Prospera Energy Inc (PEI) AI Stock Analysis

• Market Cap: C$23.08M
• Dividend Yield: N/A
• Average Volume (3M): 440.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -0.63%
• EPS Growth: -47.75%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 461,625,500
• 10 Day Avg. Volume: 674,194
• 30 Day Avg. Volume: 440,527
• PEG Ratio: 0.10
• Price to Book (P/B): -6.47
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -1.42
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.04 ▲(2.50% Upside)

Prospera Energy Inc's overall stock score is primarily impacted by its financial instability and weak technical indicators. The company's high leverage and negative equity present significant financial risks, while the bearish technical signals suggest limited upside potential. The negative P/E ratio further underscores the challenges in valuation.

Positive Factors

Gross Profit Margin

A strong gross profit margin indicates effective cost management, which can support long-term profitability if revenue growth stabilizes.

Operational Efficiency

Focusing on operational efficiencies and technology can enhance production, reduce costs, and improve long-term competitiveness in the oil and gas sector.

Free Cash Flow to Net Income

A positive free cash flow to net income ratio suggests the company can cover net losses with free cash flow, providing some financial resilience.

Negative Factors

High Leverage

High leverage indicates potential financial risk, as reliance on debt financing can strain cash flow and limit financial flexibility.

Negative Equity

Negative equity reflects financial instability, which can hinder the company's ability to invest in growth and weather economic downturns.

Profitability Challenges

Ongoing profitability challenges, as indicated by a negative net profit margin, can undermine long-term financial health and investor confidence.

Prospera Energy Inc Business Overview & Revenue Model

Company Description

Prospera Energy Inc., a natural resources company, acquires, explores for, and develops petroleum and gas properties in Canada. It primarily holds interests in the Pouce Coupe and Red Earth properties in Alberta; and Cuthbert, Hearts Hills, and Luseland properties in Saskatchewan. The company was formerly known as Georox Resources Inc. and changed its name to Prospera Energy Inc. in June 2018. The company was incorporated in 2003 and is based in Calgary, Canada.

How the Company Makes Money

Prospera Energy generates revenue primarily through the extraction and sale of crude oil and natural gas from its operational assets. The company's revenue model is based on the production volumes of these hydrocarbons, which are sold on the open market, often influenced by global commodity prices. Key revenue streams include direct sales of oil and gas, as well as potential royalties from partnerships or joint ventures in resource development. Additionally, the company may engage in strategic partnerships with other energy firms to enhance production capabilities and expand its market reach, further contributing to its earnings.

Prospera Energy Inc Financial Statement Overview

Summary

Prospera Energy Inc is experiencing strong revenue growth, but profitability and financial stability are significant concerns. High leverage and negative equity pose risks, while cash flow challenges persist despite some growth in free cash flow. The company needs to address operational inefficiencies and improve its financial structure to enhance stability and profitability.

Income Statement

Prospera Energy Inc has shown significant revenue growth in the TTM period, with a 95.9% increase. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin remains strong at 68.5%, but the negative EBIT and net profit margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of -5.68, indicating significant leverage and financial risk. The negative stockholders' equity suggests potential solvency issues. Return on equity is positive, but this is due to negative equity, which distorts the metric. Overall, the balance sheet reflects financial instability.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 13.27% in the TTM period. However, both operating and free cash flows are negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some efficiency in converting income to cash, but overall cash flow health remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.10M	16.64M	11.82M	13.90M	4.41M	3.28M
Gross Profit	12.60M	6.01M	3.36M	9.93M	3.36M	1.87M
EBITDA	1.08M	2.02M	-571.80K	2.91M	5.62M	-10.45M
Net Income	-7.12M	-4.29M	-5.17M	-209.86K	4.35M	-11.73M
Balance Sheet
Total Assets	64.54M	53.93M	49.17M	35.81M	26.13M	5.48M
Cash, Cash Equivalents and Short-Term Investments	250.00K	364.08K	118.93K	1.05M	281.52K	153.39K
Total Debt	27.99M	19.76M	9.54M	4.24M	7.73M	1.58M
Total Liabilities	69.63M	55.91M	47.97M	42.01M	38.92M	24.12M
Stockholders Equity	-5.10M	-1.98M	1.20M	-6.20M	-12.78M	-18.64M
Cash Flow
Free Cash Flow	-6.66M	-9.02M	-14.17M	-2.15M	-6.25M	608.06K
Operating Cash Flow	343.96K	-3.16M	1.24M	5.34M	-5.47M	632.00K
Investing Cash Flow	-6.47M	-5.60M	-15.42M	-7.92M	-776.49K	-23.03K
Financing Cash Flow	3.04M	9.00M	13.24M	3.35M	6.38M	-925.00K

