Eros Resources (ROCK) AI Stock Analysis

• Market Cap: C$107.93M
• Dividend Yield: N/A
• Average Volume (3M): 80.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: N/A
• EPS Growth: 14.55%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.04
• Shares Outstanding: 32,606,804
• 10 Day Avg. Volume: 79,210
• 30 Day Avg. Volume: 80,525
• PEG Ratio: -0.02
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -37.55
• 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$4.06
• Price Target Upside: 22.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$3.50 ▲(5.74% Upside)

The score is primarily held back by weak financial quality—minimal revenue, deeply negative EBIT, and significant negative operating/free cash flow—despite a strong low-leverage balance sheet. Technicals are supportive with strong upward momentum and price above key moving averages, but valuation signals are weak due to a negative P/E and no dividend yield provided.

Positive Factors

Low Leverage / Balance Sheet Strength

Very low leverage and a sizable equity cushion give the company durable financial flexibility. Over the medium term this reduces default risk, supports potential financing or asset-backed lending, and allows strategic options while operations are stabilized.

Material Asset Base Expansion

A materially larger asset base creates a foundation for scaling operations or monetization to fund growth. If deployed effectively, these assets improve long-term operating capacity and collateral for financing, supporting strategic initiatives beyond short-term cycles.

Reported Positive TTM Net Income

A return to positive reported net income can help rebuild equity and investor confidence if sustained. Over months, continued positive earnings could reduce reliance on external capital and enable reinvestment, though sustainability must be confirmed by cash metrics.

Negative Factors

Minimal Revenue Base

Near-zero revenue is a fundamental weakness: without recurring sales the company cannot generate sustainable operating margins. Over 2-6 months this limits scalability, makes forecasting unreliable, and increases reliance on non-operating gains or financing to cover costs.

Negative Operating and Free Cash Flow

Substantial cash burn from operations undermines long-term viability absent new financing or asset sales. Persistent negative OCF/FCF erodes liquidity, forces dilutive funding or asset monetization, and constrains the company's ability to invest in core businesses over months.

Weak Earnings Quality Driven by Non-Operating Items

Profitability appears reliant on non-operating items rather than core operations. If these one-time or non-recurring gains reverse, reported profits will disappear. This raises risk of earnings volatility, undermines sustainable margin expectations and strategic planning.

Eros Resources Business Overview & Revenue Model

Company Description

Rockridge Resources Ltd., a mineral exploration company, engages in the acquisition, exploration, and development of mineral resource properties in Canada. The company explores for copper, silver, zinc, gold, and cobalt deposits. Its flagship project is the Knife Lake Copper VMS project, which hosts the Knife Lake Cu-Co-Au-Ag-Zn VMS deposits comprising 82 claims totaling 56,865 hectares located in Saskatchewan, Canada. The company was formerly known as Rockridge Gold Ltd. and changed its name to Rockridge Resources Ltd. in March 2018. Rockridge Resources Ltd. was incorporated in 2015 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Rockridge Resources makes money by exploring and developing mineral properties with the potential for significant mineral deposits. The company's revenue model is primarily based on increasing the value of its mineral properties through exploration and geological studies, which can then attract investors or potential buyers. Key revenue streams include raising capital through equity financing, joint ventures, and strategic partnerships, which provide the necessary funding for ongoing exploration and development activities. In addition, Rockridge may generate revenue by selling or leasing its mineral properties to larger mining companies once significant resources have been identified.

Eros Resources Financial Statement Overview

Summary

Balance sheet strength (low leverage; equity materially exceeds debt) is offset by weak operating quality and sustainability: revenue is effectively zero, EBIT is deeply negative, and both operating cash flow and free cash flow are materially negative, indicating ongoing cash burn despite reported positive net income.

Income Statement

TTM (Trailing-Twelve-Months) net income turned positive (2.9M), improving from prior years’ losses, but profitability quality looks weak: revenue is effectively zero and gross profit remains negative, while EBIT is deeply negative despite positive EBITDA. This mix suggests earnings are driven by non-operating items rather than a stable operating business, and margins provided are not meaningful given the near-zero revenue base.

Balance Sheet

The balance sheet is a clear strength: equity is sizable (TTM 26.1M) versus modest debt (150K), keeping leverage low (debt-to-equity ~0.06). Assets have expanded materially versus 2024 (29.6M vs 6.25M), improving scale, but returns have compressed sharply (TTM return on equity ~0.9% vs 2024 ~23.8%), indicating weaker efficiency in generating profits from the larger capital base.

Cash Flow

Cash generation is a key concern. TTM (Trailing-Twelve-Months) operating cash flow is materially negative (-3.77M) and free cash flow is also negative (-3.81M), implying ongoing cash burn. While free cash flow growth is shown as positive, the absolute level remains meaningfully negative, and operating cash flow does not support reported earnings (operating cash flow relative to net income is negative), raising sustainability risk without external funding or asset monetization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	75.00	0.00	0.00	0.00
Gross Profit	-15.90K	-16.45K	-23.93K	0.00	0.00	0.00
EBITDA	1.11M	1.59M	-728.38K	-1.20M	-1.80M	-1.30M
Net Income	2.89M	1.48M	-5.09M	-1.15M	-1.72M	-1.25M
Balance Sheet
Total Assets	29.64M	6.25M	6.95M	6.70M	5.41M	4.29M
Cash, Cash Equivalents and Short-Term Investments	4.65M	171.04K	650.18K	1.02M	590.97K	1.53M
Total Debt	150.00K	0.00	0.00	0.00	0.00	0.00
Total Liabilities	3.52M	25.94K	209.94K	66.50K	16.67K	100.28K
Stockholders Equity	26.13M	6.22M	6.74M	6.64M	5.39M	4.19M
Cash Flow
Free Cash Flow	-3.81M	-325.84K	-786.15K	-1.84M	-3.50M	-1.89M
Operating Cash Flow	-3.77M	-325.84K	-786.15K	-1.21M	-1.56M	-1.12M
Investing Cash Flow	4.82M	-153.29K	-559.93K	-632.85K	-1.94M	-767.82K
Financing Cash Flow	3.32M	0.00	973.94K	2.27M	2.56M	2.64M

Eros Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROCK, the sentiment is Positive. The current price of 3.31 is above the 20-day moving average (MA) of 2.62, above the 50-day MA of 2.20, and above the 200-day MA of 1.11, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 69.32 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ROCK.

Eros Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ROCK	56 Neutral	C$107.93M	-34.92	4.77%	―	―	14.55%
CTM	56 Neutral	C$85.28M	-15.83	-27.31%	―	―	-3.73%
ALTA	56 Neutral	C$77.08M	-41.94	-5.78%	―	―	37.37%
SOI	55 Neutral	C$85.30M	-91.67	-2.23%	―	―	-50.00%