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): 0.59
• 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: 55 Neutral
• Price Target: C$0.12 ▲(53.75% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held back primarily by weak operating fundamentals (zero revenue, negative gross profit and EBIT, and declining net income/cash flow into TTM). Support comes from a conservative balance sheet with low leverage and a technically constructive setup (price above key moving averages with positive MACD), but a high P/E and no dividend data add valuation risk.

Positive Factors

Conservative balance sheet

Very low debt-to-equity and a substantial equity base (~$3.43M TTM) provide durable financial flexibility. This eases refinancing and funding risk, supports capital allocation or strategic moves, and increases resilience to operational drawdowns over the next 2–6 months.

Positive cash generation

Consistent positive operating and free cash flow—and alignment of FCF with reported earnings in the TTM—indicate cash-backed profitability rather than accounting-only profits. That strengthens liquidity and supports ongoing operations and discretionary spending in the medium term.

Lower market volatility

A sub-1 beta suggests historically lower sensitivity to market swings, reducing equity volatility risk for investors. Over a 2–6 month horizon this structural lower systematic risk can make capital planning and execution less prone to disruptive market-driven financing pressures.

Negative Factors

Zero revenue

Absence of reported revenue and negative gross profit indicate the core business is not generating sales and has unprofitable operating economics. This is a fundamental constraint on sustainable earnings and cash flow generation absent a material operational turnaround or new revenue source.

Declining cash momentum

While cash generation is positive, the sharp decline in operating and free cash flow reduces runway and discretionary capacity. Continued deterioration could force spending cuts or asset sales and undermines the company's ability to invest in revenue-generating initiatives over the medium term.

Profitability driven by non-ops

Reported net income appears supported by non-operating items while core EBIT stays deeply negative. That implies reported profits are fragile and unlikely to persist without structural operational improvements, limiting long-term earnings quality and predictability.

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

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Newport Exploration Financial Statement Overview

Summary

Balance sheet strength and low leverage (very low debt-to-equity) and consistently positive operating/free cash flow support stability. However, the income statement is a major weakness: zero revenue, negative gross profit, and persistently negative EBIT indicate loss-making core operations, while net income and cash flow have deteriorated sharply into TTM—raising concerns about sustainability and quality of earnings.

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: 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 0.11, 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 56.90 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 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$21.14M	-4.51	-69.83%	―	―	―
NWX	55 Neutral	C$12.67M	41.82	22.23%	―	―	-78.57%
NUKV	52 Neutral	C$11.94M	-1.52	-772.07%	―	―	-679.31%
NRM	47 Neutral	C$13.87M	-7.12	-41.21%	―	―	48.66%
LXM	42 Neutral	C$9.00M	-15.89	-406.78%	―	―	-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.