Touchstone Exploration (TXP) AI Stock Analysis

• Market Cap: $92.22M
• Dividend Yield: N/A
• Average Volume (3M): 87.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 90.46%
• EPS Growth: -763.10%
• Country: CA
• Employees: 102
• Sector: Energy
• Sector Strength: 72
• Industry: Fossil Fuels
• EPS (TTM): -0.07
• Shares Outstanding: 236,460,660
• 10 Day Avg. Volume: 113,983
• 30 Day Avg. Volume: 87,178
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.00
• Price to Cash Flow (P/CF): 4.50
• P/FCF Ratio: 29.60
• 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$1.12
• Price Target Upside: 180.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Touchstone Exploration's overall stock score reflects strengths in revenue growth and operational efficiency, but significant challenges persist with ongoing net losses and negative cash flow. The technical analysis suggests a bearish trend, and the negative P/E ratio indicates unprofitability. The absence of earnings call data and corporate events does not provide additional insights.

Touchstone Exploration Business Overview & Revenue Model

Company Description

Touchstone Exploration Inc. is a Canadian-based oil and gas exploration and production company. It primarily focuses on onshore oil and gas projects within the Republic of Trinidad and Tobago. The company is involved in the acquisition, exploration, development, and production of hydrocarbons, leveraging its expertise to optimize the extraction and monetization of energy resources within its licensed areas.

How the Company Makes Money

Touchstone Exploration generates revenue by extracting and selling crude oil and natural gas from its onshore assets in Trinidad and Tobago. The company monetizes its hydrocarbon reserves through production and sale agreements with local and international buyers. Revenue streams are primarily derived from the sale of produced oil and natural gas, which are subject to market prices. Additionally, Touchstone Exploration may engage in strategic partnerships or joint ventures with other energy companies to enhance its operational capabilities and share technical expertise, further contributing to its revenue generation.

Touchstone Exploration Financial Statement Overview

Summary

Touchstone Exploration has shown revenue growth and operational efficiency improvements, but persistent net losses and negative cash flows remain significant challenges. The moderate debt load is manageable; however, liquidity concerns arise due to negative free cash flows and high capital expenditures. Efforts to enhance profitability and cash generation are essential for stability.

Income Statement

Touchstone Exploration's revenue has shown a positive growth trajectory with TTM revenue at $61.16M, growing from $48.16M in 2023, marking a 27% increase. However, the company continues to face profitability challenges, indicated by a negative net profit margin of -20.31% in the TTM. Gross profit margin has improved to 66.43% in the TTM, highlighting operational efficiency improvements. The EBIT margin has risen to 33.73%, reflecting better cost management. Despite these improvements, the negative EBITDA and net income indicate ongoing financial pressures.

Balance Sheet

The balance sheet shows a stable equity position with a stockholders' equity of $69.69M. The debt-to-equity ratio stands at a moderate 0.43, suggesting reasonable leverage levels. However, the declining equity ratio from 53% in 2020 to 46% in the TTM signals increased reliance on debt financing. The ROE remains negative due to persistent net losses, highlighting challenges in generating returns for shareholders.

Cash Flow

The company's cash flow situation is constrained, with a negative free cash flow of $-17.48M in the TTM. Operating cash flow to net income ratio is healthy at 1.68, indicating positive operational cash generation despite net losses. The free cash flow to net income ratio remains negative, reflecting high capital expenditures exceeding operational cash inflows. This suggests potential liquidity risks if operating cash flows do not improve.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
61.16M	48.16M	42.99M	29.61M	19.59M	38.65M
	Gross Profit
40.62M	29.98M	24.01M	16.94M	10.60M	22.50M
	EBIT
20.63M	9.32M	4.66M	1.89M	-4.18M	7.62M
	EBITDA
5.92M	-4.20M	8.34M	5.30M	-680.00K	12.79M
	Net Income Common Stockholders
-12.42M	-20.60M	-3.20M	5.72M	-11.03M	-5.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.56M	8.19M	16.34M	17.94M	24.28M	6.18M
	Total Assets
85.21M	138.95M	147.88M	143.02M	104.55M	85.05M
	Total Debt
10.87M	30.86M	28.34M	32.16M	7.51M	15.06M
	Net Debt
7.31M	22.68M	12.00M	14.22M	-16.77M	8.88M
	Total Liabilities
53.95M	79.18M	69.50M	75.46M	44.19M	54.93M
	Stockholders Equity
31.26M	59.77M	78.38M	67.56M	60.37M	30.11M
Cash Flow		Free Cash Flow
-17.48M	-6.21M	-5.58M	-26.32M	-16.27M	-6.05M
	Operating Cash Flow
20.87M	12.74M	5.75M	1.55M	2.30M	5.45M
	Investing Cash Flow
-19.51M	-21.11M	-16.48M	-29.39M	-15.60M	-10.19M
	Financing Cash Flow
1.39M	130.00K	9.05M	21.15M	31.32M	7.50M

Touchstone Exploration Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 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:TXP, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.44, and below the 200-day MA of 0.52, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.14 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TXP.

Touchstone Exploration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POU	73 Outperform	$2.37B	6.95	9.38%	11.18%	3.08%	-30.22%
PEY	73 Outperform	C$3.11B	10.23	11.55%	8.44%	-14.63%	-18.40%
BIR	71 Outperform	$1.38B	24.32	0.70%	8.30%	-8.89%	-82.18%
ARX	70 Outperform	$15.13B	13.57	14.67%	2.87%	-9.83%	-27.76%
Sector *	57 Neutral	$8.36B	5.47	-5.51%	7.41%	0.15%	-68.69%
TXP	52 Neutral	$92.22M	―	-16.57%	―	90.46%	-763.10%