ROK Resources (ROK) AI Stock Analysis

• Market Cap: C$45.73M
• Dividend Yield: N/A
• Average Volume (3M): 657.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: -13.32%
• EPS Growth: -811.11%
• Country: CA
• Employees: 27
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.01
• Shares Outstanding: 217,763,810
• 10 Day Avg. Volume: 226,749
• 30 Day Avg. Volume: 657,490
• PEG Ratio: 0.64
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 9.34
• 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: 67 Neutral
• Price Target: C$0.21 ▼(-6.36% Downside)

The score is driven primarily by financial strength—very low leverage and solid, improving free cash flow—partly offset by weak profitability (net loss and negative EBIT). Technicals add mild support from an improving trend, while valuation is constrained by losses (negative P/E). Corporate actions (going-private progress and buybacks) provide an additional positive tailwind.

Positive Factors

Conservative balance sheet with minimal debt

Very low leverage provides durable financial flexibility: better resilience to commodity downturns, capacity to fund capex or opportunistic acquisitions, and reduced refinancing risk. This underpins long-term operational continuity and strategic optionality.

Strong and improving free cash flow

Growing free cash flow is a sustainable strength: it funds maintenance/development capital, supports deleveraging or shareholder returns, and reduces reliance on external financing. Over months this improves strategic independence and execution flexibility.

Solid gross and EBITDA margins from core assets

Healthy gross and EBITDA margins indicate the asset base generates operating cash earnings even if net income is negative. This structural profitability at the operational level provides a cushion to absorb cost shocks and supports recoverable earnings with improved non-cash/financing management.

Negative Factors

Negative net income and negative EBIT

Persistent negative EBIT and net losses erode equity and limit reinvestment capacity. Over the medium term this constrains growth initiatives, increases pressure to monetize assets or cut investment, and can damage investor confidence if not returned to profitability.

Declining revenue trend

Sustained revenue decline reduces scale benefits and puts structural pressure on margins and cash generation. Over months this constrains operating leverage, limits funding for development projects, and increases vulnerability to fixed costs and commodity price swings.

Low returns on capital (negative ROE)

Negative ROE signals the company is not converting shareholder capital into profits, limiting long-term value creation. This structural shortfall can restrict access to capital, lower strategic options like acquisitions, and necessitate operational or asset portfolio changes.

ROK Resources Business Overview & Revenue Model

Company Description

ROK Resources Inc. engages in the oil and gas exploration and development activities in Western Canada. As of April 19, 2022, it had a proved developed producing oil and gas reserves of 6,900 thousands of barrels of oil equivalent (Mboe); total proved oil and gas reserves of 9,290 Mboe; and total proved plus probable oil and gas reserves of 15,448 Mboe. The company was formerly known as Petrodorado Energy Ltd. and changed its name to ROK Resources Inc. in January 2020. ROK Resources Inc. is headquartered in Regina, Canada.

How the Company Makes Money

ROK Resources makes money through the sale of crude oil, natural gas, and natural gas liquids that it extracts and produces from its reserves. The company's revenue model is heavily reliant on the market prices of these commodities, which can fluctuate based on global supply and demand dynamics, geopolitical factors, and environmental regulations. ROK Resources may also engage in hedging activities to manage price volatility and ensure a more stable revenue stream. Additionally, the company may establish partnerships or joint ventures with other energy firms to optimize resource development and share operational costs, which can further contribute to its earnings.

ROK Resources Financial Statement Overview

Summary

Strong balance sheet (minimal debt) and solid cash generation with positive, growing free cash flow support resilience, but the income statement is weak with declining revenue, negative EBIT, and a net loss.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-6.5%) and profitability weakened, with negative EBIT and a net loss (about -7.5% net margin). Offsetting this, gross margin remains solid (~56%) and EBITDA margin is still positive (~19%), suggesting the core asset base can generate operating cash earnings but is being pressured by costs below EBITDA (e.g., depreciation/other items) and/or weaker pricing/volumes versus the prior year.

Balance Sheet

The balance sheet looks conservatively positioned: TTM debt is minimal versus equity (debt-to-equity ~0.00), and equity is sizable relative to the asset base. The main weakness is returns—TTM return on equity is negative, reflecting that the company is not currently converting its capital base into profits despite low leverage.

