Touchstone Exploration (TXP) AI Stock Analysis

• Market Cap: C$70.94M
• Dividend Yield: N/A
• Average Volume (3M): 90.21K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.83
• Revenue Growth: -6.52%
• EPS Growth: N/A
• Country: CA
• Employees: 104
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 236,460,660
• 10 Day Avg. Volume: 105,127
• 30 Day Avg. Volume: 90,207
• PEG Ratio: 0.30
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.94
• Enterprise Value/Market Cap: 2.21
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 26.51
• 1Y Price Target: C$1.09
• Price Target Upside: 355.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: C$0.50 ▲(108.33%Upside)

Touchstone Exploration's overall stock score is driven by its attractive valuation and positive recent corporate events, which enhance its strategic positioning. However, the weak technical indicators and challenges in financial performance, particularly in cash flow, temper the positive outlook. The lack of dividend yield and the need for better cash flow management are notable concerns.

Touchstone Exploration Business Overview & Revenue Model

Company Description

Touchstone Exploration Inc., an upstream oil and gas company, engages in the exploration, development, production, and sale of petroleum and natural gas properties in the Republic of Trinidad and Tobago. The company has interests in various private exploration mineral leasing properties; and two exploration blocks. Its primary exploration focus is the Ortoire exploration block. The company was formerly known as Petrobank Energy and Resources Ltd. and changed its name to Touchstone Exploration Inc. in May 2014. Touchstone Exploration Inc. was incorporated in 2012 and is headquartered in Calgary, Canada.

How the Company Makes Money

Touchstone Exploration generates revenue through the sale of crude oil and natural gas extracted from its assets in Trinidad and Tobago. The company's key revenue streams include the production and sale of hydrocarbons from its operated wells. Touchstone's earnings are influenced by factors such as global oil and gas prices, production levels, and operational efficiencies. Additionally, strategic partnerships and joint ventures with other energy companies play a significant role in enhancing its production capabilities and expanding its asset base in the region.

Touchstone Exploration Financial Statement Overview

Summary

Touchstone Exploration has shown revenue growth and operational efficiency improvements, but persistent net losses and negative cash flows remain significant challenges. The moderate debt load is manageable; however, liquidity concerns arise due to negative free cash flows and high capital expenditures. Efforts to enhance profitability and cash generation are essential for stability.

Income Statement

Touchstone Exploration's revenue has shown a positive growth trajectory with TTM revenue at $61.16M, growing from $48.16M in 2023, marking a 27% increase. However, the company continues to face profitability challenges, indicated by a negative net profit margin of -20.31% in the TTM. Gross profit margin has improved to 66.43% in the TTM, highlighting operational efficiency improvements. The EBIT margin has risen to 33.73%, reflecting better cost management. Despite these improvements, the negative EBITDA and net income indicate ongoing financial pressures.

Balance Sheet

The balance sheet shows a stable equity position with a stockholders' equity of $69.69M. The debt-to-equity ratio stands at a moderate 0.43, suggesting reasonable leverage levels. However, the declining equity ratio from 53% in 2020 to 46% in the TTM signals increased reliance on debt financing. The ROE remains negative due to persistent net losses, highlighting challenges in generating returns for shareholders.

Cash Flow

The company's cash flow situation is constrained, with a negative free cash flow of $-17.48M in the TTM. Operating cash flow to net income ratio is healthy at 1.68, indicating positive operational cash generation despite net losses. The free cash flow to net income ratio remains negative, reflecting high capital expenditures exceeding operational cash inflows. This suggests potential liquidity risks if operating cash flows do not improve.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	61.16M	48.16M	42.99M	29.61M	19.59M	38.65M
Gross Profit	40.62M	29.98M	24.01M	16.94M	10.60M	22.50M
EBITDA	5.92M	-4.20M	8.34M	5.30M	-680.00K	12.79M
Net Income	-12.42M	-20.60M	-3.20M	5.72M	-11.03M	-5.62M
Balance Sheet
Total Assets	151.53M	138.95M	147.88M	143.02M	104.55M	85.05M
Cash, Cash Equivalents and Short-Term Investments	6.55M	8.19M	16.34M	17.94M	24.28M	6.18M
Total Debt	29.92M	30.86M	28.34M	32.16M	7.51M	15.06M
Total Liabilities	81.84M	79.18M	69.50M	75.46M	44.19M	54.93M
Stockholders Equity	69.69M	59.77M	78.38M	67.56M	60.37M	30.11M
Cash Flow
Free Cash Flow	-17.48M	-6.21M	-5.58M	-26.32M	-16.27M	-6.05M
Operating Cash Flow	20.87M	12.74M	5.75M	1.55M	2.30M	5.45M
Investing Cash Flow	-19.51M	-21.11M	-16.48M	-29.39M	-15.60M	-10.19M
Financing Cash Flow	1.39M	130.00K	9.05M	21.15M	31.32M	7.50M

Touchstone Exploration Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TXP, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.36, and below the 200-day MA of 0.45, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 20.99 is Positive, neither overbought nor oversold. The STOCH value of 34.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TXP.

Touchstone Exploration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXL	74 Outperform	C$97.19M	5.54	24.95%	―	56.21%	―
JOY	68 Neutral	$127.50M	14.33	2.85%	―	-9.43%	-31.07%
TXP	61 Neutral	C$70.94M	8.86	7.06%	―	-6.52%	―
YGR	60 Neutral	C$103.29M	4.66	4.01%	―	-18.67%	-46.91%
CNE	58 Neutral	$90.08M	4.40	-1.29%	6.77%	17.52%	-105.04%
Sector *	52 Neutral	C$2.91B	-0.93	-3.26%	6.13%	2.20%	-43.43%
CVVY	48 Neutral	C$113.26M	―	-21.67%	―	-42.15%	-117.23%

Touchstone Exploration Corporate Events

Touchstone Exploration’s 2025 Shareholders’ Meeting Approves Key Resolutions

Touchstone Exploration Inc. announced that all matters presented at its 2025 annual shareholders’ meeting were approved. The meeting, held virtually, saw the election of six directors and the appointment of KPMG LLP as auditors. The approval of these resolutions reflects strong shareholder support and is expected to positively impact the company’s governance and operational oversight.

The most recent analyst rating on (TSE:TXP) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on Touchstone Exploration stock, see the TSE:TXP Stock Forecast page.

Touchstone Exploration Completes Acquisition of Shell Trinidad Central Block

Touchstone Exploration Inc. has completed the acquisition of Shell Trinidad Central Block Limited for approximately $28.4 million. This acquisition gives Touchstone a 65% interest in the Central block exploration and production license in Trinidad, which includes four natural gas wells and a gas processing facility. The transaction is expected to enhance Touchstone’s production base, provide access to the liquefied natural gas market, and strengthen its operational capacity in Trinidad, offering long-term strategic value.

The most recent analyst rating on (TSE:TXP) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on Touchstone Exploration stock, see the TSE:TXP Stock Forecast page.