Royal Helium (RHC.H) AI Stock Analysis

• Market Cap: $7.55M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: N/A
• EPS Growth: -63.19%
• Country: CA
• Employees: 4
• Sector: Energy
• Sector Strength: 68
• Industry: Fossil Fuels
• EPS (TTM): -0.06
• Shares Outstanding: 377,280,640
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.44
• P/FCF Ratio: N/A
• 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

• Rating: 37 Underperform
• Price Target: ―

Royal Helium faces substantial financial and operational challenges, reflected in its poor financial performance and technical indicators. The company's efforts to restructure and seek creditor protection, alongside executive resignations, indicate critical distress. These factors, combined with valuation concerns, result in a low overall stock score, highlighting significant risks.

Royal Helium Business Overview & Revenue Model

Company Description

Royal Helium (RHC) is a helium exploration and development company focused on discovering and producing helium resources in North America. The company operates within the energy and natural resources sector, with core operations centered around the exploration, development, and potential production of helium gas, which is an essential component in various high-tech and industrial applications, including medical imaging, electronics manufacturing, and space exploration.

How the Company Makes Money

Royal Helium makes money primarily through the exploration and development of helium resources, intending to sell the extracted helium to various industries that require this critical gas. The company's revenue model involves identifying and securing helium-rich properties, conducting exploration and drilling activities to ascertain the volume and quality of the helium deposits, and then entering into sales agreements with end-users or distributors in sectors such as healthcare, technology, and aerospace. Key revenue streams include the sale of helium gas, potential joint ventures, and partnerships with other exploration companies or end-users who require a stable helium supply. These partnerships can also include agreements with technology firms and industrial gas companies that facilitate the processing, distribution, and sale of helium to meet market demand.

Royal Helium Financial Statement Overview

Summary

Royal Helium is in the early stages of revenue generation, but it faces significant profitability and cash flow challenges. The balance sheet shows moderate leverage, yet the negative ROE highlights sustained losses. The company must address cost control and improve cash flow to enhance financial stability and investor confidence.

Income Statement

Royal Helium has shown some revenue growth from 2022 to TTM 2023, indicating initial progress in generating sales. However, the company continues to struggle with negative profit margins, with a gross profit margin of -162.27% and a net profit margin of -733.65% for the TTM. This indicates significant challenges in managing costs and achieving profitability.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.65, suggesting a balanced approach to financing its operations. However, the return on equity is negative at -35.29%, reflecting ongoing losses. The equity ratio stands at 54.21%, which is decent but highlights the need for better asset utilization.

Cash Flow

The operating cash flow to net income ratio is 0.46, indicating a weak conversion of income into cash. Free cash flow remains negative, and the free cash flow to net income ratio is 0.78. The company has not yet achieved positive free cash flow growth, indicating liquidity challenges.

Breakdown
Income Statement		Total Revenue
	Gross Profit
	EBIT
	EBITDA
	Net Income Common Stockholders
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
	Total Assets
	Total Debt
	Net Debt
	Total Liabilities
	Stockholders Equity
Cash Flow		Free Cash Flow
	Operating Cash Flow
	Investing Cash Flow
	Financing Cash Flow

Royal Helium Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RHC.H, the sentiment is Negative. The current price of 0.02 is equal to the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RHC.H.

Royal Helium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HME	82 Outperform	C$183.69M	5.27	48.97%	6.15%	22.64%	44.49%
Sector *	58 Neutral	$7.55B	3.49	-4.45%	10.15%	0.79%	-49.51%
HELI	44 Neutral	C$5.35M	―	-19.36%	―	-71.68%	78.98%
DME	42 Neutral	C$18.84M	―	-8.45%	―	-81.44%	59.09%
RHC.H	37 Underperform	$7.55M	―	-34.75%	―	―	-63.19%