Nextleaf Solutions (OILS) AI Stock Analysis

• Market Cap: C$11.64M
• Dividend Yield: N/A
• Average Volume (3M): 88.59K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.56
• Revenue Growth: 7.21%
• EPS Growth: N/A
• Country: CA
• Employees: 26
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): <0.01
• Shares Outstanding: 166,333,800
• 10 Day Avg. Volume: 69,346
• 30 Day Avg. Volume: 88,589
• PEG Ratio: 0.07
• Price to Book (P/B): 3.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.39
• 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: 60 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Nextleaf Solutions' overall stock score is primarily driven by significant corporate events and a positive technical outlook. However, ongoing financial challenges, including profitability and cash flow issues, weigh down the score. The high P/E ratio suggests that the stock may be overvalued, which is a concern despite the recent profitability milestone and market expansion efforts.

Nextleaf Solutions Business Overview & Revenue Model

Company Description

Nextleaf Solutions (OILS) is a cannabis extraction technology company focused on developing and licensing intellectual property related to the extraction, purification, and formulation of cannabinoids. Operating primarily within the cannabis industry, Nextleaf Solutions offers a range of patented technologies that enable the efficient processing of cannabis biomass into high-purity cannabinoid distillates, which are essential for the production of a variety of cannabis products.

How the Company Makes Money

Nextleaf Solutions makes money through a combination of licensing its patented extraction technologies, providing processing services to other cannabis companies, and selling high-purity cannabinoid distillates. The company licenses its intellectual property to other cannabis producers, allowing them to utilize its innovative extraction methods in exchange for licensing fees. Additionally, Nextleaf Solutions operates its own processing facilities where it converts cannabis biomass into distilled products, which can be sold to manufacturers of cannabis-infused products such as edibles, vape cartridges, and topicals. The company's revenue is further supported by strategic partnerships and collaborations within the cannabis industry that expand its market reach and operational capabilities.

Nextleaf Solutions Financial Statement Overview

Summary

Nextleaf Solutions demonstrates strong revenue growth but faces significant challenges in profitability and cash flow management. The balance sheet appears stable with manageable leverage, but consistent net losses and negative cash flows pose risks. Improvement in operational efficiency and cash generation is needed.

Income Statement

Nextleaf Solutions has shown a significant increase in revenue over the years, with a notable revenue growth from 2020 to 2024. However, the company has struggled with profitability, consistently posting negative net income figures. The gross profit margin has improved over time, but the negative EBIT and EBITDA margins highlight ongoing operational inefficiencies and cost challenges.

Balance Sheet

The company's balance sheet shows a moderate improvement in equity and a reduction in total debt over time. The debt-to-equity ratio is relatively low, indicating manageable leverage. However, the return on equity is negative due to persistent net losses, which is a significant concern. The equity ratio indicates a stable asset base maintained by equity rather than debt.

Cash Flow

Nextleaf Solutions has experienced challenges in generating positive operating cash flow, with negative figures in recent periods. The free cash flow remains negative, indicating cash flow issues. The operating cash flow to net income ratio is weak, reflecting difficulties in converting sales into cash. The company relies on financing activities to support its cash needs.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	12.16M	12.48M	8.18M	4.41M	3.38M	690.68K
Gross Profit	4.02M	3.74M	2.31M	661.24K	-855.03K	-46.17K
EBITDA	-338.70K	-624.44K	1.14M	-1.94M	-3.79M	-4.80M
Net Income	-1.04M	-1.44M	223.33K	-3.49M	-5.39M	-5.95M
Balance Sheet
Total Assets	8.62M	8.57M	8.54M	7.15M	9.19M	9.78M
Cash, Cash Equivalents and Short-Term Investments	359.86K	438.54K	898.90K	377.72K	915.38K	988.67K
Total Debt	366.39K	384.69K	489.75K	1.36M	3.25M	422.93K
Total Liabilities	3.46M	4.06M	4.40M	4.14M	5.77M	2.52M
Stockholders Equity	5.16M	4.50M	4.13M	3.02M	3.43M	7.26M
Cash Flow
Free Cash Flow	-229.28K	-682.48K	851.89K	-911.02K	-2.94M	-6.07M
Operating Cash Flow	-209.66K	-614.09K	875.46K	-802.19K	-2.87M	-3.36M
Investing Cash Flow	-19.62K	-68.39K	-23.56K	-108.83K	-21.48K	-2.90M
Financing Cash Flow	221.30K	222.12K	-330.71K	373.35K	2.82M	2.96M

Nextleaf Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OILS, the sentiment is Neutral. The current price of 0.07 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:OILS.

Nextleaf Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OILS	60 Neutral	C$11.64M	34.21	6.02%	―	7.21%	―
TRIP	51 Neutral	$12.03M	―	-30.44%	―	13.57%	-14.29%
AVNT	48 Neutral	$8.55M	―	-51.80%	―	32.63%	-90.15%
Sector *	46 Neutral	C$194.85M	-4.28	-8.56%	2.84%	13.52%	-1.74%

Nextleaf Solutions Corporate Events

Nextleaf Solutions Achieves Profitability and Expands Product Line in Q2 FY25

Nextleaf Solutions Ltd. reported a profitable second quarter for fiscal year 2025, with significant revenue growth and a positive net income improvement. The company achieved a gross revenue of $4.70 million, marking a 22% increase from the previous quarter, and a net income of $348,789, a strong turnaround from a net loss in the same quarter of 2024. The company also launched eight new products under its Glacial Gold brand, reflecting its focus on high-potency and high-purity extracts. Looking ahead, Nextleaf plans to expand its facilities, enhance its workforce, and explore market expansion into Quebec, aiming to strengthen its market position and operational efficiency.

Nextleaf Solutions Expands into Quebec with New Product Launches

Nextleaf Solutions Ltd. has announced the launch of 20 new product listings across major Canadian markets, including their first entry into Quebec with a high potency THC:CBD oil under their Glacial Gold brand. This expansion highlights Nextleaf’s focus on wellness-forward non-combustible formats, flavor and hardware innovation, and minor cannabinoid formulations. The partnership with Quebec Craft Cannabis for distribution in Quebec represents a significant opportunity, as the province is a major cannabis market with substantial revenue potential.