Newport Exploration (NWX) AI Stock Analysis

• Market Cap: C$12.67M
• Dividend Yield: N/A
• Average Volume (3M): 43.27K
• Price to Earnings (P/E): 41.8
• Beta (1Y): 0.79
• Revenue Growth: N/A
• EPS Growth: -78.57%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 105,579,870
• 10 Day Avg. Volume: 27,056
• 30 Day Avg. Volume: 43,272
• PEG Ratio: -0.36
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.18
• 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: 56 Neutral
• Price Target: C$0.12 ▲(47.50% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is primarily constrained by weak operating fundamentals (zero revenue, negative gross profit, and negative EBIT with deteriorating profit/cash trends), partially offset by a strong low-leverage balance sheet and consistently positive (though declining) cash flow. Technical momentum is moderately supportive, while valuation (P/E ~35 with no dividend yield provided) remains a downside factor.

Positive Factors

Low leverage balance sheet

Extremely low debt and a conservative leverage profile provide durable financial flexibility, lowering insolvency risk and enabling the company to fund operations or opportunistic investments without external financing. This structural strength cushions the business as operating results recover.

Consistent positive cash generation

Repeatable operating and free cash flow across reporting periods indicates genuine cash conversion ability, with free cash flow closely matching net income in the TTM. This persistent cash generation supports working capital needs and preserves optionality despite weakening trends.

Equity cushion and positive ROE

A meaningful equity base and a positive return on equity create a durable capital buffer to absorb shocks and fund transitions. Positive ROE shows some shareholder value generation, enhancing resilience and providing capacity to support restructuring or targeted growth initiatives.

Negative Factors

Zero reported revenue

Reporting no operating revenue is a fundamental business-model concern: without sales the company lacks a sustainable revenue engine. This creates structural dependence on non-operating receipts or one-off gains and undermines prospects for durable margin expansion or scalable growth.

Operating losses (negative EBIT)

Persistent negative EBIT indicates core operations are loss-making and that reported profits are not from recurring business activities. Over the medium term this undermines earnings sustainability, limits reinvestment capacity, and increases reliance on balance-sheet reserves or non-operating items.

Deteriorating cash and earnings trends

Material decline in operating cash flow from multi-year highs to ~0.88M and negative recent free-cash-flow growth signal weakening cash momentum. This trend reduces financial runway and the ability to invest or absorb shocks, raising medium-term execution and funding risk.

Newport Exploration Business Overview & Revenue Model

Company Description

Newport Exploration Ltd., a natural resource company, engages in the acquisition and exploration of resource properties. The company holds a 100% interest in the Chu Chua copper-gold project located to the north of Kamloops, British Columbia, Canada. It also holds a 2.5% gross overriding royalty interest on oil and gas permits in the Cooper Basin in Queensland, Australia. The company was incorporated in 1979 and is headquartered in West Vancouver, Canada.

How the Company Makes Money

Newport Exploration makes money primarily through its investments and interests in oil and gas exploration and production activities. The company holds royalty interests in various exploration permits and licenses, which entitle it to a percentage of revenue from the petroleum and natural gas produced by these assets. These royalties are the key revenue streams for Newport Exploration. Additionally, the company may engage in strategic partnerships with other exploration and production companies to expand its asset portfolio and enhance its revenue potential. Fluctuations in oil and gas prices and the success of exploration activities are significant factors influencing Newport Exploration's earnings.

Newport Exploration Financial Statement Overview

Summary

Mixed fundamentals: the balance sheet is conservatively levered (very low debt-to-equity) and cash flow is consistently positive, but the income statement shows zero revenue, negative gross profit, and persistently negative EBIT, with net income and cash flow both weakening into TTM.

Income Statement

The company reports zero revenue across all periods, while gross profit remains negative, indicating a lack of operating sales and weak core operating economics. Net income is positive but has declined meaningfully from 2021–2024 (6.23M to 1.92M) and fell further in the latest TTM (Trailing-Twelve-Months) to 0.31M, suggesting earnings are likely driven by non-operating items rather than sustainable operations. EBIT is consistently deeply negative, reinforcing that underlying operations are loss-making despite reported profits.