Cash Flow

Cash generation is a clear strength. TTM operating cash flow is strong and covers net losses (operating cash flow to net income ~2.09x), while free cash flow is positive and grew meaningfully (~19%). The key watch-out is that earnings quality remains mixed (net income negative), so sustaining free cash flow likely depends on stable operating performance and disciplined capital spending.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.93M	85.19M	71.83M	87.31M	3.44M	598.45K
Gross Profit	42.32M	47.42M	2.01M	53.80M	2.04M	199.56K
EBITDA	14.02M	25.61M	19.11M	111.68M	-1.00M	-943.00K
Net Income	-5.61M	-636.00K	-10.99M	80.00M	-2.32M	-1.20M
Balance Sheet
Total Assets	142.54M	156.64M	165.07M	192.08M	13.10M	6.56M
Cash, Cash Equivalents and Short-Term Investments	6.69M	0.00	0.00	5.26M	1.21M	1.42M
Total Debt	324.00K	7.73M	14.54M	35.66M	3.84M	0.00
Total Liabilities	41.84M	55.24M	63.64M	82.57M	9.11M	3.66M
Stockholders Equity	100.71M	101.41M	101.43M	109.51M	3.98M	2.91M
Cash Flow
Free Cash Flow	14.00M	4.09M	-969.24K	15.94M	-2.02M	-1.45M
Operating Cash Flow	26.28M	22.20M	29.16M	45.13M	-1.47K	-949.58K
Investing Cash Flow	-7.48M	-15.11M	-7.12M	-88.21M	-5.71M	-750.85K
Financing Cash Flow	-12.11M	-7.09M	-27.29M	47.09M	5.50M	1.87M

ROK Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 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:ROK, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.21, and above the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ROK.

ROK Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXL	73 Outperform	C$100.05M	10.32	12.74%	―	22.88%	2321.43%
ROK	67 Neutral	C$45.73M	-8.20	-5.42%	―	-13.32%	-811.11%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NSE	49 Neutral	C$64.43M	-4.63	-467.35%	―	―	-63.05%
TXP	46 Neutral	C$58.45M	-10.11	-4.64%	―	-23.68%	75.45%
OYL	42 Neutral	C$57.55M	-0.71	-188.43%	―	―	-1886.78%

ROK Resources Corporate Events

ROK Resources Extends Go‑Private Deal Timeline After Buyer Default

ROK Resources has secured a court-approved final order for its previously announced go-private plan of arrangement with Blue Alaska Oil Trading’s subsidiary and a newly formed SpinCo that will hold its EMP Metals Corp. shares, marking a key step toward exiting public markets. To give the buyer more time to fund the deal, the parties amended their arrangement to extend the outside closing date to March 17, 2026, confirm that the full deposit is now earned by ROK, and raise the cap on transaction costs to CAD$4.25 million, while obligating the purchaser to provide sufficient cash three business days before closing; the move follows a notice of default issued after the buyer failed to promptly fund escrow, and the transaction’s completion would see ROK’s shares delisted from the TSX Venture Exchange and the company cease to be a reporting issuer in its Canadian jurisdictions.

The most recent analyst rating on (TSE:ROK) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on ROK Resources stock, see the TSE:ROK Stock Forecast page.

ROK Resources Shareholders Approve Go-Private Transaction

ROK Resources Inc. announced that its shareholders have overwhelmingly approved a plan of arrangement and go-private transaction involving Blue Alaska Oil Trading LLC and a newly formed company, SpinCo. The transaction, which received 94.8% approval from shareholders, is set to be finalized following court and regulatory approvals, with an expected closing date on or before January 16, 2026. Post-transaction, ROK’s shares will be delisted from the TSXV, and the company plans to cease being a reporting issuer in several Canadian jurisdictions.

ROK Resources Reports Q3 2025 Financials and Advances Going Private Transaction

ROK Resources Inc. has released its financial results for the third quarter of 2025, reporting funds from operations of $4.1 million and a working capital surplus of $2.7 million. The company is progressing with its Going Private Transaction, expected to close by the end of 2025, which involves a special resolution to be considered by shareholders in December. The company has also executed a Normal Course Issuer Bid, repurchasing and canceling over 2 million shares, reflecting a strategic move to enhance shareholder value.

ROK Resources Prepares for Annual Shareholder Meeting with Key Resolutions

ROK Resources has announced the filing and mailing of its management information circular and proxy-related materials for the upcoming annual general and special meeting of shareholders scheduled for December 10, 2025. At this meeting, shareholders will address several key issues, including the approval of a plan of arrangement, the election of directors, and the approval of the existing stock option plan. The company has made these materials available electronically due to potential postal delays and encourages shareholders to vote electronically.