Falcon Oil & Gas (FO) AI Stock Analysis

• Market Cap: C$138.64M
• Dividend Yield: N/A
• Average Volume (3M): 121.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: N/A
• EPS Growth: 13.95%
• Country: CA
• Employees: 5
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 1,109,141,500
• 10 Day Avg. Volume: 213,829
• 30 Day Avg. Volume: 121,162
• PEG Ratio: 9.12
• Price to Book (P/B): 3.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -58.94
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -10.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 36 Underperform
• Price Target: ―

Falcon Oil & Gas has a challenging financial outlook with no revenue and ongoing losses, despite having no debt and substantial cash reserves. The technical indicators are bearish, with the stock showing downward momentum. Valuation metrics, including a negative P/E ratio and no dividend yield, indicate limited attractiveness. Overall, the company's critical financial and operational issues significantly lower its stock score.

Falcon Oil & Gas Business Overview & Revenue Model

Company Description

Falcon Oil & Gas Ltd., an oil and gas company, engages in the exploration, and development of unconventional oil and gas assets in Australia, South Africa, and Hungary. It holds 22.5% interests in three exploration permits covering an area of approximately 1 million net acres in the Beetaloo Sub-basin, Northern Territory, Australia. The company also holds a 100% interest in the technical cooperation permit covering an area of approximately 30,327.9 square kilometers in the southwest Karoo Basin, South Africa; and a 100% interest in the Makó production license covering an area of approximately 994.6 square kilometers in the Makó Trough located in south-eastern Hungary. Falcon Oil & Gas Ltd. was incorporated in 1980 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Falcon Oil & Gas generates revenue primarily through the exploration and potential sale or partnership development of its oil and gas assets. The company capitalizes on its strategic partnerships with larger oil and gas firms to share the costs and risks associated with exploration and development. These partnerships often involve joint ventures or farm-out agreements, whereby Falcon retains a stake in the potential profits while reducing its financial exposure. Additionally, Falcon may earn income from licensing fees or from selling interests in its exploration permits to other companies looking to develop these resources. The company's revenue model is highly dependent on successful exploration outcomes and the fluctuating market prices for oil and gas, which can impact the profitability of its projects.

Falcon Oil & Gas Financial Statement Overview

Summary

Falcon Oil & Gas faces significant financial challenges, with a non-existent revenue stream and persistent losses impacting its income statement. Despite a debt-free balance sheet and substantial cash reserves providing a buffer, the lack of revenue generation and negative cash flows raise concerns about future viability. Strategic initiatives to generate revenue and improve operational efficiency are crucial for turning around its financial performance.

Income Statement

The company has consistently reported zero revenue over the past years, highlighting severe challenges in generating sales. Gross profit margins are nonexistent due to lack of revenue, and net income remains negative, indicating ongoing losses. EBIT and EBITDA margins are negative, reflecting operational inefficiencies and lack of profitability. The absence of revenue growth further highlights the need for strategic redirection.

Balance Sheet

The balance sheet shows a strong equity position with no debt, resulting in a favorable debt-to-equity ratio. The company maintains a robust cash reserve, which strengthens liquidity. However, the consistent net losses have not translated into any return on equity, posing concerns over long-term sustainability. The equity ratio remains healthy, indicating stability in asset financing.

Cash Flow

The company exhibits negative operating cash flow, which is a concern for operational sustainability. Free cash flow is declining year over year, indicating the inability to generate cash after capital expenditures. The operating cash flow to net income ratio is negative due to ongoing losses, highlighting inefficiencies in cash conversion. However, cash reserves have been managed well to offset some cash flow issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	2.00K	5.00K
	Gross Profit
0.00	0.00	0.00	2.00K	-7.00K
	EBIT
-1.97M	-3.21M	-3.98M	-4.45M	-1.93M
	EBITDA
-2.23M	-3.14M	-4.26M	-4.44M	-2.27M
	Net Income Common Stockholders
-2.96M	-3.34M	-3.72M	-4.69M	-1.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.82M	7.99M	16.79M	8.89M	11.04M
	Total Assets
62.24M	61.54M	61.96M	51.44M	54.05M
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-6.82M	-7.99M	-16.79M	-8.89M	-11.04M
	Total Liabilities
17.58M	18.54M	15.93M	12.18M	11.28M
	Stockholders Equity
43.98M	42.30M	45.32M	38.56M	42.07M
Cash Flow		Free Cash Flow
-9.22M	-9.12M	-2.35M	-2.13M	-2.20M
	Operating Cash Flow
-2.11M	-2.40M	-2.26M	-1.96M	-2.15M
	Investing Cash Flow
-3.07M	-6.54M	-55.00K	-169.00K	-35.00K
	Financing Cash Flow
4.56M	0.00	9.95M	0.00	0.00

Falcon Oil & Gas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 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:FO, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FO.

Falcon Oil & Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$7.57B	3.50	-4.45%	10.15%	0.79%	-49.51%
QEC	54 Neutral	C$119.98M	―	-5.05%	―	-0.03%	71.16%
CVVY	48 Neutral	C$107.44M	―	-21.67%	―	-42.15%	-117.23%
CDR	48 Neutral	C$130.21M	―	-52.56%	―	968.30%	81.49%
FO	36 Underperform	C$138.64M	―	-6.26%	―	―	13.95%
CNNEF		$66.30M	4.24	-1.29%	7.23%	―	―
JRNGF		$101.25M	15.45	2.85%	―	―	―