Spartan Delta (SDE) AI Stock Analysis

• Market Cap: $588.13M
• Dividend Yield: N/A
• Average Volume (3M): 339.60K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 1.65
• Revenue Growth: -27.80%
• EPS Growth: -96.88%
• Country: CA
• Employees: 121
• Sector: Energy
• Sector Strength: 41
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.03
• Shares Outstanding: 200,043,170
• 10 Day Avg. Volume: 377,066
• 30 Day Avg. Volume: 339,596
• PEG Ratio: -0.60
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -137.88
• 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: $5.55
• Price Target Upside: 88.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 65 Neutral
• Price Target: C$3.00 ▲( 2.04% Upside)

Spartan Delta's overall stock score is driven by its operational efficiency and financial stability, although challenges in profitability and cash management persist. Positive corporate events highlight strategic growth, but the high P/E ratio and mixed technical indicators suggest caution. The company needs to address profitability issues to improve its financial position.

Spartan Delta Business Overview & Revenue Model

Company Description

Spartan Delta Corp. engages in the exploration, development, and production of petroleum and natural gas properties in the Western Canada. It also owns and operates oil and gas properties in Alberta, Saskatchewan, and British Columbia. As of December 31, 2021, company owned total proved plus probable reserves of 545,734 thousand barrels of oil equivalent. The company was formerly known as Return Energy Inc. and changed its name to Spartan Delta Corp. in May 2020. Spartan Delta Corp. was incorporated in 2006 and is headquartered in Calgary, Canada.

How the Company Makes Money

Spartan Delta makes money through the extraction and sale of oil and natural gas. The company's key revenue streams include the sale of crude oil, natural gas, and natural gas liquids. Spartan Delta generates income by developing and operating oil and gas properties, leveraging its expertise in resource exploration and production. The company may also engage in strategic partnerships or joint ventures to enhance its operational capabilities and expand its asset base, contributing to its earnings. Market conditions, such as commodity prices and demand fluctuations, significantly impact Spartan Delta's revenue.

Spartan Delta Financial Statement Overview

Summary

Spartan Delta demonstrates operational strength with high gross and EBITDA margins, yet faces challenges in maintaining consistent revenue growth and net income conversion. The balance sheet is stable with low leverage, but declining ROE signals potential inefficiencies. Cash flow management requires attention due to negative free cash flow growth, impacting liquidity. Overall, while the company has strengths in operational efficiency and financial stability, it must address issues in profitability and cash management to enhance its financial position.

Income Statement

Spartan Delta's income statement shows robust gross profit and EBITDA margins for the TTM, indicating efficient operations. However, the net profit margin has decreased significantly over the years, reflecting challenges in converting revenue into net income. Revenue growth has been volatile, with recent declines, suggesting instability in market conditions or operational challenges.

Balance Sheet

The balance sheet reflects a solid equity ratio, indicating financial stability. The debt-to-equity ratio is relatively low, which signifies conservative leverage. However, the return on equity has decreased sharply, suggesting a decline in efficiency in generating returns for shareholders.

Cash Flow

The cash flow statement reveals a decrease in free cash flow, highlighting potential liquidity concerns. The operating cash flow to net income ratio remains strong, indicating good earnings quality. Nevertheless, negative free cash flow growth rate raises flags about cash management and capital expenditure efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
298.54M	307.26M	662.36M	1.48B	618.84M	99.71M
	Gross Profit
104.56M	158.47M	317.78M	1.10B	449.31M	63.70M
	EBIT
21.22M	25.51M	213.62M	775.93M	277.30M	-2.77M
	EBITDA
148.79M	165.87M	931.48M	953.50M	475.32M	71.89M
	Net Income Common Stockholders
17.92M	34.28M	663.11M	681.09M	334.22M	47.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
522.00K	924.00K	406.00K	124.40M	1.25M	2.69M
	Total Assets
972.55M	933.14M	819.52M	2.10B	1.74B	331.43M
	Total Debt
46.55M	146.75M	79.71M	190.68M	442.36M	49.77M
	Net Debt
46.03M	145.82M	79.30M	66.28M	441.12M	47.08M
	Total Liabilities
409.40M	461.72M	389.81M	582.65M	855.76M	193.89M
	Stockholders Equity
563.15M	471.43M	429.72M	1.52B	886.65M	137.54M
Cash Flow		Free Cash Flow
-4.11M	12.18M	180.62M	354.75M	-333.18M	-93.82M
	Operating Cash Flow
182.19M	174.08M	475.67M	795.37M	279.77M	32.21M
	Investing Cash Flow
-239.57M	-240.53M	1.32B	-442.30M	-925.71M	-113.10M
	Financing Cash Flow
57.69M	66.95M	-1.92B	-230.14M	644.46M	58.92M

Spartan Delta Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.94
• 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:SDE, the sentiment is Neutral. The current price of 2.94 is above the 20-day moving average (MA) of 2.80, below the 50-day MA of 2.95, and below the 200-day MA of 3.45, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 78.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SDE.

Spartan Delta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDE	65 Neutral	$588.13M	27.68	3.68%	―	-27.80%	-96.88%
Sector *	57 Neutral	$7.04B	3.12	-3.45%	5.79%	0.62%	-50.55%
OBE		$349.85M	5.39	-12.88%	―	―	―
ZPTAF		$384.29M	―	-5.48%	9.53%	―	―
TAL	80 Outperform	C$531.15M	4.01	18.60%	14.12%	11.68%	-30.95%
SNM	70 Outperform	C$554.96M	4.71	43.82%	―	104.07%	―
CEI	51 Neutral	C$451.68M	―	-5.23%	―	113.34%	-11.26%

Spartan Delta Corporate Events

Spartan Delta Corp. Reports Strong First Quarter 2025 Results Amid Operational Growth

Spartan Delta Corp. reported its first quarter 2025 results, highlighting significant operational achievements and financial metrics. The company drilled and completed several wells in the Deep Basin and Duvernay, with production exceeding expectations. An upsized equity financing raised $97.8 million, enhancing liquidity for further development. Despite a net loss, Spartan achieved a 196% increase in crude oil production compared to the previous year, and maintained a strong financial position with a net debt to annualized adjusted funds flow ratio of 0.4x.