Touchstone Exploration (TXP) AI Stock Analysis

• Market Cap: $71.44M
• Dividend Yield: N/A
• Average Volume (3M): 148.86K
• Price to Earnings (P/E): 59.5
• Beta (1Y): 0.58
• Revenue Growth: -23.68%
• EPS Growth: 75.45%
• Country: CA
• Employees: 104
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.01
• Shares Outstanding: 324,733,600
• 10 Day Avg. Volume: 276,722
• 30 Day Avg. Volume: 148,863
• PEG Ratio: -0.08
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 2.02
• P/FCF Ratio: -8.40
• Enterprise Value/Market Cap: 2.19
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 6.05
• Enterprise Value/Ebitda: 11.27
• 1Y Price Target: $0.59
• Price Target Upside: 355.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Touchstone Exploration's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant challenges in profitability and cash flow management, compounded by bearish technical indicators. The negative P/E ratio further highlights valuation concerns, making the stock less attractive to investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and potential for future profitability, supporting long-term business expansion.

Gross Profit Margin

A healthy gross profit margin suggests efficient cost management and potential for sustainable profitability, enhancing financial stability.

Operational Cash Flow

Positive operating cash flow indicates the company's ability to generate cash from core operations, supporting ongoing investments and debt servicing.

Negative Factors

Net Profit Margin

A low net profit margin highlights challenges in converting revenue into profit, which could impact long-term financial sustainability and shareholder returns.

Free Cash Flow

Negative free cash flow indicates difficulties in generating excess cash, potentially limiting the company's ability to invest in growth opportunities.

Leverage

Increased leverage can strain financial resources and reduce flexibility, posing risks to long-term financial health and operational stability.

Touchstone Exploration Business Overview & Revenue Model

Company Description

Touchstone Exploration Inc. is a Canadian-based oil and gas exploration and production company focused on developing its assets in the Republic of Trinidad and Tobago. The company operates in the upstream sector of the oil and gas industry, engaging in the exploration, development, and production of crude oil and natural gas. Touchstone's core services include drilling and completing wells, as well as managing production operations to optimize output and efficiency.

How the Company Makes Money

Touchstone Exploration generates revenue primarily through the sale of crude oil and natural gas that it extracts from its operational fields in Trinidad and Tobago. The company's revenue model is based on the production of hydrocarbons, where it sells its output to local and international markets. Key revenue streams include direct sales of oil and gas, with pricing influenced by global commodity markets. Additionally, the company may benefit from strategic partnerships with local firms and service providers, which can enhance operational efficiency and reduce costs. Factors contributing to its earnings include successful exploration activities that increase production volumes, effective cost management, and favorable pricing conditions in the energy market.

Touchstone Exploration Financial Statement Overview

Summary

Touchstone Exploration shows strong revenue growth but faces challenges in profitability and cash flow management. The income statement reveals a low net profit margin and declining EBIT and EBITDA margins. The balance sheet indicates moderate stability with manageable leverage, but low return on equity. Cash flow concerns are significant, with negative free cash flow and a low operating cash flow to net income ratio.

Income Statement

Touchstone Exploration's income statement shows mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 53.78%, but the net profit margin is quite low at 1.30%, indicating limited profitability. Revenue growth is strong at 108.2% TTM, but the EBIT and EBITDA margins have declined significantly compared to the previous year, suggesting operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has increased to 0.75 TTM, indicating higher leverage, but it remains manageable. Return on equity is low at 0.90% TTM, suggesting limited returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable.

