Falcon Oil & Gas (FO) AI Stock Analysis

• Market Cap: C$271.74M
• Dividend Yield: N/A
• Average Volume (3M): 738.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: N/A
• EPS Growth: -5.88%
• Country: CA
• Employees: 5
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 1,109,141,500
• 10 Day Avg. Volume: 422,411
• 30 Day Avg. Volume: 738,474
• PEG Ratio: 1.23
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.16
• 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: 54 Neutral
• Price Target: C$0.26 ▲(6.25% Upside)

The score is held back primarily by weak operating performance (minimal revenue, ongoing losses) and significant cash burn (negative operating and free cash flow), despite a very low-debt balance sheet. Technicals are a notable positive with the stock trading above key moving averages and positive momentum indicators, but valuation support is limited due to negative earnings and no indicated dividend yield.

Positive Factors

Very low leverage

A very low-debt balance sheet gives Falcon durable financial flexibility to fund exploration, wait for farm-outs, or pursue asset sales without distressed borrowing. That conservatism reduces bankruptcy risk and supports multi-quarter exploration timelines common in E&P cycles.

Asset monetization business model

Falcon’s deliberate model of attracting partners and monetizing acreage (farm-outs, asset sales, royalties) shifts capital intensity to counterparties and creates repeatable liquidity events. Structurally, this reduces capital strain and aligns incentives with larger operators over 2-6 months.

Focused technical exploration capability

A concentrated strategy on unconventional basins and technical appraisal work builds domain expertise that helps derisk acreage and attract partners. Over time technical competence and proven geologic datasets increase prospects of farm-outs or asset sales, supporting sustainable optionality.

Negative Factors

Minimal revenue and recurring losses

The absence of meaningful revenue and persistent operating losses means the company cannot self-fund exploration or cover G&A from operations. This structural shortfall forces reliance on external financing or asset transactions, constraining strategic autonomy over coming quarters.

Consistent operating cash burn

Regular negative operating and free cash flow is a durable financial pressure: continued cash burn compels recurring fundraising, dilutive asset sales, or halting activity. For an exploration firm this undermines the pace of drilling and appraisal unless offset by committed partner funding.

Negative returns on equity

Persistently negative ROE indicates Falcon has not converted its equity and asset base into profitable operations. Over months this raises questions about capital allocation effectiveness and the ability to deliver value from existing assets without meaningful exploration success or profitable transactions.

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

Overall financials are constrained by near-zero revenue and recurring losses (negative EBITDA/EBIT and net losses). Cash flow is a key risk with consistently negative operating cash flow and deeply negative free cash flow (TTM ~-10.2M). The main offset is a strong, low-leverage balance sheet with minimal debt and a stable equity base.

Income Statement

Operating performance remains weak. Revenue is essentially zero in the most recent periods (including TTM (Trailing-Twelve-Months)), while losses persist: EBIT and EBITDA are negative across all years shown and net income is consistently negative (TTM net loss of ~2.8M vs ~3.0M in 2024 and ~3.3M in 2023). While losses have narrowed versus prior years, the absence of meaningful revenue keeps profitability and business momentum constrained.

Balance Sheet

Balance sheet leverage is very low, which is a clear strength for an exploration-stage profile. Total debt is minimal (TTM total debt ~11K; 2024–2020 show zero debt), and equity remains sizable (~42–45M range recently) with total assets relatively stable (~61–62M in 2022–2024; ~61M TTM). The key weakness is ongoing negative returns on shareholders’ equity (TTM return on equity about -5%), reflecting continued net losses despite a conservatively financed balance sheet.

Cash Flow

Cash generation is under pressure. Operating cash flow is negative in every period provided (TTM ~-2.2M; 2024 ~-2.1M; 2023 ~-2.4M), indicating the core business is consuming cash. Free cash flow is also negative and materially worse in TTM (~-10.2M) versus 2024 (~-9.2M) and far below 2022–2021 levels, suggesting higher spending and/or working-capital drag. While free cash flow growth is positive in TTM, the absolute cash burn remains significant and is the primary financial risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	2.00K	5.00K
Gross Profit	0.00	0.00	0.00	0.00	2.00K	-7.00K
EBITDA	-2.31M	-2.23M	-3.14M	-4.26M	-4.44M	-2.27M
Net Income	-2.84M	-2.96M	-3.34M	-3.72M	-4.69M	-1.83M
Balance Sheet
Total Assets	61.03M	62.24M	61.54M	61.96M	51.44M	54.05M
Cash, Cash Equivalents and Short-Term Investments	1.97M	6.82M	7.99M	16.79M	8.89M	11.04M
Total Debt	11.00K	0.00	0.00	0.00	0.00	0.00
Total Liabilities	18.06M	17.58M	18.54M	15.93M	12.18M	11.28M
Stockholders Equity	42.29M	43.98M	42.30M	45.32M	38.56M	42.07M
Cash Flow
Free Cash Flow	-10.20M	-9.22M	-9.12M	-2.35M	-2.13M	-2.20M
Operating Cash Flow	-2.17M	-2.11M	-2.40M	-2.26M	-1.96M	-2.15M
Investing Cash Flow	-5.32M	-3.07M	-6.54M	-55.00K	-169.00K	-35.00K
Financing Cash Flow	-44.00K	4.56M	0.00	9.95M	0.00	0.00

Falcon Oil & Gas Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.24
• 50DMA: Positive
• 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:FO, the sentiment is Neutral. The current price of 0.24 is below the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.22, and above the 200-day MA of 0.16, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:FO.

Falcon Oil & Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	75 Outperform	C$267.78M	9.83	21.90%	8.44%	2.20%	38.33%
RBY	67 Neutral	C$250.85M	4.82	17.46%	―	74.76%	7.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PRQ	63 Neutral	C$249.54M	505.41	0.20%	6.19%	-8.58%	-98.92%
JOY	58 Neutral	C$234.20M	11.13	5.81%	―	-1.47%	267.04%
FO	54 Neutral	C$271.74M	-66.67	-6.71%	―	―	-5.88%
SEI	45 Neutral	C$223.31M	-11.20	-49.86%	―	―	-27.99%