Rubellite Energy Inc (RBY) AI Stock Analysis

• Market Cap: C$176.51M
• Dividend Yield: N/A
• Average Volume (3M): 24.60K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.87
• Revenue Growth: 83.19%
• EPS Growth: -43.74%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 72
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.35
• Shares Outstanding: 92,900,000
• 10 Day Avg. Volume: 12,559
• 30 Day Avg. Volume: 24,602
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.72
• Price to Cash Flow (P/CF): 0.60
• P/FCF Ratio: 0.60
• 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$3.00
• Price Target Upside: 54.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Rubellite Energy Inc demonstrates strong financial health with impressive revenue growth and profitability. While technical indicators suggest a current bearish trend, the stock is undervalued, offering potential for upside. The strategic recombination with Perpetual Energy strengthens the company's financial position and supports future growth. Overall, the stock presents a compelling investment opportunity with a balanced risk-reward profile.

Positive Factors

Land Acquisition

Rubellite is quickly amassing one of the larger land positions with 580+ sections that should help growth stay strong for the next few years.

Operational Strength

4Q24 results highlighted continued operational strength, record heavy oil production with quarterly growth of 30%.

Negative Factors

Financial Performance

For every dollar spent, a loss of $0.07 was incurred, largely due to the spend on acquisitions for future inventory.

Rubellite Energy Inc Business Overview & Revenue Model

Company Description

Rubellite Energy Inc. engages in the exploration, development, production, and sale of heavy crude oil from the Clearwater Formation in Eastern Alberta. The company was incorporated in 2021 and is headquartered in Calgary, Canada. Rubellite Energy Inc. is a subsidiary of Perpetual Energy Inc.

How the Company Makes Money

Rubellite Energy Inc makes money through the exploration, development, and production of oil and natural gas. The company's revenue model is primarily driven by the sale of these resources to various markets, including domestic and international buyers. Key revenue streams include the direct sale of crude oil and natural gas, as well as potential midstream operations that support transportation and processing of these resources. Significant factors contributing to its earnings include fluctuations in global oil and gas prices, production efficiency, and strategic partnerships that enhance resource extraction and market reach.

Rubellite Energy Inc Financial Statement Overview

Summary

Rubellite Energy Inc exhibits strong growth and profitability, particularly in revenue and net income. The company is financially stable with manageable debt levels and strong equity returns. However, high capital expenditures impact free cash flow, posing a potential risk. Overall, the company is on a positive trajectory with robust financial health.

Income Statement

Rubellite Energy Inc has demonstrated strong revenue growth, with a significant increase in revenue from the previous year. The gross profit margin is healthy, reflecting efficient cost management. However, the EBIT margin is unavailable for 2024, though EBITDA margin is robust. Net profit margin has improved considerably, indicating enhanced profitability.

Balance Sheet

The company maintains a solid equity base with a debt-to-equity ratio that is manageable, reflecting financial stability. The return on equity (ROE) is impressive, showcasing strong returns on shareholders' investments. However, the equity ratio indicates a moderate level of leverage, suggesting potential risks if liabilities increase.

Cash Flow

Operating cash flow has increased significantly, indicating strong cash generation capabilities. However, the free cash flow remains negative due to high capital expenditures. The operating cash flow to net income ratio is favorable, but the free cash flow to net income ratio is affected by high investment activities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
168.38M	80.45M	54.49M	4.92M
	Gross Profit
81.57M	73.08M	30.92M	2.24M
	EBIT
0.00	46.66M	21.27M	-6.00M
	EBITDA
115.78M	56.14M	23.68M	-4.61M
	Net Income Common Stockholders
49.97M	18.56M	24.61M	7.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.56M	0.00	1.95M	15.29M
	Total Assets
562.61M	271.15M	204.03M	115.86M
	Total Debt
132.49M	29.32M	12.00M	0.00
	Net Debt
129.94M	29.32M	10.05M	-15.29M
	Total Liabilities
252.59M	71.84M	44.53M	20.38M
	Stockholders Equity
310.02M	199.31M	159.50M	95.48M
Cash Flow		Free Cash Flow
-60.72M	-16.14M	-43.76M	-16.24M
	Operating Cash Flow
95.79M	55.39M	23.87M	1.11M
	Investing Cash Flow
-173.03M	-94.35M	-86.27M	-67.16M
	Financing Cash Flow
79.80M	37.01M	49.06M	81.33M

Rubellite Energy Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.94
• 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:RBY, the sentiment is Negative. The current price of 1.94 is above the 20-day moving average (MA) of 1.88, above the 50-day MA of 1.93, and below the 200-day MA of 2.15, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RBY.

Rubellite Energy Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOU	78 Outperform	C$25.56B	19.29	8.55%	2.23%	-8.29%	-30.52%
PEY	73 Outperform	C$3.54B	12.40	10.37%	7.43%	-9.52%	-11.68%
MEG	72 Outperform	$5.86B	12.06	11.22%	1.35%	-8.92%	-5.46%
ARX	71 Outperform	C$16.58B	14.87	14.67%	2.59%	-9.83%	-27.76%
RBY	70 Outperform	C$176.51M	5.47	13.98%	―	83.19%	-43.74%
BIR	62 Neutral	$1.85B	32.71	2.51%	5.10%	-26.02%	464.95%
Sector *	58 Neutral	$9.12B	5.24	-7.59%	7.51%	0.53%	-65.25%

Rubellite Energy Inc Corporate Events

Rubellite Energy Reports Record Q4 Production and Strategic Recombination

Rubellite Energy Inc. reported a successful fourth quarter in 2024, marked by record production levels and a strategic recombination with Perpetual Energy Inc. This transaction resulted in a significant restructuring of ownership and conversion of senior notes into equity, enhancing the company’s financial stability. The company’s production growth was driven by a robust drilling program and strategic acquisitions, positioning Rubellite for continued expansion in 2025.