TAG Oil (TAO) AI Stock Analysis

• Market Cap: C$22.60M
• Dividend Yield: N/A
• Average Volume (3M): 267.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 12
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.05
• Shares Outstanding: 226,006,700
• 10 Day Avg. Volume: 138,215
• 30 Day Avg. Volume: 267,449
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 37.18
• Price to Cash Flow (P/CF): -1.90
• P/FCF Ratio: 0.00
• 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

TAG Oil's overall stock score is low, primarily due to significant financial challenges, including negative profitability and cash flow issues. While technical indicators offer some neutral signals, the negative valuation metrics further weigh down the score, reflecting a cautious outlook for investors.

TAG Oil Business Overview & Revenue Model

Company Description

TAG Oil Ltd. (TAO) is an independent international oil and gas exploration, development, and production company. The company focuses on acquiring and developing high-impact oil and gas projects in the Middle East and North Africa (MENA) region. TAG Oil is committed to sustainable practices and aims to deliver long-term shareholder value through strategic exploration and production initiatives.

How the Company Makes Money

TAG Oil generates revenue primarily through the exploration, development, and production of oil and gas resources. The company earns money by selling the produced hydrocarbons to various markets and customers within the energy sector. TAG Oil's revenue streams are largely dependent on the production volumes and market prices of crude oil and natural gas. Additionally, TAG Oil may engage in strategic partnerships and joint ventures with other energy companies to enhance its operational capabilities and expand its resource base, which can contribute to its earnings. Fluctuations in global oil prices and exploration success are significant factors that influence the company's revenue.

TAG Oil Financial Statement Overview

Summary

TAG Oil faces financial challenges with negative profitability and declining equity. Despite maintaining a low debt level, the company's inability to generate positive net income and cash flow poses significant risks to its financial stability.

Income Statement

TAG Oil has been experiencing a challenging period with negative revenue growth and persistent losses. The company reported a net loss in the latest annual period, and its gross profit margin, EBIT margin, and EBITDA margin are all negative, indicating a lack of profitability. This performance reflects instability and significant risks in its financial health.

Balance Sheet

The balance sheet shows some strengths with a strong equity base and low debt levels, resulting in a favorable debt-to-equity ratio. However, stockholders' equity has been declining over recent periods, and the return on equity is negative due to continuous losses, highlighting concerns about the company's ability to generate returns for shareholders.

Cash Flow

TAG Oil's cash flow situation is concerning, with negative operating and free cash flows. Although the company has managed to secure financing to mitigate cash flow challenges, the free cash flow to net income ratio remains negative, indicating struggles in generating cash relative to its net losses.

Breakdown
TTM	Dec 2023	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
541.00K	781.33K	0.00	0.00	0.00	16.45M
	Gross Profit
-1.26M	-1.00M	-164.00K	-122.00K	-235.00K	7.75M
	EBIT
-10.07M	-8.83M	-7.56M	-3.98M	-3.59M	1.57M
	EBITDA
-9.83M	-9.01M	-7.39M	-3.85M	-3.45M	2.93M
	Net Income Common Stockholders
-7.60M	-8.20M	-3.00M	-4.46M	-14.92M	7.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.77M	16.44M	20.66M	15.52M	17.14M	43.98M
	Total Assets
79.56M	53.91M	41.06M	18.20M	20.50M	57.26M
	Total Debt
1.20M	208.00K	459.00K	573.00K	98.00K	126.45K
	Net Debt
-1.56M	-16.23M	-19.00M	-12.74M	-15.81M	-41.41M
	Total Liabilities
19.01M	7.43M	2.04M	979.00K	505.00K	949.00K
	Stockholders Equity
60.54M	46.48M	39.01M	17.23M	20.00M	56.31M
Cash Flow		Free Cash Flow
-24.41M	-22.88M	-11.94M	-4.11M	-4.10M	-432.93K
	Operating Cash Flow
-2.52M	-3.90M	-5.46M	-4.08M	-3.92M	3.76M
	Investing Cash Flow
-21.12M	-17.28M	-4.42M	1.33M	3.68M	35.90M
	Financing Cash Flow
11.95M	17.00M	23.57M	-55.00K	-24.72M	-16.86K

TAG Oil Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TAO, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.11, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.03 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TAO.

TAG Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATH	77 Outperform	$2.26B	5.20	28.01%	―	13.46%	―
POU	73 Outperform	$2.22B	6.71	9.38%	28.81%	3.08%	-30.22%
BTE	63 Neutral	C$1.71B	7.50	5.99%	4.13%	22.71%	―
Sector *	57 Neutral	$7.44B	4.21	-3.75%	6.64%	-0.07%	-64.77%
TAO	39 Underperform	C$22.60M	―	-18.57%	―	―	―

TAG Oil Corporate Events

TAG Oil Announces Director Resignation and Severance Package

TAG Oil Ltd. announced the resignation of Toby Pierce as a director, effective January 6, 2025, to focus on other professional commitments. The company plans to issue him $200,000 in common shares as part of his severance package, pending approval from the TSX Venture Exchange. This change marks a significant shift in leadership but maintains Mr. Pierce’s involvement as a shareholder, highlighting TAG Oil’s adaptive strategy amid industry dynamics.

TAG Oil Advances Egyptian Operations and Development Plans

TAG Oil is making strides in the development of its BED-1 concession in Egypt, with steady production from its T100 and BED 1-7 wells and plans to drill new wells in 2025. The company is also optimizing logistics and reducing costs to improve profitability, while seeking strategic partners to accelerate the development of its assets.

TAG Oil Restructures Leadership for Egyptian Expansion

TAG Oil has announced a strategic organizational restructuring, appointing Mr. Abdel Badwi as the new Executive Chairman and CEO, who will lead the company from Cairo, Egypt. This move is part of a broader strategy to cut costs by eliminating Canadian positions and focus on optimizing their Egyptian operations. The company aims to leverage its expertise in unconventional drilling to expand its asset base in Egypt’s Western Desert.

TAG Oil Closes Public Offering Successfully

TAG Oil has successfully closed a public offering, raising substantial capital by issuing over 40 million units, each comprising a common share and a warrant. The offering was managed by a group of agents who received commissions and broker warrants, highlighting the strong financial interest in TAG Oil’s operations.

TAG Oil’s Strategic Expansion in Egypt

TAG Oil has successfully closed a public offering, raising over $6.8 million to fund its expansion in Egypt’s Western Desert, including developing the Badr Oil Field and a new strategic concession. This move is part of TAG Oil’s broader strategy to explore joint ventures and partnerships in the Middle East North Africa region.