Orca Exploration Group (ORC.B) AI Stock Analysis

• Market Cap: C$98.59M
• Dividend Yield: 2.08%
• Average Volume (3M): 5.40K
• Price to Earnings (P/E): 3.2
• Beta (1Y): 0.91
• Revenue Growth: 10.08%
• EPS Growth: 322.40%
• Country: CA
• Employees: 128
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.36
• Shares Outstanding: 18,015,015
• 10 Day Avg. Volume: 5,696
• 30 Day Avg. Volume: 5,403
• PEG Ratio: <0.01
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 4.59
• 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: 76 Outperform
• Price Target: C$4.00 ▲(17.65% Upside)

Orca Exploration Group's stock is rated positively due to its strong financial performance, particularly in cash flow and balance sheet stability, and attractive valuation metrics. The technical analysis supports a bullish trend, although the stock is nearing overbought conditions. The absence of earnings call and corporate events data does not impact the overall score.

Positive Factors

Strong Cash Flow

Strong cash flow growth enhances liquidity and provides the company with the flexibility to invest in growth opportunities and manage debt effectively.

Low Leverage

Minimal leverage reduces financial risk and interest obligations, allowing the company to focus on operational growth and strategic initiatives.

Operational Efficiency

High gross profit margins reflect effective cost control, which supports sustainable profitability and competitive positioning in the market.

Negative Factors

Declining Revenue

Declining revenue indicates potential challenges in market demand or competitive pressures, which could impact long-term growth prospects.

Net Profit Margin Challenges

While improved, the still low net profit margin suggests ongoing challenges in converting revenue into profit, impacting overall profitability.

Revenue Growth Concerns

Stagnant or declining revenue growth can hinder the company's ability to scale operations and compete effectively in the long term.

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 sale of natural gas and oil. The company's main revenue stream comes from long-term contracts with local utilities and industrial customers for natural gas supply, which provides a stable and predictable income. In addition to its natural gas sales, Orca also benefits from crude oil production, which adds to its revenue base. The company has established strategic partnerships with local and international stakeholders, enhancing its market reach and operational efficiency. Furthermore, Orca's commitment to sustainable practices and compliance with regulatory frameworks contributes to its long-term profitability and competitiveness in the energy market.

Orca Exploration Group Financial Statement Overview

Summary

Orca Exploration Group exhibits a solid financial position with strong cash flow and balance sheet metrics. The income statement shows some areas for improvement, particularly in revenue growth, but the company maintains good profitability and operational efficiency. The low leverage and strong cash flow generation provide a stable foundation for future growth.

Income Statement

Orca Exploration Group's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 52.55%, indicating efficient cost management. However, the net profit margin has declined to 14.92% from a negative margin in the previous year, showing improvement but still facing challenges. Revenue growth is negative at -2.73%, suggesting a contraction in sales. The EBIT and EBITDA margins are healthy at 25.48% and 56.64% respectively, reflecting good operational efficiency.

Balance Sheet

The balance sheet of Orca Exploration Group is stable with a very low debt-to-equity ratio of 0.00025 in the TTM, indicating minimal leverage and financial risk. The return on equity (ROE) is robust at 22.52%, showcasing effective use of equity to generate profits. The equity ratio stands at 47.41%, suggesting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals strong performance with a significant free cash flow growth rate of 56.79% in the TTM, indicating improved liquidity. The operating cash flow to net income ratio is high at 0.94, demonstrating strong cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.77, reflecting efficient conversion of income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	108.27M	111.59M	110.23M	118.09M	86.02M	77.87M
Gross Profit	56.90M	61.10M	49.18M	70.90M	57.99M	51.14M
EBITDA	61.32M	18.63M	75.21M	92.76M	62.94M	67.12M
Net Income	16.16M	-21.58M	7.01M	27.73M	16.37M	27.76M
Balance Sheet
Total Assets	178.84M	185.77M	215.43M	248.08M	230.27M	242.61M
Cash, Cash Equivalents and Short-Term Investments	127.87M	90.08M	101.57M	96.32M	72.98M	104.19M
Total Debt	21.00K	30.34M	40.42M	49.77M	54.78M	54.67M
Total Liabilities	94.05M	124.49M	126.75M	152.80M	158.82M	150.74M
Stockholders Equity	84.78M	61.28M	88.68M	89.62M	68.34M	90.35M
Cash Flow
Free Cash Flow	69.72M	9.13M	39.69M	41.93M	15.13M	19.47M
Operating Cash Flow	90.76M	27.09M	48.48M	67.66M	40.11M	46.51M
Investing Cash Flow	-21.04M	-17.96M	-8.79M	-25.73M	-24.98M	17.72M
Financing Cash Flow	-44.28M	-23.07M	-31.74M	-18.69M	-45.95M	-54.41M

Orca Exploration Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3.4 is below the 20-day moving average (MA) of 3.49, below the 50-day MA of 3.44, and above the 200-day MA of 2.87, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 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
ORC.B	76 Outperform	C$98.59M	3.19	18.65%	2.08%	10.08%	322.40%
HME	71 Outperform	C$195.88M	6.62	39.64%	8.04%	2.27%	3.61%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TPL	61 Neutral	C$192.75M	-18.86	-28.62%	0.66%	12.23%	-424.88%
BNE	59 Neutral	C$181.78M	-12.52	-2.67%	―	-9.55%	-154.04%
EOG	51 Neutral	C$211.21M	-59.82	-11.95%	―	―	86.19%
QEC	48 Neutral	C$122.13M	-8.64	-10.07%	―	19.15%	43.88%