Alvopetro Energy (ALV) AI Stock Analysis

• Market Cap: C$220.39M
• Dividend Yield: 9.06%
• Average Volume (3M): 20.61K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.63
• Revenue Growth: 2.20%
• EPS Growth: 38.33%
• Country: CA
• Employees: 53
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.17
• Shares Outstanding: 36,732,098
• 10 Day Avg. Volume: 26,320
• 30 Day Avg. Volume: 20,610
• PEG Ratio: -0.19
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 3.07
• P/FCF Ratio: 7.14
• 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: 77 Outperform
• Price Target: C$7.00 ▲(15.32% Upside)

Alvopetro Energy's overall stock score of 77 reflects its strong financial performance and positive corporate events, which are the most significant factors. The company's robust profitability and strategic growth initiatives are tempered by mixed technical indicators and challenges in cash flow management. The attractive valuation, with a low P/E ratio and high dividend yield, further supports the stock's appeal.

Positive Factors

Strong Profitability

High net profit margins indicate efficient cost management and strong pricing power, supporting long-term profitability and shareholder value.

Stable Balance Sheet

A low debt-to-equity ratio reflects prudent financial management, providing the company with flexibility to invest in growth opportunities.

Efficient Cash Generation

Efficient cash generation relative to earnings ensures the company can fund operations and growth without relying heavily on external financing.

Negative Factors

Cash Flow Management Challenges

Declining free cash flow growth may limit the company's ability to reinvest in its operations or return capital to shareholders, impacting long-term growth.

Fluctuating Revenue Growth

Inconsistent revenue growth can signal market volatility or operational challenges, potentially affecting long-term strategic planning and investment.

Slight Increase in Debt

Even a small increase in debt levels can impact financial stability if not managed carefully, potentially increasing financial risk over time.

Alvopetro Energy Business Overview & Revenue Model

Company Description

Alvopetro Energy Ltd. is a Canadian-based oil and gas exploration and production company primarily focused on the development of hydrocarbons in Brazil. The company operates in the energy sector, specializing in the exploration, production, and sale of oil and natural gas. Alvopetro is committed to sustainable energy practices and aims to create value for its shareholders through efficient resource management and advanced technology in hydrocarbon extraction.

How the Company Makes Money

Alvopetro Energy generates revenue primarily through the exploration, production, and sale of oil and natural gas. The company's key revenue streams include the sale of crude oil and natural gas from its operational fields in Brazil. Alvopetro's financial performance is influenced by global oil and gas prices, production volumes, and operational efficiency. Additionally, the company may engage in strategic partnerships and joint ventures to enhance its operational capabilities and reduce exploration risks, which can also contribute to its revenue. Factors such as market demand, regulatory environment, and technological advancements in extraction methodologies play a significant role in shaping Alvopetro's earnings.

Alvopetro Energy Financial Statement Overview

Summary

Alvopetro Energy exhibits strong financial performance with robust profitability and a stable balance sheet. The company has a high return on equity and low leverage, indicating financial stability. However, challenges in cash flow management, particularly in free cash flow growth, slightly offset these strengths.