Balance Sheet

Balance sheet leverage is very conservative, with low debt levels and a very low debt-to-equity ratio (about 0.013 in TTM (Trailing-Twelve-Months)), which supports financial flexibility. Equity remains substantial (~3.43M in TTM (Trailing-Twelve-Months)), though it has come down from earlier highs, indicating some erosion over time. Returns on equity are positive (about 9.6% TTM (Trailing-Twelve-Months)), but they have compressed sharply versus prior years, consistent with weakening profitability.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are positive in every period, and free cash flow closely matches net income in TTM (Trailing-Twelve-Months), suggesting earnings are largely backed by cash. However, cash flow has been trending down materially from 2021–2023 highs (operating cash flow ~5.6M–4.8M) to ~0.88M in TTM (Trailing-Twelve-Months), and free cash flow growth is negative in the latest period (-12.6%), highlighting weakening cash momentum.

Breakdown	TTM	Jul 2025	Jul 2024	Oct 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-65.09K	-64.35K	-64.70K	-64.42K	-35.43K	-3.87K
EBITDA	720.94K	1.01M	2.91M	3.87M	7.70M	9.03M
Net Income	312.15K	504.80K	1.92M	2.58M	5.27M	6.23M
Balance Sheet
Total Assets	3.53M	3.47M	2.68M	3.99M	6.13M	8.12M
Cash, Cash Equivalents and Short-Term Investments	2.68M	2.61M	1.67M	2.68M	3.33M	5.28M
Total Debt	44.52K	60.74K	61.09K	124.69K	185.26K	0.00
Total Liabilities	95.81K	106.38K	101.91K	167.14K	666.61K	532.68K
Stockholders Equity	3.43M	3.37M	2.58M	3.82M	5.46M	7.59M
Cash Flow
Free Cash Flow	875.11K	1.00M	2.24M	4.82M	5.46M	5.58M
Operating Cash Flow	875.11K	1.00M	2.24M	4.82M	5.46M	5.58M
Investing Cash Flow	-1.29M	-1.29M	550.00K	-3.41K	-167.50K	-424.90K
Financing Cash Flow	-68.01K	-68.01K	-3.24M	-4.29M	-7.42M	-7.09M

Newport Exploration Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 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:NWX, the sentiment is Positive. The current price of 0.08 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.09, and below the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 95.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NWX.

Newport Exploration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NWX	56 Neutral	C$12.67M	41.82	22.23%	―	―	-78.57%
RYO	56 Neutral	C$48.22M	-4.51	―	―	―	―
NUKV	52 Neutral	C$11.55M	-1.45	-772.07%	―	―	-679.31%
NRM	47 Neutral	C$13.87M	-7.12	-41.21%	―	―	48.66%
LXM	42 Neutral	C$8.80M	-15.89	―	―	―	-42.55%

Newport Exploration Corporate Events

Newport Flags Sharp Production Drop but Highlights 100% Drilling Success on Cooper Basin Royalty Lands

Newport Exploration has reported that production on Beach Energy’s Western Flank licences in Australia’s Cooper Basin, over which Newport holds a 2.5% gross overriding royalty, fell sharply in the first half of FY26 due to flooding and natural field decline, with total output down 41% and oil production down 45% year-on-year. However, Beach has restarted drilling in the area for the first time in more than two and a half years, achieving a 100% success rate on the first six wells of a 12‑well appraisal and development campaign, one of which is already onstream, with remaining connections scheduled for the second half of FY26 and a 10‑well exploration program to follow, developments that could support future reserves, production and royalty income for Newport’s shareholders despite the current production decline.

The most recent analyst rating on (TSE:NWX) stock is a Hold with a C$0.09 price target. To see the full list of analyst forecasts on Newport Exploration stock, see the TSE:NWX Stock Forecast page.

Newport Exploration Reports Quarterly Royalty Payment and Financial Stability

Newport Exploration Ltd announced the receipt of a net quarterly royalty payment of AUD$346,973 from Beach Energy Ltd for the August to October 2025 period. The company maintains a strong financial position with approximately CDN$2.7 million in cash and no debt, highlighting its stable financial health. The announcement underscores Newport’s reliance on Beach Energy’s operations in the Cooper Basin and its strategic positioning in the energy sector through its royalty interests.