Topaz Energy Corp (TPZ) AI Stock Analysis

• Market Cap: C$3.94B
• Dividend Yield: 5.31%
• Average Volume (3M): 354.68K
• Price to Earnings (P/E): 71.9
• Beta (1Y): 0.78
• Revenue Growth: 2.02%
• EPS Growth: 12.06%
• Country: CA
• Employees: 8
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.14
• Shares Outstanding: 153,800,000
• 10 Day Avg. Volume: 350,354
• 30 Day Avg. Volume: 354,684
• PEG Ratio: 5.82
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -67.95
• 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$30.67
• Price Target Upside: 19.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: C$29.00 ▲(13.33%Upside)

Topaz Energy Corp's overall stock score is primarily driven by strong earnings call performance and positive corporate events, indicating strategic growth and solid shareholder confidence. Financial performance and technical analysis show areas for caution, particularly with revenue challenges and overbought technical indicators, while valuation suggests the stock is currently overpriced.

Positive Factors

Dividend Performance

Topaz Energy's recent dividend increase from $0.33 to $0.34 per share boosts investor confidence.

Growth Potential

Management created an additional $0.26 in value for every dollar spent, indicating strong potential for value creation.

Strategic Positioning

Topaz Energy benefits from its high-quality infrastructure assets and royalties on premier plays within Canada, positioning it defensively amid market uncertainties.

Negative Factors

Market Conditions

The current inflationary environment presents challenges despite Topaz's strong positioning.

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 makes money through its portfolio of royalty interests and energy infrastructure assets. Its primary revenue stream comes from royalty payments, which are derived from the production of oil and gas from its royalty lands. These payments are typically a percentage of the revenue generated from the sale of oil and gas produced on these lands. Additionally, the company invests in and owns energy infrastructure assets, such as gas processing plants and natural gas pipelines, which provide further income through service fees and tariffs. Significant partnerships with exploration and production companies enable Topaz Energy Corp to enhance its asset base and ensure a steady flow of revenue.

Topaz Energy Corp Financial Statement Overview

Summary

Topaz Energy Corp exhibits strengths in maintaining a consistent EBITDA margin and a 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	313.23M	299.80M	306.69M	356.74M	198.61M	89.64M
Gross Profit	110.03M	103.36M	89.30M	147.28M	43.19M	4.15M
EBITDA	304.84M	293.16M	315.42M	351.57M	193.10M	88.22M
Net Income	52.48M	46.39M	47.64M	99.36M	27.56M	3.09M
Balance Sheet
Total Assets	1.01B	1.89B	1.65B	1.84B	1.61B	1.01B
Cash, Cash Equivalents and Short-Term Investments	220.19M	10.75M	3.46M	6.24M	801.00K	220.19M
Total Debt	0.00	540.40M	391.64M	464.58M	276.86M	0.00
Total Liabilities	2.82M	578.33M	403.37M	473.44M	286.83M	2.82M
Stockholders Equity	1.01B	1.32B	1.24B	1.36B	1.32B	1.01B
Cash Flow
Free Cash Flow	-58.01M	-161.63M	246.03M	-36.81M	-757.08M	82.39M
Operating Cash Flow	285.73M	276.27M	300.58M	317.88M	165.02M	83.64M
Investing Cash Flow	-457.95M	-439.99M	-51.96M	-354.10M	-921.40M	-172.63M
Financing Cash Flow	169.36M	160.41M	-245.16M	36.22M	536.20M	301.04M

Topaz Energy Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 25.59 is below the 20-day moving average (MA) of 25.81, above the 50-day MA of 24.86, and above the 200-day MA of 25.13, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 30.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TPZ.

Topaz Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPZ	70 Outperform	C$3.94B	71.88	4.22%	5.31%	2.02%	12.06%
Sector *	68 Neutral	$15.14B	9.95	6.38%	5.21%	4.16%	-67.19%
GBNXF		$2.85B	24.35	17.23%	7.10%	―	―
FRHLF		$1.55B	13.24	15.22%	8.38%	―	―
PREKF		$4.12B	25.68	8.39%	4.34%	―	―
KEY	76 Outperform	C$9.80B	17.94	19.55%	4.77%	8.00%	52.89%
PEY	68 Neutral	C$3.77B	12.63	11.17%	7.00%	2.80%	-7.94%

Topaz Energy Corp Corporate Events

Topaz Energy Corp. Secures Shareholder Approval for Key Resolutions

Topaz Energy Corp. announced that all resolutions were approved at its annual shareholders’ meeting, including the appointment of eight directors and KPMG LLP as auditors. The company’s approach to executive compensation also received strong support. This outcome reflects shareholder confidence in Topaz’s strategic direction and governance, potentially strengthening its market position and stakeholder relations.

Topaz Energy Corp. Reports Record Q1 2025 Results and Increases Dividend

Topaz Energy Corp. reported a strong first quarter in 2025, with record royalty production and a notable increase in cash flow and free cash flow, both up by 13% per share compared to the previous year. The company achieved record processing revenue and announced a dividend increase, reflecting its strategy to align dividend growth with sustainable revenue increases. Topaz also extended its credit facility maturity date, maintaining a robust credit capacity, and continued to advance the construction of a new natural gas processing facility. These developments highlight Topaz’s strategic focus on enhancing shareholder value and expanding its operational capabilities.