Southern Energy (SOU) AI Stock Analysis

• Market Cap: $11.01M
• Dividend Yield: N/A
• Average Volume (3M): 246.34K
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: -27.09%
• EPS Growth: -681.10%
• Country: CA
• Employees: 19
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.41
• Shares Outstanding: 169,385,820
• 10 Day Avg. Volume: 345,724
• 30 Day Avg. Volume: 246,343
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.39
• Price to Cash Flow (P/CF): 1.70
• P/FCF Ratio: 1.40
• 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

The stock's overall performance is hindered by significant financial challenges, including declining revenues and profitability. While the technical indicators show positive momentum, the valuation remains poor due to a negative P/E ratio and lack of dividends, reflecting underlying financial instability.

Southern Energy Business Overview & Revenue Model

Company Description

Southern Energy (SOU) is a North American energy company focused on the acquisition, exploration, and development of oil and natural gas properties. The company primarily operates within the energy sector, emphasizing the extraction and production of hydrocarbons to meet the growing energy demands. Through strategic investments and operational excellence, Southern Energy aims to deliver competitive energy solutions that power communities and industries.

How the Company Makes Money

Southern Energy makes money through the exploration, development, and production of oil and natural gas resources. The company generates revenue by selling these hydrocarbons to refineries, utilities, and other industrial customers that require energy inputs. Key revenue streams include the sale of crude oil, natural gas, and related products. The company's earnings are significantly influenced by market prices for oil and gas, production volumes, and operational efficiency. Additionally, Southern Energy may enter into strategic partnerships with other energy companies to enhance exploration and production capabilities, thereby impacting its financial performance.

Southern Energy Financial Statement Overview

Summary

Southern Energy faces financial challenges, evidenced by declining revenues and profitability, a stressed balance sheet, and negative free cash flow. The company operates in a volatile industry, and improving operational efficiency and liquidity management are crucial for future stability.

Income Statement

The company's income statement reveals significant challenges with profitability, as indicated by negative net and gross profit margins in the TTM period. Revenue has declined significantly from 2022 to 2023, and EBIT and EBITDA margins have turned negative, reflecting operational inefficiencies or market challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio and a declining equity base, which poses risks. The equity ratio has decreased over time, reflecting increased liabilities. While cash reserves have declined, they remain sufficient for short-term obligations.

Cash Flow

Cash flow analysis indicates negative free cash flow in recent periods, a potential concern for liquidity. While operating cash flow has been positive, it is insufficient to cover capital expenditures. The company needs effective cash management strategies to improve financial health.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
17.26M	19.31M	45.22M	19.94M	10.92M	14.64M
	Gross Profit
-194.00K	-450.00K	22.40M	6.88M	159.20K	2.09M
	EBIT
-4.61M	-7.35M	17.01M	3.45M	―	―
	EBITDA
-35.34M	-34.57M	22.86M	7.46M	1.08M	2.65M
	Net Income Common Stockholders
-47.37M	-63.19M	3.24M	10.09M	―	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
586.66K	3.11M	28.35M	9.62M	908.12K	324.59K
	Total Assets
29.88M	67.31M	97.65M	46.21M	30.31M	37.65M
	Total Debt
19.25M	15.98M	7.45M	10.16M	19.31M	19.59M
	Net Debt
18.66M	12.86M	-20.90M	536.00K	18.41M	19.27M
	Total Liabilities
29.22M	41.49M	30.25M	22.40M	30.06M	30.03M
	Stockholders Equity
659.99K	34.03M	67.40M	23.81M	243.89K	7.62M
Cash Flow		Free Cash Flow
-399.00K	-38.08M	-11.26M	345.00K	2.52M	1.19M
	Operating Cash Flow
3.58M	3.70M	18.60M	2.91M	2.71M	2.41M
	Investing Cash Flow
-3.16M	-43.34M	-29.08M	-831.00K	59.60K	―
	Financing Cash Flow
979.00K	19.01M	29.27M	6.58M	―	13.25M

Southern Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SOU, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.10, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 29.34 is Positive, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SOU.

Southern Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CJ	80 Outperform	C$1.00B	9.18	11.78%	12.59%	3.79%	3.87%
TVE	78 Outperform	$1.86B	12.21	7.57%	4.23%	-0.17%	76.67%
ATH	74 Outperform	$2.65B	5.20	28.01%	―	13.46%	―
BIR	62 Neutral	$1.79B	31.56	2.51%	5.67%	-26.02%	464.95%
Sector *	57 Neutral	$7.70B	4.18	-3.52%	8.32%	0.35%	-64.68%
PNE	47 Neutral	$239.98M	―	-27.57%	8.88%	2.24%	-332.95%
SOU	44 Neutral	$11.01M	―	-119.19%	―	-27.09%	-681.10%