Prospera Energy Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PEI, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.76 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:PEI.

Prospera Energy Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CWV	49 Neutral	C$16.77M	-6.97	-16.40%	―	295.02%	78.28%
TAO	45 Neutral	C$19.25M	-4.36	-10.11%	―	257.86%	57.88%
DME	42 Neutral	C$29.35M	―	-6.13%	―	-82.16%	70.07%
PEI	41 Neutral	C$23.08M	-3.33	―	―	-0.63%	-47.75%
WIL	37 Underperform	C$22.76M	―	-276.15%	―	-3.67%	-26.40%
AVN	29 Underperform	C$27.37M	-6.58	-15.60%	―	―	68.98%

Prospera Energy Inc Corporate Events

Prospera Energy Reports Q3 2025 Financial Results and Strategic Acquisitions

Prospera Energy Inc. reported Q3 2025 financial results with sales revenue of $5.3 million and an operating netback of $0.8 million. The company invested $2 million in capital expenditures, focusing on well reactivations and plant maintenance. Key developments include acquiring the remaining 14% working interest in the Cuthbert area, consolidating its ownership, and acquiring White Tundra Petroleum, enhancing its asset portfolio. Despite increased sales revenue due to higher volumes and pricing, operating costs rose significantly, impacting netback. These strategic moves aim to bolster Prospera’s production capabilities and market position.

Prospera Energy Completes Key Pipeline Upgrades and Advances Winter Program

Prospera Energy Inc. has completed significant pipeline infrastructure projects in its Cuthbert and Hearts Hill fields, marking a key milestone in its reservoir optimization strategy. These upgrades are set to improve fluid management and operational reliability, enabling the company to advance its winter capital program, which includes reactivating and optimizing 42 wells. The company has also addressed 311 regulatory non-compliances, demonstrating its commitment to responsible development and operational discipline. Additionally, Prospera is progressing with its convertible debenture offering, aimed at supporting its winter capital program and enhancing long-term economic outcomes.

Prospera Energy Expands Convertible Debt Offering Amid Strong Investor Interest

Prospera Energy Inc. has announced an increase in its non-brokered private placement of convertible debentures from $3,000,000 to $4,000,000 due to strong insider participation and investor interest. The proceeds will be used for well reactivation, production optimization, and strengthening working capital. Additionally, Prospera has entered into agreements to settle outstanding trade payables through the issuance of common shares, reflecting a strategic move to manage its financial obligations while focusing on operational enhancements.

Prospera Energy Initiates Key Infrastructure Upgrades to Boost Production

Prospera Energy Inc. has initiated a significant pipeline replacement and infrastructure upgrade project in the Cuthbert area, investing approximately $500,000. This project involves replacing aging pipelines with corrosion-resistant FlexSteel material, which will enhance system integrity, improve leak detection, and increase waterflood injection capacity by 2,500–3,500 m³ per day. The upgrades are expected to add about 150 barrels of oil per day in production and provide material cost savings through reduced downtime and optimized operations. This initiative is part of Prospera’s broader field redevelopment plan to modernize assets, optimize reservoir management, and support sustained production growth while reducing operating costs.

Prospera Energy Reports Growth and Advances Sustainability Initiatives

Prospera Energy has reported significant production growth and increased asset ownership, driven by a favorable market environment for heavy oil producers. The company has successfully executed multiple projects, including well reactivations and infrastructure upgrades, leading to increased production and operational resilience. Prospera is also addressing environmental and regulatory issues, demonstrating its commitment to sustainable development and environmental stewardship.