Southern Energy (SOU) AI Stock Analysis

• Market Cap: $20.18M
• Dividend Yield: N/A
• Average Volume (3M): 349.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -11.24%
• EPS Growth: 76.43%
• Country: CA
• Employees: 19
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 336,254,940
• 10 Day Avg. Volume: 316,879
• 30 Day Avg. Volume: 349,734
• PEG Ratio: 0.32
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.94
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 38.32
• Enterprise Value/Ebitda: -0.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Southern Energy's overall score reflects significant financial challenges, with weak profitability and a negative P/E ratio being key concerns. While cash flow management and technical indicators suggest some stability, strategic improvements are crucial for future growth.

Southern Energy Business Overview & Revenue Model

Company Description

Southern Energy (SOU) is an energy company focused on the exploration, development, and production of oil and natural gas resources. Operating primarily in the southern United States, the company is dedicated to maximizing the value of its assets through efficient operations and strategic acquisitions. Southern Energy is committed to sustainable practices and aims to deliver reliable energy solutions while minimizing environmental impact.

How the Company Makes Money

Southern Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs) extracted from its developed reserves. The company engages in exploration and drilling operations to discover new reserves and increase its production capacity. By selling its extracted resources to refineries, utilities, and industrial customers, Southern Energy capitalizes on the fluctuating market prices of oil and gas. Additionally, the company may enter into hedging contracts to manage price volatility and secure stable income streams. Strategic partnerships and joint ventures with other energy companies may also play a role in optimizing resource development and expanding market reach.

Southern Energy Financial Statement Overview

Summary

Southern Energy's financial performance is challenged by weak profitability and operational inefficiencies, as shown by negative profit margins and declining revenue. The balance sheet indicates moderate stability but highlights risks due to shrinking equity and notable liabilities. However, positive cash flows suggest some financial flexibility, offering a potential area for strategic improvement.

Income Statement

Southern Energy's income statement reveals a challenging financial period. The TTM shows a gross profit margin of only 2.74%, highlighting a struggle in generating profits from revenue. Both EBIT and EBITDA margins are negative, at -30.8% and -17.2% respectively, indicating operational inefficiencies. The net profit margin is significantly negative at -74.8%, further stressing weak profitability. Revenue has declined in recent periods, and the company faces ongoing losses, reflecting a need for strategic improvements.

Balance Sheet

The balance sheet illustrates moderate financial stability. The debt-to-equity ratio is 0.31, suggesting a manageable level of debt relative to equity. However, stockholders' equity has been shrinking, and the company carries substantial liabilities. The equity ratio stands at 21.3%, indicating moderate asset financing through equity. The balance sheet is stable but highlights potential risk due to declining equity and increased liabilities.

Cash Flow

Southern Energy's cash flow statement shows some positive aspects. The operating cash flow to net income ratio is positive, indicating better cash generation relative to reported losses. Free cash flow is positive, supported by positive operating cash flow, though it has decreased from previous periods. Despite some capital expenditure, the company maintains a positive free cash flow to net income ratio. Cash flow management appears stronger than income statement results suggest.

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

Southern Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 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:SOU, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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 *	67 Neutral	$14.98B	9.65	6.33%	5.29%	4.07%	-66.96%
SOU	51 Neutral	$20.18M	―	-73.38%	―	-11.24%	76.43%
DME	42 Neutral	C$19.78M	―	-8.45%	―	-81.44%	59.09%
SNV	41 Neutral	C$30.21M	―	-101.34%	―	―	-131.33%
TAO	39 Underperform	C$23.78M	―	-16.72%	―	―	―
OYL	39 Underperform	C$45.70M	―	-4.08%	―	―	18.11%

Southern Energy Corporate Events

Southern Energy Corp. Announces TSXV Listing of Warrants

Southern Energy Corp. has announced the approval of the TSX Venture Exchange for the listing of 65,435,521 common share purchase warrants, which will begin trading under the symbol ‘SOU.WT’ on April 21, 2025. This move is part of Southern’s broader strategy to enhance its market presence and provide stakeholders with opportunities for investment growth, reflecting the company’s ongoing efforts to optimize its financial and operational strategies in the natural gas sector.