Avanti Energy (AVN) AI Stock Analysis

• Market Cap: C$32.46M
• Dividend Yield: N/A
• Average Volume (3M): 174.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.95
• Revenue Growth: N/A
• EPS Growth: 68.98%
• Country: CA
• Employees: 19
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 120,215,100
• 10 Day Avg. Volume: 143,192
• 30 Day Avg. Volume: 174,196
• PEG Ratio: 0.03
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.54
• 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: 47 Neutral
• Price Target: C$0.25 ▼(-3.46% Downside)

The score is held down primarily by weak financial performance (no revenue, continued losses, and negative operating/free cash flow), despite a low-debt balance sheet. Technicals add some support due to strong recent momentum, but overbought signals raise pullback risk, and valuation remains weak due to negative earnings and no stated dividend yield.

Positive Factors

Strong Equity Backing

Maintaining positive stockholders' equity provides a stable financial foundation, allowing Avanti Energy to potentially leverage this stability for future growth initiatives.

Minimal Debt Levels

Low debt levels reduce financial risk and interest obligations, providing Avanti Energy with greater flexibility to navigate market challenges and invest in long-term growth opportunities.

Equity Financing

Being primarily equity-financed reduces reliance on debt, which can be advantageous in volatile markets, allowing Avanti Energy to focus on strategic investments without the pressure of significant debt repayments.

Negative Factors

Zero Revenue

The lack of revenue generation indicates challenges in monetizing helium exploration efforts, which could hinder the company's ability to sustain operations and achieve profitability in the long term.

Negative Cash Flows

Persistent negative cash flows suggest that Avanti Energy is not generating sufficient cash from operations, which could lead to liquidity issues and necessitate further external financing to maintain operations.

Persistent Losses

Ongoing operational losses highlight difficulties in achieving cost efficiency and profitability, which may impact Avanti Energy's ability to invest in growth and compete effectively in the helium market.

Avanti Energy Business Overview & Revenue Model

Company Description

Avanti Helium Corp. acquires, explores, and develops helium projects in Canada and the United States. The company's principal project is its 100% owned Greater Knappen Project, which covers an area of approximately 78,000 acres located in the in Southern Alberta and North-Central Montana. The company was formerly known as Avanti Energy Inc. and changed its name to Avanti Helium Corp. in August 2022. Avanti Helium Corp. was incorporated in 2011 and is headquartered in Calgary, Canada.

How the Company Makes Money

Avanti Energy generates revenue primarily through the exploration and production of helium. The company identifies and acquires properties with potential helium reserves, conducts exploration activities to confirm the presence of helium, and then develops these sites into operational helium extraction facilities. Revenue is generated through the sale of extracted helium to industries that require this gas for various applications, such as healthcare, electronics, and aerospace. Additionally, Avanti Energy may enter into strategic partnerships or joint ventures with other companies to enhance its exploration and production capabilities, further contributing to its revenue streams.

Avanti Energy Financial Statement Overview

Summary

Avanti Energy faces substantial financial challenges, with consistent zero revenue and persistent losses indicating difficulty in establishing a profitable business model. The balance sheet shows strong equity backing, but negative cash flows and reliance on external financing pose risks to financial stability.

Income Statement

Avanti Energy has consistently reported zero revenue over multiple years, indicating a lack of sales or operational income generation. The company also shows persistent negative net income and EBIT, which suggests ongoing operational and financial challenges. The lack of revenue growth and negative profit margins signify significant struggles in achieving profitability.

Balance Sheet

The company has maintained positive stockholders' equity, which is a positive sign. However, the debt-to-equity ratio is low due to minimal debt levels, which indicates limited leverage but also potentially limits growth opportunities. The equity ratio suggests the company is majorly financed by equity, which is generally stable but might not be the most efficient capital structure for growth.

Cash Flow

Avanti Energy's cash flow statements reveal significant negative free cash flows, indicating that the company is burning through cash at a concerning rate. The operating cash flow to net income ratio is negative, reflecting insufficient operational cash generation relative to expenses. The company's reliance on financing cash flows for liquidity is unsustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-89.24K	-87.95K	-26.84K	-22.22K	-3.66K	0.00
EBITDA	-3.65M	-4.34M	-11.60M	-8.27M	-10.55M	-489.06K
Net Income	-3.78M	-4.47M	-11.64M	-8.29M	-10.56M	-534.76K
Balance Sheet
Total Assets	25.58M	27.61M	28.63M	30.35M	17.06M	1.78M
Cash, Cash Equivalents and Short-Term Investments	961.18K	105.65K	1.41M	2.83M	5.38M	1.77M
Total Debt	260.11K	274.41K	251.04K	2.20K	5.50K	0.00
Total Liabilities	2.59M	3.11M	2.81M	4.64M	1.63M	14.86K
Stockholders Equity	22.99M	24.50M	25.82M	25.71M	15.44M	1.77M
Cash Flow
Free Cash Flow	-2.22M	-4.06M	-11.04M	-17.85M	-11.23M	-151.82K
Operating Cash Flow	-2.06M	-3.32M	-6.73M	-1.94M	-6.15M	-153.32K
Investing Cash Flow	210.08K	-232.04K	-5.95M	-11.87M	-9.18M	1.49M
Financing Cash Flow	2.56M	2.25M	11.26M	15.27M	14.90M	1.49M

Avanti Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AVN, the sentiment is Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.18, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 70.92 is Negative, neither overbought nor oversold. The STOCH value of 80.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AVN.

Avanti Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
WIL	48 Neutral	C$30.86M	-10.44	-276.15%	―	-3.67%	-26.40%
AVN	47 Neutral	C$32.46M	-7.46	-15.60%	―	―	68.98%
CWV	46 Neutral	C$14.22M	-5.91	-16.40%	―	295.02%	78.28%
TAO	45 Neutral	C$21.51M	-4.87	-10.11%	―	257.86%	57.88%
DME	42 Neutral	C$23.20M	-7.61	-6.13%	―	-82.16%	70.07%
PEI	41 Neutral	C$16.16M	-2.13	―	―	-0.63%	-47.75%

Avanti Energy Corporate Events

Avanti Helium to Relocate Existing U.S. Plant to Fast-Track Sweetgrass Production

Avanti Helium has signed a non-binding memorandum of understanding with a helium technology provider to relocate an existing U.S.-based helium processing plant to its Sweetgrass project in Montana, aiming to accelerate the project’s path to first production. The nearly new, operationally proven plant—designed for about 10 MMcf per day of inlet capacity, high uptime, and helium purity above 98% with upgrade potential—will be leased under a multi-year, capital-efficient structure that allows Avanti to avoid large upfront costs while retaining operational control and long-term purchase options. With key site infrastructure already in place at Sweetgrass and civil works set to begin once definitive agreements are signed, the move is expected to fast-track helium production and sales in 2026, strengthen Avanti’s positioning in a tightening North American helium market, and has led the company to abandon a previously announced plant term sheet in favor of these more favorable terms for shareholders.

The most recent analyst rating on (TSE:AVN) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Avanti Energy stock, see the TSE:AVN Stock Forecast page.