Cash Flow

Cash flow analysis reveals concerns, with negative free cash flow and a free cash flow to net income ratio of -69.57% TTM. Although operating cash flow is positive, the operating cash flow to net income ratio is low at 20.07% TTM, indicating challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.76M	43.66M	48.16M	42.99M	29.61M	19.59M
Gross Profit	25.91M	33.02M	29.98M	24.01M	16.94M	10.60M
EBITDA	13.90M	19.94M	-4.20M	8.34M	5.30M	-680.00K
Net Income	636.00K	8.27M	-20.60M	-3.20M	5.72M	-11.03M
Balance Sheet
Total Assets	229.01M	152.27M	138.95M	147.88M	143.02M	104.55M
Cash, Cash Equivalents and Short-Term Investments	6.34M	6.74M	8.19M	16.34M	17.94M	24.28M
Total Debt	55.39M	40.66M	32.30M	28.34M	32.16M	7.51M
Total Liabilities	155.09M	83.44M	79.18M	69.50M	75.46M	44.19M
Stockholders Equity	73.91M	68.83M	59.77M	78.38M	67.56M	60.37M
Cash Flow
Free Cash Flow	-7.25M	-10.50M	-6.21M	-5.58M	-26.32M	-16.27M
Operating Cash Flow	9.81M	13.18M	12.74M	5.75M	1.55M	2.30M
Investing Cash Flow	-42.31M	-20.62M	-21.11M	-16.48M	-29.39M	-15.60M
Financing Cash Flow	31.92M	5.93M	130.00K	9.05M	21.15M	31.32M

Touchstone Exploration Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 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 0.13 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.21, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 27.13 is Positive, neither overbought nor oversold. The STOCH value of 47.62 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
JOY	72 Outperform	$254.34M	15.73	5.81%	―	-1.47%	267.04%
AXL	68 Neutral	C$61.46M	4.23	21.10%	―	43.81%	413.13%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
YGR	60 Neutral	C$103.30M	5.59	3.18%	―	-12.46%	-49.29%
CVVY	54 Neutral	C$264.46M	―	-15.54%	―	-15.50%	-58.23%
CNE	48 Neutral	C$52.20M	0.95	10.62%	―	-7.68%	79.37%
TXP	41 Neutral	$71.44M	59.46	-4.64%	―	-23.68%	75.45%

Touchstone Exploration Corporate Events

Touchstone Exploration Reports Third Quarter 2025 Financial Results

Touchstone Exploration Inc. reported a decline in financial performance for the third quarter of 2025, with a net loss of $2.06 million compared to a profit in the previous year. The company’s production averaged 5,141 boe/d, with a notable increase in natural gas output. Despite a decrease in petroleum and natural gas sales, Touchstone continues to invest in its Cascadura operations and has secured convertible debt financing to support its development activities. The company is also working on strategic dispositions and drilling updates, aiming to optimize production and address pricing challenges with the National Gas Company of Trinidad and Tobago.

Touchstone Exploration Enhances Brokerage Team with New Appointments

Touchstone Exploration Inc. has appointed Canaccord Genuity Limited as its Nominated Adviser and joint corporate broker, alongside Cavendish Capital Markets Limited, to enhance its corporate brokerage capabilities. This strategic move is expected to strengthen Touchstone’s market presence and support its ongoing operations in the petroleum and natural gas sector.

Touchstone Exploration Announces Executive Departure and Leadership Restructuring

Touchstone Exploration Inc. announced the departure of Mr. James Shipka, Executive Vice President, Asset Development and HSE, effective November 7, 2025. His responsibilities will be redistributed among the existing executive leadership team, indicating a strategic internal restructuring that may impact the company’s operational dynamics.

Touchstone Exploration Executives Participate in Share Purchase Plan

Touchstone Exploration Inc. announced purchases under its Employee Share Purchase Plan, involving key executives including the CEO and CFO, who acquired common shares at a price of C$0.22 per share. This move is indicative of confidence in the company’s future prospects and aligns with its strategy to strengthen employee engagement and commitment, potentially impacting its market positioning positively.

Touchstone Exploration Raises £7 Million Through Retail Offer and Private Placement

Touchstone Exploration Inc. has successfully closed its Retail Offer, issuing 6,181,818 new common shares at 11 pence per share, raising £0.68 million. Combined with a prior private placement, the total gross proceeds amount to £7.0 million, enhancing the company’s financial position and potentially impacting its operational capabilities and market presence.

