Logan Energy Corp (LGN) AI Stock Analysis

• Market Cap: C$456.56M
• Dividend Yield: N/A
• Average Volume (3M): 403.42K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.84
• Revenue Growth: 40.83%
• EPS Growth: 26.01%
• Country: CA
• Employees: 36
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.01
• Shares Outstanding: 577,917,700
• 10 Day Avg. Volume: 564,112
• 30 Day Avg. Volume: 403,423
• PEG Ratio: -0.69
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 2.98
• P/FCF Ratio: -2.10
• 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: C$1.18
• Price Target Upside: 49.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: C$0.92 ▲(15.95% Upside)

Logan Energy Corp's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability, despite cash flow challenges. The technical analysis supports a positive trend, with the stock trading above key moving averages. Valuation is fair, though the lack of a dividend yield may deter some investors. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and successful product adoption, which supports long-term business expansion.

Profitability Improvements

Improved profitability margins reflect effective cost management and pricing strategies, enhancing the company's financial health and sustainability.

Strong Equity Base

A strong equity base provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Cash Flow Challenges

Negative free cash flow limits the company's ability to reinvest in growth, pay down debt, or return capital to shareholders, potentially hindering long-term progress.

Revenue Volatility

Revenue volatility can indicate market challenges or dependency on cyclical factors, which may impact the predictability of future earnings.

Negative ROE in 2023

A negative ROE suggests past difficulties in generating returns on equity, which could signal inefficiencies or challenges in capital allocation.

Logan Energy Corp Business Overview & Revenue Model

Company Description

Logan Energy Corp. engages in the acquisition, exploration, and production of oil and natural gas properties. The company holds interest in the Simonette and Pouce Coupe properties in northwest Alberta; and the Flatrock property in British Columbia. Logan Energy Corp. was incorporated in 2023 and is headquartered in Calgary, Canada.

How the Company Makes Money

Logan Energy Corp generates revenue through multiple streams, primarily by selling its hydrogen production systems and energy storage solutions to businesses looking to reduce their carbon footprint and transition to cleaner energy sources. The company also earns income from service contracts related to the maintenance and operation of its systems. Additionally, LGN has formed strategic partnerships with key players in the energy and technology sectors, allowing it to expand its market reach and enhance product offerings. Revenues are bolstered by government contracts and incentives aimed at promoting renewable energy initiatives, as well as research grants that fund innovation and development in hydrogen technologies.

Logan Energy Corp Financial Statement Overview

Summary

Logan Energy Corp demonstrates strong revenue growth and profitability improvements, with efficient operational margins. The balance sheet is stable with low leverage and a strong equity base. However, cash flow challenges persist, with negative free cash flow impacting financial flexibility. The company needs to address cash flow issues to sustain growth and maintain financial health.

Income Statement

Logan Energy Corp has shown a strong revenue growth rate of 15.01% in the TTM, indicating robust top-line expansion. The gross profit margin is healthy at 56.63%, and the net profit margin has improved significantly to 16.83% from 4.00% in the previous year, reflecting enhanced profitability. The EBIT and EBITDA margins are also strong at 24.32% and 62.12%, respectively, showcasing operational efficiency. However, the company experienced a revenue decline in 2023, which could indicate volatility in revenue streams.

Balance Sheet

The company's debt-to-equity ratio is low at 0.23, suggesting a conservative leverage position, which is favorable for financial stability. The return on equity (ROE) has improved to 8.97% in the TTM, indicating better utilization of equity capital. The equity ratio stands at 58.44%, highlighting a strong equity base relative to total assets. Despite these strengths, the company had a negative ROE in 2023, indicating past challenges in generating returns.

Cash Flow

Logan Energy Corp's operating cash flow to net income ratio is solid at 0.89, indicating good cash generation relative to net income. However, the free cash flow is negative, and the free cash flow to net income ratio is concerning at -3.47, suggesting cash flow challenges. The free cash flow growth rate is negative, reflecting a decline in cash availability for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	157.46M	113.87M	72.72M	127.86M
Gross Profit	87.24M	62.70M	-5.65M	88.50M
EBITDA	98.41M	50.91M	-4.07M	61.42M
Net Income	25.96M	4.55M	-33.80M	39.40M
Balance Sheet
Total Assets	521.81M	365.45M	234.64M	131.90M
Cash, Cash Equivalents and Short-Term Investments	67.00K	324.00K	53.97M	-251.00K
Total Debt	91.17M	1.30M	150.00K	251.00K
Total Liabilities	216.87M	90.09M	60.52M	36.11M
Stockholders Equity	304.95M	275.36M	174.12M	95.80M
Cash Flow
Free Cash Flow	-203.41M	-161.41M	-61.85M	59.47M
Operating Cash Flow	86.49M	50.43M	23.95M	67.11M
Investing Cash Flow	-241.50M	-196.20M	-68.23M	-22.11M
Financing Cash Flow	154.76M	92.10M	98.25M	-45.00M

Logan Energy Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.79
• 50DMA: Negative
• 100DMA: Negative
• 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:LGN, the sentiment is Negative. The current price of 0.79 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.82, and above the 200-day MA of 0.73, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LGN.

Logan Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOIL	80 Outperform	C$595.13M	5.60	12.26%	―	24.36%	-55.40%
LGN	68 Neutral	C$456.56M	18.12	10.64%	―	40.83%	26.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TAL	63 Neutral	C$346.93M	3.37	14.69%	21.85%	-2.90%	-31.97%
FEC	53 Neutral	C$654.97M	-1.23	-28.23%	4.07%	-2.65%	-591.26%
RECO	50 Neutral	C$270.79M	-10.98	-10.23%	―	―	―
CEI	49 Neutral	C$442.78M	-37.56	-7.05%	―	77.10%	-74.02%

Logan Energy Corp Corporate Events

Logan Energy Sets $140–$150 Million 2026 Budget, Targets 19% Production Growth and Cost Cuts

Logan Energy Corp. has set a 2026 capital budget of $140–$150 million, targeting average production of 15,000–16,000 BOE/d and a roughly 19% year-over-year increase in output, while forecasting a 10% reduction in unit operating and transportation costs versus 2025. The program allocates $105 million to drilling and completions, with a mix of oil- and gas-weighted wells across its Pouce Coupe and Simonette assets, and $40 million to infrastructure and other projects, including a new South Simonette oil battery and compressor station and an expansion of the Pouce Coupe 4-19 gas plant to 50 mmcf/d of compression capacity. Logan’s 2026 guidance assumes a weaker commodity price backdrop but still anticipates an operating netback after hedging of $25.35 per BOE and adjusted funds flow of about $120 million, underpinned by growing liquids weighting in the second half of the year. Operationally, the company has also drilled its first two wells at its high-potential Flatrock Montney play, an efficiency milestone that supports its strategy of extending inventory life, lowering costs and positioning for long-term production growth while keeping capital flexible to commodity price moves.

The most recent analyst rating on (TSE:LGN) stock is a Buy with a C$1.20 price target. To see the full list of analyst forecasts on Logan Energy Corp stock, see the TSE:LGN Stock Forecast page.