Newport Exploration (NWX) AI Stock Analysis

• Market Cap: C$13.20M
• Dividend Yield: 24%
• Average Volume (3M): 64.74K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.15
• Revenue Growth: N/A
• EPS Growth: -61.61%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 42
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 105,579,870
• 10 Day Avg. Volume: 70,409
• 30 Day Avg. Volume: 64,742
• PEG Ratio: -0.30
• Price to Book (P/B): 4.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.08
• 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

• Rating: 54 Neutral
• Price Target: ―

Newport Exploration's stock score is primarily affected by its stable balance sheet and attractive valuation, but it is weighed down by the critical absence of revenue. Positive technical indicators provide support for the stock's upward momentum, while the high dividend yield offers significant investor returns despite the company's revenue challenges.

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

Newport Exploration exhibits a stable balance sheet with low leverage and strong equity, but the absence of revenue is a critical weakness that undermines overall financial health. The company demonstrates good cash flow management, yet the lack of revenue growth poses significant long-term risks.

Income Statement

The company has reported zero revenue consistently over the periods examined, resulting in negative gross profit and EBIT margins. Despite the presence of a positive EBITDA margin in the TTM (Trailing-Twelve-Months), the lack of revenue severely limits the financial health of the income statement.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, indicating stability. The debt-to-equity ratio is extremely low, suggesting low leverage and financial risk. However, the shrinking asset base over time could present challenges in maintaining this stability.

Cash Flow

Operating cash flow remains positive and strong relative to net income, suggesting good cash management. However, free cash flow growth is inconsistent, and the absence of revenue growth could hinder future cash flow generation.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-64.39K	-64.70K	-64.42K	-35.43K	-3.87K	-3.66K
	EBIT
-1.78M	-1.51M	-1.60M	-1.59M	-1.61M	-2.03M
	EBITDA
1.52M	2.91M	3.87M	7.70M	-1.41M	8.83M
	Net Income Common Stockholders
859.72K	1.92M	2.58M	5.27M	6.23M	5.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.35M	1.67M	2.68M	3.33M	5.28M	6.81M
	Total Assets
3.10M	2.68M	3.99M	6.13M	8.12M	8.65M
	Total Debt
28.11K	61.09K	124.69K	185.26K	0.00	0.00
	Net Debt
-1.45M	-753.57K	-1.13M	-543.30K	-2.86M	-4.80M
	Total Liabilities
82.02K	101.91K	167.14K	666.61K	532.68K	211.87K
	Stockholders Equity
3.02M	2.58M	3.82M	5.46M	7.59M	8.44M
Cash Flow		Free Cash Flow
1.86M	2.24M	4.82M	5.46M	5.58M	7.23M
	Operating Cash Flow
1.86M	2.24M	4.82M	5.46M	5.58M	7.24M
	Investing Cash Flow
550.00K	550.00K	-3.41K	-167.50K	-424.90K	2.94M
	Financing Cash Flow
-1.12M	-3.24M	-4.29M	-7.42M	-7.09M	-8.35M

Newport Exploration Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, 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 *	57 Neutral	$7.06B	3.07	-3.45%	5.82%	0.59%	-50.58%
NWX	54 Neutral	C$13.20M	15.43	28.92%	24.00%	―	-61.61%
MTS		C$13.55M	―	-546.89%	―	―	―
NMI		C$10.89M	―	-2.11%	―	―	―
VUL	40 Underperform	C$10.34M	―	-3.49%	―	―	-78.46%
TTX	26 Underperform	C$8.79M	―	66.82%	―	―	37.50%
NGPHF		$9.18M	―	-329.25%	―	―	―

Newport Exploration Corporate Events

Newport Exploration Reports Q3 Production Decline Amid Weather Challenges

Newport Exploration Ltd reported a 12% decline in oil production from the Western Flank in Q3 FY25, attributed to natural field decline and adverse weather conditions, including heavy rain and flooding. Despite these challenges, the average realized prices for oil and gas increased by 8% and 4%, respectively. Beach Energy, which operates the fields, is managing the impact of flooding and plans to commence a 10-well oil appraisal and development campaign in H1 FY26, contingent on weather conditions. Newport, which receives royalties from Beach’s operations, will update shareholders on production forecasts as they become available.

Spark’s Take on TSE:NWX Stock

According to Spark, TipRanks’ AI Analyst, TSE:NWX is a Neutral.

Newport Exploration’s stock score is primarily affected by its stable balance sheet and attractive valuation, but it is weighed down by the critical absence of revenue. Positive technical indicators provide support for the stock’s upward momentum, while the high dividend yield offers significant investor returns despite the company’s revenue challenges.

To see Spark’s full report on TSE:NWX stock, click here.

Newport Exploration Receives Quarterly Royalty Payment

Newport Exploration Ltd has announced the receipt of a net royalty payment of AUD$523,706 for the quarter ending January 2025, derived from its 2.5% Gross Overriding Royalty from Beach Energy Ltd’s operations in the Cooper Basin. This payment contributes to Newport’s financial stability, with the company holding approximately CDN$2.6 million in cash and investments, although it remains dependent on Beach’s operational decisions and market conditions in the oil and gas sector.

Newport Exploration Updates on Cooper Basin Royalties and Production

Newport Exploration Ltd has announced an update regarding its interests in the Cooper Basin, Australia, where it holds a 2.5% gross overriding royalty on certain licenses managed by Beach Energy. The latest report from Beach Energy indicates a significant drop in production from the Western Flank due to natural field decline, although efforts are underway to mitigate this with upcoming drilling campaigns. Newport’s financial position remains stable, with no debt and a solid cash position, although it remains dependent on Beach Energy’s operational decisions and disclosures.