Strata Power (SPOWF) AI Stock Analysis

• Market Cap: $542.30K
• Dividend Yield: N/A
• Average Volume (3M): 15.32K
• Price to Earnings (P/E): ―
• Beta (1Y): -3.24
• Revenue Growth: N/A
• EPS Growth: -166.67%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 20,085,120
• 10 Day Avg. Volume: 8,266
• 30 Day Avg. Volume: 15,325
• PEG Ratio: -0.10
• Price to Book (P/B): -0.70
• Price to Sales (P/S): 1.18
• P/FCF Ratio: -5.01
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 7.83
• Enterprise Value/Gross Profit: 7.83
• Enterprise Value/Ebitda: -102.32
• 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: 46 Neutral
• Price Target: $0.02 ▼(-5.00% Downside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is held down primarily by weak financial performance (shrinking revenue, losses, negative operating/free cash flow, and deeply negative equity). Technicals provide some support via strong recent momentum (price above key DMAs and positive MACD), but overbought indicators temper that strength. Valuation is difficult to support given negative earnings and no dividend yield data.

Positive Factors

Business model & market focus

Strata Power’s core focus on originating and developing utility-scale solar plus battery storage creates long-term exposure to structural clean-energy demand. The project-development model provides multiple monetization routes (operate or sell projects), giving durable optionality and scalability across markets.

Low reported financial leverage

Relatively modest debt balances reduce near-term solvency pressure and preserve capacity to secure project financing. For a capital-intensive developer, low debt is a durable source of financial flexibility that supports continued project advancement without immediate refinancing strain.

Very high reported gross margin

Gross profit equal to revenue indicates strong unit economics at the core development/contract level. If sustained, such high gross margins can underwrite operating leverage as scale improves, enabling durable profitability once fixed costs and development cadence normalize.

Negative Factors

Declining revenue scale

A one-third decline in trailing revenue signals weakening project throughput or lower sales realization, undermining the scale needed to absorb fixed costs. Persistent top-line contraction threatens long-term margin recovery and reduces the company’s ability to build a stable development pipeline.

Persistent negative operating cash flow

Ongoing operating cash burn requires external financing to fund development milestones and working capital. For a project developer, sustained negative OCF increases dilution and refinancing risk, constraining the company’s ability to advance projects and capitalize on long-term market demand.

Deeply negative shareholders' equity

Substantial negative equity is a structural balance-sheet weakness that limits borrowing ability, deters partners and lenders, and raises recapitalization/dilution risk. Absent a credible recapitalization, this undermines long-term financial flexibility and the firm’s capacity to scale projects.

Strata Power Business Overview & Revenue Model

Company Description

Strata Power Corporation, an exploration stage company, engages in the acquisition, exploration, and development of oil and gas properties in Canada. The company focuses on carbonate-hosted bitumen deposits. As of December 31, 2021, it had a 50% interest in 7 oil sands leases covering an area of 8,704 hectares located in the Peace River oil sands region in Northern Alberta, Canada; and has a royalty interest in 10 oil sands leases and owns 3 non-producing wells. The company was formerly known as Strata Oil & Gas Inc. and changed its name to Strata Power Corporation in December 2018. Strata Power Corporation was incorporated in 1998 and is based in Calgary, Canada.

How the Company Makes Money

Strata Power makes money through the sale of electricity generated from its renewable energy installations, including solar farms and wind turbines. The company enters into power purchase agreements (PPAs) with businesses and utility companies, which guarantee a steady revenue stream over the contract's duration. Additionally, Strata Power offers installation and maintenance services for solar panels and wind energy systems, generating additional income. Strategic partnerships with technology providers and government incentives for renewable energy projects further bolster the company's earnings.

Strata Power Financial Statement Overview

Summary

Financial quality is weak: TTM revenue is down ~33% and the company is loss-making (EBIT -39,452; negative net margin). Cash generation is also negative (TTM operating cash flow and free cash flow both ~-22.7k). While total debt is modest versus assets, stockholders’ equity is deeply negative, which is a major balance-sheet risk.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp step-down in scale and profitability: revenue fell to 70,403 (down 33.4%), and the company is loss-making with negative operating profit (EBIT -39,452) and a negative net margin (-28.5%). Annual results were highly volatile—2024 posted positive net income (11,235) but still had negative operating profit (EBIT -21,778), while 2022 showed unusually high profitability (net margin above 200%) that did not persist. Strength: gross profit is reported equal to revenue (very high gross margin). Weakness: earnings power is inconsistent and currently negative, with meaningful margin compression versus prior profitable years.

Balance Sheet

Leverage appears low in absolute terms (TTM total debt 9,665 vs. total assets 160,078), but the capital structure is strained because stockholders’ equity is deeply negative (TTM -251,361; also negative across all shown years). This weak equity base can limit financial flexibility and raises recapitalization/dilution risk even if debt is not large. Strength: debt balances are relatively modest and stable. Weakness: persistent negative equity is a major balance-sheet red flag.

Cash Flow

Cash generation is weak: TTM operating cash flow is negative (-22,706) and free cash flow is also negative (-22,709), following another negative year in 2024 (operating cash flow -31,888). While 2022 showed strong positive operating and free cash flow (161,044), the business has not sustained that level and has reverted to cash burn. Strength: free cash flow improved versus the prior period on a growth basis in TTM. Weakness: ongoing negative operating cash flow suggests continued funding needs and pressure on liquidity if conditions don’t improve.

Breakdown	TTM	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.40K	135.01K	199.44K	398.43K	31.30K	38.07K
Gross Profit	70.40K	135.01K	199.44K	398.43K	15.61K	25.40K
EBITDA	-5.39K	37.65K	-25.66K	547.87K	-177.87K	-10.04K
Net Income	-20.04K	11.23K	-26.28K	477.66K	-218.46K	-23.20K
Balance Sheet
Total Assets	160.08K	166.17K	205.54K	236.48K	135.01K	183.81K
Cash, Cash Equivalents and Short-Term Investments	640.00	15.79K	54.01K	80.91K	7.70K	21.72K
Total Debt	9.66K	9.07K	9.33K	8.58K	33.50K	8.54K
Total Liabilities	411.44K	392.81K	441.57K	445.47K	824.01K	719.09K
Stockholders Equity	-251.36K	-226.64K	-236.04K	-208.99K	-689.00K	-470.29K
Cash Flow
Free Cash Flow	-22.71K	-31.89K	-20.97K	161.04K	-85.91K	-19.86K
Operating Cash Flow	-22.71K	-31.89K	-20.97K	161.04K	-85.91K	-19.86K
Investing Cash Flow	-3.32K	-5.09K	-4.86K	-1.80K	-509.00	28.55K
Financing Cash Flow	0.00	0.00	0.00	-78.21K	72.00K	5.00K

Strata Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MXC	71 Outperform	$22.92M	18.45	9.11%	0.96%	7.26%	40.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BATL	48 Neutral	$90.84M	-1.65	-164.49%	―	-4.08%	-325.73%
BRN	47 Neutral	$14.33M	-1.88	―	―	-32.91%	-23.72%
SPOWF	46 Neutral	$542.30K	-27.00	11.13%	―	―	-166.67%