Topaz Energy Corp (TPZ) AI Stock Analysis

• Market Cap: C$3.95B
• Dividend Yield: 5.09%
• Average Volume (3M): 320.81K
• Price to Earnings (P/E): 61.6
• Beta (1Y): 0.83
• Revenue Growth: 1.92%
• EPS Growth: 11.06%
• Country: CA
• Employees: 8
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.18
• Shares Outstanding: 153,800,000
• 10 Day Avg. Volume: 275,306
• 30 Day Avg. Volume: 320,814
• PEG Ratio: -29.03
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 13.61
• P/FCF Ratio: -25.25
• 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: C$30.80
• Price Target Upside: 16.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: C$27.00 ▲(2.54% Upside)

Topaz Energy Corp's overall stock score is driven by strong earnings call performance and stable financials, despite challenges in revenue growth and valuation concerns. The company's operational success and financial flexibility are positive, but the high P/E ratio and technical indicators suggest caution.

Positive Factors

Revenue Growth

The increase in royalty production indicates strong operational performance and potential for sustained revenue growth, enhancing the company's market position.

Infrastructure Revenue Growth

Significant growth in infrastructure revenue supports stable cash flows and strengthens Topaz's business model, providing resilience against market fluctuations.

Financial Flexibility

High free cash flow margin enhances financial flexibility, allowing Topaz to invest in growth opportunities and manage debt effectively, ensuring long-term stability.

Negative Factors

Declining Revenue

Declining revenue poses a challenge to growth, potentially impacting profitability and necessitating strategic adjustments to maintain competitive advantage.

Increased Leverage

Higher leverage can strain financial resources, limiting flexibility and increasing risk, especially if market conditions worsen, impacting long-term financial health.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, requiring careful capital management to ensure ongoing operations and investment capacity.

Topaz Energy Corp Business Overview & Revenue Model

Company Description

Topaz Energy Corp. operates as a royalty and energy infrastructure company. It operates in Royalty Production and Infrastructure segments. The company holds gross overriding royalty interests on approximately 5.3 million gross acres of developed and undeveloped lands. It is also involved in the natural gas processing and water management infrastructure activities. The company was formerly known as Exshaw Oil Corp. and changed its name to Topaz Energy Corp. in November 2019. Topaz Energy Corp. was incorporated in 2006 and is headquartered in Calgary, Canada.

How the Company Makes Money

Topaz Energy Corp generates revenue through a combination of royalty income and energy infrastructure services. The company's royalty income is derived from its ownership of royalty interests in various oil and gas properties, which entitles Topaz Energy to a percentage of the revenue from oil and gas production on those properties. This model allows the company to benefit from production without incurring the costs and risks associated with exploration and extraction. Additionally, Topaz Energy earns money from its energy infrastructure assets by providing services such as processing, transportation, and storage to other energy companies. These revenue streams are often supported by long-term contracts and partnerships with exploration and production companies, which contribute to the stability and predictability of Topaz Energy's earnings.

Topaz Energy Corp Financial Statement Overview

Summary

Topaz Energy Corp maintains a stable EBITDA margin and strong equity position. However, challenges such as declining revenue, increased leverage, and negative free cash flow highlight areas for improvement. The company needs to focus on revenue growth and managing its capital structure to ensure long-term financial health.

Income Statement

Topaz Energy Corp shows a stable gross profit margin and a positive EBITDA margin. However, the net profit margin is relatively low, and there is a decrease in total revenue from the previous year, indicating a challenge in revenue growth. The company's ability to maintain profitability through EBITDA is a positive sign, but the declining trend in EBIT and net income growth rate requires attention.

Balance Sheet

The company's debt-to-equity ratio has increased, suggesting a rise in leverage which might pose a risk if not managed properly. The equity ratio remains strong, indicating a solid financial position. Return on equity shows potential, but the increasing debt levels and reduced cash reserves could impact financial flexibility.

Cash Flow

Operating cash flow remains robust, though the free cash flow has turned negative due to significant capital expenditures. The company has a healthy operating cash flow to net income ratio, but the free cash flow decline indicates a need for careful management of capital expenditures to maintain liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.85M	299.80M	306.69M	356.74M	198.61M	89.64M
Gross Profit	111.50M	103.36M	89.30M	147.28M	43.19M	4.15M
EBITDA	322.37M	293.16M	315.42M	351.57M	193.10M	88.22M
Net Income	62.91M	46.39M	47.64M	99.36M	27.56M	3.09M
Balance Sheet
Total Assets	1.83B	1.89B	1.65B	1.84B	1.61B	1.01B
Cash, Cash Equivalents and Short-Term Investments	12.91M	10.75M	3.46M	6.24M	801.00K	220.19M
Total Debt	525.49M	540.40M	391.64M	464.58M	276.86M	0.00
Total Liabilities	578.60M	578.33M	403.37M	473.44M	286.83M	2.82M
Stockholders Equity	1.26B	1.32B	1.24B	1.36B	1.32B	1.01B
Cash Flow
Free Cash Flow	-68.60M	-161.63M	246.03M	-36.81M	-757.08M	82.39M
Operating Cash Flow	297.65M	276.27M	300.58M	317.88M	165.02M	83.64M
Investing Cash Flow	-384.76M	-439.99M	-51.96M	-354.10M	-921.40M	-172.63M
Financing Cash Flow	87.41M	160.41M	-245.16M	36.22M	536.20M	301.04M

Topaz Energy Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.33
• 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:TPZ, the sentiment is Positive. The current price of 26.33 is above the 20-day moving average (MA) of 25.21, above the 50-day MA of 25.10, and above the 200-day MA of 24.61, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 75.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TPZ.

Topaz Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEY	78 Outperform	3.79B	11.23	12.12%	7.00%	7.02%	7.16%
KEY	73 Outperform	10.70B	20.01	18.75%	4.50%	1.57%	55.82%
FRU	69 Neutral	2.28B	17.95	―	7.78%	-0.92%	-23.14%
GEI	66 Neutral	4.45B	27.59	18.61%	6.19%	-14.27%	-11.69%
PSK	65 Neutral	6.10B	27.21	―	3.91%	-4.07%	-3.22%
TPZ	64 Neutral	C$3.95B	61.58	5.17%	5.09%	1.92%	11.06%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Topaz Energy Corp Corporate Events

Topaz Energy Corp. Reports Robust Q2 2025 Financial Growth

Topaz Energy Corp. reported strong financial results for the second quarter of 2025, with notable growth in royalty and infrastructure sectors. The company achieved a 19% increase in royalty production and a 37% rise in processing revenue from its infrastructure assets. Topaz’s strategic acquisitions and development activities have contributed to increased production and revenue, enhancing its market position. The company also maintained a robust financial standing with a significant cash flow increase and a healthy dividend payout, while extending its credit facility to support future growth.

The most recent analyst rating on (TSE:TPZ) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Topaz Energy Corp stock, see the TSE:TPZ Stock Forecast page.