Nextleaf Solutions (OILS) AI Stock Analysis

• Market Cap: $10.81M
• Dividend Yield: N/A
• Average Volume (3M): 53.16K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.84
• Revenue Growth: 7.21%
• EPS Growth: N/A
• Country: CA
• Employees: 26
• Sector: Healthcare
• Sector Strength: 49
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): <0.01
• Shares Outstanding: 166,333,800
• 10 Day Avg. Volume: 77,799
• 30 Day Avg. Volume: 53,158
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 2.19
• Enterprise Value/Ebitda: 9.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Nextleaf Solutions' overall stock score is driven by its strong corporate events, indicating potential for future growth through product expansion and market entry into Quebec. However, financial performance remains a concern due to ongoing profitability and cash flow challenges. Technical analysis shows short-term bullish momentum, but valuation suggests the stock may be overvalued.

Nextleaf Solutions Business Overview & Revenue Model

Company Description

Nextleaf Solutions (OILS) is a Canadian technology company specializing in the extraction and distillation of cannabinoids, primarily focusing on the cannabis industry. The company provides innovative solutions for cannabis producers by offering high-quality, scalable extraction technologies, as well as a portfolio of standardized cannabinoid products. Nextleaf aims to streamline the production process for its clients and enhance the efficiency of cannabinoid extraction and formulation.

How the Company Makes Money

Nextleaf Solutions generates revenue through multiple streams, including the sale of its proprietary extraction technology, which allows cannabis producers to efficiently extract cannabinoids from raw plant material. Additionally, the company capitalizes on its intellectual property by licensing its extraction processes and equipment to other businesses within the industry. Another significant revenue stream comes from the production and sale of distilled cannabis oils and other cannabinoid products, which are marketed to both recreational and medicinal cannabis markets. Strategic partnerships with licensed producers and manufacturers further enhance its earnings potential by facilitating access to broader distribution channels and increasing product visibility in the market.

Nextleaf Solutions Financial Statement Overview

Summary

Nextleaf Solutions has shown significant revenue growth but struggles with profitability and cash flow. The balance sheet is stable with manageable leverage, but persistent net losses and negative cash flows are concerning.

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

Nextleaf Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.88 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 Positive sentiment for TSE:OILS.

Nextleaf Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVNT	58 Neutral	C$9.74M	―	-55.81%	―	31.94%	-45.55%
OILS	56 Neutral	$10.81M	34.21	6.02%	―	7.21%	―
TRIP	51 Neutral	C$14.43M	―	-21.58%	―	4.05%	47.94%
Sector *	47 Neutral	C$212.91M	-1.44	-30.33%	3.10%	19.48%	-0.04%

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.