Orca Exploration Group (ORC.B) AI Stock Analysis

• Market Cap: $187.45M
• Dividend Yield: 2.17%
• Average Volume (3M): 8.82K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.51
• Revenue Growth: 13.53%
• EPS Growth: -178.66%
• Country: CA
• Employees: 128
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.57
• Shares Outstanding: 18,015,015
• 10 Day Avg. Volume: 19,253
• 30 Day Avg. Volume: 8,824
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.36
• Enterprise Value/Revenue: -0.61
• Enterprise Value/Gross Profit: -1.16
• Enterprise Value/Ebitda: -1.57
• 1Y Price Target: $4.49
• Price Target Upside: 28.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: C$4.50 ▲(28.94% Upside)

The overall stock score is driven by strong technical momentum, despite overbought conditions, and a solid cash flow position. However, significant challenges in financial performance and unattractive valuation due to negative earnings impact the score negatively.

Orca Exploration Group Business Overview & Revenue Model

Company Description

Orca Exploration Group (ORC.B) is an independent oil and gas company engaged in the exploration, production, and sale of natural gas and associated liquids. The company primarily operates in Tanzania, where it focuses on developing and monetizing natural gas resources to meet domestic and regional energy demands. Orca's core activities include the production of natural gas from its key asset, the Songo Songo gas field, and the provision of natural gas to power generation and industrial sectors, contributing to sustainable energy solutions in the region.

How the Company Makes Money

Orca Exploration Group generates revenue primarily through the sale of natural gas and associated liquids produced from its fields. The company has established long-term contracts with local utilities and industrial customers, ensuring a steady demand for its products. Key revenue streams include the sale of natural gas for electricity generation, which is a significant component of Tanzania's energy matrix, and the supply of natural gas to industrial users. Additionally, Orca benefits from strategic partnerships with local and international firms that enhance its operational capabilities and market reach. The company's revenue is also influenced by global natural gas prices, production volumes, and its ability to maintain efficient operations and cost management.

Orca Exploration Group Financial Statement Overview

Summary

Orca Exploration Group faces significant challenges with declining revenue and profitability, as indicated by a negative net profit margin and revenue decline. However, the balance sheet is strong with low leverage, and cash flow metrics are positive, showing good cash generation capabilities.

Income Statement

Orca Exploration Group's income statement reveals a challenging period with declining revenue and profitability. The TTM data shows a negative net profit margin of -0.20%, indicating losses. Revenue growth has been negative, with a significant decline of 66% in the latest TTM period. Gross profit margin remains moderate at 54.4%, but the EBIT margin is negative, reflecting operational inefficiencies. Despite these challenges, EBITDA margin remains positive at 16.9%, suggesting some operational resilience.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.003 in the TTM period, indicating minimal leverage risk. However, return on equity is negative at -30.2%, reflecting the company's struggle to generate profits from its equity base. The equity ratio is healthy, suggesting a stable financial structure despite profitability challenges.

Cash Flow

Cash flow analysis indicates a positive trend with a significant free cash flow growth of 51.8% in the TTM period. The operating cash flow to net income ratio is 0.66, showing that cash generation is relatively strong compared to net income. The free cash flow to net income ratio of 0.55 further highlights the company's ability to generate cash despite net losses, providing a cushion for financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.31M	111.59M	110.23M	118.09M	86.02M	77.87M
Gross Profit	58.17M	61.10M	49.18M	70.90M	57.99M	51.14M
EBITDA	42.89M	18.63M	75.21M	92.76M	62.94M	67.12M
Net Income	-1.23M	-21.58M	7.01M	27.73M	16.37M	27.76M
Balance Sheet
Total Assets	164.53M	185.77M	215.43M	248.08M	230.27M	242.61M
Cash, Cash Equivalents and Short-Term Investments	98.57M	90.08M	101.57M	96.32M	72.98M	104.19M
Total Debt	82.00K	30.34M	40.42M	49.77M	54.78M	54.67M
Total Liabilities	83.63M	124.49M	126.75M	152.80M	158.82M	150.74M
Stockholders Equity	80.91M	61.28M	88.68M	89.62M	68.34M	90.35M
Cash Flow
Free Cash Flow	44.47M	9.13M	39.69M	41.93M	15.13M	19.47M
Operating Cash Flow	68.72M	27.09M	48.48M	67.66M	40.11M	46.51M
Investing Cash Flow	-24.25M	-17.96M	-8.79M	-25.73M	-24.98M	17.72M
Financing Cash Flow	-44.25M	-23.07M	-31.74M	-18.69M	-45.95M	-54.41M

Orca Exploration Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 3.49 is below the 20-day moving average (MA) of 3.89, below the 50-day MA of 3.54, and above the 200-day MA of 3.04, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 70.93 is Negative, neither overbought nor oversold. The STOCH value of 54.77 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	79 Outperform	C$210.75M	6.77	42.32%	8.76%	6.65%	9.78%
RBY	72 Outperform	C$210.20M	3.20	21.98%	―	88.34%	106.47%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PRQ	61 Neutral	C$227.87M	26.01	2.78%	7.02%	-16.34%	-67.99%
ORC.B	60 Neutral	$187.45M	11.45	-1.46%	2.17%	13.53%	-178.66%
TPL	56 Neutral	$129.79M	―	-32.89%	0.87%	-21.14%	-459.95%
RECO	49 Neutral	C$145.72M	―	-12.28%	―	―	―