Income Statement

Alvopetro Energy shows strong profitability with a consistent increase in net profit margins, reaching 37.29% in TTM. The revenue growth rate of 6.99% in TTM indicates a positive trajectory, although it has fluctuated in previous years. Gross profit margins remain robust, though slightly decreased from 2023. Overall, the company demonstrates solid financial health with strong EBIT and EBITDA margins.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.09 in TTM, indicating prudent leverage management. Return on equity is healthy at 25.76%, showcasing effective use of equity to generate profits. The equity ratio is strong, suggesting a solid capital structure. However, the slight increase in debt over the years warrants monitoring.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by 19% in TTM, which is a concern. However, the operating cash flow to net income ratio of 2.31 indicates efficient cash generation relative to earnings. The free cash flow to net income ratio remains positive, though it has declined, suggesting room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.12M	45.52M	58.03M	63.51M	34.98M	11.31M
Gross Profit	33.61M	32.46M	53.83M	48.47M	20.13M	7.16M
EBITDA	37.24M	28.11M	41.96M	46.28M	22.16M	5.64M
Net Income	22.30M	16.30M	28.52M	31.73M	5.59M	5.71M
Balance Sheet
Total Assets	116.97M	101.02M	109.83M	98.43M	73.63M	80.39M
Cash, Cash Equivalents and Short-Term Investments	15.00M	21.70M	18.33M	19.78M	11.47M	5.16M
Total Debt	7.46M	7.86M	8.68M	9.43M	14.52M	23.73M
Total Liabilities	23.76M	21.66M	21.62M	22.02M	22.61M	27.28M
Stockholders Equity	93.21M	79.36M	88.21M	76.41M	51.02M	53.11M
Cash Flow
Free Cash Flow	11.55M	19.60M	20.25M	22.74M	19.78M	-356.00K
Operating Cash Flow	37.12M	34.90M	47.70M	47.53M	24.29M	3.06M
Investing Cash Flow	-24.47M	-11.69M	-27.75M	-22.77M	-3.98M	-3.23M
Financing Cash Flow	-17.08M	-17.99M	-21.74M	-16.55M	-13.74M	4.23M

Alvopetro Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 6.07 is below the 20-day moving average (MA) of 6.08, below the 50-day MA of 6.32, and above the 200-day MA of 5.72, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 36.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ALV.

Alvopetro Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	77 Outperform	C$220.39M	8.09	21.90%	9.06%	2.20%	38.33%
RBY	72 Outperform	C$236.99M	3.53	17.46%	―	74.76%	7.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
JOY	58 Neutral	$254.34M	15.73	5.81%	―	-1.47%	267.04%
RECO	49 Neutral	C$148.76M	-6.10	-10.23%	―	―	―
GASX	47 Neutral	C$252.19M	-6.17	-79.56%	―	5.13%	61.58%
FO	36 Underperform	£227.37M	-56.94	-6.71%	―	―	-5.88%

Alvopetro Energy Corporate Events

Alvopetro Secures $20 Million Credit Facility to Boost Growth

Alvopetro Energy Ltd. announced a $20 million credit facility with Itaú BBA International, aimed at enhancing its financial flexibility to accelerate capital programs in Brazil and Canada. This move is expected to support Alvopetro’s growth strategy by funding high-return projects without impacting its current stakeholder return and capital allocation model.

Alvopetro Energy Achieves Record Sales in October 2025

Alvopetro Energy Ltd. reported record sales volumes for October 2025, with a 34% increase in Brazilian sales to 2,766 boepd and an overall company average of 2,923 boepd. This growth is attributed to successful operations in Brazil, particularly the Murucututu project, and strategic partnerships in Canada. The company’s financial results for Q3 2025 reflect robust operational performance, despite a decrease in natural gas prices due to lower Henry Hub prices. Alvopetro’s strategic focus on disciplined capital allocation and high-return growth opportunities positions it strongly in the energy market.

Alvopetro Energy Reports September Sales and Strategic Expansion

Alvopetro Energy Ltd. reported September 2025 sales volumes of 2,231 boepd, with significant contributions from its Murucututu field in Brazil. The company has adjusted its natural gas pricing and entered into a new agreement to expand its Mannville Stack opportunities in Western Saskatchewan. Additionally, Alvopetro is disposing of its non-core Bom Lugar and Mãe da Lua oil fields in Brazil, which is expected to streamline its operations and focus on more strategic assets.

Alvopetro Declares Q3 2025 Dividend, Reinforcing Growth and Shareholder Returns

Alvopetro Energy Ltd. has announced a quarterly dividend of US$0.10 per share, payable on October 15, 2025, to shareholders of record as of September 30, 2025. This move reflects the company’s strategy of balancing capital reinvestment and shareholder returns, potentially strengthening its market position and appealing to investors seeking income from dividends.