Orca Exploration Group (ORC.B) AI Stock Analysis

• Market Cap: C$161.51M
• Dividend Yield: 12.35%
• Average Volume (3M): 3.85K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.31
• Revenue Growth: 12.88%
• EPS Growth: -772.07%
• Country: CA
• Employees: 128
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 18,015,015
• 10 Day Avg. Volume: 3,319
• 30 Day Avg. Volume: 3,855
• PEG Ratio: 0.03
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.64
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.36
• Enterprise Value/Ebitda: 0.11
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: C$3.00 ▼(-0.33%Downside)

The overall stock score is primarily impacted by significant financial performance challenges, including declining profitability and cash flow issues. Technical analysis provides mixed signals, adding uncertainty to the stock's future direction. Valuation concerns arise from a negative P/E ratio, though the high dividend yield may appeal to some investors. Improving profitability is critical for enhancing the stock's outlook.

Orca Exploration Group Business Overview & Revenue Model

Company Description

Orca Energy Group Inc. engages in the exploration, development, production, and sale of petroleum and natural gas to the power and industrial sectors in Tanzania. It principally holds interests in the Songo Songo natural gas field located to the south of Dar Es Salaam. The company was formerly known as Orca Exploration Group Inc. and changed its name to Orca Energy Group Inc. in July 2020. Orca Energy Group Inc. was incorporated in 2004 and is based in Road Town, British Virgin Islands.

How the Company Makes Money

Orca Exploration Group generates revenue primarily through the production and sale of natural gas. The company's key revenue streams include long-term gas supply agreements with power generation companies and industrial customers in Tanzania. Orca Exploration leverages its infrastructure and expertise in gas extraction and distribution to deliver natural gas from its Songo Songo field to its clients. The company's earnings are significantly influenced by its partnerships with local utilities and industrial users, regulatory frameworks, and the demand for natural gas within the region. Additionally, the company may engage in exploration activities to discover new gas reserves, potentially impacting future revenue streams.

Orca Exploration Group Financial Statement Overview

Summary

Orca Exploration Group faces significant profitability challenges, with declining profit margins and negative net income. The controlled level of debt and some cash management strengths are positive, but the negative return on equity and weakened cash flow generation highlight critical areas needing improvement.

Income Statement

Orca Exploration Group has encountered a decline in profitability, with a negative Net Profit Margin of -19.34% for 2024, a significant drop from previous years. The Gross Profit Margin decreased to 54.75% in 2024 compared to 64.08% in 2022, indicating increased cost pressures. Revenue growth has been inconsistent, with a notable decrease of 5.47% from 2022 to 2023, followed by a slight increase of 1.23% in 2024. These trends suggest challenges in maintaining revenue growth and managing costs effectively.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.50 as of 2024, indicating a balanced approach to leverage. However, Return on Equity has turned negative at -35.22% in 2024, indicating a decline in shareholder returns. The equity ratio remains stable at 33.00%, reflecting a reasonable level of equity financing relative to total assets. Overall, while leverage is controlled, profitability concerns impact the financial stability.

Cash Flow

Orca's Free Cash Flow decreased significantly by 77.02% from 2023 to 2024, raising concerns about cash generation capabilities. The Operating Cash Flow to Net Income ratio stands at -1.26 for 2024, highlighting the challenges in translating earnings into cash. Despite these issues, the company maintains a positive Free Cash Flow to Net Income ratio of -0.42, indicating some resilience in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
111.59M	110.23M	118.09M	86.02M	77.87M
	Gross Profit
61.10M	49.18M	70.90M	57.99M	51.14M
	EBIT
18.28M	36.92M	63.70M	47.46M	51.06M
	EBITDA
18.63M	75.21M	92.76M	62.94M	67.12M
	Net Income Common Stockholders
-21.58M	7.01M	27.73M	16.37M	27.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
90.08M	101.57M	96.32M	72.98M	104.19M
	Total Assets
185.77M	215.43M	248.08M	230.27M	242.61M
	Total Debt
30.34M	40.42M	49.77M	54.78M	54.67M
	Net Debt
-59.74M	-61.15M	-46.55M	-18.21M	-49.52M
	Total Liabilities
124.49M	126.75M	152.80M	158.82M	150.74M
	Stockholders Equity
61.28M	88.68M	89.62M	68.34M	90.35M
Cash Flow		Free Cash Flow
9.13M	39.69M	41.93M	15.13M	19.47M
	Operating Cash Flow
27.09M	48.48M	67.66M	40.11M	46.51M
	Investing Cash Flow
-17.96M	-8.79M	-25.73M	-24.98M	17.72M
	Financing Cash Flow
-23.07M	-31.74M	-18.69M	-45.95M	-54.41M

Orca Exploration Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.01
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ORC.B, the sentiment is Positive. The current price of 3.01 is above the 20-day moving average (MA) of 2.99, below the 50-day MA of 3.01, and above the 200-day MA of 2.90, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 52.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ORC.B.

Orca Exploration Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HME	82 Outperform	C$178.86M	5.13	48.97%	6.49%	22.64%	44.49%
RBY	72 Outperform	C$175.87M	2.56	21.76%	―	83.19%	-43.74%
PRQ	64 Neutral	C$176.93M	164.29	0.33%	8.82%	-21.04%	-96.30%
Sector *	58 Neutral	$7.37B	3.39	-4.49%	10.01%	0.82%	-49.15%
ORC.B	52 Neutral	C$161.51M	11.45	-30.30%	12.35%	12.88%	-772.07%
RECO	49 Neutral	C$126.18M	―	-14.82%	―	-100.00%	61.24%
TETHF		$94.12M	―	-34.33%	―	―	―