Journey Energy (JOY) AI Stock Analysis

• Market Cap: $147.64M
• Dividend Yield: N/A
• Average Volume (3M): 108.15K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.81
• Revenue Growth: -9.43%
• EPS Growth: -31.07%
• Country: CA
• Employees: 36
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.12
• Shares Outstanding: 67,107,000
• 10 Day Avg. Volume: 85,815
• 30 Day Avg. Volume: 108,154
• PEG Ratio: 0.18
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.58K
• 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: $2.49
• Price Target Upside: 13.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: C$2.50 ▲(13.64%Upside)

Journey Energy's stock score is driven by strong technical indicators and positive corporate events. However, the mixed financial performance and moderate valuation score slightly temper the overall evaluation. The company shows a promising operational strategy, yet must address revenue growth and cash flow challenges to enhance future performance.

Journey Energy Business Overview & Revenue Model

Company Description

Journey Energy Inc. engages in the exploration, development, and production of crude oil and natural gas in the province of Alberta, Canada. The company was formerly known as Sword Energy Inc. and changed its name to Journey Energy Inc. in July 2012. Journey Energy Inc. was founded in 2007 and is headquartered in Calgary, Canada.

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 a mixed financial performance with strong profitability margins but challenges in revenue growth and cash flow management. The balance sheet is solid with manageable debt levels, yet the company may need to focus on enhancing shareholder returns and addressing cash flow deficits to sustain growth in a volatile industry.

Income Statement

Journey Energy has demonstrated a volatile but generally positive trend in revenue and profitability. The TTM data shows a gross profit margin of 52.28% and a net profit margin of 5.19%. However, revenue has decreased compared to the previous year, indicating potential market challenges. Despite this, EBIT and EBITDA margins remain healthy at 6.19% and 34.78% respectively, illustrating effective cost management.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating manageable leverage. The equity ratio of 57.31% reflects a solid capital structure with a significant portion of assets financed by equity. However, the return on equity is relatively low at 2.88% in TTM, suggesting room for improvement in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals challenges with free cash flow, which is negative in the TTM. The operating cash flow to net income ratio is robust at 4.29, highlighting strong cash generation capability. However, the free cash flow growth rate has been negative, suggesting potential difficulties in cash management and capital expenditure efficiency.

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
EBITDA	53.85M	67.86M	103.45M	46.74M	-3.31M
Net Income	5.14M	15.82M	155.20M	99.13M	-56.62M
Balance Sheet
Total Assets	585.38M	610.14M	639.20M	357.21M	287.67M
Cash, Cash Equivalents and Short-Term Investments	8.21M	17.71M	31.40M	15.36M	6.59M
Total Debt	54.64M	62.37M	110.37M	65.07M	83.17M
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: Positive
• Last Price: 2.20
• 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:JOY, the sentiment is Positive. The current price of 2.2 is above the 20-day moving average (MA) of 2.11, above the 50-day MA of 1.86, and above the 200-day MA of 1.92, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 61.15 is Neutral, neither overbought nor oversold. The STOCH value of 70.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:JOY.

Journey Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JOY	73 Outperform	$147.64M	15.45	2.85%	―	-9.43%	-31.07%
Sector *	67 Neutral	$15.07B	9.71	6.33%	5.26%	4.07%	-67.00%
CNNEF	―	$54.02M	4.24	-1.29%	7.23%	―	―
CDR	65 Neutral	C$125.88M	―	-52.56%	―	968.30%	81.49%
QEC	55 Neutral	C$134.98M	―	-5.05%	―	-0.03%	71.16%
CVVY	51 Neutral	C$113.26M	―	-21.67%	―	-42.15%	-117.23%
FOG	―	£69.43M	―	-6.26%	―	―	―

Journey Energy Corporate Events

Journey Energy Reports Promising Results from Duvernay Wells

Journey Energy Inc. announced promising results from its Duvernay Joint Venture, part of its 2025 capital program. The initial production from three newly completed wells has exceeded expectations, highlighting the economic strength and potential for a multi-year development plan. The company views 2025 as a pivotal year, with plans for significant capital expansion in 2026 as the Duvernay play enters its development phase, focusing on long-term value creation for stakeholders.

Journey Energy to Discuss Strategic Outlook in Upcoming Fireside Chat

Journey Energy Inc. announced its participation in a fireside chat with Water Tower Research, where the strategic outlook of the company will be discussed. The conversation will focus on the development plans for the Duvernay shale, core assets in Medicine Hat, and potential regulatory changes, which could impact the company’s operations and industry positioning.

Journey Energy Inc. Reports Successful Outcomes at 2025 Annual General Meeting

Journey Energy Inc. announced the successful approval of all resolutions at its 2025 Annual General Meeting. Key outcomes included the election of six directors, the appointment of KPMG LLP as auditors, and the approval of an Advance Notice By-Law. These decisions reflect strong shareholder support and are expected to enhance the company’s governance and operational strategies.

Journey Energy Reports Robust Q1 2025 Financial Results and Expands Duvernay Drilling Program

Journey Energy Inc. reported a strong financial performance for the first quarter of 2025, generating $19.6 million in adjusted funds flow and a net income of $7.7 million. The company successfully reduced its net debt and secured a new $55 million credit facility, which will support its participation in the Duvernay joint venture and the completion of two power generation projects. The initial success of the Duvernay wells has prompted an expansion of the 2025 drilling program, with significant progress already made, indicating a positive outlook for the company’s operational growth and industry positioning.