ROK Resources (ROK) AI Stock Analysis

• Market Cap: C$40.66M
• Dividend Yield: N/A
• Average Volume (3M): 220.06K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.15
• Revenue Growth: -2.25%
• EPS Growth: 94.72%
• Country: CA
• Employees: 27
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.01
• Shares Outstanding: 219,769,320
• 10 Day Avg. Volume: 214,883
• 30 Day Avg. Volume: 220,060
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.28
• 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: 55 Neutral
• Price Target: ―

ROK Resources' overall score reflects its mixed financial performance, with notable strengths in revenue growth and cash flow management offset by profitability challenges. Technical indicators suggest neutral momentum, while valuation metrics highlight concerns about overvaluation. Positive corporate events, including debt reduction and strategic guidance, provide some optimism for future improvement.

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

ROK Resources demonstrates growth in revenue and improved cash flow management, yet profitability remains a key challenge. The company shows potential with a solid equity base and efficient cash operations, but high leverage and ongoing losses pose risks. Continued focus on reducing debt and improving operational profitability will be crucial for a stronger financial standing.

Income Statement

ROK Resources shows a mixed performance in its income statement. Although there is a notable increase in total revenue from 2023 to 2024, the company still struggles with profitability as indicated by negative EBIT and net income margins. The gross profit margin improved significantly, reflecting better cost management. However, the net profit margin remains negative due to high operating expenses.

Balance Sheet

The balance sheet shows a moderate financial position. The company's debt-to-equity ratio has improved due to a reduction in total debt, but it remains a concern. Return on equity is negative, indicating challenges in generating profits from shareholder equity. However, the equity ratio suggests a solid capital structure, with stockholders' equity making up a significant portion of total assets.

Cash Flow

Cash flow analysis reveals some positive trends. The operating cash flow to net income ratio is strong, highlighting efficient cash generation relative to net income. There is a significant improvement in free cash flow from the previous year, indicating better cash management and investment returns. However, consistent negative free cash flow in earlier years suggests room for improvement.

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

ROK Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROK, the sentiment is Neutral. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.18, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ROK.

ROK Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROK	55 Neutral	C$40.66M	11.64	3.50%	―	-2.25%	94.72%
Sector *	52 Neutral	C$2.91B	-0.96	-3.26%	6.23%	2.20%	-43.43%
OYL	39 Underperform	C$30.47M	―	-4.08%	―	―	18.11%
TAO	39 Underperform	C$32.84M	―	-16.72%	―	―	―
PRPRF		$30.80M	―		―	―	―
SOUTF		$14.78M	―	-73.38%	―	―	―
RDRIF		$31.74M	―	-350.57%	―	―	―

ROK Resources Corporate Events

ROK Resources Announces Leadership Changes and Strong 2024 Financial Results

ROK Resources Inc. has appointed Bryden Wright as the new President and CEO, with Cameron Taylor continuing as Executive Chairman. David French joins the board, bringing extensive financial expertise in the Canadian oil and gas sector. The company reported a 43% reduction in adjusted net debt and a 5% increase in funds from operations for 2024, despite a significant reduction in capital expenditures. Production and reserves also saw growth, indicating a positive trajectory for the company’s operational and financial performance.

Spark’s Take on TSE:ROK Stock

According to Spark, TipRanks’ AI Analyst, TSE:ROK is a Neutral.

ROK Resources is facing significant challenges in terms of profitability and valuation, leading to a lower overall stock score. While there is stability in the balance sheet and some potential for operational improvements, the high P/E ratio and lack of dividend yield make it less attractive from a valuation perspective. Technical indicators add to the cautious outlook, reflecting a lack of strong market momentum.

To see Spark’s full report on TSE:ROK stock, click here.

ROK Resources Unveils 2025 Capital Budget and Strategic Guidance

ROK Resources has announced its 2025 capital budget and operational guidance, emphasizing a flexible approach to development in response to commodity price fluctuations. The company plans to allocate a significant portion of its capital expenditure to drilling and production optimization in Southeast Saskatchewan, with the potential to enhance shareholder returns through disciplined capital allocation and debt reduction.

ROK Resources Achieves Significant Debt Reduction and Reserve Growth in 2024

ROK Resources Inc. announced significant achievements in 2024, including a 43% reduction in adjusted net debt and exceeding production forecasts with a daily average of 3,992 boepd. The company’s drilling program led to growth in light and medium crude oil reserves across all categories, improving its reserve life index and net asset value per share, indicating strong operational performance and strategic financial management.