Meren Energy (MER) AI Stock Analysis

• Market Cap: C$1.24B
• Dividend Yield: 0%
• Average Volume (3M): 791.94K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.15
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 25
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.01
• Shares Outstanding: 675,702,600
• 10 Day Avg. Volume: 545,008
• 30 Day Avg. Volume: 791,938
• PEG Ratio: 5.71
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.57
• 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: 68 Neutral
• Price Target: C$2.00 ▲(19.05% Upside)

The score is driven mainly by improved TTM fundamentals (strong revenue ramp, healthy margins, and positive free cash flow), tempered by historical volatility, a recent increase in leverage, and mixed cash-flow quality. Technicals are mildly supportive rather than strongly bullish, while valuation looks attractive on P/E but offers no dividend support; the OTCQX listing change is a modest positive.

Meren Energy Business Overview & Revenue Model

Company Description

Africa Oil Corp (AOI) is an independent oil and gas company that focuses on exploration and production activities primarily in Africa. The company is engaged in the acquisition, exploration, development, and production of oil and gas properties. Its core operations are centered in Kenya and Nigeria, and it holds interests in various exploration blocks across the African continent.

How the Company Makes Money

Africa Oil Corp generates revenue primarily through the exploration, development, and production of oil and gas reserves. The company's key revenue streams include the sale of crude oil and natural gas produced from its operational fields. A significant portion of its income is derived from its working interests in oil-producing assets in Nigeria, which provide consistent cash flow through the sale of crude oil. Additionally, the company benefits from strategic partnerships and joint ventures with other exploration and production companies, allowing it to share risks and costs associated with large-scale projects. These collaborations also enhance its access to new technologies and resources, contributing to its overall earnings.

Meren Energy Financial Statement Overview

Summary

Africa Oil's financial performance reveals significant challenges, including no revenue generation, consistent losses, and negative cash flows. Despite a strong equity position, liquidity risks and sustainability concerns persist.

Income Statement

Africa Oil's income statement reveals significant challenges, as demonstrated by consistent negative EBIT and net income, with no total revenue across all periods. This indicates persistent financial distress and an inability to generate revenue, leading to negative profitability metrics.

Balance Sheet

The balance sheet shows a relatively strong equity position with a high equity ratio, indicating low leverage and a low debt-to-equity ratio. However, the company's declining total assets and cash reserves pose potential liquidity risks.

Cash Flow

Cash flow analysis indicates negative operating cash flows and free cash flows in the TTM, reflecting cash burn that could impact sustainability. The past year showed some improvement in cash management, yet overall, the free cash flow remains negative, signaling ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	362.40M	0.00	0.00	0.00	0.00	0.00
Gross Profit	114.20M	0.00	0.00	0.00	0.00	0.00
EBITDA	290.15M	29.80K	-31.90M	-27.00M	197.60M	-228.44M
Net Income	65.40M	-279.00K	87.10K	-60.30M	190.70M	-17.61M
Balance Sheet
Total Assets	2.13B	615.20M	966.20M	917.70M	991.62M	910.50M
Cash, Cash Equivalents and Short-Term Investments	176.70M	61.40M	232.00M	199.30M	58.51M	38.74M
Total Debt	300.70M	3.30M	0.00	0.00	0.00	141.69M
Total Liabilities	1.25B	66.40M	71.60M	87.10M	43.56M	156.21M
Stockholders Equity	881.30M	548.80M	894.60M	830.60M	948.06M	754.29M
Cash Flow
Free Cash Flow	121.60M	-40.90M	-53.30M	-16.30M	-14.79M	-5.43M
Operating Cash Flow	177.40M	-40.90M	-53.30M	-16.30M	-10.21M	-5.35M
Investing Cash Flow	372.70M	-61.30M	114.70M	220.20M	187.70M	-394.27M
Financing Cash Flow	-508.50M	-68.40M	-29.10M	-63.20M	-159.12M	110.64M

Meren Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.68
• 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:MER, the sentiment is Positive. The current price of 1.68 is below the 20-day moving average (MA) of 1.80, below the 50-day MA of 1.76, and below the 200-day MA of 1.71, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.74 is Neutral, neither overbought nor oversold. The STOCH value of 63.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MER.

Meren Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PXT	76 Outperform	$1.76B	11.30	5.77%	8.48%	-20.07%	-53.33%
CJ	72 Outperform	C$1.38B	17.83	8.46%	8.25%	-9.30%	-26.09%
MER	68 Neutral	C$1.24B	9.56	9.15%	0.00%	―	―
SDE	67 Neutral	$1.51B	39.78	7.22%	―	17.31%	-75.56%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KEL	61 Neutral	C$1.47B	25.55	5.22%	―	9.92%	2.74%

Meren Energy Corporate Events

Meren Energy Begins Trading on OTCQX Best Market

Meren Energy Inc. has announced that its common shares have begun trading on the OTCQX Best Market in the United States under the ticker symbol ‘MRNFF’. This move aims to enhance transparency and accessibility for U.S. investors, as the company continues to trade on the Toronto Stock Exchange and Nasdaq Stockholm under the symbol ‘MER’. The upgrade to the OTCQX Market reflects Meren’s commitment to high financial standards and corporate governance, potentially strengthening its market position and investor relations.

The most recent analyst rating on (TSE:MER) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Africa Oil stock, see the TSE:MER Stock Forecast page.

Meren Energy Updates Share Capital Structure

Meren Energy Inc. has updated its share capital and voting rights following the issuance of 29,028 common shares due to the vesting of performance share units. As of October 31, 2025, the company now has 675,541,593 common shares issued and outstanding. This update is in compliance with the Swedish Financial Instruments Trading Act and reflects the company’s ongoing operational developments.

The most recent analyst rating on (TSE:MER) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Africa Oil stock, see the TSE:MER Stock Forecast page.