Alvopetro Energy (ALV) AI Stock Analysis

• Market Cap: C$217.54M
• Dividend Yield: 8.66%
• Average Volume (3M): 19.30K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.53
• Revenue Growth: -10.32%
• EPS Growth: -12.38%
• Country: CA
• Employees: 53
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.22
• Shares Outstanding: 36,378,693
• 10 Day Avg. Volume: 34,975
• 30 Day Avg. Volume: 19,304
• PEG Ratio: 0.96
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.90
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 1.34
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: C$6.50 ▲(8.70%Upside)

Alvopetro Energy demonstrates strong financial health and operational efficiency, coupled with an attractive valuation. The technical indicators suggest momentum, though caution is warranted due to overbought signals. The positive earnings call outlook supports future growth, despite some financial challenges. This positions Alvopetro well within the industry, with a strong overall score.

Alvopetro Energy Business Overview & Revenue Model

Company Description

Alvopetro Energy Ltd. engages in the acquisition, exploration, development, and production of hydrocarbons. As of December 31, 2021, it held interests in the Caburé and Murucututu natural gas assets; two exploration assets comprising Blocks 182 and the western portion of Block 183; and two oil fields, Bom Lugar and Mãe-da-lua, which include 22,166 acres in the Recôncavo basin onshore Brazil. The company was incorporated in 2013 and is headquartered in Calgary, Canada.

How the Company Makes Money

Alvopetro Energy generates revenue primarily through the sale of natural gas and oil produced from its exploration and production activities in Brazil. The company's revenue model is centered on extracting natural resources and selling them to industrial, commercial, and power generation customers. Key revenue streams include long-term gas sales agreements with local distributors and industries, ensuring a stable and predictable cash flow. Alvopetro's partnership with key players in the energy sector, along with its strategic positioning in a high-demand market, significantly contributes to its earnings. Additionally, the company may also generate income from the sale of oil byproducts and other ancillary services related to energy production.

Alvopetro Energy Financial Statement Overview

Summary

Alvopetro Energy maintains a strong profitability with high gross and net profit margins. However, a decline in revenue growth poses a challenge. The balance sheet is robust with low leverage, while cash flow generation is solid despite a decrease in free cash flow growth.

Income Statement

Alvopetro Energy shows a solid financial performance with a strong Gross Profit Margin and Net Profit Margin over the TTM (Trailing-Twelve-Months) period. The Gross Profit Margin stands at 67.23%, and the Net Profit Margin is 37.29%, indicating efficient cost management and profitability. However, the Revenue Growth Rate has declined by 11.72% compared to the previous year, which may signal challenges in maintaining past growth levels. EBIT and EBITDA margins are robust at 51.63% and 64.92%, respectively, reflecting strong operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a strong Equity Ratio of 78.81%, indicating a solid capital structure. The Debt-to-Equity Ratio is low at 0.09, showcasing minimal leverage and financial risk. Return on Equity (ROE) is impressive at 20.67%, highlighting effective use of shareholders' equity to generate profits. This stable financial footing provides a buffer against market volatility.

Cash Flow

Alvopetro Energy demonstrates strong cash flow generation capabilities, with an Operating Cash Flow to Net Income Ratio of 1.99, suggesting efficient conversion of income to cash. Free Cash Flow, however, has decreased compared to the previous year, resulting in a negative Free Cash Flow Growth Rate of -27.21%. Despite this, the company's cash flow metrics remain robust, supporting ongoing operations and potential investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
47.78M	45.52M	58.03M	63.51M	34.98M	11.31M
	Gross Profit
32.12M	32.46M	53.83M	48.47M	20.13M	7.16M
	EBIT
24.66M	25.13M	47.66M	43.00M	15.38M	3.19M
	EBITDA
31.01M	28.11M	41.96M	46.28M	22.16M	5.64M
	Net Income Common Stockholders
17.82M	16.30M	28.52M	31.73M	5.59M	5.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.33M	21.70M	18.33M	19.78M	11.47M	5.16M
	Total Assets
109.83M	101.02M	109.83M	98.43M	81.23M	80.39M
	Total Debt
8.68M	7.86M	8.68M	9.43M	14.52M	23.73M
	Net Debt
-9.64M	-13.83M	-9.64M	-10.36M	3.06M	18.57M
	Total Liabilities
21.62M	21.66M	21.62M	22.02M	22.61M	27.28M
	Stockholders Equity
88.21M	79.36M	88.21M	76.41M	58.63M	53.11M
Cash Flow		Free Cash Flow
14.26M	19.60M	20.25M	22.74M	19.78M	-356.00K
	Operating Cash Flow
35.51M	34.90M	47.70M	47.53M	24.29M	3.06M
	Investing Cash Flow
-17.87M	-11.69M	-27.75M	-22.77M	-3.98M	-3.23M
	Financing Cash Flow
-16.48M	-17.99M	-21.74M	-16.55M	-13.74M	4.23M

