The Parkmead (PMG) AI Stock Analysis

• Market Cap: £28.19M
• Dividend Yield: N/A
• Average Volume (3M): 129.75K
• Price to Earnings (P/E): 2.2
• Beta (1Y): 0.68
• Revenue Growth: -29.14%
• EPS Growth: 48.67%
• Country: UK
• Employees: 10
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.08
• Shares Outstanding: 109,266,930
• 10 Day Avg. Volume: 228,177
• 30 Day Avg. Volume: 129,752
• PEG Ratio: 0.05
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 4.04
• P/FCF Ratio: -6.23
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 28.00 p ▲(93.10% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

Score is primarily held back by volatile profitability and weak/negative 2025 operating and free cash flow despite reported net income, which reduces earnings-quality confidence. Offsetting this are a strong low-debt balance sheet, a clear positive price trend, and a very low P/E valuation.

Positive Factors

Low leverage / conservative balance sheet

A zero-debt balance sheet provides durable resilience through commodity cycles by reducing fixed interest obligations and refinancing risk. This conservatism preserves financial flexibility to fund capex, support operations in downcycles, or pursue selective licence farm-ins/asset opportunities without urgent external funding.

Meaningful equity cushion

Having meaningful equity relative to assets lowers insolvency risk and supports longer-term capital stability. This structural buffer helps the company absorb commodity-driven asset value swings, making it easier to sustain operations, meet decommissioning obligations, and negotiate contingent-value transactions when markets are stressed.

Upstream portfolio optionality

Exposure across exploration, appraisal, development and production creates optionality to generate value beyond near-term production. The business can realize value through farm-ins/farm-outs, asset sales, contingent payments or development of discoveries, giving multiple durable strategic levers to enhance long-term cash generation if executed prudently.

Negative Factors

Volatile profitability and earnings quality

Earnings driven by non-operating items undermine quality and predictability: negative operating profit alongside positive net income suggests reliance on one-off gains or accounting items. This volatility complicates capital allocation, forecasting and undermines confidence in recurring returns over multi-quarter horizons.

Weak and inconsistent cash generation

Negative operating and free cash flow in 2025 despite reported profits indicates poor cash conversion and raises funding reliance on asset disposals or external capital. Inconsistent cash generation limits the company's ability to self-fund developments, meet obligations and deliver stable returns across commodity cycles.

Revenue decline and commodity sensitivity

A sharp revenue decline compounds exposure to oil and gas price and volume swings. Dependence on commodity markets makes core cash flows cyclical and harder to sustain; combined with small scale, this increases execution and cash-flow risk during downturns and limits durable revenue diversification.

The Parkmead Business Overview & Revenue Model

Company Description

The Parkmead Group plc, an independent oil and gas company, engages in the exploration and production of oil and gas properties in Europe, North America, and internationally. It operates through three segments: Oil and Gas Exploration and Production; Energy Economics; and Pitreadie. The Oil and Gas Exploration and Production segment invests in oil and gas exploration and production assets. The Energy Economics segment provides energy sector economics, valuation, and benchmarking, advising on energy policies and fiscal matters, undertaking economic evaluations, supply benchmarking services, and training. The Pitreadie segment is involved in mixed farming activities, as well as renewable energy opportunities. It produces from four gas fields in the Netherlands; and holds interests in a total of 22 exploration and production blocks. The Parkmead Group plc was incorporated in 2000 and is headquartered in Aberdeen, the United Kingdom.

How the Company Makes Money

The Parkmead Group makes money primarily by producing and selling hydrocarbons (oil, natural gas, and associated liquids) from its upstream assets. Revenue is generated from its share of production volumes sold into relevant commodity markets under applicable sales arrangements, with realized earnings largely driven by (i) commodity prices (oil and gas), (ii) production volumes and uptime, (iii) its working interest share in each asset, and (iv) operating and transportation costs that affect netbacks. In addition to production sales, the company may generate or realize value through upstream portfolio activity such as farm-ins/farm-outs, licence/asset acquisitions and disposals, and other transactions where it can receive cash consideration, contingent payments, or book gains/losses (if and when such deals occur). Reported results can also be influenced by factors such as hedging (where used), decommissioning obligations and related provisions, and timing of capital expenditure on development projects. Specific material partnerships, customer contracts, or offtake terms: null.

