Falcon Oil & Gas (FO) AI Stock Analysis

• Market Cap: C$266.19M
• Dividend Yield: N/A
• Average Volume (3M): 738.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• 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$0.22 ▼(-8.75% Downside)

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.

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	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: Positive
• Last Price: 0.24
• 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:FO, the sentiment is Positive. The current price of 0.24 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.20, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 76.54 is Negative, neither overbought nor oversold. The STOCH value of 87.50 is Negative, 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
ALV	75 Outperform	C$245.00M	9.28	21.90%	8.44%	2.20%	38.33%
RBY	67 Neutral	C$219.96M	4.36	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$243.22M	491.89	0.20%	6.19%	-8.58%	-98.92%
JOY	58 Neutral	C$211.39M	10.70	5.81%	―	-1.47%	267.04%
FO	54 Neutral	C$266.19M	-68.06	-6.71%	―	―	-5.88%
SEI	45 Neutral	C$228.44M	-12.53	-49.86%	―	―	-27.99%