Southern Energy (SOU) AI Stock Analysis

• Market Cap: C$22.04M
• Dividend Yield: N/A
• Average Volume (3M): 493.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: 3.01%
• EPS Growth: 84.56%
• Country: CA
• Employees: 19
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 339,071,700
• 10 Day Avg. Volume: 505,945
• 30 Day Avg. Volume: 493,184
• PEG Ratio: 0.01
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 4.51
• 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): -0.01
• Revenue Forecast (FY): C$35.08M

• Rating: 50 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Southern Energy's overall stock score is primarily impacted by its financial performance, which is weak due to persistent losses and cash flow issues. Technical analysis provides some positive signals, indicating potential short-term upward momentum. However, the poor valuation due to negative earnings and lack of dividends further weighs down the score.

Positive Factors

Revenue Growth

The strong revenue growth indicates increasing demand for Southern Energy's renewable energy solutions, supporting long-term market expansion.

Stable Revenue Streams

Long-term PPAs provide Southern Energy with stable and predictable revenue, enhancing financial stability and planning capabilities.

Industry Position

Southern Energy's focus on renewable energy aligns with global sustainability trends, positioning it well for future growth in the clean energy sector.

Negative Factors

Profitability Challenges

The negative net profit margin highlights significant profitability challenges, which could hinder long-term financial health and growth potential.

Cash Flow Constraints

Negative cash flow growth indicates difficulties in generating cash, potentially limiting investment in new projects and operational flexibility.

Operational Inefficiencies

The negative ROE suggests inefficiencies in using shareholder equity to generate returns, impacting investor confidence and long-term viability.

Southern Energy Business Overview & Revenue Model

Company Description

Southern Energy (SOU) is a renewable energy company focused on the development and operation of sustainable energy projects, primarily in the Southern United States. The company specializes in generating electricity from renewable sources, including solar and wind energy, and offers energy solutions that promote environmental sustainability. Its core services include energy production, project development, and energy management, aimed at reducing carbon footprints and providing cleaner energy alternatives to traditional fossil fuels.

How the Company Makes Money

Southern Energy generates revenue through various streams, primarily by selling electricity produced from its renewable energy projects to utility companies and commercial customers under long-term power purchase agreements (PPAs). These contracts provide a stable and predictable revenue flow as they often span several years. Additionally, the company may receive incentives and tax credits associated with renewable energy production, which can significantly enhance profitability. Strategic partnerships with local governments and environmental organizations also facilitate project development and can lead to further funding opportunities. Furthermore, Southern Energy may engage in energy trading and offer energy management services, further diversifying its revenue sources.

Southern Energy Financial Statement Overview

Summary

Southern Energy faces significant financial challenges, characterized by persistent losses and cash flow constraints. While revenue growth is a positive aspect, the company struggles with profitability and cash generation. The balance sheet shows moderate leverage, but negative returns on equity highlight operational inefficiencies.

Income Statement

Southern Energy's income statement shows significant volatility. The TTM gross profit margin is low at 2.74%, and the net profit margin is negative at -74.83%, indicating substantial losses. Revenue growth is positive at 60.9% TTM, but historical data shows fluctuating growth rates. The EBIT and EBITDA margins are negative, reflecting operational challenges. Overall, the company struggles with profitability despite revenue growth.

Balance Sheet

The balance sheet indicates moderate leverage with a TTM debt-to-equity ratio of 0.31. However, the return on equity is negative at -76.33%, suggesting inefficiencies in generating returns for shareholders. The equity ratio is relatively stable, but the company's financial health is weakened by consistent losses.

