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): 0.80
• 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: 46 Neutral
• Price Target: C$0.03 ▲(25.00% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is primarily constrained by very weak financial performance: no revenue, ongoing losses and cash burn, and a severely impaired balance sheet with negative equity. Technical indicators provide some offset with improving momentum and price strength versus moving averages, but valuation support remains limited due to negative earnings and no indicated dividend.

Positive Factors

Cash-backed losses

FCF tracking net loss indicates losses are driven largely by cash items rather than opaque non‑cash adjustments. That improves forecasting and reduces risk of sudden accounting impairments, making financing needs and timing more predictable over the medium term.

Loss trend stability

A non‑accelerating loss profile suggests management has avoided runaway operating deterioration. This structural stability provides a clearer runway to restructure operations or pursue revenue initiatives without facing rapidly worsening operating leverage.

Lean operating footprint

A minimal permanent headcount implies low fixed payroll obligations and a highly contractable cost base. Over months, this flexibility limits fixed cash burn and permits the company to scale activity up or down with financing availability, reducing structural overhead risk.

Negative Factors

No revenue generation

Zero revenue is a fundamental constraint: without an operating revenue stream the company cannot self‑fund exploration or operations. Absent a durable path to revenue, the business remains dependent on external capital, limiting sustainable value creation over the medium term.

Severely impaired balance sheet

Deep negative equity and meaningful debt against tiny assets materially constrain financial flexibility. This elevates refinancing and going‑concern risk, weakens credit access, and makes it difficult to fund programs or negotiate partner arrangements without dilution or onerous terms.

Persistent cash burn

Sustained negative operating and free cash flow creates ongoing funding needs. In the absence of revenue, recurring cash burn forces dependence on external financing, raising dilution risk and potentially limiting the company's ability to pursue exploration or development initiatives.

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

Income statement shows zero revenue and persistent operating/net losses (TTM EBIT about -$461k; net income about -$648k). Balance sheet is highly stressed with deeply negative equity (about -$3.6M) and meaningful debt (~$1.37M) versus minimal assets (~$37k). Cash flow is consistently negative (TTM FCF about -$253k), indicating ongoing funding needs despite losses being largely cash-backed.

Income Statement

Across the TTM (Trailing-Twelve-Months) and the last several annual periods, the company reports zero revenue while generating recurring operating losses (TTM EBIT of about -$461k) and a sizable net loss (TTM net income about -$648k). Losses have persisted for years with no visible revenue inflection, indicating the business has not yet demonstrated an economically productive operating base. The main positive is that losses have not been accelerating in a straight line every year, but overall profitability and operating scale remain very weak.

Balance Sheet

The balance sheet is highly stressed: stockholders’ equity is deeply negative (TTM about -$3.6M), while total debt is significant (TTM about $1.37M) relative to a very small asset base (TTM total assets about $37k). Negative equity limits financial flexibility and increases refinancing/going-concern risk. While the debt-to-equity figure is mathematically distorted by negative equity, the underlying picture is clear—leverage is heavy versus the company’s capital base.

Cash Flow

Cash generation is consistently negative, with TTM operating cash flow around -$247k and TTM free cash flow around -$253k, implying ongoing cash burn. Free cash flow also declined versus the prior period (TTM free cash flow growth roughly -25%). A relative positive is that free cash flow roughly tracks the net loss (TTM free cash flow to net income ~1.0), suggesting losses are largely cash-backed rather than driven by large non-cash accounting items—but the business still requires external funding to sustain operations.

Breakdown	TTM	Jun 2024	Mar 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-666.00	0.00	0.00	0.00	0.00	0.00
EBITDA	-461.19K	0.00	0.00	-133.02K	-297.50K	-817.47K
Net Income	-648.17K	-511.67K	-337.92K	-256.19K	-422.68K	-942.41K
Balance Sheet
Total Assets	36.90K	17.40K	27.60K	6.87K	25.90K	89.14K
Cash, Cash Equivalents and Short-Term Investments	11.68K	7.16K	16.79K	5.18K	11.45K	69.52K
Total Debt	1.37M	1.18M	948.60K	822.60K	672.60K	522.60K
Total Liabilities	3.62M	3.13M	2.63M	2.27M	2.03M	1.67M
Stockholders Equity	-3.58M	-3.11M	-2.60M	-2.26M	-2.01M	-1.58M
Cash Flow
Free Cash Flow	-253.01K	-236.62K	-114.39K	-156.27K	-208.07K	-25.85K
Operating Cash Flow	-246.96K	-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	261.73K	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%
SQX	46 Neutral	C$3.10M	-3.01	―	―	―	-29.41%
WCE	45 Neutral	C$3.57M	67.67	-65.85%	―	-8.71%	-1376.92%
OIL	44 Neutral	C$2.10M	-0.73	-152.21%	―	172.92%	-92.61%
SHP	24 Underperform	C$1.27M	-2.40	―	―	―	―

Squatex Energy and Ressources Inc Corporate Events

Squatex and CTI Advance Québec–Senegal Geological Partnership With Official Delegation Visit

Squatex Energy and Resources Inc. and Caron Technologies International Inc., in partnership with Québec institutions HIFA and the Université du Québec à Rimouski, are advancing an international collaboration with the National Geological Survey of Senegal. The initiative supports responsible resource development through technology transfer and shared expertise between Canadian and Senegalese stakeholders.

From March 5 to 11, 2026, an official Senegalese delegation led by SGNS Director General Dr. Rokhaya Samba Diène will visit Québec for working sessions, technical site visits and a steering committee meeting. The mission is designed to solidify a long-term framework for airborne geophysical surveys, innovative exploration technologies and improved geoscientific data management, strengthening scientific capacity and deepening ties between the two jurisdictions.

The most recent analyst rating on (TSE:SQX) stock is a Hold with a C$0.02 price target. To see the full list of analyst forecasts on Squatex Energy and Ressources Inc stock, see the TSE:SQX Stock Forecast page.