Permex Petroleum Corporation (OIL) AI Stock Analysis

• Market Cap: C$2.37M
• Dividend Yield: N/A
• Average Volume (3M): 784.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 172.92%
• EPS Growth: -92.61%
• Country: CA
• Employees: 1
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -12.64
• Shares Outstanding: 551,503
• 10 Day Avg. Volume: 1,043
• 30 Day Avg. Volume: 784
• PEG Ratio: 0.01
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 15.68
• P/FCF Ratio: -0.80
• 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: 44 Neutral
• Price Target: C$4.50 ▲(12.50% Upside)

Permex Petroleum Corporation faces significant financial challenges, with declining revenue and profitability, increased leverage, and liquidity issues being the most impactful factors. Technical analysis provides mixed signals, and poor valuation metrics further weigh down the overall score.

Positive Factors

Revenue Growth

Despite current challenges, the company has shown significant revenue growth, which could indicate potential for recovery and expansion.

Market Position

Strategic focus on North American oil and gas properties positions Permex to capitalize on regional energy demands and regulatory conditions.

Business Model

The business model, based on hydrocarbon extraction and sales, is fundamental to the energy sector, offering long-term revenue potential.

Negative Factors

Profitability Challenges

Consistently negative profit margins and net income highlight ongoing profitability issues, which could hinder long-term financial health.

Leverage and Stability

Increased leverage and decreased equity ratio suggest financial instability, posing risks to solvency and operational flexibility.

Cash Flow Issues

Negative cash flows indicate liquidity issues, potentially limiting the company's ability to fund operations without external financing.

Permex Petroleum Corporation Business Overview & Revenue Model

Company Description

Permex Petroleum Corporation, a junior oil and gas company, engages in the acquisition, development, and production of oil and gas properties in the United States. The company holds interests in the Pittcock North property that covers an area of 320 acres, as well as the Pittcock South property that covers an area of 498 acres located on the Eastern Shelf of the Midland Basin; Mary Bullard property that covers an area of 241 acres located in Stonewall County; and Windy Jones property, which covers an area of 40 acres. It also holds interests in the West Henshaw property, which covers an area of 1,880 acres located in Eddy County, New Mexico; Oxy Yates property that covers an area of 680 acres located in Eddy County; and Breedlove field includes an area of 7,741.67 acres in Martin Country, Texas. In addition, the company has royalty interests 73 wells and 5 permitted wells across 3,800 acres within the Permian Basin of West Texas and southeast New Mexico. Permex Petroleum Corporation was incorporated in 2017 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Permex Petroleum Corporation generates revenue primarily through the sale of crude oil and natural gas. The company's revenue model is based on the extraction of hydrocarbons from its leased properties, which are then sold to various customers, including refineries and energy companies. Key revenue streams include the direct sale of produced hydrocarbons and potential royalties from joint ventures or partnerships with other industry players. Additionally, fluctuations in global oil prices can significantly impact earnings, making effective hedging strategies and operational efficiency crucial for maintaining profitability. Significant partnerships or strategic alliances may also enhance the company's access to resources, technology, and market opportunities, further contributing to its overall earnings.

Permex Petroleum Corporation Financial Statement Overview

Summary

Permex Petroleum Corporation's financial health is strained. The income statement shows significant revenue decline and negative profit margins. The balance sheet indicates increased leverage and reduced financial stability, while cash flow analysis highlights liquidity issues with negative free cash flow.

Income Statement

Permex Petroleum Corporation's income statement reveals significant challenges. The company has experienced negative growth in revenue with a sharp decline from $688,827 in 2023 to $189,699 TTM in 2024. Gross profit margins are negative, indicating costs exceed revenue. Consistently negative net income and EBIT margins highlight struggles with profitability.

Balance Sheet

The balance sheet shows a decrease in stockholders' equity and a poor debt-to-equity ratio, moving from 0.05 in 2021 to 0.70 TTM in 2024, indicating increased leverage. The equity ratio has also decreased, suggesting reduced financial stability. These factors highlight potential risks with solvency and financial independence.

Cash Flow

Cash flow analysis reflects negative free cash flow and negative operating cash flow, emphasizing liquidity issues. The company has not demonstrated consistent free cash flow growth, which could challenge funding operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	342.23K	116.03K	688.83K	1.20M	106.89K	917.72K
Gross Profit	-472.14K	-162.61K	-345.48K	-76.91K	-91.75K	95.28K
EBITDA	-3.82M	-3.42M	-3.78M	-3.16M	-1.18M	―
Net Income	-5.68M	-3.99M	-3.94M	-3.47M	-1.58M	-1.69M
Balance Sheet
Total Assets	12.91M	12.06M	10.94M	17.19M	10.37M	9.33M
Cash, Cash Equivalents and Short-Term Investments	2.09M	1.51M	82.74K	4.51M	32.79K	7.36K
Total Debt	3.76M	3.78M	284.46K	387.29K	237.72K	295.59K
Total Liabilities	10.99M	7.96M	5.12M	2.88M	2.84M	4.91M
Stockholders Equity	1.93M	4.11M	7.17M	14.31M	7.53M	4.43M
Cash Flow
Free Cash Flow	-3.19M	-2.29M	-3.74M	-5.07M	-1.34M	-195.64K
Operating Cash Flow	-3.00M	-2.29M	-2.30M	-2.77M	-951.57K	5.51K
Investing Cash Flow	-188.91K	66.77K	-1.45M	-2.31M	1.11M	-176.15K
Financing Cash Flow	4.85M	3.65M	523.48K	9.55M	-129.89K	174.42K

Permex Petroleum Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OIL, the sentiment is Negative. The current price of 4 is below the 20-day moving average (MA) of 4.49, below the 50-day MA of 4.33, and below the 200-day MA of 4.49, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 29.65 is Positive, neither overbought nor oversold. The STOCH value of 8.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OIL.

Permex Petroleum Corporation 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%
WCE	46 Neutral	C$2.68M	-3.39	-65.85%	―	-8.71%	-1376.92%
OIL	44 Neutral	C$2.37M	-0.26	-152.21%	―	172.92%	-92.61%
SQX	40 Underperform	C$3.10M	-5.68	―	―	―	-29.41%
SHP	24 Underperform	C$1.27M	-2.40	―	―	―	―