Permex Petroleum Corporation (OIL) AI Stock Analysis

• Market Cap: C$1.76M
• Dividend Yield: N/A
• Average Volume (3M): 397.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 29.59%
• EPS Growth: -80.60%
• Country: CA
• Employees: 1
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -12.64
• Shares Outstanding: 551,503
• 10 Day Avg. Volume: 387
• 30 Day Avg. Volume: 397
• PEG Ratio: 0.02
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.42
• 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: 37 Underperform
• Price Target: C$3.50 ▲(9.37%Upside)

Permex Petroleum Corporation struggles with significant financial challenges, marked by declining revenues, profitability issues, and liquidity constraints. The technical analysis indicates a bearish trend, and the negative P/E ratio suggests caution. Although the recent corporate arrangement offers a potential positive shift, overall financial and operational inefficiencies weigh heavily on the stock.

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 through the exploration, development, and production of oil and natural gas. Its primary revenue streams include the sale of these commodities on the open market, where prices fluctuate based on global supply and demand dynamics. The company leverages its strategic asset locations in prolific oil and gas regions to optimize production and enhance profitability. Additionally, Permex may engage in strategic joint ventures or partnerships to bolster its operational capabilities and expand its asset base, contributing to its revenue generation. The company's focus on efficient operations and cost management also plays a crucial role in maintaining profitability amidst volatile market conditions.

Permex Petroleum Corporation Financial Statement Overview

Summary

Permex Petroleum Corporation's financial health appears strained across all major financial statements. Persistent net losses and declining revenue suggest operational inefficiencies. Increased debt levels and negative cash flows highlight financial instability and liquidity risks, necessitating strategic improvements for future sustainability.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
189.70K	116.03K	688.83K	1.20M	106.89K	917.72K
	Gross Profit
-459.52K	-162.61K	-345.48K	-76.91K	-91.75K	95.28K
	EBIT
-3.72M	-3.02M	-3.98M	―	-723.28K	-487.72K
	EBITDA
-4.17M	-3.42M	-3.78M	-3.16M	-1.18M	-414.80K
	Net Income Common Stockholders
-5.21M	-3.99M	-3.94M	-3.47M	-1.58M	-1.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
690.80K	1.51M	82.74K	4.51M	32.79K	7.36K
	Total Assets
11.41M	12.06M	10.94M	17.19M	10.37M	9.33M
	Total Debt
2.96M	3.78M	284.46K	387.29K	237.72K	295.59K
	Net Debt
2.27M	2.26M	201.72K	-4.13M	204.92K	288.23K
	Total Liabilities
7.21M	7.96M	5.12M	2.88M	2.84M	4.91M
	Stockholders Equity
4.20M	4.11M	7.17M	14.31M	7.53M	4.43M
Cash Flow		Free Cash Flow
-3.56M	-2.29M	-3.74M	―	-1.34M	-195.64K
	Operating Cash Flow
-3.37M	-2.29M	-2.30M	―	-951.57K	5.51K
	Investing Cash Flow
-191.27K	66.77K	-1.45M	―	1.11M	-176.15K
	Financing Cash Flow
4.22M	3.65M	523.48K	9.55M	-129.89K	174.42K

Permex Petroleum Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OIL, the sentiment is Neutral. The current price of 3.2 is below the 20-day moving average (MA) of 3.27, below the 50-day MA of 3.45, and below the 200-day MA of 3.74, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 40.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	57 Neutral	$7.22B	3.11	-4.49%	5.63%	0.82%	-49.15%
WCE	49 Neutral	C$1.56M	―	-28.96%	―	27.40%	-259.09%
OIL	37 Underperform	C$1.76M	―	-135.09%	―	29.59%	-80.60%
PNN	27 Underperform	C$1.64M	―	597.18%	―	―	-118.12%
JBR	23 Underperform	C$1.62M	―	56.97%	―	―	29.41%
JEC		C$1.73M	―	-79.57%	―	―	―
SHP	24 Underperform	C$1.74M	―	94.60%	―	-76.55%	58.66%

Permex Petroleum Corporation Corporate Events

Permex Petroleum Announces Successful Arrangement Implementation and Executive Changes

Permex Petroleum Corporation has successfully implemented an operating arrangement with a private oil and gas operator in the Permian Basin, meeting initial production expectations. This development is expected to benefit shareholders by generating fees akin to a service provider model. Additionally, the company announced a change in its executive team, with CEO Brad Taillon taking on interim roles as CFO and Corporate Secretary following Gregory Montgomery’s resignation.