Journey Energy (JOY) AI Stock Analysis

• Market Cap: C$122.81M
• Dividend Yield: N/A
• Average Volume (3M): 65.89K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.86
• Revenue Growth: -10.87%
• EPS Growth: -69.67%
• Country: CA
• Employees: 42
• Sector: Energy
• Sector Strength: 84
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.08
• Shares Outstanding: 67,106,600
• 10 Day Avg. Volume: 48,169
• 30 Day Avg. Volume: 65,887
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.49
• Price to Cash Flow (P/CF): 1.90
• P/FCF Ratio: 15.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Journey Energy's overall score reflects a mix of strong revenue growth and positive strategic initiatives, tempered by operational inefficiencies and technical weaknesses. While recent corporate events are promising, the company faces challenges in profitability and market momentum, leading to a balanced but cautious outlook.

Journey Energy Business Overview & Revenue Model

Company Description

Journey Energy Inc. engages in the exploration, development, and production of crude oil and natural gas in the province of Alberta, Canada. The company was formerly known as Sword Energy Inc. and changed its name to Journey Energy Inc. in July 2012. Journey Energy Inc. was founded in 2007 and is headquartered in Calgary, Canada.

How the Company Makes Money

Journey Energy generates revenue through the sale of crude oil and natural gas produced from its exploration and production activities. The company capitalizes on its assets in the Western Canadian Sedimentary Basin to extract hydrocarbons, which are then sold to various markets. Key revenue streams include the sale of crude oil and natural gas liquids, as well as natural gas. Market prices for these commodities, production volumes, and operational efficiencies significantly influence the company's earnings. Additionally, Journey Energy may engage in strategic partnerships and joint ventures to enhance production capabilities and optimize resource management, further contributing to its financial performance.

Journey Energy Financial Statement Overview

Summary

Journey Energy demonstrates strong revenue growth, but declining profitability and cash flow efficiency pose challenges. The balance sheet remains stable with reduced leverage, but the company must address operational inefficiencies and cash flow management to improve overall financial health.

Income Statement

Journey Energy shows a robust revenue growth with Total Revenue increasing from $186.92M to $204.04M year-over-year, reflecting a growth rate of approximately 9.15%. However, the Net Profit Margin declined to 2.52% from 8.46%, indicating profitability challenges. The company also reported a negative EBIT and reduced EBITDA Margin, suggesting operational inefficiencies.

Balance Sheet

The company has an improved Debt-to-Equity ratio of 0.17, down from 0.20, indicating a decrease in leverage. The Equity Ratio stands at 55.78%, showing a strong equity base. However, Return on Equity has significantly decreased to 1.58% from 5.00%, reflecting reduced profitability relative to equity.

Cash Flow

Free Cash Flow turned negative, from $20.25M to -$7.11M, indicating cash flow challenges. Operating Cash Flow decreased to $35.62M from $66.64M, affecting liquidity. The Free Cash Flow to Net Income ratio is negative, pointing to inefficiencies in converting profits into cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
204.04M	186.92M	235.58M	123.84M	67.91M
	Gross Profit
127.41M	38.90M	159.71M	81.99M	22.04M
	EBIT
0.00	27.78M	70.81M	24.10M	-28.87M
	EBITDA
53.85M	67.86M	103.45M	46.74M	-3.31M
	Net Income Common Stockholders
5.14M	15.82M	155.20M	99.13M	-56.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.21M	17.71M	31.40M	15.36M	6.59M
	Total Assets
585.38M	610.14M	639.20M	357.21M	287.67M
	Total Debt
54.64M	62.37M	110.37M	65.07M	83.17M
	Net Debt
46.43M	44.65M	78.97M	49.71M	76.58M
	Total Liabilities
258.84M	293.72M	354.52M	272.94M	307.50M
	Stockholders Equity
326.53M	316.41M	284.68M	84.28M	-19.82M
Cash Flow		Free Cash Flow
-7.11M	20.25M	4.89M	36.16M	4.50M
	Operating Cash Flow
35.62M	66.64M	106.62M	40.93M	11.61M
	Investing Cash Flow
-38.78M	-42.04M	-102.20M	-6.75M	-11.27M
	Financing Cash Flow
-6.35M	-38.29M	11.62M	-25.41M	6.26M

Journey Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:JOY, the sentiment is Positive. The current price of 1.83 is above the 20-day moving average (MA) of 1.63, above the 50-day MA of 1.81, and below the 200-day MA of 2.28, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 88.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:JOY.

Journey Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOU	78 Outperform	C$25.97B	19.60	8.55%	1.90%	-8.29%	-30.52%
JOY	63 Neutral	C$122.81M	22.82	1.60%	―	-10.87%	-69.67%
Sector *	58 Neutral	$9.12B	5.24	-7.59%	7.51%	0.53%	-65.25%

Journey Energy Corporate Events

Journey Energy Secures New Credit Facility and Updates Governance Framework

Journey Energy Inc. has entered a new lending relationship with a Canadian Chartered Bank, securing a credit facility of up to $55 million to support its Duvernay development. This move is expected to enhance Journey’s production capabilities and cash flow, positioning it as a higher netback company. Additionally, Journey has adopted advance notice provisions for board nominations, providing a structured framework for shareholder engagement.

Journey Energy Reports $5.1 Million Net Income for 2024, Strengthens Strategic Position

Journey Energy Inc. reported a net income of $5.1 million and an adjusted funds flow of $51.7 million for 2024. The company achieved significant sales volumes and entered into a joint venture with Spartan Delta Corp. to develop land in the Duvernay oil window. Additionally, Journey closed a convertible debenture financing and divested certain assets, which is expected to reduce end-of-life costs by over $20 million. These strategic moves are indicative of Journey’s efforts to strengthen its financial position and operational capabilities in the energy sector.

Journey Energy Reports 2024 Reserves and Strategic Shift to Higher Netback Liquids

Journey Energy Inc. has announced its year-end 2024 reserves evaluation, highlighting a strategic shift towards higher netback liquids. The company reported a 6% increase in total proved plus probable reserves to 85.4 MMboe, with a 14% rise in NPV@10% to $882.7 million. This growth is attributed to positive technical reserve revisions and a focus on oil and liquids, particularly through its Duvernay Joint Venture, which is expected to significantly impact future netbacks and operating expenses. The company’s strategic investments and asset sales have also reduced liability costs by over $21 million, positioning Journey Energy for enhanced financial performance in the coming years.

Journey Energy Announces 2025 Guidance and Amends Debt Repayment Terms

Journey Energy has announced its preliminary guidance for 2025, emphasizing its development activities within the Duvernay Joint Venture. The company plans to concentrate its capital expenditures of $50 million in the first half of 2025, with $30 million allocated to the Duvernay program and the rest towards power projects and other expenditures. Journey has also amended its term debt repayment agreement with AIMCo to defer payments, allowing it to focus on funding the Duvernay development program. This strategic move is expected to help the company recuperate capital expenditures swiftly and generate attractive returns, while also exploring funding alternatives to simplify its capital structure.