Metal Energy Corp (MERG) AI Stock Analysis

• Market Cap: C$10.79M
• Dividend Yield: N/A
• Average Volume (3M): 302.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.58
• Revenue Growth: N/A
• EPS Growth: -204.22%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 26,986,134
• 10 Day Avg. Volume: 591,935
• 30 Day Avg. Volume: 302,212
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.56
• 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: 54 Neutral
• Price Target: ―

Metal Energy Corp's stock score reflects its strong balance sheet with zero debt and positive market momentum. However, significant challenges include no revenue generation, persistent negative cash flows, and a negative P/E ratio, which weigh heavily on the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt and high equity ratio provides financial stability and flexibility, supporting long-term strategic initiatives.

New Exploration Initiatives

The exploration program at Highland Valley could lead to significant resource discoveries, enhancing future revenue potential and market position.

Successful Fundraising

Securing funding for the Highland Valley project strengthens the company's financial position and supports its growth and exploration activities.

Negative Factors

Zero Revenue Generation

The absence of revenue generation is a critical issue, affecting profitability and sustainability, and poses a risk to long-term viability.

Persistent Negative Cash Flows

Ongoing negative cash flows indicate operational inefficiencies and reliance on external financing, which can hinder long-term financial health.

Narrowing Net Losses

While net losses are narrowing, the lack of profitability remains a concern, impacting the company's ability to invest in growth and innovation.

Metal Energy Corp Business Overview & Revenue Model

Company Description

Metal Energy Corp. engages in the acquisition, mining, and exploration of mineral properties in Canada. The company explores for nickel and copper deposits, and platinum group elements. Its flagship project is the Manibridge project located in Manitoba on the Thompson Belt. The company is headquartered in Toronto, Canada.

How the Company Makes Money

Metal Energy Corp generates revenue primarily through the extraction and sale of metals and energy resources. The company's key revenue streams include the sale of raw and processed metals to industrial manufacturers and technology companies, as well as energy production and distribution. Significant partnerships with manufacturing and technology firms help secure long-term contracts and stable revenue. Additionally, Metal Energy Corp invests in sustainable mining practices and renewable energy projects, contributing to its earnings by tapping into the growing demand for environmentally responsible resources.

Metal Energy Corp Financial Statement Overview

Summary

Metal Energy Corp shows a challenging financial position with zero revenue, narrowing net losses, strong equity, and no debt. Persistent negative cash flows are a concern, but the balance sheet strength offers some financial stability.

Income Statement

Metal Energy Corp operates in the Mining industry and currently reports zero total revenue, resulting in the inability to compute typical profitability margins like Gross Profit Margin, Net Profit Margin, EBIT Margin, and EBITDA Margin. The company shows a trend of narrowing net losses over the years, from -$4.77 million in 2022 to -$1.36 million in TTM (Trailing-Twelve-Months). However, the lack of revenue is a significant concern for profitability and sustainability, limiting the score.

Balance Sheet

The balance sheet of Metal Energy Corp reveals a strong equity position with zero debt, leading to a Debt-to-Equity Ratio of 0. The company has maintained a positive Stockholders' Equity, though it has decreased over recent years. The Equity Ratio for TTM is at a healthy 93.4%, indicating low leverage and strong equity backing. These factors contribute to a relatively strong balance sheet score.

Cash Flow

The cash flow analysis shows that Metal Energy Corp has been operating with negative Free Cash Flow and Operating Cash Flow over the years, with a recent improvement in cash outflows. The Free Cash Flow Growth Rate shows a positive trend from -$4.24 million in 2022 to -$1.14 million in TTM. However, the persistent negative cash flows and reliance on financing activities for liquidity pose risks to financial stability, resulting in a moderate cash flow score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00
EBITDA	-5.86M	-6.16M	-136.20K	-4.77M	-3.02M
Net Income	-5.79M	-6.16M	-1.67M	-4.77M	-3.02M
Balance Sheet
Total Assets	731.03K	1.38M	1.84M	3.16M	7.07M
Cash, Cash Equivalents and Short-Term Investments	657.60K	1.30M	1.74M	2.78M	7.01M
Total Debt	0.00	496.00	0.00	26.01K	0.00
Total Liabilities	4.45M	4.52M	84.17K	754.18K	723.49K
Stockholders Equity	-3.72M	-3.15M	1.76M	2.41M	6.34M
Cash Flow
Free Cash Flow	-1.19M	-1.40M	-1.61M	-4.24M	-510.74K
Operating Cash Flow	-1.19M	-1.40M	-1.61M	-4.24M	-510.74K
Investing Cash Flow	0.00	0.00	0.00	0.00	177.39K
Financing Cash Flow	961.40K	964.65K	568.25K	26.01K	7.35M

Metal Energy Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MERG, the sentiment is Positive. The current price of 0.55 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.32, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 63.39 is Neutral, neither overbought nor oversold. The STOCH value of 82.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MERG.

Metal Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
MERG	54 Neutral	C$10.79M	-1.94	-128.71%	―	―	-204.22%
MMS	32 Underperform	―	―	―	―	―	-2147.62%
NWI	24 Underperform	$3.08M	-33.33	―	―	―	76.47%
CAMP	18 Underperform	C$3.17M	-15.34	―	―	―	90.71%

Metal Energy Corp Corporate Events

Metal Energy Secures Funding for Copper Project

Metal Energy Corp. has successfully closed a non-brokered private placement, raising $1,000,000 to fund their Highland Valley Copper Project. The offering included the sale of flow-through units and common units, with securities subject to a holding period. Key participants in the transaction include Orecap Invest Corp. and company insiders, constituting a related party transaction.

Metal Energy Corp. Upsizes Private Placement

Metal Energy Corp. has increased its non-brokered private placement to $1 million due to high investor interest. The offering includes a mix of company units and flow-through units, with Orecap Invest Corp. participating as a related party. The closing is expected around December 17, 2024, pending necessary approvals.

Metal Energy Begins Exploration at Highland Valley

Metal Energy Corp has launched a multi-phase exploration program at its newly acquired Highland Valley Project, aiming to identify high-potential drill targets by 2025. The program’s first phase involves innovative geophysical surveys, including Ground AMT surveys, to map out promising areas for future drilling.