Parex Resources (PXT) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: 11.26%
• Average Volume (3M): 505.75K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.11
• Revenue Growth: -9.92%
• EPS Growth: -78.49%
• Country: CA
• Employees: 448
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.13
• Shares Outstanding: 97,554,140
• 10 Day Avg. Volume: 566,463
• 30 Day Avg. Volume: 505,755
• PEG Ratio: 0.27
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.65
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 1.43
• Enterprise Value/Ebitda: 0.36
• 1Y Price Target: $17.33
• Price Target Upside: 27.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 81 Outperform
• Price Target: C$15.00 ▲(10.54%Upside)

The overall score is driven by strong earnings call and corporate events, highlighting robust financial performance and strategic advancements. The attractive valuation with a high dividend yield further supports the score. However, mixed technical indicators and declining revenue in financial statements slightly temper the positive outlook.

Positive Factors

Earnings Guidance

With Q4 earnings, the company reaffirmed 2025 guidance, allowing investors to move forward with confidence.

Production Guidance

The company's 2025 production guidance is slightly ahead of Street expectations, which should help build confidence that production has found a base.

Valuation

Current valuation appears quite attractive and should bring in new investors as the company reiterates consistent results.

Negative Factors

Geopolitical Risks

Colombia hasn't been kind to Canadian-listed E&P names. Government regulation, drilling exploration risk, and social unrest have historically warranted caution.

Past Performance

Underwhelming production results this past summer had upended multiple successful years.

Production Results

Underwhelming production results this past summer had upended multiple successful years for Parex.

Parex Resources Business Overview & Revenue Model

Company Description

Parex Resources Inc. (PXT) is a Canada-based oil and gas company focused on the exploration, development, and production of hydrocarbons. The company operates primarily in Colombia, where it holds a diversified portfolio of assets across multiple basins. Parex Resources is engaged in the exploration and production of crude oil and natural gas, contributing to the energy sector with its sustainable and efficient operations.

How the Company Makes Money

Parex Resources generates revenue primarily through the exploration, extraction, and sale of crude oil and natural gas. The company's key revenue streams include the sale of produced hydrocarbons, which are marketed and distributed to various domestic and international markets. Parex Resources leverages strategic partnerships and joint ventures to enhance its exploration capabilities and maximize output. The company benefits from its focus on operational efficiency and cost management, which contributes to its profitability. Additionally, Parex Resources' earnings are influenced by global oil prices, production volumes, and its ability to optimize its asset portfolio.

Parex Resources Financial Statement Overview

Summary

Parex Resources exhibits a stable financial position with strong operational efficiency, evidenced by favorable EBIT and EBITDA margins. The company's balance sheet is robust with minimal leverage and high equity coverage. Cash flow management is efficient, although there's a slight decline in free cash flow growth. The primary concern is the declining revenue, which needs addressing to sustain long-term growth.

Income Statement

Parex Resources has shown a mixed performance in its income statement. While the TTM (Trailing-Twelve-Months) gross profit margin is healthy at 54.9%, the net profit margin is relatively lower at 7.3%. The revenue growth rate from the previous year to the TTM period is -13.6%, indicating a decline in sales. However, the EBIT margin remains strong at 36.2%, reflecting efficient operational management. The EBITDA margin is also robust at 43.4%.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The return on equity (ROE) for the TTM period is moderate at 4.3%, reflecting modest returns on shareholders' equity. The equity ratio stands at an impressive 85.5%, suggesting a solid capital structure and high asset coverage by equity.

Cash Flow

Parex Resources demonstrates strong cash flow management. The operating cash flow to net income ratio is 6.9, underscoring substantial cash inflows relative to net income. The free cash flow growth rate from the previous year is -1.6%, indicating a slight decline. However, the free cash flow to net income ratio is significant at 4.2, showcasing effective cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.11B	1.29B	1.17B	1.31B	900.20M	531.87M
	Gross Profit
610.70M	549.07M	889.83M	1.11B	728.57M	357.20M
	EBIT
403.01M	469.43M	454.24M	803.17M	503.81M	173.35M
	EBITDA
482.61M	529.40M	659.18M	957.67M	628.62M	290.71M
	Net Income Common Stockholders
81.22M	60.68M	459.31M	611.37M	303.11M	99.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
81.03M	98.02M	140.35M	419.00M	378.34M	330.56M
	Total Assets
2.20B	2.16B	2.42B	2.31B	1.78B	1.54B
	Total Debt
54.51M	64.62M	95.74M	6.08M	4.51M	1.82M
	Net Debt
-26.52M	-33.40M	-44.62M	-412.92M	-373.83M	-328.74M
	Total Liabilities
317.43M	323.74M	459.90M	599.38M	390.53M	200.60M
	Stockholders Equity
1.88B	1.83B	1.96B	1.71B	1.39B	1.34B
Cash Flow		Free Cash Flow
338.47M	343.89M	26.11M	453.36M	322.15M	173.10M
	Operating Cash Flow
560.12M	569.91M	376.47M	983.60M	534.30M	290.02M
	Investing Cash Flow
-357.32M	-392.24M	-535.51M	-638.10M	-229.04M	-179.80M
	Financing Cash Flow
-182.98M	-214.90M	-130.63M	-291.98M	-252.35M	-168.44M

Parex Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PXT, the sentiment is Positive. The current price of 13.57 is above the 20-day moving average (MA) of 12.43, above the 50-day MA of 12.26, and above the 200-day MA of 13.07, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 67.24 is Neutral, neither overbought nor oversold. The STOCH value of 87.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PXT.

Parex Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PXT	81 Outperform	$1.33B	11.85	4.22%	11.26%	-9.92%	-78.49%
CJ	78 Outperform	C$1.02B	8.66	12.42%	11.71%	3.79%	3.87%
HWX	76 Outperform	$1.48B	7.40	29.87%	6.59%	20.48%	21.66%
KEL	62 Neutral	$1.33B	24.99	4.98%	―	0.73%	-36.49%
Sector *	57 Neutral	$7.07B	2.93	-3.47%	5.76%	0.66%	-50.70%
VET	54 Neutral	$1.42B	―	-1.19%	5.49%	1.04%	94.48%
MER	45 Neutral	$1.25B	―	-25.82%	4.83%	―	-438.52%

Parex Resources Corporate Events

Parex Resources Secures Shareholder Approval at Annual Meeting

Parex Resources Inc. announced the successful approval of all matters presented at its annual general meeting of shareholders, including the election of nine directors and a non-binding advisory resolution on executive compensation. This approval reflects strong shareholder support and positions the company to continue its strategic focus on sustainable oil and gas production in Colombia.

Parex Resources Reports Strong Q1 2025 Results and Declares Q2 Dividend

Parex Resources reported its Q1 2025 financial results, highlighting a funds flow of $122 million and a net income of $81 million. The company announced a Q2 2025 dividend of C$0.385 per share and provided an operational update, including increased drilling activity and a strategic acquisition to boost production. Parex is on track to meet its 2025 production guidance and is closely monitoring commodity prices to optimize shareholder value.

Parex Resources Reports Strong 2024 Results and Strategic Advancements

Parex Resources announced its 2024 financial results, highlighting a strong performance with $622 million in funds flow and a net income of $61 million. The company declared a Q1 2025 dividend and appointed a new CFO, Cameron Grainger. Parex achieved strategic milestones, including successful waterflood implementations and polymer injection pilots, and expanded its exploration activities in the Llanos Foothills. The company aims to maintain steady production and shareholder returns while preparing for future exploration opportunities.