Cash Flow

Cash flow analysis reveals challenges in maintaining positive free cash flow, with a TTM free cash flow growth rate of -148.88%. The operating cash flow to net income ratio is low at 0.08, indicating limited cash generation relative to net losses. The company faces difficulties in converting earnings into cash flow, impacting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.51M	16.08M	19.31M	45.22M	19.94M	10.43M
Gross Profit	964.00K	-233.00K	-450.00K	22.40M	6.88M	670.85K
EBITDA	-1.24M	-1.36M	-34.57M	17.39M	15.55M	-2.36M
Net Income	-10.07M	-11.52M	-62.03M	9.30M	10.09M	-7.81M
Balance Sheet
Total Assets	53.33M	53.80M	67.31M	97.65M	46.21M	30.35M
Cash, Cash Equivalents and Short-Term Investments	2.58M	2.39M	3.11M	28.35M	9.62M	908.12K
Total Debt	12.99M	3.36M	15.98M	6.34M	8.97M	6.17M
Total Liabilities	38.62M	39.04M	41.49M	30.25M	22.40M	30.11M
Stockholders Equity	14.71M	14.76M	34.03M	67.40M	23.81M	243.89K
Cash Flow
Free Cash Flow	-804.00K	2.97M	-38.08M	-11.26M	345.00K	2.43M
Operating Cash Flow	2.22M	3.85M	3.70M	18.60M	2.91M	2.61M
Investing Cash Flow	557.00K	-860.00K	-57.43M	-29.08M	-831.00K	59.60K
Financing Cash Flow	-1.71M	-3.67M	19.01M	29.27M	6.58M	-2.08M

Southern Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.90 is Neutral, 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
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SOU	50 Neutral	C$22.04M	―	-44.92%	―	3.01%	84.56%
DME	42 Neutral	C$29.35M	―	-6.13%	―	-82.16%	70.07%
SNV	41 Neutral	C$11.52M	―	―	―	―	―
OYL	39 Underperform	C$53.49M	-0.66	-188.43%	―	―	-1886.78%
TAO	39 Underperform	C$24.91M	-4.09	-12.39%	―	462.37%	35.49%

Southern Energy Corporate Events

Southern Energy Announces Board Changes and Annual Meeting Results

Southern Energy Corp. announced the results of its annual meeting, where shareholders approved the re-election of four board members, while two former directors, Tamara MacDonald and C. Neil Smith, retired. The company expressed gratitude for their contributions since the 2018 recapitalization. All other business items were approved, indicating a smooth transition and continued strategic focus.

Southern Energy Corp. Boosts Employee Retention with Share Award Plan

Southern Energy Corp. announced the granting of 19,800,000 restricted share awards (RSAs) as part of its compensation and employee retention program. These RSAs, which vest over three years, are intended to incentivize directors and key management personnel, with 8,100,000 RSAs allocated to top executives, including the President, CEO, CFO, and COO. This move is likely to strengthen Southern’s employee retention and align management interests with shareholder value, potentially enhancing the company’s operational stability and market positioning.

Southern Energy Corp. Reports Q2 2025 Results and Strategic Developments

Southern Energy Corp. reported its second quarter 2025 financial results, highlighting a 3% increase in petroleum and natural gas sales compared to the previous year, driven by a significant rise in natural gas prices. Despite a decrease in average production, the company successfully completed a key well in its Gwinville field, which exceeded expectations and was completed under budget. This development, along with strategic financial maneuvers such as equity financing and debt conversion, positions Southern Energy for potential growth and enhanced shareholder value. The company also anticipates resolving a transportation dispute that could bring additional production back online, further strengthening its operational outlook.

Southern Energy Corp. Reports Q2 2025 Results and Strategic Developments

Southern Energy Corp. reported its second quarter 2025 financial results, highlighting a 3% increase in petroleum and natural gas sales driven by a significant rise in natural gas prices. Despite a decrease in average production, the company successfully completed a key horizontal well under budget, contributing to improved operational efficiency and future cash flow potential. Southern Energy’s strategic actions, including a $5.0 million equity financing and conversion of debentures, have strengthened its financial position, setting the stage for disciplined growth and shareholder value enhancement. The company also anticipates resolving a transportation dispute by Q3 2025, which will restore additional production volumes.