Topaz Energy Corp (TPZ) AI Stock Analysis

• Market Cap: C$3.62B
• Dividend Yield: 5.52%
• Average Volume (3M): 433.70K
• Price to Earnings (P/E): 74.4
• Beta (1Y): 0.68
• Revenue Growth: -2.25%
• EPS Growth: -3.28%
• Country: CA
• Employees: 12
• Sector: Energy
• Sector Strength: 72
• Industry: Fossil Fuels
• EPS (TTM): 0.32
• Shares Outstanding: 153,773,760
• 10 Day Avg. Volume: 539,282
• 30 Day Avg. Volume: 433,700
• PEG Ratio: 1.99
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.37
• Price to Cash Flow (P/CF): 13.10
• 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: C$32.29
• Price Target Upside: 37.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Topaz Energy Corp's overall score of 62 reflects a mixed picture. The company shows strong potential with record achievements and positive future guidance, but faces challenges such as increased leverage and bearish technical indicators. The high P/E ratio suggests overvaluation, though this is somewhat counterbalanced by a strong dividend yield. Investors should be cautious of the current market sentiment and technical trends, while considering the company's strategic growth initiatives.

Positive Factors

Financial Strategy

TPZ closed its equity financing, which funded the majority of its royalty acquisition, showcasing its strong financial strategies.

Growth Potential

TPZ highlighted 2P reserves increasing by 23%, high activity on its lands, and signaled strong growth through its 2025 guidance.

Negative Factors

Market Volatility

Topaz stands out as a uniquely positioned company, especially amid uncertainties in the current inflationary environment.

Topaz Energy Corp Business Overview & Revenue Model

Company Description

Topaz Energy Corp is a royalty and energy infrastructure company focused on generating free cash flow growth and paying reliable and sustainable dividends to its shareholders, through its strategic relationship with Canada's natural gas producers, and leveraging industry relationships to execute complementary acquisitions from other high-quality energy companies, while maintaining its commitment to environmental, social and governance practices. It generates revenue from the Royalty Assets, which generate the company's Royalty Production Revenue; and the Infrastructure Assets, which generate the company's Processing Revenue and Other Income.

How the Company Makes Money

Topaz Energy Corp generates revenue primarily through its royalty and infrastructure assets. The company earns income by acquiring royalty interests in oil and gas production, which entitles it to a percentage of revenue from the production activities without bearing the operational costs. Additionally, Topaz invests in energy infrastructure assets, such as pipelines and processing facilities, which provide it with fee-based income. The company's strategic partnerships with leading energy producers and investment in high-quality assets are critical factors contributing to its earnings.

Topaz Energy Corp Financial Statement Overview

Summary

Topaz Energy Corp exhibits strengths in maintaining a consistent EBITDA margin and a strong equity position. However, challenges such as declining revenue, increased leverage, and negative free cash flow highlight areas for improvement. The company needs to focus on revenue growth and managing its capital structure to ensure long-term financial health.

Income Statement

Topaz Energy Corp shows a stable gross profit margin and a positive EBITDA margin. However, the net profit margin is relatively low, and there is a decrease in total revenue from the previous year, indicating a challenge in revenue growth. The company's ability to maintain profitability through EBITDA is a positive sign, but the declining trend in EBIT and net income growth rate requires attention.

Balance Sheet

The company's debt-to-equity ratio has increased, suggesting a rise in leverage which might pose a risk if not managed properly. The equity ratio remains strong, indicating a solid financial position. Return on equity shows potential, but the increasing debt levels and reduced cash reserves could impact financial flexibility.

Cash Flow

Operating cash flow remains robust, though the free cash flow has turned negative due to significant capital expenditures. The company has a healthy operating cash flow to net income ratio, but the free cash flow decline indicates a need for careful management of capital expenditures to maintain liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
299.80M	306.69M	356.74M	198.61M	89.64M
	Gross Profit
103.36M	89.30M	147.28M	43.19M	4.15M
	EBIT
0.00	70.69M	143.16M	43.07M	4.75M
	EBITDA
292.54M	315.42M	351.57M	193.10M	88.22M
	Net Income Common Stockholders
46.39M	47.64M	99.36M	27.56M	3.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.75M	3.46M	6.24M	801.00K	220.19M
	Total Assets
1.89B	1.65B	1.84B	1.61B	1.01B
	Total Debt
540.40M	391.64M	464.58M	276.86M	0.00
	Net Debt
540.25M	388.18M	464.58M	276.86M	-220.19M
	Total Liabilities
578.33M	403.37M	473.44M	286.83M	2.82M
	Stockholders Equity
1.32B	1.24B	1.36B	1.32B	1.01B
Cash Flow		Free Cash Flow
-161.63M	246.03M	-36.81M	162.24M	82.39M
	Operating Cash Flow
276.27M	300.58M	317.88M	165.02M	83.64M
	Investing Cash Flow
-439.99M	-51.96M	-354.10M	-921.40M	-172.63M
	Financing Cash Flow
160.41M	-245.16M	36.22M	536.20M	301.04M

Topaz Energy Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TPZ, the sentiment is Negative. The current price of 23.55 is below the 20-day moving average (MA) of 24.63, below the 50-day MA of 25.85, and below the 200-day MA of 25.43, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 38.62 is Neutral, neither overbought nor oversold. The STOCH value of 32.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TPZ.

Topaz Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOU	70 Outperform	C$24.32B	18.22	8.55%	2.04%	-8.29%	-30.52%
TPZ	62 Neutral	C$3.62B	74.38	3.62%	5.52%	-2.25%	-3.28%
Sector *	57 Neutral	$8.36B	5.47	-5.51%	7.41%	0.15%	-68.69%

Topaz Energy Corp Corporate Events

Topaz Energy Corp Reports Record 2024 Results and Provides 2025 Guidance

Topaz Energy Corp reported record financial results for 2024, driven by strategic acquisitions and increased production. The company achieved a 23% increase in reserves and a 14% rise in year-end royalty production compared to 2023. With a strong cash flow and a sustainable dividend strategy, Topaz is well-positioned for continued growth in 2025, supported by increased drilling activity and operator-funded capital investments.

Topaz Energy Expands with Strategic Montney Acquisition

Topaz Energy Corp announced the acquisition of a gross overriding royalty interest and a 35% working interest in a natural gas processing facility in the Alberta Montney for $43 million. This acquisition is expected to generate approximately $5 million in annualized revenue, with potential for growth from future acreage development. The acquisition is backed by contractual commitments for development capital and take-or-pay agreements, ensuring minimal financial risk to Topaz. This strategic move is anticipated to strengthen Topaz’s market position and enhance its revenue streams, providing significant implications for stakeholders.