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InPlay Oil Corp. (TSE:IPO)
TSX:IPO

InPlay Oil Corp. (IPO) AI Stock Analysis

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InPlay Oil Corp.

(TSX:IPO)

Rating:61Neutral
Price Target:
InPlay Oil Corp. receives an overall score of 61, reflecting a combination of mixed financial performance and bearish technical indicators, offset by an attractive valuation. The company's declining revenue and net income, alongside the pressures on margins, are significant drawbacks. Technical indicators show strong downward momentum, which might deter short-term investors. However, the low P/E ratio and high dividend yield offer a compelling case for value and income investors. Addressing revenue growth and managing financial leverage will be crucial for improving the company's prospects.

InPlay Oil Corp. (IPO) vs. iShares MSCI Canada ETF (EWC)

InPlay Oil Corp. Business Overview & Revenue Model

Company DescriptionInPlay Oil Corp. (IPO) is a publicly traded oil and gas exploration and production company based in Canada. The company primarily focuses on the acquisition, development, and production of oil and natural gas properties in the Western Canadian Sedimentary Basin. InPlay Oil Corp. aims to leverage its expertise in horizontal drilling and multi-stage fracturing to efficiently extract hydrocarbons, targeting light oil and natural gas liquids (NGLs) as its core products.
How the Company Makes MoneyInPlay Oil Corp. generates revenue through the exploration, development, and production of oil and natural gas. The company's primary revenue streams include the sale of crude oil, natural gas, and natural gas liquids, which are extracted from its operated wells in the Western Canadian Sedimentary Basin. InPlay Oil Corp. sells its production to various marketers and oil and gas purchasers at prevailing market prices. The company may also enter into hedging contracts to manage commodity price risks, thereby stabilizing cash flows. Additionally, strategic partnerships and joint ventures help InPlay Oil Corp. optimize its operations and reduce costs, contributing to its overall profitability.

InPlay Oil Corp. Financial Statement Overview

Summary
InPlay Oil Corp. exhibits a mixed financial performance. The income statement indicates declining revenue and net income, while margins remain positive but under pressure. The balance sheet shows a stable equity base with manageable debt, though an increasing debt trend could be a concern. Cash flow analysis reveals strong operational cash generation but weak free cash flow, pointing to potential capital efficiency issues. The company needs to address revenue growth and manage its financial leverage to improve its overall financial health.
Income Statement
65
Positive
InPlay Oil Corp. has shown fluctuating revenue, with a notable decrease from 2022 to 2023, and a further decline into 2024. Despite this, the company maintained positive net income in 2023 and 2024, albeit lower than in 2022. Gross profit margin and EBITDA margin are strong, though the EBIT margin in 2024 is nonexistent due to zero EBIT. The net profit margin declined significantly from 2023 to 2024, suggesting challenges in maintaining profitability.
Balance Sheet
70
Positive
The company has a moderate debt-to-equity ratio, indicating manageable leverage, with a slight increase in total debt by 2024. Stockholders' equity has remained relatively stable from 2023 to 2024. The equity ratio indicates a solid proportion of assets financed by equity, reflecting financial stability. However, the increasing debt might pose future risks.
Cash Flow
60
Neutral
Operating cash flow remains strong, but there is a significant decline in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is weaker, suggesting challenges in capital management and investment efficiency.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
149.59M153.71M156.85M238.59M113.85M41.93M
Gross Profit
80.27M85.54M104.14M156.91M74.82M18.13M
EBIT
28.34M16.96M37.43M95.00M28.20M-10.53M
EBITDA
64.69M70.43M87.36M135.36M125.29M-56.61M
Net Income Common Stockholders
4.89M9.47M32.70M83.90M115.07M-112.63M
Balance SheetCash, Cash Equivalents and Short-Term Investments
0.000.000.00-320.00K-578.00K-553.00K
Total Assets
521.61M476.25M472.96M430.91M406.48M211.03M
Total Debt
68.54M66.99M51.29M29.53M79.70M64.39M
Net Debt
68.54M66.99M51.29M29.85M80.28M64.94M
Total Liabilities
234.93M185.53M178.60M157.85M217.12M165.31M
Stockholders Equity
286.68M290.73M294.35M273.06M189.36M45.72M
Cash FlowFree Cash Flow
10.47M7.81M1.22M45.29M4.98M-16.27M
Operating Cash Flow
62.24M70.88M86.01M122.89M38.41M8.47M
Investing Cash Flow
-58.86M-69.66M-87.93M-70.36M-63.93M-18.07M
Financing Cash Flow
-3.38M-1.22M1.92M-52.53M25.52M9.60M

InPlay Oil Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.76
Price Trends
50DMA
7.96
Positive
100DMA
8.49
Positive
200DMA
9.25
Positive
Market Momentum
MACD
0.43
Negative
RSI
77.70
Negative
STOCH
90.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IPO, the sentiment is Positive. The current price of 9.76 is above the 20-day moving average (MA) of 8.32, above the 50-day MA of 7.96, and above the 200-day MA of 9.25, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 77.70 is Negative, neither overbought nor oversold. The STOCH value of 90.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IPO.

InPlay Oil Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSPXT
77
Outperform
$1.34B12.024.22%10.77%-9.92%-78.49%
TSWCP
76
Outperform
$10.68B5.6216.40%8.30%5.56%35.85%
TSTOU
73
Outperform
C$23.72B18.658.35%2.40%-8.29%-30.52%
TSBTE
70
Neutral
$1.78B5.798.02%3.71%10.55%
TSIPO
61
Neutral
C$260.40M28.381.69%11.59%-14.73%-71.36%
57
Neutral
$7.22B3.11-4.49%5.63%0.82%-49.15%
TSVET
54
Neutral
$1.46B-1.19%5.18%1.04%94.48%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:IPO
InPlay Oil Corp.
9.76
-1.31
-11.83%
TSE:BTE
Baytex Energy
2.34
-2.21
-48.54%
TSE:PXT
Parex Resources
14.34
-5.88
-29.09%
TSE:WCP
Whitecap Resources
8.65
-0.82
-8.68%
TSE:VET
Vermilion Energy
9.14
-6.09
-40.01%
TSE:TOU
Tourmaline Oil
62.93
-0.80
-1.26%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.