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Permex Petroleum Corporation (TSE:OIL)
:OIL

Permex Petroleum Corporation (OIL) AI Stock Analysis

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Permex Petroleum Corporation

(OIL)

Rating:37Underperform
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 (OIL) vs. iShares MSCI Canada ETF (EWC)

Permex Petroleum Corporation Business Overview & Revenue Model

Company DescriptionPermex 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 MoneyPermex 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
25
Negative
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
35
Negative
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
30
Negative
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
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
189.70K116.03K688.83K1.20M106.89K917.72K
Gross Profit
-459.52K-162.61K-345.48K-76.91K-91.75K95.28K
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 SheetCash, Cash Equivalents and Short-Term Investments
690.80K1.51M82.74K4.51M32.79K7.36K
Total Assets
11.41M12.06M10.94M17.19M10.37M9.33M
Total Debt
2.96M3.78M284.46K387.29K237.72K295.59K
Net Debt
2.27M2.26M201.72K-4.13M204.92K288.23K
Total Liabilities
7.21M7.96M5.12M2.88M2.84M4.91M
Stockholders Equity
4.20M4.11M7.17M14.31M7.53M4.43M
Cash FlowFree Cash Flow
-3.56M-2.29M-3.74M-1.34M-195.64K
Operating Cash Flow
-3.37M-2.29M-2.30M-951.57K5.51K
Investing Cash Flow
-191.27K66.77K-1.45M1.11M-176.15K
Financing Cash Flow
4.22M3.65M523.48K9.55M-129.89K174.42K

Permex Petroleum Corporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.20
Price Trends
50DMA
3.45
Negative
100DMA
3.78
Negative
200DMA
3.74
Negative
Market Momentum
MACD
-0.10
Positive
RSI
46.45
Neutral
STOCH
40.65
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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$7.22B3.11-4.49%5.63%0.82%-49.15%
TSWCE
49
Neutral
C$1.56M-28.96%27.40%-259.09%
TSOIL
37
Underperform
C$1.76M-135.09%29.59%-80.60%
TSPNN
27
Underperform
C$1.64M597.18%-118.12%
TSJBR
23
Underperform
C$1.62M56.97%29.41%
TSJEC
C$1.73M-79.57%
TSSHP
24
Underperform
C$1.74M94.60%-76.55%58.66%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:OIL
Permex Petroleum Corporation
3.20
-2.40
-42.86%
TSE:JBR
James Bay Resources
0.02
>-0.01
-33.33%
TSE:JEC
Jura Energy
0.02
-0.02
-50.00%
TSE:PNN
Pennine Petroleum
0.03
-0.04
-57.14%
TSE:SHP
Shoal Point Energy
0.05
0.01
25.00%
TSE:WCE
Wescan Energy
0.04
-0.06
-60.00%

Permex Petroleum Corporation Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Permex Petroleum Announces Successful Arrangement Implementation and Executive Changes
Positive
May 14, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.