Sky Quarry, Inc. (SKYQ) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.30
• Revenue Growth: -1.82%
• EPS Growth: -3783.01%
• Country: US
• Employees: 26
• Sector: Energy
• Sector Strength: 68
• Industry: Oil & Gas Integrated
• EPS (TTM): -0.59
• Shares Outstanding: 21,409,620
• 10 Day Avg. Volume: 5,416,486
• 30 Day Avg. Volume: 1,843,082
• PEG Ratio: -0.28
• Price to Book (P/B): 6.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -39.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: -31.14
• Enterprise Value/Ebitda: -8.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: $1.00 ▲(13.64%Upside)

Sky Quarry's overall stock score is primarily impacted by its weak financial performance and valuation concerns. The technical analysis offers some stability, but the company's Nasdaq compliance issue and negative profitability are significant risks. Improvement in cash management and strategic partnerships may help mitigate these challenges.

Sky Quarry, Inc. Business Overview & Revenue Model

Company Description

Sky Quarry Inc. operates as an oil production, refining, and environmental remediation company. The company facilitates recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. It also engages in the refining of heavy oil into diesel and other petroleum products; and exploration and development of oil sand properties. The company was formerly known as Recoteq Inc. and changed its name to Sky Quarry Inc. in April 2020. Sky Quarry Inc. was incorporated in 2019 and is headquartered in Woods Cross, Utah.

How the Company Makes Money

Sky Quarry, Inc. generates revenue primarily through the recycling and sale of materials derived from asphalt shingles. The company collects waste shingles, processes them using its proprietary technology, and produces marketable end-products such as asphalt and other aggregates. These products are then sold to industries involved in road construction, roofing, and other sectors that utilize asphalt materials. Additionally, Sky Quarry may engage in strategic partnerships with municipalities and waste management companies to secure a consistent supply of raw materials, which contributes to its revenue streams. The company's focus on sustainability and cost-effective recycling methods positions it to benefit from increasing environmental regulations and the growing demand for eco-friendly construction materials.

Sky Quarry, Inc. Financial Statement Overview

Summary

Sky Quarry, Inc. faces significant financial challenges, with declining revenues, negative profitability, and cash flow issues. The balance sheet shows moderate leverage but lacks strong equity returns. Focused efforts on improving operational efficiency and cash management are critical for financial stability.

Income Statement

Sky Quarry, Inc. has faced significant revenue decline and profitability challenges with a sharp drop in total revenue from $50.7M to $23.4M, a decrease of 53.9%. The company reported negative gross profit and net income, leading to negative profit margins, indicating operational inefficiencies and losses.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.95, reflecting a balanced leverage level. However, the negative return on equity and low equity ratio highlight financial strain and limited shareholder returns.

Cash Flow

Sky Quarry's cash flow is under pressure with negative operating and free cash flows, indicating cash burn. The operating cash flow to net income ratio is negative, showcasing cash inefficiencies. Despite financing inflows, the overall cash position remains weak.

Breakdown
TTM	Dec 2024	Dec 2023
Income Statement		Total Revenue
10.52M	23.36M	50.73M
	Gross Profit
-2.91M	-1.40M	2.34M
	EBIT
-6.50M	-7.52M	-1.37M
	EBITDA
-4.88M	-7.33M	-379.92K
	Net Income Common Stockholders
-7.54M	-14.73M	-4.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
213.00K	385.12K	326.82K
	Total Assets
24.59M	26.95M	28.18M
	Total Debt
9.27M	10.94M	10.18M
	Net Debt
9.05M	10.56M	9.86M
	Total Liabilities
15.01M	15.45M	15.09M
	Stockholders Equity
9.58M	11.50M	13.09M
Cash Flow		Free Cash Flow
-2.46M	-8.97M	-2.07M
	Operating Cash Flow
-2.87M	-7.49M	-376.06K
	Investing Cash Flow
417.96K	-1.48M	-731.94K
	Financing Cash Flow
2.59M	7.62M	4.46M

Sky Quarry, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLNG	62 Neutral	$90.01M	64.56	2.37%	―	7.30%	208.99%
Sector *	58 Neutral	$7.53B	3.34	-4.45%	10.13%	0.83%	-49.64%
SKYQ	41 Neutral		―	-80.01%	―	-1.82%	-3783.01%
CGBS		$44.15M	―		―	―	―

Sky Quarry, Inc. Corporate Events

Sky Quarry Faces Nasdaq Compliance Challenge Amid Revenue Drop

Sky Quarry Inc. received a Nasdaq Staff Deficiency Letter on March 28, 2025, due to its common stock bid price falling below the $1.00 minimum requirement for 30 consecutive business days. The company has until September 24, 2025, to regain compliance, with potential for an additional 180-day period if necessary. Meanwhile, Sky Quarry announced its financial results for the year ending December 31, 2024, reporting a revenue of $23.3 million, a significant decrease from the previous year. The company is focusing on strategic partnerships and expanding its operations, including a collaboration with RB Residential Roofing and the development of modular extraction facilities, to drive revenue growth and enhance its market position.