Nextleaf Solutions (OILS) AI Stock Analysis

• Market Cap: C$8.41M
• Dividend Yield: N/A
• Average Volume (3M): 144.15K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.17
• 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: 211,934
• 30 Day Avg. Volume: 144,145
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• 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.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and demand for Nextleaf's extraction technologies, supporting long-term business expansion.

Intellectual Property

Leveraging intellectual property through licensing provides a recurring revenue stream and competitive edge, enhancing market position and sustainability.

Strategic Partnerships

Partnerships expand distribution channels and market reach, increasing product visibility and driving sales growth over the long term.

Negative Factors

Profitability Challenges

Persistent profitability issues can limit reinvestment opportunities and pose risks to financial health, affecting long-term viability.

Cash Flow Issues

Negative cash flow indicates difficulties in sustaining operations without external financing, potentially impacting business stability and growth.

Operational Inefficiencies

Operational inefficiencies can erode margins and hinder profitability, necessitating strategic improvements for long-term competitiveness.

Nextleaf Solutions Business Overview & Revenue Model

Company Description

Nextleaf Solutions Ltd., a cannabis extraction technology company, develops and licenses technology for the extraction, distillation, and formulation of cannabinoids in Canada. The company extracts, distills, purifies, delivers, and wholesales CBD oils and THC cannabinoid ingredients; researches and develops cannabis infused products, vapes, ingestible concentrates, and specialty extracts; and provides extraction services. It also focuses on the development and commercialization of psychoactive compounds. The company was formerly known as Legion Metals Corp. and changed its name to Nextleaf Solutions Ltd. Nextleaf Solutions Ltd. was founded in 2015 and is headquartered in Vancouver, Canada.

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 demonstrates strong revenue growth but faces significant challenges in profitability and cash flow management. 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.12M	12.48M	8.18M	4.41M	3.38M	690.68K
Gross Profit	4.64M	3.74M	2.31M	661.24K	-855.03K	-46.17K
EBITDA	1.62M	-624.44K	1.14M	-1.94M	-3.79M	-4.80M
Net Income	627.68K	-1.44M	223.33K	-3.49M	-5.39M	-5.95M
Balance Sheet
Total Assets	9.03M	8.57M	8.54M	7.15M	9.19M	9.78M
Cash, Cash Equivalents and Short-Term Investments	243.20K	438.54K	898.90K	377.72K	915.38K	988.67K
Total Debt	477.93K	384.69K	489.75K	1.36M	3.25M	422.93K
Total Liabilities	3.43M	4.06M	4.40M	4.14M	5.77M	2.52M
Stockholders Equity	5.60M	4.50M	4.13M	3.02M	3.43M	7.26M
Cash Flow
Free Cash Flow	-277.96K	-682.48K	851.89K	-911.02K	-2.94M	-6.07M
Operating Cash Flow	-213.27K	-614.09K	875.46K	-802.19K	-2.87M	-3.36M
Investing Cash Flow	-64.68K	-68.39K	-23.56K	-108.83K	-21.48K	-2.90M
Financing Cash Flow	-127.81K	222.12K	-330.71K	373.35K	2.82M	2.96M

Nextleaf Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 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 Positive. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.02 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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
LOVE	73 Outperform	C$178.40M	13.07	13.39%	―	30.64%	101.12%
OGI	54 Neutral	C$303.76M	-11.08	-7.93%	―	62.15%	60.50%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OILS	51 Neutral	C$8.41M	13.16	11.57%	―	-1.14%	―
ATLE	50 Neutral	C$61.64M	-3.05	-19.76%	―	26.91%	81.01%
LABS	45 Neutral	C$29.45M	-3.63	-19.10%	―	18.06%	34.58%

Nextleaf Solutions Corporate Events

Nextleaf Solutions Unveils New Recreational Cannabis Brand ‘Yard’

Nextleaf Solutions has launched a new recreational cannabis brand, Yard, targeting adult-use consumers seeking high-potency extracts and flavor-forward formulations. This strategic move aims to enhance Nextleaf’s market presence in the competitive cannabis industry by offering innovative products like THC dominant vapes and infused prerolls, leveraging their proprietary technology for consistent quality and potency.