The Parkmead Financial Statement Overview

Summary

Mixed fundamentals: a conservative, zero-debt balance sheet supports resilience, but operating performance is volatile. 2025 shows weak gross profitability, negative operating profit, and negative operating/free cash flow despite strong net income, raising earnings-quality concerns and limiting confidence in durability.

Income Statement

Profitability is highly volatile. The latest annual period (2025) shows a sharp revenue decline (-7.8%) and very weak gross profitability (~9.6%), while operating profit is negative despite reported net income being strongly positive (net margin ~181%)—suggesting earnings are being driven by non-operating items rather than core operations. Results improved versus the very large loss in 2023, but the multi-year pattern alternates between strong profits and deep losses, limiting confidence in the durability of earnings.

Balance Sheet

Balance sheet looks conservative with very low leverage: debt is zero in 2025 and was modest in prior years (low debt-to-equity historically). Equity remains meaningful relative to assets, providing a cushion through commodity-cycle volatility. The main weakness is that shareholder returns swing widely year to year (including a very weak 2023), indicating underlying asset profitability is inconsistent even with a strong capital structure.

Cash Flow

Cash generation is inconsistent and currently weak: 2025 operating cash flow and free cash flow are both negative, following positive cash generation in 2023–2024. Cash flow has not reliably tracked reported profits (e.g., positive net income in 2025 alongside negative operating cash flow), which raises quality-of-earnings concerns. While free cash flow improved versus the prior year on a growth basis, the absolute level being negative is a key drawback.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	4.05M	5.72M	14.77M	12.13M	3.61M
Gross Profit	389.00K	3.42M	12.53M	10.76M	1.77M
EBITDA	9.43M	2.29M	-36.68M	6.01M	-1.53M
Net Income	7.35M	4.94M	-42.33M	-814.00K	-13.81M
Balance Sheet
Total Assets	32.46M	27.27M	28.62M	86.32M	78.67M
Cash, Cash Equivalents and Short-Term Investments	13.68M	9.44M	11.58M	23.26M	23.38M
Total Debt	0.00	1.25M	1.46M	1.73M	1.25M
Total Liabilities	5.47M	7.63M	13.96M	29.32M	20.95M
Stockholders Equity	26.99M	19.64M	14.66M	56.99M	57.72M
Cash Flow
Free Cash Flow	-2.63M	1.12M	4.98M	745.00K	-1.96M
Operating Cash Flow	-2.48M	2.27M	6.53M	4.53M	-1.31M
Investing Cash Flow	6.73M	-3.85M	-17.69M	-4.14M	3.47M
Financing Cash Flow	-468.00K	-518.00K	-453.00K	-962.00K	-3.63M

The Parkmead Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PMG, the sentiment is Positive. The current price of 14.5 is below the 20-day moving average (MA) of 22.71, below the 50-day MA of 18.86, and below the 200-day MA of 15.90, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 72.67 is Negative, neither overbought nor oversold. The STOCH value of 83.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PMG.

The Parkmead Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PMG	66 Neutral	£28.19M	2.23	32.32%	―	-29.14%	48.67%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
STAR	55 Neutral	£19.99M	-0.59	-29.57%	―	-20.85%	-105.70%
CAD	53 Neutral	£11.30M	6.01	-16.91%	―	-29.63%	-427.78%
EOG	53 Neutral	£18.43M	―	―	―	―	―
QHE	48 Neutral	£11.66M	-1.35	―	―	―	―
NOG	46 Neutral	£4.64M	-0.04	42.95%	―	-10.73%	24.24%

The Parkmead Corporate Events

Parkmead Secures Shareholder Backing as All AGM Resolutions Pass

Parkmead said all resolutions put to shareholders at its Annual General Meeting on 23 December 2025 were duly passed, providing the board with continued shareholder backing for its strategic and operational plans. The approval reinforces the company’s position as a gas and renewables-focused energy player in the UK and Netherlands, supporting management’s ability to progress its existing production assets and expand its renewable energy portfolio.

The most recent analyst rating on (GB:PMG) stock is a Hold with a £17.50 price target. To see the full list of analyst forecasts on The Parkmead stock, see the GB:PMG Stock Forecast page.