Questerre (QEC) AI Stock Analysis

• Market Cap: C$122.13M
• Dividend Yield: N/A
• Average Volume (3M): 35.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 19.15%
• EPS Growth: 43.88%
• Country: CA
• Employees: 8
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.01
• Shares Outstanding: 428,516,000
• 10 Day Avg. Volume: 33,747
• 30 Day Avg. Volume: 35,634
• PEG Ratio: 0.18
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 2.64
• P/FCF Ratio: 9.37
• 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: 48 Neutral
• Price Target: C$0.31 ▼(-0.97% Downside)

Questerre's overall stock score is primarily influenced by its financial performance and valuation. The company shows revenue growth and a stable balance sheet, but significant profitability challenges and a negative P/E ratio weigh heavily on the score. Technical analysis indicates a neutral market sentiment, neither strongly positive nor negative.

Positive Factors

Revenue Growth

Positive revenue growth suggests expanding market presence and potential for increased market share, supporting long-term business sustainability.

Stable Balance Sheet

A stable balance sheet with low leverage enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Cash Generation

Strong cash generation relative to net income indicates efficient operations and the ability to fund future investments and obligations without relying on external financing.

Negative Factors

Profitability Challenges

Persistent profitability issues with negative margins undermine the company's ability to generate sustainable profits and may impact long-term viability.

Declining Free Cash Flow

Decreasing free cash flow growth limits the company's ability to reinvest in its operations and may constrain future growth and shareholder returns.

Negative Return on Equity

Negative ROE indicates inefficiencies in generating returns for shareholders, which can hinder investor confidence and affect long-term capital raising capabilities.

Questerre Business Overview & Revenue Model

Company Description

Questerre Energy Corporation (QEC) is a Canadian-based energy company engaged in the exploration and production of oil and natural gas. The company primarily focuses on unconventional resource plays, with its operations centered in Canada and strategic interests in the United States. Questerre's core products include natural gas liquids, oil, and natural gas, which are essential for various applications in energy production and consumption. The company is committed to sustainable practices and innovation in the energy sector, aiming to balance economic growth with environmental stewardship.

How the Company Makes Money

Questerre generates revenue primarily through the exploration, production, and sale of oil and natural gas. The company's key revenue streams include the sale of crude oil, natural gas, and natural gas liquids to various markets, including utilities and industrial users. Additionally, Questerre may earn income from joint ventures and partnerships in its exploration and production activities, leveraging shared resources and expertise. Factors contributing to its earnings include fluctuations in global oil and gas prices, operational efficiency, and the successful development of its resource projects. Strategic partnerships and alliances with other energy firms or service providers may also enhance its revenue potential.

Questerre Financial Statement Overview

Summary

Questerre's financial performance is mixed. While there is positive revenue growth, profitability is a significant concern with negative net profit and EBIT margins. The balance sheet is stable with low leverage, but the negative ROE highlights inefficiencies. Cash flow generation is relatively strong, but the decline in free cash flow growth is worrying.

Income Statement

Questerre's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 5.63%, indicating some recovery. However, profitability metrics are concerning, with a negative net profit margin of -22.58% and a negative EBIT margin of -3.99%. The gross profit margin has declined from previous years, reflecting increased cost pressures. Overall, while there is revenue growth, profitability remains a significant challenge.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.00095, indicating low leverage. However, the return on equity is negative at -6.47%, highlighting inefficiencies in generating returns for shareholders. The equity ratio is strong, suggesting a solid capital structure, but the negative ROE is a concern for long-term value creation.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -7.07% TTM, which is a concern. However, the operating cash flow to net income ratio is healthy at 1.50, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.59 suggests that a significant portion of net income is backed by free cash flow, although the decline in free cash flow growth needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.51M	34.15M	35.71M	51.75M	30.40M	21.92M
Gross Profit	3.21M	6.51M	6.99M	21.71M	10.66M	-758.00K
EBITDA	10.38M	11.77M	13.11M	25.30M	2.22M	-107.59M
Net Income	-14.15M	-7.33M	-23.71M	14.07M	-4.30M	-117.62M
Balance Sheet
Total Assets	384.85M	170.72M	172.35M	196.49M	184.26M	196.18M
Cash, Cash Equivalents and Short-Term Investments	18.79M	31.79M	35.04M	29.59M	8.53M	10.40M
Total Debt	108.87M	188.00K	228.00K	283.00K	3.63M	15.68M
Total Liabilities	249.80M	32.09M	28.68M	30.36M	35.30M	44.06M
Stockholders Equity	135.05M	138.63M	143.67M	166.13M	148.96M	152.12M
Cash Flow
Free Cash Flow	9.69M	9.63M	11.67M	26.03M	13.57M	4.45M
Operating Cash Flow	14.79M	13.67M	16.32M	28.81M	14.07M	6.41M
Investing Cash Flow	-31.79M	-16.86M	-10.81M	-11.97M	-3.76M	-10.15M
Financing Cash Flow	-64.00K	-65.00K	-55.00K	-3.44M	-11.88M	-1.03M

Questerre Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QEC, the sentiment is Negative. The current price of 0.31 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.29, and above the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QEC.

Questerre Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YGR	67 Neutral	C$111.32M	5.97	3.18%	―	-12.46%	-49.29%
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%
CDR	46 Neutral	C$134.00M	-26.38	-95.52%	―	82.57%	49.97%

Questerre Corporate Events

Questerre Announces Quebec Spinout Plans and PX Energy Transaction Update

Questerre Energy Corporation has announced corporate updates concerning the spinout of its Quebec assets and developments surrounding the PX Energy transaction. The Quebec Spinout will involve the issuance of tracking preferred shares, enabling shareholders to benefit from the economic outcome of Questerre’s Quebec assets while minimizing regulatory and political risks. Regarding the PX Energy transaction, the company has filed a purchase price adjustment claim for $21.5 million, which is under dispute. Additionally, Questerre is preparing to close a joint venture in Brazil, aiming to further its international growth strategy.

The most recent analyst rating on (TSE:QEC) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Questerre stock, see the TSE:QEC Stock Forecast page.