Alvopetro Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALV, the sentiment is Positive. The current price of 5.98 is above the 20-day moving average (MA) of 5.77, above the 50-day MA of 5.31, and above the 200-day MA of 4.87, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 68.69 is Neutral, neither overbought nor oversold. The STOCH value of 76.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ALV.

Alvopetro Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	76 Outperform	C$217.54M	8.99	20.38%	8.66%	-10.32%	-12.38%
Sector *	57 Neutral	$7.14B	3.01	-3.46%	5.69%	0.76%	-49.20%
PIFYF		$151.67M	―	-29.28%	10.11%	―	―
HME	82 Outperform	C$170.11M	4.88	48.97%	5.75%	22.64%	44.49%
PRQ	64 Neutral	C$166.67M	154.76	0.33%	9.23%	-21.04%	-96.30%
IPO	61 Neutral	C$250.06M	27.25	1.69%	12.07%	-14.73%	-71.36%
GASX	56 Neutral	C$237.26M	―	-80.24%	―	73.53%	48.09%

Alvopetro Energy Corporate Events

Alvopetro Energy Reports Strong Q1 2025 Results and Strategic Expansion

Alvopetro Energy Ltd. reported a 41% increase in Q1 2025 sales volumes, indicating a strong start to the year and positioning the company for an ambitious capital program. The company is capitalizing on high-return opportunities in Brazil and Canada, with its first two Canadian wells exceeding expectations. Alvopetro’s strategic entry into the Western Canadian Sedimentary Basin is part of its plan to expand its inventory of prospective opportunities while maintaining a disciplined capital allocation model. The company also announced a 7% increase in natural gas prices under its agreement with Bahiagás, effective May 1, 2025, which will impact its revenue positively.

Alvopetro Energy Reports 41% Increase in Q1 2025 Sales Volumes

Alvopetro Energy Ltd. reported a significant increase in sales volumes for March 2025, with an average daily sales volume of 2,580 boepd, marking a 41% rise from the previous quarter. This growth is attributed to increased production from their Caburé and Murucututu fields, reflecting the company’s successful strategic investments and positioning in the natural gas market.

Alvopetro Energy Reports 41% Increase in Q1 2025 Sales Volumes

Alvopetro Energy Ltd. reported a significant increase in its sales volumes for March 2025, with an average daily sales volume of 2,580 barrels of oil equivalent per day (boepd), marking a 41% increase from the previous quarter. This growth is attributed to increased production from its Caburé and Murucututu natural gas fields, positioning the company strongly within the energy market and indicating robust operational performance and strategic infrastructure development.

Alvopetro Energy Reports Strong Start to 2025 with Increased Gas Sales and Reserve Growth

Alvopetro Energy Ltd. reported a 37% increase in natural gas sales volumes for the start of 2025, attributed to enhanced productive capacity and an updated gas sales agreement. The company announced a quarterly dividend increase to US$0.10 per share, reflecting its commitment to balanced capital allocation. Alvopetro also revealed significant reserve increases, with 1P reserves up by 65% and 2P reserves by 5%, boosting the company’s net present value and indicating strong future potential. The company is actively expanding its operations with new drilling projects in both the Murucututu natural gas field and Western Saskatchewan.

Alvopetro Energy Reports February Sales and Strategic Focus

Alvopetro Energy reported February 2025 sales volumes of 2,285 barrels of oil equivalent per day, with natural gas sales reaching 13.0 million cubic feet per day. The sales volumes were slightly impacted by reduced demand in the last week of February, but March sales are expected to align with January levels. The company’s strategic focus on organic growth and balanced capital allocation continues to support its operations and stakeholder returns.