Topaz Energy Corp (TPZ) AI Stock Analysis

• Market Cap: C$3.97B
• Dividend Yield: 5.19%
• Average Volume (3M): 282.39K
• Price to Earnings (P/E): 72.0
• Beta (1Y): 0.80
• Revenue Growth: 2.02%
• EPS Growth: 12.06%
• Country: CA
• Employees: 8
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.14
• Shares Outstanding: 153,800,000
• 10 Day Avg. Volume: 197,066
• 30 Day Avg. Volume: 282,390
• PEG Ratio: 5.79
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -67.56
• 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$31.00
• Price Target Upside: 19.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: C$29.00 ▲(12.23%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

Asset Portfolio Quality

TPZ is appreciated for its high-quality asset portfolio which offers exposure to partner growth programs and defensive infrastructure revenue in a volatile market.

Dividend Increase

Investors should have increased confidence with another dividend bump, production guidance unchanged and a record 19% market-share of WCSB rig activity.

Value Creation

For every dollar spent, management created an additional $0.26 in value, showing strong potential for value creation.

Negative Factors

Inflationary Environment

Topaz stands out as a uniquely positioned company, especially amid uncertainties in the current inflationary environment.

Macroeconomic Uncertainty

Topaz continues to be a well-positioned, defensive name amid uncertainties in the current macro environment.

Topaz Energy Corp Business Overview & Revenue Model

Company Description

Topaz Energy Corp (TPZ) is a Canadian-based oil and gas royalty and energy infrastructure company. The company primarily operates in the natural resources sector, focusing on acquiring and managing oil and gas royalty interests and infrastructure assets. Topaz Energy's core services include the development and management of energy infrastructure, as well as securing revenue streams from oil and gas production without being directly involved in exploration and production activities.

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

Topaz Energy Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.84
• 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 Positive. The current price of 25.84 is above the 20-day moving average (MA) of 25.53, above the 50-day MA of 25.45, and above the 200-day MA of 25.17, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 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
KEY	80 Outperform	C$9.77B	17.99	19.55%	4.83%	8.00%	52.89%
GEI	72 Outperform	C$4.04B	24.85	17.23%	6.79%	-5.85%	-8.05%
TPZ	70 Outperform	C$3.97B	71.99	4.22%	5.19%	2.02%	12.06%
PEY	70 Outperform	C$3.90B	12.69	11.17%	6.82%	2.80%	-7.94%
FRU	69 Neutral	$2.22B	13.52	15.22%	7.98%	-1.62%	12.60%
Sector *	67 Neutral	$15.27B	9.94	6.24%	5.21%	4.47%	-70.67%
PSK	65 Neutral	C$5.67B	25.77	8.08%	4.26%	1.73%	3.68%

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.