Nextleaf Solutions (OILS) AI Stock Analysis

• Market Cap: C$9.15M
• Dividend Yield: N/A
• Average Volume (3M): 61.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: 19.28%
• EPS Growth: -214.04%
• Country: CA
• Employees: 26
• Sector: Healthcare
• Sector Strength: 48
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 166,333,800
• 10 Day Avg. Volume: 52,609
• 30 Day Avg. Volume: 61,098
• PEG Ratio: -0.33
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -39.90
• 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

Nextleaf Solutions shows promising revenue growth and significant improvement in recent financial results, but ongoing profitability and cash flow challenges remain a concern. The stock's technical indicators suggest a bearish trend, and the company’s valuation is unattractive due to a negative P/E ratio. However, recent corporate events, including a net income turnaround and strategic product launches, provide a positive outlook.

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 shows strong revenue growth but faces significant profitability and cash flow challenges. The balance sheet is stable with manageable leverage, but consistent net losses and negative cash flows pose risks.

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
	EBIT
-1.28M	-1.47M	542.27K	-3.01M	-5.01M	-5.87M
	EBITDA
-338.70K	-624.44K	1.14M	-1.94M	-3.79M	-5.04M
	Net Income Common Stockholders
-1.04M	-1.44M	223.33K	-3.96M	-5.75M	-5.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
831.57K	438.54K	898.90K	377.72K	915.38K	988.67K
	Total Assets
9.62M	8.57M	8.54M	7.15M	9.19M	9.78M
	Total Debt
418.71K	384.69K	489.75K	1.36M	3.25M	422.93K
	Net Debt
-412.86K	-53.84K	-409.15K	984.83K	2.33M	-565.75K
	Total Liabilities
5.15M	4.06M	4.40M	4.14M	5.77M	2.52M
	Stockholders Equity
4.47M	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: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OILS, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OILS.

Nextleaf Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OILS	54 Neutral	C$9.15M	―	-22.82%	―	19.28%	-214.04%
Sector *	52 Neutral	$5.22B	3.55	-44.39%	2.82%	15.40%	-0.09%
TRIP	51 Neutral	$12.03M	―	-30.44%	―	13.57%	-14.29%
AVNT	43 Neutral	$9.74M	―	-51.80%	―	32.63%	-90.15%

Nextleaf Solutions Corporate Events

Nextleaf Solutions Reports Strong Q1 FY2025 Results with Major Net Income Turnaround

Nextleaf Solutions Ltd. reported its financial results for the first quarter of fiscal year 2025, highlighting a significant improvement in net income and gross profit margin. The company achieved a net income of $530,432, a turnaround from a net loss in the previous quarter, and increased its gross profit margin to 32%. This financial performance underscores Nextleaf’s enhanced operational efficiency and cost management. The company also launched eight new products under its Glacial Gold brand, reinforcing its focus on high-margin, convenience-based cannabis products. Additionally, Nextleaf shifted its strategy to prioritize toll-processing activities for commercial partners, which aligns with its commitment to long-term financial sustainability and shareholder value.