Touchstone Exploration Launches Retail Offer to Raise £0.68 Million

Touchstone Exploration Inc. has announced a retail offer to raise up to £0.68 million through the issuance of new common shares at 11 pence per share, which is a 2.2% discount to the previous closing price. This initiative is part of a broader strategy to engage retail shareholders in the UK, offering them a chance to participate alongside institutional investors, with the proceeds intended to support the company’s ongoing operations and strategic goals. The retail offer is contingent upon the admission of the new shares to trading on the Toronto Stock Exchange and AIM market, with the process expected to conclude by the end of October 2025.

Touchstone Exploration Secures £6.32 Million in Private Placement to Fund 2025 Capital Program

Touchstone Exploration Inc. has announced a successful private placement raising £6.32 million (approximately US$8.44 million) and plans to raise an additional £0.68 million through a retail offer. The funds will support the company’s revised 2025 capital program, including drilling and infrastructure projects. The investment from Purebond Limited, which includes the right to appoint a board member, enhances Touchstone’s financial stability and strategic positioning. Despite a decrease in expected production and funds flow, the company remains focused on advancing its high-return projects.

Touchstone Exploration Announces Executive Share Purchases

Touchstone Exploration Inc. announced purchases under its Employee Share Purchase Plan, involving key executives including the CEO and CFO. The transaction, conducted on October 1, 2025, at the Toronto Stock Exchange, involved the purchase of common shares at C$0.26 each, reflecting the company’s commitment to aligning employee interests with shareholder value.

Touchstone Exploration Updates on Cascadura Operations and Strategic Divestiture

Touchstone Exploration Inc. has provided an operational update on its Ortoire block activities, revealing that the Cascadura-4ST2X well encountered gas-charged sands, leading to early termination of drilling operations. Despite challenges, the company plans to complete the well for production and has initiated completion operations on the Cascadura-5 well. Additionally, Touchstone has entered into a strategic divestiture agreement to sell its non-core Fyzabad oil property, with plans to utilize the proceeds for drilling three new wells in its WD-8 and WD-4 blocks, indicating a strategic shift to focus on scalable assets.

Touchstone Exploration Director Acquires 250,000 Shares

Touchstone Exploration Inc. announced that Stanley T. Smith, a Non-Executive Director of the company, purchased a total of 250,000 common shares over three days in September 2025. This transaction, conducted on the Toronto Stock Exchange, reflects confidence in the company’s prospects and may influence investor sentiment positively, potentially impacting the company’s market position and stakeholder interests.

Touchstone Exploration Announces Employee Share Purchases

Touchstone Exploration Inc. announced the purchase of common shares under its Employee Share Purchase Plan, involving key executives including the CEO and CFO. The transactions, conducted on the Toronto Stock Exchange, reflect the company’s ongoing commitment to align employee interests with corporate performance, potentially enhancing stakeholder confidence and market positioning.

Touchstone Exploration Grants Long-Term Share Awards to Leadership

Touchstone Exploration Inc. has announced the grant of long-term share awards to its non-executive directors, executive officers, and key employees as part of its compensation program. The company issued 3,537,139 restricted share units (RSUs) and 3,423,974 performance share units (PSUs) under its incentive compensation plan, with RSUs vesting over three years and PSUs subject to performance targets. Additionally, 1,476,424 deferred share units (DSUs) were granted to non-executive directors, vesting immediately but redeemable only after leaving the board. This move aims to align the interests of the company’s leadership with its long-term performance goals, potentially impacting its operational focus and stakeholder confidence.

Touchstone Exploration Announces Investor Update and Q&A Session

Touchstone Exploration Inc. has announced an investor update and Q&A session to discuss its Q2 2025 results and 2025 work programme. This event, led by President and CEO Paul Baay, will be held via the Investor Meet Company platform, providing stakeholders with insights into the company’s operational progress and strategic direction.