Southern Energy (SOU) AI Stock Analysis

• Market Cap: C$28.82M
• Dividend Yield: N/A
• Average Volume (3M): 623.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• 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: 800,461
• 30 Day Avg. Volume: 623,178
• 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$34.46M

• Rating: 54 Neutral
• Price Target: C$0.09 ▲(31.43% Upside)

Southern Energy's overall stock score is primarily impacted by its financial performance challenges, including declining profitability and cash flow issues. While technical analysis shows positive momentum, the valuation remains a concern with a negative P/E ratio. The absence of earnings call data and corporate events leaves the financial and technical aspects as the primary influences on the score.

Positive Factors

Market Position

Southern Energy's focus on renewable energy positions it well in a growing market, aligning with global trends towards sustainability and clean energy.

Revenue Streams

Diverse revenue streams, including long-term contracts and consulting, provide stability and potential for growth in the renewable energy sector.

Partnerships

Strategic partnerships enhance Southern Energy's ability to finance and deploy projects, supporting long-term growth and competitive advantage.

Negative Factors

Profitability Challenges

Ongoing profitability issues, with negative margins, indicate operational inefficiencies and cost management challenges, impacting long-term financial health.

Cash Flow Issues

Cash flow difficulties suggest limited cash generation from operations, which could constrain investment in growth and innovation.

Leverage Concerns

Moderate leverage with negative equity returns indicates financial strain, potentially limiting flexibility and increasing risk.

Southern Energy Business Overview & Revenue Model

Company Description

Southern Energy (SOU) is a North American energy company focused on the production and distribution of sustainable energy solutions. Operating primarily in the renewable energy sector, SOU specializes in the development and management of solar and wind energy projects. The company is committed to advancing clean energy technologies and reducing carbon emissions, offering a range of services that include energy generation, project financing, and consulting for energy efficiency improvements.

How the Company Makes Money

Southern Energy generates revenue through several key streams. The primary source of income comes from the sale of electricity generated from its renewable energy projects, which is typically sold to utility companies and large corporate buyers under long-term power purchase agreements (PPAs). Additionally, SOU earns revenue through consulting services provided to businesses and municipalities looking to implement energy efficiency solutions and renewable energy projects. Key partnerships with technology providers and local governments also enhance its project financing capabilities, allowing for the successful deployment of energy projects, which further contributes to its revenue generation.

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. Overall, the company needs to address its profitability and cash flow issues to improve its financial standing.

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	17.37M	16.08M	19.31M	45.22M	19.94M	10.43M
Gross Profit	1.69M	-233.00K	-450.00K	22.40M	6.88M	670.85K
EBITDA	940.00K	-1.36M	-34.57M	17.39M	15.55M	-2.36M
Net Income	-7.54M	-11.52M	-62.03M	9.30M	10.09M	-7.81M
Balance Sheet
Total Assets	50.63M	53.80M	67.31M	97.65M	46.21M	30.35M
Cash, Cash Equivalents and Short-Term Investments	962.00K	2.39M	3.11M	28.35M	9.62M	908.12K
Total Debt	12.09M	3.36M	15.98M	6.34M	8.97M	6.17M
Total Liabilities	35.51M	39.04M	41.49M	30.25M	22.40M	30.11M
Stockholders Equity	15.12M	14.76M	34.03M	67.40M	23.81M	243.89K
Cash Flow
Free Cash Flow	-998.00K	2.97M	-38.08M	-11.26M	345.00K	2.43M
Operating Cash Flow	1.88M	3.85M	3.70M	18.60M	2.91M	2.61M
Investing Cash Flow	-2.04M	-860.00K	-57.43M	-29.08M	-831.00K	59.60K
Financing Cash Flow	-2.34M	-3.67M	19.01M	29.27M	6.58M	-2.08M

Southern Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 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:SOU, the sentiment is Positive. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	54 Neutral	C$28.82M	-1.25	-44.92%	―	3.01%	84.56%
TAO	45 Neutral	C$20.38M	-4.62	-10.11%	―	257.86%	57.88%
DME	42 Neutral	C$20.36M	-7.14	-6.13%	―	-82.16%	70.07%
SNV	41 Neutral	C$9.60M	-5.77	―	―	―	―
OYL	39 Underperform	C$40.63M	-0.50	-188.43%	―	―	-1886.78%

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.