Touchstone Exploration (TXP) AI Stock Analysis

• Market Cap: $70.50M
• Dividend Yield: N/A
• Average Volume (3M): 83.62K
• Price to Earnings (P/E): 73.0
• Beta (1Y): 0.78
• Revenue Growth: -21.70%
• EPS Growth: N/A
• Country: CA
• Employees: 104
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 261,097,260
• 10 Day Avg. Volume: 47,394
• 30 Day Avg. Volume: 83,618
• 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: 2.22
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 6.05
• Enterprise Value/Ebitda: 11.27
• 1Y Price Target: $0.34
• Price Target Upside: 27.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: C$0.50 ▲(85.19% Upside)

The overall stock score is primarily influenced by financial performance challenges, including low profitability and cash flow issues. Technical analysis provides some positive signals with short-term bullish momentum, but the high P/E ratio suggests potential overvaluation. The absence of earnings call insights and corporate events means these factors do not impact the score.

Touchstone Exploration Business Overview & Revenue Model

Company Description

Touchstone Exploration Inc., an upstream oil and gas company, engages in the exploration, development, production, and sale of petroleum and natural gas properties in the Republic of Trinidad and Tobago. The company has interests in various private exploration mineral leasing properties; and two exploration blocks. Its primary exploration focus is the Ortoire exploration block. The company was formerly known as Petrobank Energy and Resources Ltd. and changed its name to Touchstone Exploration Inc. in May 2014. Touchstone Exploration Inc. was incorporated in 2012 and is headquartered in Calgary, Canada.

How the Company Makes Money

Touchstone Exploration generates revenue primarily through the sale of crude oil and natural gas that it extracts from its operational fields in Trinidad and Tobago. The company's revenue model is based on the production of hydrocarbons, where it sells its output to local and international markets. Key revenue streams include direct sales of oil and gas, with pricing influenced by global commodity markets. Additionally, the company may benefit from strategic partnerships with local firms and service providers, which can enhance operational efficiency and reduce costs. Factors contributing to its earnings include successful exploration activities that increase production volumes, effective cost management, and favorable pricing conditions in the energy market.

Touchstone Exploration Financial Statement Overview

Summary

Touchstone Exploration shows strong revenue growth but faces profitability and cash flow challenges. The net profit margin is low, and cash flow conversion is weak, indicating operational inefficiencies.

Income Statement

Touchstone Exploration's income statement shows mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 53.78%, but the net profit margin is quite low at 1.30%, indicating limited profitability. Revenue growth is strong at 108.2% TTM, but the EBIT and EBITDA margins have declined significantly compared to the previous year, suggesting operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has increased to 0.75 TTM, indicating higher leverage, but it remains manageable. Return on equity is low at 0.90% TTM, suggesting limited returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable.

Cash Flow

Cash flow analysis reveals concerns, with negative free cash flow and a free cash flow to net income ratio of -69.57% TTM. Although operating cash flow is positive, the operating cash flow to net income ratio is low at 20.07% TTM, indicating challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.76M	43.66M	48.16M	42.99M	29.61M	19.59M
Gross Profit	25.91M	33.02M	29.98M	24.01M	16.94M	10.60M
EBITDA	13.90M	19.94M	-4.20M	8.34M	5.30M	-680.00K
Net Income	636.00K	8.27M	-20.60M	-3.20M	5.72M	-11.03M
Balance Sheet
Total Assets	229.01M	152.27M	138.95M	147.88M	143.02M	104.55M
Cash, Cash Equivalents and Short-Term Investments	6.34M	6.74M	8.19M	16.34M	17.94M	24.28M
Total Debt	55.39M	40.66M	30.86M	28.34M	32.16M	7.51M
Total Liabilities	155.09M	83.44M	79.18M	69.50M	75.46M	44.19M
Stockholders Equity	73.91M	68.83M	59.77M	78.38M	67.56M	60.37M
Cash Flow
Free Cash Flow	-7.25M	-10.50M	-6.21M	-5.58M	-26.32M	-16.27M
Operating Cash Flow	9.81M	13.18M	12.74M	5.75M	1.55M	2.30M
Investing Cash Flow	-42.31M	-20.62M	-21.11M	-16.48M	-29.39M	-15.60M
Financing Cash Flow	31.92M	5.93M	130.00K	9.05M	21.15M	31.32M

Touchstone Exploration Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.27
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TXP, the sentiment is Positive. The current price of 0.27 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.26, and below the 200-day MA of 0.36, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TXP.

Touchstone Exploration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXL	70 Neutral	72.90M	5.02	19.15%	―	43.81%	413.13%
JOY	69 Neutral	209.37M	12.95	4.71%	―	-7.70%	21.79%
YGR	60 Neutral	99.25M	4.90	0.00%	―	-22.28%	-54.64%
CVVY	54 Neutral	203.36M	-59.83	-23.10%	―	-29.38%	93.99%
CNE	51 Neutral	96.56M	2.23	8.33%	―	3.24%	174.21%
TXP	49 Neutral	$70.50M	72.97	0.90%	―	-21.70%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%