Nextleaf Solutions (OILS) AI Stock Analysis

• Market Cap: C$10.09M
• Dividend Yield: N/A
• Average Volume (3M): 108.38K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.03
• Revenue Growth: -1.14%
• EPS Growth: N/A
• Country: CA
• Employees: 26
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.00
• Shares Outstanding: 168,228,910
• 10 Day Avg. Volume: 48,129
• 30 Day Avg. Volume: 108,382
• PEG Ratio: 0.01
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -18.99
• 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: 51 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

The overall stock score reflects the company's strong revenue growth but significant challenges in profitability and cash flow management. Technical indicators suggest neutral momentum, while the valuation is moderate. The absence of earnings call data and corporate events limits additional insights.

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 shows strong revenue growth but struggles with profitability and cash flow management. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.26M	12.48M	8.18M	4.41M	3.38M	690.68K
Gross Profit	4.42M	3.74M	2.31M	661.24K	-855.03K	-46.17K
EBITDA	1.01M	-624.44K	1.14M	-1.94M	-3.79M	-4.80M
Net Income	322.28K	-1.44M	223.33K	-3.49M	-5.39M	-5.95M
Balance Sheet
Total Assets	8.97M	8.57M	8.54M	7.15M	9.19M	9.78M
Cash, Cash Equivalents and Short-Term Investments	661.97K	438.54K	898.90K	377.72K	915.38K	988.67K
Total Debt	347.46K	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	5.51M	4.50M	4.13M	3.02M	3.43M	7.26M
Cash Flow
Free Cash Flow	-340.08K	-682.48K	851.89K	-911.02K	-2.94M	-6.07M
Operating Cash Flow	-335.76K	-614.09K	875.46K	-802.19K	-2.87M	-3.36M
Investing Cash Flow	-4.33K	-68.39K	-23.56K	-108.83K	-21.48K	-2.90M
Financing Cash Flow	170.48K	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: Positive
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.07, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, 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
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OILS	―	C$10.09M	15.79	11.57%	―	-1.14%	―
AVNT	―	$6.96M	-0.31	-53.71%	―	26.36%	-8.21%
TRIP	―	$14.43M	-3.89	-19.44%	―	-8.27%	50.55%

Nextleaf Solutions Corporate Events

Nextleaf Solutions Launches Canada’s First 200-Pack Cannabis Softgels and Expands Distribution

Nextleaf Solutions Ltd. has launched Canada’s first 200-pack cannabis softgels under its Glacial Gold™ brand, enhancing its market leadership in non-combustible, ingestible extract formats. This new product format addresses consumer demand for value and consistency, supporting wellness routines with fewer reorders. Additionally, Nextleaf has opened a new 2,500 square foot distribution facility in Coquitlam, B.C., and has applied for a Micro-Processing License to expand its consumer-packaged goods portfolio. Despite a lawsuit filed by former CEO Paul Pedersen, the company remains focused on its operations and market expansion.

Nextleaf Solutions Achieves Fourth Consecutive Profitable Quarter

Nextleaf Solutions reported its fourth consecutive profitable quarter with a gross revenue of $3.77 million and a net income of $867,352 year-to-date, marking a significant improvement from the previous year’s loss. The company has streamlined its product portfolio and maintained a strong balance sheet, with a focus on expanding its flagship brand, Glacial Gold, through new product launches and national distribution. Despite competitive pressures, Nextleaf remains on track to exceed its FY24 financial targets, driven by its leadership in wellness-focused cannabis formats.