Alvopetro Energy (ALV) AI Stock Analysis

• Market Cap: C$208.63M
• Dividend Yield: 9.61%
• Average Volume (3M): 21.32K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.50
• Revenue Growth: -10.32%
• EPS Growth: -12.38%
• Country: CA
• Employees: 53
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.22
• Shares Outstanding: 36,602,463
• 10 Day Avg. Volume: 19,556
• 30 Day Avg. Volume: 21,322
• 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: 0.70
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 1.34
• 1Y Price Target: C$8.00
• Price Target Upside: 40.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: C$7.00 ▲(22.59%Upside)

Alvopetro Energy's strong financial foundation, attractive valuation, and positive corporate developments support its stability and growth potential. The strategic expansion in high-return markets and commitment to shareholder value through dividends bolster its overall appeal. Technical indicators suggest moderate momentum, reinforcing a cautiously optimistic outlook.

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
EBITDA	31.01M	28.11M	41.96M	46.28M	22.16M	5.64M
Net Income	17.82M	16.30M	28.52M	31.73M	5.59M	5.71M
Balance Sheet
Total Assets	109.83M	101.02M	109.83M	98.43M	81.23M	80.39M
Cash, Cash Equivalents and Short-Term Investments	18.33M	21.70M	18.33M	19.78M	11.47M	5.16M
Total Debt	8.68M	7.86M	8.68M	9.43M	14.52M	23.73M
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: Neutral
• Last Price: 5.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALV, the sentiment is Neutral. The current price of 5.71 is below the 20-day moving average (MA) of 6.21, below the 50-day MA of 5.87, and above the 200-day MA of 4.96, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.06 is Neutral, neither overbought nor oversold. The STOCH value of 5.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$208.63M	8.58	20.38%	9.61%	-10.32%	-12.38%
Sector *	60 Neutral	£7.21B	-2.72	-10.36%	7.05%	-1.03%	-98.53%
PIFYF		$165.12M	―	-29.28%	1.73%	―	―
HME	85 Outperform	C$182.21M	5.21	48.97%	10.00%	22.64%	44.49%
PRQ	62 Neutral	C$181.49M	169.05	0.33%	8.57%	-21.04%	-96.30%
IPO	61 Neutral	C$264.59M	28.84	1.69%	11.37%	-14.73%	-71.36%
GASX	51 Neutral	C$245.24M	―	-80.24%	―	73.53%	48.09%

Alvopetro Energy Corporate Events

Alvopetro Energy Reports Strong June 2025 Sales Volumes

Alvopetro Energy Ltd. reported June 2025 sales volumes of 2,514 barrels of oil equivalent per day (boepd), with significant contributions from its Brazilian operations, which averaged 2,364 boepd. The company is effectively balancing its capital investments between Canada and Brazil, focusing on organic growth opportunities and stakeholder returns. This strategic approach is supported by the strength of its natural gas fields and midstream infrastructure, positioning Alvopetro for continued growth and stability in the energy market.

Alvopetro Energy Declares Q2 2025 Dividend and Announces AGM

Alvopetro Energy Ltd. has announced a quarterly dividend of US$0.10 per share, payable on July 15, 2025, to shareholders of record as of June 30, 2025. This announcement underscores the company’s commitment to returning value to stakeholders while balancing reinvestment in growth opportunities. Additionally, Alvopetro will hold its annual general meeting on June 18, 2025, and will provide a live webcast for shareholders. These initiatives reflect Alvopetro’s strategic focus on enhancing shareholder engagement and maintaining a robust financial position.

Alvopetro Energy Reports Mixed May Sales and Positive Drilling Results

Alvopetro Energy Ltd. reported a decrease in May 2025 sales volumes in Brazil due to operational turnarounds, but saw an increase in Canadian oil production. The company announced successful drilling results from its 183-D4 well in Brazil, which is expected to enhance production in the third quarter, and outlined plans for further drilling in both Brazil and Canada, indicating a strategic focus on expanding its production capabilities.

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.