Squatex Energy and Ressources Inc (SQX) AI Stock Analysis

• Market Cap: C$3.10M
• Dividend Yield: N/A
• Average Volume (3M): 22.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: N/A
• EPS Growth: -29.41%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 123,850,655
• 10 Day Avg. Volume: 8,200
• 30 Day Avg. Volume: 22,601
• PEG Ratio: -0.14
• Price to Book (P/B): -1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.70
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: C$0.02 ▲(20.00% Upside)

The score is primarily weighed down by very weak financial performance (no revenue, ongoing losses, cash burn, and negative equity). Technicals also lean bearish with price below key moving averages and negative MACD. A positive partnership event provides some strategic upside, but it is not yet reflected in financial results.

Positive Factors

Strategic partnership (Senegal)

The formal partnership to work with Senegal’s Geological Survey creates a durable avenue to expand acreage exposure and data access in a potentially resource-rich basin. For an E&P explorer, improved geological collaboration materially raises the probability of future value-creating discoveries and farm-out or JV options over the next 2–6 months and beyond.

Improving cash burn trend

Reported positive free cash flow growth TTM indicates management appears to be narrowing the cash burn profile. A sustained reduction in outflows increases the runway to execute exploration plans or complete deals without immediate dilutive financing, improving survival odds and strategic optionality across the next several months.

Smaller recurring losses vs prior years

Trailing losses have contracted versus earlier periods, suggesting cost control or lower operating intensity. Continued reduction in absolute losses can stabilize cash needs and make future capital raises less dilutive, helping management preserve assets and execute exploration or partnership milestones over the medium term.

Negative Factors

No revenue base

The company reports no revenue and persistent net losses, meaning there is no operating cash cushion from sales. For an explorer, lack of realized production or sales forces reliance on external funding for working capital and capital projects, increasing financing risk and constraining strategic flexibility over 2–6 months.

Deeply negative equity

A deeply negative equity base and minimal tangible assets leave the company with a thin solvency cushion. This structural balance-sheet weakness raises the probability of distress or onerous financing terms, limiting capacity to fund exploration programs or attract partners without substantial recapitalization within the medium term.

Negative operating cash flow

Sustained negative operating and free cash flow indicates ongoing cash burn tied to operations. Without a visible revenue or production ramp, continued outflows necessitate external financing, which can dilute shareholders or interrupt exploration schedules, posing a lasting constraint on execution and growth.

Squatex Energy and Ressources Inc Business Overview & Revenue Model

Company Description

Squatex Energy and Resources Inc. engages in the exploration and development of oil and gas properties in Quebec. It owns 36 licenses covering an area of 6,560.93 km2 in the Appalachian Basin, including 12 exploration permits, which cover 2,249.3 km2 in the St. Lawrence Lowlands region; and 24 exploration permits that covers 4,311.6 km2 in the Lower St. Lawrence/Gaspe region. The company was founded in 2001 and is based in Brossard, Canada.

How the Company Makes Money

Squatex Energy and Ressources Inc generates revenue primarily through the exploration and potential commercialization of oil and gas reserves. The company invests in identifying viable drilling locations, conducting exploratory drilling, and developing infrastructure to extract and eventually sell these resources. Revenue streams include the sale of crude oil and natural gas to refineries, utility companies, and other industrial clients. The company may also form strategic partnerships with larger energy firms to share the costs and profits associated with the development of large-scale projects. Additionally, Squatex might engage in joint ventures or lease its exploration rights to other companies, providing another potential revenue stream.

Squatex Energy and Ressources Inc Financial Statement Overview

Summary

Very weak fundamentals: no revenue, recurring net losses (TTM net loss about -545k), negative operating and free cash flow (TTM OCF about -333k; FCF about -339k), and deeply negative equity (about -3.38M) with limited assets—indicating high solvency and funding risk despite a modest improvement in burn rate versus prior periods.

Income Statement

TTM (Trailing-Twelve-Months) results show no revenue and ongoing operating losses (EBIT about -370k) with a net loss of about -545k. Losses have persisted across annual periods (net losses every year provided), with no visible top-line traction to absorb fixed costs—making profitability and near-term earnings power weak. The main positive is that losses are smaller than the 2021 period, but the company still lacks a demonstrated revenue base.

Balance Sheet

The balance sheet is highly stressed: stockholders’ equity is deeply negative (about -3.38M in TTM (Trailing-Twelve-Months)) while total debt is about 1.32M, implying a thin financial cushion and elevated solvency risk. Total assets are very small (about 55k TTM (Trailing-Twelve-Months)) relative to liabilities, limiting flexibility. While reported return on equity is positive in the data, it is not economically reassuring given the negative equity base.

Cash Flow

Cash generation remains weak with negative operating cash flow (about -333k TTM (Trailing-Twelve-Months)) and negative free cash flow (about -339k), indicating continued cash burn. A modest positive is that free cash flow growth is listed as positive in TTM (Trailing-Twelve-Months), suggesting the burn rate may be improving versus the prior period. However, cash outflows still broadly track net losses, so funding needs likely remain ongoing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-363.00	0.00	0.00	0.00	0.00	0.00
EBITDA	-369.81K	0.00	0.00	-133.02K	-297.50K	-817.47K
Net Income	-544.60K	-511.67K	-337.92K	-256.19K	-422.68K	-942.41K
Balance Sheet
Total Assets	55.31K	17.40K	27.60K	6.87K	25.90K	89.14K
Cash, Cash Equivalents and Short-Term Investments	19.63K	7.16K	16.79K	5.18K	11.45K	69.52K
Total Debt	1.32M	1.18M	948.60K	822.60K	672.60K	522.60K
Total Liabilities	3.43M	3.13M	2.63M	2.27M	2.03M	1.67M
Stockholders Equity	-3.38M	-3.11M	-2.60M	-2.26M	-2.01M	-1.58M
Cash Flow
Free Cash Flow	-338.99K	-236.62K	-114.39K	-156.27K	-208.07K	-25.85K
Operating Cash Flow	-332.94K	-236.62K	-114.39K	-156.27K	-208.07K	-25.85K
Investing Cash Flow	-6.05K	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	305.69K	227.00K	126.00K	150.00K	150.00K	82.00K

Squatex Energy and Ressources Inc 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%
WCE	46 Neutral	C$2.90M	-3.39	-65.85%	―	-8.71%	-1376.92%
OIL	44 Neutral	C$2.04M	-0.27	-152.21%	―	172.92%	-92.61%
SQX	40 Underperform	C$3.10M	-5.68	―	―	―	-29.41%
SHP	24 Underperform	C$1.27M	-2.40	―	―	―	―