Newport Exploration (NWX) AI Stock Analysis

• Market Cap: C$9.50M
• Dividend Yield: N/A
• Average Volume (3M): 43.27K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.64
• 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: 52 Neutral
• Price Target: C$0.09 ▲(7.50% Upside)

The score is held back primarily by weak operating fundamentals (zero revenue, negative gross profit and EBIT, and declining profit/cash flow into TTM), partially offset by a conservative balance sheet with no/low debt and consistently positive cash generation. Technical signals are soft and valuation (P/E ~28) offers limited support given the underlying operating profile; a recent positive royalty/cash update modestly improves the outlook.

Positive Factors

Royalty Revenue Stream

Steady royalty payments provide a reliable revenue stream, contributing to financial stability and reducing reliance on direct production activities.

Positive Cash Flow Management

Effective cash flow management ensures liquidity and operational flexibility, supporting ongoing business activities and potential investments.

Stable Balance Sheet

A stable balance sheet with low leverage enhances financial resilience, providing a solid foundation for future strategic initiatives.

Negative Factors

Production Decline

Declining production levels can reduce royalty income, affecting financial results and necessitating strategic adjustments to maintain revenue streams.

Dependency on External Operations

Reliance on external partners for revenue generation can introduce volatility and limit control over business outcomes, impacting strategic planning.

Absence of Revenue Growth

Lack of revenue growth limits financial performance and strategic options, posing risks to long-term sustainability and competitiveness.

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

Balance sheet strength and low leverage support a solid risk profile, and operating/free cash flow are consistently positive. However, income statement quality is weak with zero reported revenue, negative gross profit, and persistently negative EBIT; net income and cash flow have also trended down materially 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-64.35K	-64.70K	-64.42K	-35.43K	-3.87K
EBITDA	1.01M	2.91M	3.87M	7.70M	9.03M
Net Income	504.80K	1.92M	2.58M	5.27M	6.23M
Balance Sheet
Total Assets	3.47M	2.68M	3.99M	6.13M	8.12M
Cash, Cash Equivalents and Short-Term Investments	2.61M	1.67M	2.68M	3.33M	5.28M
Total Debt	60.74K	61.09K	124.69K	185.26K	0.00
Total Liabilities	106.38K	101.91K	167.14K	666.61K	532.68K
Stockholders Equity	3.37M	2.58M	3.82M	5.46M	7.59M
Cash Flow
Free Cash Flow	1.00M	2.24M	4.82M	5.46M	5.58M
Operating Cash Flow	1.00M	2.24M	4.82M	5.46M	5.58M
Investing Cash Flow	-1.29M	550.00K	-3.41K	-167.50K	-424.90K
Financing Cash Flow	-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: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.82 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 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%
RYO	56 Neutral	C$9.84M	31.18	―	―	―	―
NWX	52 Neutral	C$9.50M	30.00	22.23%	―	―	-78.57%
LXM	52 Neutral	C$10.40M	-9.81	―	―	―	-42.55%
NUKV	52 Neutral	C$13.48M	-1.72	-772.07%	―	―	-679.31%
NRM	47 Neutral	C$12.52M	-5.43	-41.21%	―	―	48.66%

Newport Exploration Corporate Events

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.