Journey Energy (JOY) AI Stock Analysis

• Market Cap: $91.27M
• Dividend Yield: N/A
• Average Volume (3M): 82.75K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.75
• Revenue Growth: -10.87%
• EPS Growth: -69.67%
• Country: CA
• Employees: 36
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.08
• Shares Outstanding: 67,107,000
• 10 Day Avg. Volume: 52,002
• 30 Day Avg. Volume: 82,752
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Journey Energy's overall stock score reflects strong revenue growth and strategic corporate developments, such as securing new credit and partnerships. However, challenges persist with declining profitability, negative cash flow, and bearish technical indicators. Although reasonably valued, the stock's current technical position and financial inefficiencies weigh on its attractiveness.

Journey Energy Business Overview & Revenue Model

Company Description

Journey Energy Inc. is a Canadian-based exploration and production company focused on the development, acquisition, and production of oil and natural gas reserves in Western Canada. The company operates primarily within the energy sector, leveraging its expertise to extract and deliver hydrocarbon resources efficiently and responsibly.

How the Company Makes Money

Journey Energy makes money primarily through the exploration, development, and production of oil and natural gas. The company's revenue streams are generated from the sale of crude oil, natural gas, and natural gas liquids. Key factors contributing to its earnings include effective management of production costs, strategic acquisitions of reserve-rich properties, and maintaining a balanced portfolio of assets. Additionally, partnerships with other energy companies and service providers can enhance operational efficiency and expand market reach, further supporting the company's revenue generation efforts.

Journey Energy Financial Statement Overview

Summary

Journey Energy shows strong revenue growth of 9.15%, but faces profitability challenges with a declined net profit margin of 2.52% and negative EBIT. The balance sheet indicates a stable equity base with reduced leverage, though ROE has decreased significantly. Cash flow is strained, with a negative free cash flow and decreased operating cash flow, indicating liquidity issues.

Income Statement

Journey Energy shows a robust revenue growth with Total Revenue increasing from $186.92M to $204.04M year-over-year, reflecting a growth rate of approximately 9.15%. However, the Net Profit Margin declined to 2.52% from 8.46%, indicating profitability challenges. The company also reported a negative EBIT and reduced EBITDA Margin, suggesting operational inefficiencies.

Balance Sheet

The company has an improved Debt-to-Equity ratio of 0.17, down from 0.20, indicating a decrease in leverage. The Equity Ratio stands at 55.78%, showing a strong equity base. However, Return on Equity has significantly decreased to 1.58% from 5.00%, reflecting reduced profitability relative to equity.

Cash Flow

Free Cash Flow turned negative, from $20.25M to -$7.11M, indicating cash flow challenges. Operating Cash Flow decreased to $35.62M from $66.64M, affecting liquidity. The Free Cash Flow to Net Income ratio is negative, pointing to inefficiencies in converting profits into cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
204.04M	186.92M	235.58M	123.84M	67.91M
	Gross Profit
127.41M	38.90M	159.71M	81.99M	22.04M
	EBIT
0.00	27.78M	70.81M	24.10M	-28.87M
	EBITDA
53.85M	67.86M	103.45M	46.74M	-3.31M
	Net Income Common Stockholders
5.14M	15.82M	155.20M	99.13M	-56.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.21M	17.71M	31.40M	15.36M	6.59M
	Total Assets
585.38M	610.14M	639.20M	357.21M	287.67M
	Total Debt
54.64M	62.37M	110.37M	65.07M	83.17M
	Net Debt
46.43M	44.65M	78.97M	49.71M	76.58M
	Total Liabilities
258.84M	293.72M	354.52M	272.94M	307.50M
	Stockholders Equity
326.53M	316.41M	284.68M	84.28M	-19.82M
Cash Flow		Free Cash Flow
-7.11M	20.25M	4.89M	36.16M	4.50M
	Operating Cash Flow
35.62M	66.64M	106.62M	40.93M	11.61M
	Investing Cash Flow
-38.78M	-42.04M	-102.20M	-6.75M	-11.27M
	Financing Cash Flow
-6.35M	-38.29M	11.62M	-25.41M	6.26M

Journey Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:JOY, the sentiment is Negative. The current price of 1.36 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.55, and below the 200-day MA of 2.10, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 20.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:JOY.

Journey Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCP	77 Outperform	$4.59B	5.07	16.40%	9.27%	5.56%	35.85%
TOU	73 Outperform	C$22.91B	17.29	8.55%	2.48%	-8.29%	-30.52%
MEG	71 Outperform	$5.16B	10.62	11.22%	1.49%	-8.92%	-5.46%
BTE	68 Neutral	$1.76B	7.71	5.99%	4.01%	22.71%	―
JOY	67 Neutral	$91.27M	16.96	1.60%	―	-10.87%	-69.67%
VET	63 Neutral	$1.35B	―	-1.59%	5.68%	-1.72%	79.87%
Sector *	56 Neutral	$7.00B	3.42	-4.37%	5.89%	-0.12%	-48.35%

Journey Energy Corporate Events

Journey Energy Secures New Credit Facility and Updates Governance Framework

Journey Energy Inc. has entered a new lending relationship with a Canadian Chartered Bank, securing a credit facility of up to $55 million to support its Duvernay development. This move is expected to enhance Journey’s production capabilities and cash flow, positioning it as a higher netback company. Additionally, Journey has adopted advance notice provisions for board nominations, providing a structured framework for shareholder engagement.

Journey Energy Reports $5.1 Million Net Income for 2024, Strengthens Strategic Position

Journey Energy Inc. reported a net income of $5.1 million and an adjusted funds flow of $51.7 million for 2024. The company achieved significant sales volumes and entered into a joint venture with Spartan Delta Corp. to develop land in the Duvernay oil window. Additionally, Journey closed a convertible debenture financing and divested certain assets, which is expected to reduce end-of-life costs by over $20 million. These strategic moves are indicative of Journey’s efforts to strengthen its financial position and operational capabilities in the energy sector.

Journey Energy Reports 2024 Reserves and Strategic Shift to Higher Netback Liquids

Journey Energy Inc. has announced its year-end 2024 reserves evaluation, highlighting a strategic shift towards higher netback liquids. The company reported a 6% increase in total proved plus probable reserves to 85.4 MMboe, with a 14% rise in NPV@10% to $882.7 million. This growth is attributed to positive technical reserve revisions and a focus on oil and liquids, particularly through its Duvernay Joint Venture, which is expected to significantly impact future netbacks and operating expenses. The company’s strategic investments and asset sales have also reduced liability costs by over $21 million, positioning Journey Energy for enhanced financial performance in the coming years.