Permex Petroleum Corporation (OIL) AI Stock Analysis

• Market Cap: C$2.48M
• Dividend Yield: N/A
• Average Volume (3M): 6.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 29.59%
• EPS Growth: -80.60%
• Country: CA
• Employees: 1
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -12.64
• Shares Outstanding: 551,503
• 10 Day Avg. Volume: 600
• 30 Day Avg. Volume: 6,052
• PEG Ratio: 0.02
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.45
• Enterprise Value/Market Cap: 1.95
• Enterprise Value/Revenue: 6.01
• Enterprise Value/Gross Profit: -11.38
• Enterprise Value/Ebitda: -0.32
• 1Y Price Target: C$9.00
• Price Target Upside: 100.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: C$4.50 ▲(0.00%Upside)

Permex Petroleum Corporation's overall stock score is primarily affected by its poor financial performance and valuation metrics. While technical analysis indicates some support, the financial instability and lack of profitability are significant concerns. The recent corporate events provide a positive outlook but are insufficient to mitigate the financial risks.

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 extraction and sale of crude oil and natural gas. The company operates a portfolio of producing assets, where it drills and extracts hydrocarbons from its owned or leased properties. Revenues are primarily derived from selling the extracted oil and gas to refineries and other market intermediaries. The company's earnings are influenced by factors such as commodity prices, production volumes, operational costs, and its ability to successfully develop new reserves. Significant partnerships with other oil and gas companies or service providers may also contribute to its operational efficiency and financial performance.

Permex Petroleum Corporation Financial Statement Overview

Summary

Permex Petroleum Corporation's financial statements indicate severe challenges. The income statement reflects a steep decline in revenue and negative margins, the balance sheet shows increased leverage and reduced financial stability, and the cash flow statement highlights liquidity issues due to negative cash flows. Overall, the company is facing significant financial instability and requires strategic improvement.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	116.03K	688.83K	1.20M	106.89K	917.72K
Gross Profit	-162.61K	-345.48K	-76.91K	-91.75K	95.28K
EBITDA	-3.42M	-3.78M	-3.16M	-1.18M	-414.80K
Net Income	-3.99M	-3.94M	-3.47M	-1.58M	-1.69M
Balance Sheet
Total Assets	12.06M	10.94M	17.19M	10.37M	9.33M
Cash, Cash Equivalents and Short-Term Investments	1.51M	82.74K	4.51M	32.79K	7.36K
Total Debt	3.78M	284.46K	387.29K	237.72K	295.59K
Total Liabilities	7.96M	5.12M	2.88M	2.84M	4.91M
Stockholders Equity	4.11M	7.17M	14.31M	7.53M	4.43M
Cash Flow
Free Cash Flow	-2.29M	-3.74M	―	-1.34M	-195.64K
Operating Cash Flow	-2.29M	-2.30M	―	-951.57K	5.51K
Investing Cash Flow	66.77K	-1.45M	―	1.11M	-176.15K
Financing Cash Flow	3.65M	523.48K	9.55M	-129.89K	174.42K

Permex Petroleum Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 4.5 is below the 20-day moving average (MA) of 4.87, below the 50-day MA of 4.70, and above the 200-day MA of 3.89, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 30.33 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 *	67 Neutral	$15.01B	9.77	5.97%	5.63%	4.51%	-61.80%
WCE	49 Neutral	C$2.68M	―	-53.86%	―	27.40%	-259.09%
OIL	47 Neutral	C$2.48M	―	-135.09%	―	29.59%	-80.60%
PNN	27 Underperform	C$3.34M	―	597.18%	―	―	-118.12%
JBR	23 Underperform	C$810.76K	―	56.97%	―	―	29.41%
JEC	―	C$2.42M	―	-79.57%	―	―	―
SHP	24 Underperform	C$1.27M	―	94.60%	―	-76.55%	58.66%

Permex Petroleum Corporation Corporate Events

Permex Petroleum Secures $2 Million Through Convertible Debenture Offering

Permex Petroleum Corporation announced the successful closing of a US$2,000,000 private placement of convertible debenture units. This strategic financial move is expected to enhance the company’s working capital and potentially increase its market influence. The offering was subscribed by Kent Lindemuth, significantly increasing his stake in the company and potentially impacting shareholder dynamics. The funds raised will be used for general corporate purposes, and the debenture units come with specific conversion and maturity terms, reflecting Permex’s strategic financial planning.

Permex Petroleum Secures $2 Million Through Convertible Debenture Offering

Permex Petroleum Corporation announced a US$2,000,000 private placement of convertible debenture units, aimed at raising funds for general working capital. This strategic financial move involves issuing 2,000 units to an arm’s length subscriber, each unit comprising a convertible debenture and 393 common share purchase warrants. The debentures mature in one year with a 10% interest rate, offering flexibility for conversion into shares. This initiative is expected to bolster Permex’s financial position, aiding in its operational and strategic goals within the competitive oil and gas industry.

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.