Earnings (P/E): -3.5
Beta (1Y): -0.81
Revenue Growth: 8.07%
EPS Growth: 75.76%
Country: Canada
Employees: 17
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Exploration & Production

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 30,500...

Southern Energy Financial Statement Overview

Summary

Financial performance is weak overall: income and balance-sheet scores are low, reflecting persistent net losses, shrinking revenue, elevated leverage, and limited equity cushion. Positive operating cash flow is a relative strength, but remains volatile and modest against debt.

Income Statement

33Negative

Balance Sheet

30Negative

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.24M	14.62M	16.08M	19.31M	45.22M	19.94M
Gross Profit	2.38M	1.27M	-233.00K	-450.00K	22.40M	6.88M
EBITDA	5.27M	3.24M	-991.64K	-34.57M	17.39M	15.55M
Net Income	-4.96M	-7.64M	-11.52M	-62.03M	9.30M	10.09M
Balance Sheet
Total Assets	48.80M	49.31M	53.80M	67.31M	97.65M	46.21M
Cash, Cash Equivalents and Short-Term Investments	8.57M	553.99K	2.39M	3.11M	28.35M	9.62M
Total Debt	13.91M	14.09M	3.36M	15.98M	6.34M	8.97M
Total Liabilities	35.30M	37.86M	39.04M	41.49M	30.25M	22.40M
Stockholders Equity	13.49M	11.45M	14.76M	34.03M	67.40M	23.81M
Cash Flow
Free Cash Flow	1.31M	-2.03M	2.97M	-38.08M	-11.26M	345.00K
Operating Cash Flow	2.92M	864.88K	3.85M	3.70M	18.60M	2.91M
Investing Cash Flow	1.32M	-2.43M	-860.00K	-43.34M	-29.08M	-831.00K
Financing Cash Flow	1.71M	-304.23K	-3.67M	14.35M	29.27M	6.58M

Southern Energy Technical Analysis

Technical Analysis SentimentNeutral

Last Price0.07

Price Trends

50DMA0.07Positive

100DMA0.07Negative

200DMA0.07Negative

Market Momentum

MACD0.00Negative

RSI54.57Neutral

STOCH50.00Neutral

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 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of 0.00 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

TSE:SOU 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:DME	49Neutral	CAD 20.74M	-12.35	-3.30%	―	-1.78%	49.69%
TSE:JEV	48Neutral	CAD 62.24M	-4.30	-196.18%	―	-100.00%	-37.67%
TSE:AVN	45Neutral	CAD 57.39M	-25.14	-8.75%	―	―	51.51%
TSE:WIL	39Underperform	CAD 18.40M	-6.02	-666.70%	―	-24.51%	1.06%
TSE:SOU	38Underperform	CAD 25.64M	-3.46	-36.91%	―	8.07%	75.76%
TSE:TAO	28Underperform	CAD 13.69M	-1.70	-12.06%	―	-14.21%	37.17%

* Energy Sector Average

Performance Comparison

TSE:SOU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:SOU	Southern Energy Corp.	0.07	0.00	0.00%
TSE:DME	Desert Mountain Energy	0.20	-0.25	-55.56%
TSE:AVN	Avanti Energy	0.45	0.21	85.42%
TSE:JEV	Jericho Energy Ventures Inc.	0.18	0.05	42.31%
TSE:TAO	TAG Oil	0.04	-0.09	-69.23%
TSE:WIL	Wilton Resources	0.23	-0.15	-40.79%

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

Southern Energy AI Stock Analysis