Questerre (QEC) AI Stock Analysis

• Market Cap: C$130.70M
• Dividend Yield: N/A
• Average Volume (3M): 27.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -0.03%
• EPS Growth: 71.16%
• Country: CA
• Employees: 8
• Sector: Energy
• Sector Strength: 50
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.01
• Shares Outstanding: 428,516,000
• 10 Day Avg. Volume: 11,449
• 30 Day Avg. Volume: 27,352
• PEG Ratio: -8.07
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 100.81
• 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: C$0.50
• Price Target Upside: 78.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: C$0.50 ▲(78.57%Upside)

The overall stock score is primarily impacted by financial performance concerns, particularly negative net income and declining margins. While technical analysis suggests positive short-term momentum, valuation issues with a negative P/E ratio and lack of dividend yield weigh heavily on the score. Improving profitability is crucial for enhancing the stock's appeal.

Questerre Business Overview & Revenue Model

Company Description

Questerre Energy Corporation acquires, explores, and develops non-conventional oil and gas projects in Canada. It produces tight oil, oil shale, shale oil, and shale gas. The company primarily holds 40,800 acres located in Kakwa, west central Alberta, including a 25% working interest in 10,080 acres in Kakwa Central; 50% working interest in 4,480 acres in Kakwa North; 50% interest in 22,400 acres in Kakwa West; and 50% interest in 3,840 acres in Kakwa South. It also holds 100% working interest in 11,952 acres located in Antler, Saskatchewan; and oil shale assets in Jordan. The company was formerly known as Westpro Equipment Ltd. and changed its name to Questerre Energy Corporation in December 2000. Questerre Energy Corporation was incorporated in 1971 and is headquartered in Calgary, Canada.

How the Company Makes Money

Questerre makes money primarily through the exploration, development, and production of oil and gas resources. The company's revenue model is based on the sale of these hydrocarbons, which are extracted from its resource plays, including the Utica shale. Key revenue streams include the sale of crude oil, natural gas, and associated products to various markets. Additionally, Questerre may engage in strategic partnerships and joint ventures to enhance its exploration capabilities and reduce operational risks. Factors such as commodity prices, production volumes, and operational efficiencies significantly contribute to its earnings.

Questerre Financial Statement Overview

Summary

Questerre shows a mixed financial performance. The balance sheet is stable with low leverage and a strong equity ratio, but the income statement reveals profitability challenges. Negative net income and declining margins overshadow moderate revenue growth. Cash flow is stable, but negative net income impacts financial health.

Income Statement

The income statement shows moderate performance with a notable decline in net income over the TTM due to a negative net profit margin. Despite a slight increase in revenue, the net income remains negative. Gross profit margins have decreased significantly compared to previous years, indicating cost pressures. Revenue growth is modest, but profitability is a concern with negative net income and EBIT margins.

Balance Sheet

The balance sheet displays a strong equity base with a low debt-to-equity ratio, indicating financial stability. The company's equity ratio is robust, suggesting a solid financial structure. However, the decrease in total assets and stockholders' equity over the years may pose a risk if the trend continues.

Cash Flow

The cash flow statement indicates a positive free cash flow, although its growth rate has slowed compared to previous years. The operating cash flow remains healthy, but the free cash flow to net income ratio is less favorable due to negative net income. Overall, cash flow generation is stable, but profitability issues dampen the score.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.93M	35.71M	51.75M	30.40M	21.92M
Gross Profit	6.51M	6.99M	21.71M	10.66M	-758.00K
EBITDA	11.77M	13.11M	25.30M	2.22M	-107.59M
Net Income	-7.33M	-23.71M	14.07M	-4.30M	-117.62M
Balance Sheet
Total Assets	170.72M	172.35M	196.49M	184.26M	196.18M
Cash, Cash Equivalents and Short-Term Investments	31.79M	35.04M	29.59M	8.53M	10.40M
Total Debt	188.00K	228.00K	283.00K	3.63M	15.68M
Total Liabilities	32.09M	28.68M	30.36M	35.30M	44.06M
Stockholders Equity	138.63M	143.67M	166.13M	148.96M	152.12M
Cash Flow
Free Cash Flow	9.63M	11.67M	26.03M	13.57M	4.45M
Operating Cash Flow	13.67M	16.32M	28.81M	14.07M	6.41M
Investing Cash Flow	-16.86M	-10.81M	-11.97M	-3.76M	-10.15M
Financing Cash Flow	-65.00K	-55.00K	-3.44M	-11.88M	-1.03M

Questerre Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 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:QEC, the sentiment is Positive. The current price of 0.28 is below the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.27, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 60.81 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:QEC.

Questerre Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$15.24B	9.90	6.33%	5.18%	4.06%	-67.04%
BNE	65 Neutral	$132.60M	75.48	0.41%	―	-12.01%	-77.35%
CDR	65 Neutral	C$128.24M	―	-52.56%	―	968.30%	81.49%
CNE	60 Neutral	C$79.16M	4.40	-1.29%	6.77%	17.52%	-105.04%
QEC	55 Neutral	C$130.70M	―	-5.05%	―	-0.03%	71.16%
CVVY	48 Neutral	C$113.26M	―	-21.67%	―	-42.15%	-117.23%
FO	36 Underperform	£133.10M	―	-6.26%	―	―	13.95%

Questerre Corporate Events

Questerre Responds to Quebec Court Ruling on Bill 21

Questerre Energy Corporation reported on the Quebec Court of Appeal’s ruling concerning Bill 21, which affects the exploration and production of petroleum and brine. The court recognized a constitutional issue with Bill 21 and reinstated certain provisions, prompting Questerre to seek an appeal to the Supreme Court of Canada. This ruling could impact the enforcement of well abandonment and reclamation provisions, although it does not affect the main trial on the merits of the case. The court’s decision highlights the importance of public interest in the suspension of Bill 21 and overturned a previous decision that suspended key provisions of the bill.