Southern Energy (SOU) AI Stock Analysis

• Market Cap: $20.17M
• Dividend Yield: N/A
• Average Volume (3M): 277.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: -11.24%
• EPS Growth: 76.43%
• Country: CA
• Employees: 19
• Sector: Energy
• Sector Strength: 73
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 336,137,540
• 10 Day Avg. Volume: 351,837
• 30 Day Avg. Volume: 277,336
• PEG Ratio: -0.22
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.81
• 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

• Rating: 48 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Southern Energy's overall stock score is primarily impacted by weak financial performance and an unattractive valuation due to negative earnings. While recent corporate events show strategic efforts to improve market presence, technical indicators point to bearish trends, contributing to a lower score.

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 weak due to declining revenues and consistent losses. Although there are slight improvements in cash flow and debt management, the overall financial health remains poor, necessitating strategic improvements.

Income Statement

Southern Energy's revenue has been declining over the years, with a notable decrease from 2022 to 2024. The gross profit margin is negative, indicating the cost of revenue exceeds sales, which is alarming. The net profit margin is also negative, reflecting consistent losses. These indicate significant challenges in generating profitability.

Balance Sheet

The company's debt-to-equity ratio improved in 2024 compared to prior years, suggesting better leverage management. However, the equity ratio has been declining, which is concerning. The return on equity is negative due to net losses, indicating inefficiencies in generating shareholder value.

Cash Flow

Operating cash flow remains positive, which is a strength. Free cash flow has improved from negative to positive in 2024, showing better cash management. However, the free cash flow to net income ratio is distorted due to negative net income, indicating ongoing profitability issues.

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
	EBIT
-6.02M	-7.35M	17.01M	3.45M	-2.93M
	EBITDA
-1.36M	-34.57M	17.39M	15.55M	-2.36M
	Net Income Common Stockholders
-11.52M	-62.03M	9.30M	10.09M	-7.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.39M	3.11M	28.35M	9.62M	908.12K
	Total Assets
53.80M	67.31M	97.65M	46.21M	30.35M
	Total Debt
3.36M	15.98M	6.34M	8.97M	6.17M
	Net Debt
975.00K	12.86M	-22.00M	-647.00K	5.25M
	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: Negative
• Last Price: 0.06
• 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:SOU, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.54 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 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 *	58 Neutral	$7.56B	3.29	-4.46%	10.00%	0.84%	-49.61%
SOU	48 Neutral	$20.17M	―	-73.38%	―	-11.24%	76.43%
DME	42 Neutral	C$18.37M	―	-8.45%	―	-81.44%	59.09%
SNV	41 Neutral	C$17.43M	―	-101.34%	―	―	-131.33%
TAO	39 Underperform	C$37.37M	―	-16.72%	―	―	―
OYL	39 Underperform	C$28.78M	―	-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.